Shanta Gold (AIM: SHG), the East Africa–focused gold producer, developer and explorer is pleased to announce that its Singida Gold Mine (“Singida”) in Tanzania has achieved
commercial production, effective 1 June 2023.
Eric Zurrin, CEO, commented: “I am delighted to announce that commercial production has been declared at Singida following what has been a rapid ramp–up period after first gold pour. The mine delivered steady results against production KPIs including consistent gold production and higher than expected gold recoveries, culminating in several successful gold shipments. I would like to acknowledge the hard work and dedication of our team, which has successfully designed and delivered the project over the past two years from construction through to commercial production.
With this key milestone achieved, I can confidently say that Shanta has reached an inflexion point at which the Company can now look further forward for its next phase of growth. The cashflow contribution from Singida materially increases financial flexibility for the Company allowing management to comfortably take the next steps required in its growth journey.
This has already been demonstrated through our recent decision to undertake targeted
investment in drilling throughout the Shanta portfolio, where we see material opportunities for reserves and resource growth. With our balance sheet in a healthy position underpinned by two producing gold mines delivering 100,000 oz pa, we are excited by the potential that Shanta has to offer and look forward to unlocking further long–term value for our shareholders going forwards.”
Commercial production has been declared at Singida based on achieving 30 consecutive days of mill throughput exceeding 95% of nominal nameplate capacity of 1,000 tonnes per day (“tpd”), overall plant utilisation and gold recovery exceeding 95% and plant availability above 90%.
In addition, key necessary permits and equipment are all in place and key personnel required to maintain stable production at Singida, with the first gold shipments being successfully completed in May 2023.
Mining activities at the Gold Tree open pit are progressing according to schedule with nearly six–months’ worth of feed already stockpiled and positive grade reconciliation against the resource model being achieved. The current stockpile totals 187,673 tonnes at 2.17 g/t Au containing 13,085 Koz, inclusive of 37,844 tonnes grading 2.40 g/t Au containing 2,917 oz for in–plant crushed ore.
