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Shanta Gold announces second-quarter performance

Shanta Gold has exceeded its second-quarter production target, reporting a 54% jump in gold production in the three months to end-June versus the first quarter and reiterated its full-year output guidance of 68,000 to 76,000 ounces.

The Aim-listed company produced 17,527 ounces of gold from its New Luika mine in Tanzania, up from 11,408 ounces in the first quarter and 23% higher than in the second quarter of 2021. Production was 15% higher than planned for the quarter, it noted.

CEO Eric Zurrin highlighted in a production and operational update for the period, published on July 21, that production for the month of June, at 7 538 oz, had been the highest output level achieved by the company in more than 12 months.

Track record

The company owns NLGM and the Singida project, in Tanzania, as well as the West Kenya project in Kenya. Construction at Singida was 63% complete at the end of June and is on track for first gold production in March 2023.

“At New Luika, the initial Crown Pillar mining has been delivered safely resulting in production being up 54% in Q2 vs Q1, which exceeded our internal expectations. Singida will transform Shanta into a +100 000 oz/y producer with a diversified resource base,” said chief executive Eric Zurrin.

He added that the company was also making material inroads at West Kenya, with three drill rigs in operation across the project, following on from the announcement of the high-grade, upgraded mineral resource estimate in the first quarter.

Shanta has also been awarded a maiden mining licence covering the Porcupine South resource area of the Lupa Goldfield, about 22 km from the NLGM processing plant. Zurrin said Shanta had a strong balance sheet, underpinned by its new $20-million senior debt financing with the Stanbic Bank of Tanzania, announced in June, with disbursement completed on July 15. Singida construction is fully funded through to first production.

 

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