SHANTA Gold said its $25m Singida project in Tanzania was 45% complete with a “clear path” to producing first gold by early 2023.
The project would take total gold production at Shanta Gold to over 100,000 ounces a year and provide gold revenue from a second asset for the first time in the company’s history. It currently mines from New Luika, also in Tanzania.
“Never before has Shanta been in this position to capitalise on its growth potential, with a healthy balance sheet in a net cash position, excellent financial flexibility, and ongoing commitment to pay a sustainable dividend to our shareholders,” said Eric Zurrin, CEO of Shanta Gold.
“The project also has considerable upside potential given its location within a greenstone deposit, meaning it is well suited to further exploration growth,” he said. “Future drilling will target areas within the mining licenses with the aim of extending the reserves at Singida.”
Shanta announced earlier this month that it had replaced last year’s mined gold at its New Luika with new mineral reserves. The 110,000 oz in newly defined reserves added in 2021, before depletion, were predominantly from the Luika Underground project. New Luika’s mine life had been extended to 2026 “at least”, said Zurrin.
An updated resource estimate on the firm’s West Kenya project was expected at the end of February 2022. According to a scoping study in October 2020, the West Kenya project would have average annual production of 105,000 ounces over nine-years of mine life.
