THE recovery of Tanzanian producer, Shanta Gold, took another important step in the second quarter after the company turned in production of 20,544 ounces (Q1: 17,663 oz), lowered all-in sustaining costs (AISC), while on the corporate side it agreed to lower debt through the buy-back of convertible shares.
“This was a strong quarter for the company,” said Eric Zurrin, CEO of Shanti Gold. He added that operations were “… performing to plan”. There had also been “… an increase in gold production, and importantly, we continue to reiterate our production guidance for the year of 82,000 to 88,000 oz”.
Zurrin put the improved AISC numbers – which came in at $748/oz (Q1:$776/oz) – down to cost savings enforced last year. This year’s cost saving drive would have their presence felt in the second half of the firm’s 2018 financial year.
Shanta derives production from its New Luika Gold Mine but it is also seeking to diversify its output with the development of the Ilunga section, the first ore from which would be mined by mid-2019 instead of late 2020 as Shant planned. This would increase both “… the project NPV and overall production flexibility for New Luika,” said Zurrin.
Shanta was also pressing ahead with an exploration programme. “We are continuing the development programme at Singida following the announcement of a new JORC resource estimate, which included a 56% increase in measured resource,” he said.
