The Hugo North Extension is a rich copper-gold porphyry deposit in southern Mongolia and forms the northern-most extension of the Oyu Tolgoi mining complex. The property is managed by Oyu Tolgoi LLC (OTLLC), a subsidiary of Turquoise Hill Resources and the Government of Mongolia. Sandstorm acquired gold, silver and copper streams over the Hugo North Extension from Entrée Resources Ltd. Entrée has a 20% joint venture interest with OTLLC on the Hugo North Extension property.
Four deposits have been identified in the mineral resources at Oyu Tolgoi: Oyut, Hugo North, Hugo South, and Heruga. In the initial years of production, the main source of ore has been from the Oyut open pit and while the pit is being mined, underground infrastructure and block cave mine development is ongoing at Hugo North. Conventional crushing, grinding, and flotation circuits process the ore and the concentrates produced are sent to smelters in China.
The Hugo North Extension has a Probable Mineral Reserve of 40.0 Mt at grades of 1.5% copper, 0.5 g/t gold and 3.6 g/t silver ($96.97/t NSR cut-off, May 15, 2021 effective date) and an Inclusive Indicated Mineral Resource of 120.0 Mt grading 1.7% copper, 0.6 g/t gold, 4.3 g/t silver or 2.0% CuEq (0.41% CuEq cut-off, March 31, 2021 effective date). For more information visit www.entreeresourcesltd.com and www.turquoisehill.com.
A comprehensive funding arrangement was reached between Turquoise Hill and the Government of Mongolia, leading to a renewed partnership between the parties. The agreement permits work to commence on the undercut to start the Hugo North Life 1 underground mine production.
Entrée filed an amended technical report on its interest in the Entrée/Oyu Tolgoi joint venture property.