Singida mine project in Tanzania set for production in 2023
Following the release of its interim results for H1, 2022 Shanta Gold has provided an update on the Singida Gold Mine, which will be the company’s second operating mine in Tanzania when it commences production in Q1, 2023.
The construction of Singida commenced in late 2020, and will be Shanta’s second operating mine in Tanzania. This operation is set to transform the company into a +100,000 oz/pa producer with a diversified resource base. Singida is in the Ikungi region of Central Tanzania, and the company is said to be investing heavily in the project to ensure it is a success for the region and the local community. The current Life of Mine extends to the end of 2029, based on existing reserves.
“The Singida project continues to progress at a good pace with roughly 70% of the construction activity now finished. We anticipate first gold being poured in Q1, 2023 transforming Shanta into a +100,000 oz gold producer with a diversified asset base. In addition to, the high-grade West Kenya Project continues to drive excitement with the MRE increasing by 31% during the Period to 1.55 Moz.” said Eric Zurrin, Chief Executive Officer of Shanta Gold.
Milling technique
Shanta Mining Company Limited holds 100% of mining licenses ML 456/2012, ML 455/2012, and ML 457/2012, and these Mining Licenses were successfully extended for an additional period of 10 years in January 2022. Mining operations had commenced in September 2021, with ore currently being stockpiled, until it can be processed through the Carbon in Leach plant, which is currently being constructed. Seven open pits are planned to be mined as per the current Life of Mine Plan.
The planned processing methodology is metallurgically simple and conventional involving proven crushing and milling techniques with carbon-in-leach gold extraction planned to deliver robust gold recoveries of 91%. Ore stockpile levels recorded a total of 97,918 tonnes grading 2.11 g/t for 6,647 contained ounces at the end of the period. A total of 114,027 man-hours were worked at Singida in June 2022 resulting in total of 1,037,214 man-hours worked without Lost Time Injury (LTI) for the Period. There were no Medical Treated Injuries (MTI) in the Period which resulted to 0.00 TRIFR for the period and 0.00 TRIFR year to date.
Shanta also boasts of sterling interim results on its other operations in the East Africa region. Revenue has increased from $19.8 m in the first quarter, increasing to $32.1 m in Q2. While the 2021 Final dividend of 0.10 pence per share has been paid in July 2022, with an interim dividend declared of 0.10 pence per share, payable in November 2022.
“Whilst we have to be wary of inflation and its impact on certain unavoidable costs, we remain focused on our operational and capital discipline. As a company, we remain committed to maintaining our strong relationships with the local communities and authorities and operating in a responsible manner. I would like to thank the Shanta employees for their work so far this year. We believe the second half of the year is set to be a bright one for the company and we look forward to updating shareholders in due course,” concluded Zurrin.
