The decline development at the New Luika gold mine has
started after Aim-listed Shanta Gold secured all the required approvals for the
Tanzania mine to move from a surface operation to a high-grade underground
mining operation.
The East Africa-focused gold producer, developer and
explorer was becoming increasingly underground focused, with a fairly new base
case mine plan showing the production of 443 000 oz – 133 000 oz openpit and
310 000 oz underground – from 2016 to 2022.
“The start of the underground development is a major
milestone for New Luika, as it provides ongoing long-term access to high-grade
resources in the Bauhinia Creek and Luika deposits for at least the next five
years,” said Shanta CEO Toby Bradbury.
The underground project, which was fully resourced in terms
of employees and equipment, was aimed at bolstering production as New Luika’s
openpit operations were gradually mined out by March 2018.
Shanta previously indicated its intention of starting underground
production in the second quarter of 2017. Meanwhile, Shanta’s current
production, operating and capital costs remained on target, with a full update
expected to be released alongside the company’s results for the second quarter
of 2016.
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