Tanzania’s Shanta Gold Mine Set To Produce First Gold In Q3

Shanta Gold company expects to produce between 13 000 oz and 17 500 oz of gold in the fourth quarter of this year.

By AGENCIES

AIM-listed gold junior Shanta Gold on Thursday reported that it had completed wet commissioning of the processing plant at its near-production New Luika mine, in Tanzania.

Chairperson Walton Imrie said the New Luika gold mine was on the verge of completion in all respects with first gold production on schedule for the third quarter.

“The hot commissioning of the New Luika plant and start of gold production will mark a new chapter in Shanta Gold’s history as we evolve from developer to producer. This historic milestone is a testament to the hard work of the management and operational teams who have worked tirelessly to deliver Shanta Gold’s first producing gold mine,” he said.

First ore treatment is expected within the next few weeks, with current ore and gravels stockpiles estimated to contain over 22 000 oz of gold. The company also expects to produce between 13 000 oz and 17 500 oz of gold in the fourth quarter of this year.

“Following the combined $40-million equity and convertible loan note placings in April, the company is in a strong cash position and expects to have sufficient capital to cover the remaining working capital needs of the business through to production and into cash flow,” the company said in a statement.

Analysts at Liberum Capital commented Shanta had an “exciting” exploration portfolio and multiproject growth, which made it a favoured junior gold producer.