Shanta Gold has announced a new five-year plan for its gold assets in Tanzania, including New Luika Gold Mine and Singida Gold Project.
Eric Zurrin, CEO, comments:
“It’s been four years since we presented our last mine plan and we’re proud of having delivered on and exceeded what we set out to do at that time. We feel even more excited about this Five-Year Plan and the transformational journey to becoming a 110,000+ oz gold producer from 2023.
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“Our revised group-wide gold reserves and resources at 666,000 oz and 3,215,000 respectively demonstrate the huge potential in the portfolio, and our extension of the reserve-based mine life to 2026 at New Luika and 2029 at Singida underpins our confidence in the long-term sustainability of both assets.
“Whilst it’s been a challenging 18 months for the entire world, our focus has remained on protecting our team and communities whilst continuing to grow our business.
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“We have never been in such a strong position – with a healthy balance sheet, limited debt, a growing diversified portfolio and a maiden dividend launched this year. Our robust fundamentals will support our ambition to becoming a leading mid-tier gold producer in Africa.”
Reserve and resource growth and mine life extension:
- Group-wide gold reserves as at 30 June 2021 of 666,000 oz grading 2.99 g/t;
- Gold reserves at NLGM of 423,000 oz grading 2.99 g/t, up from 382,000 oz grading 2.98 g/t as at 31 December 2020;
- Group-wide gold resources of 3,215,000 oz grading 3.62 g/t;
- New Luika: 1,129,000 oz grading 2.73 g/t;
- Singida: 904,000 oz grading 2.38 g/t;
- West Kenya Project: 1,182,000 oz grading 12.6 g/t; and,
- Reserve-based mine life extended to 2026 at NLGM and 2029 at Singida.
Transformational production increases from 2023 with significant upside potential:
- Group-wide gold production forecast from Tanzanian assets of approximately 499,000 oz for the five-year period from H2 2021 – H1 2026;
- Average annual gold production from Tanzanian assets of 116,000 oz from 2023-2025;
- Significant upside through the potential conversion of 7.26 Mt grading 2.37 g/t for 552 koz resources at NLGM and 9.78 Mt grading 2.11 g/t for 664 koz resources at Singida currently sitting outside the Plan; and,
- Shanta continues to invest in West Kenya to confirm the viability of a mine, with a construction decision expected before the end of 2023.
Rapidly reducing cost base between 2021 and 2025:
- Average consolidated Adjusted Operating Costs and All In Sustaining Costs of US$778 /oz and US$986 /oz respectively over the Plan Period.
Potential for further portfolio optimisation:
- Potential for further optimisation of the mining schedule, with the Company exploring the possible addition of a fourth ball mill, which would increase plant throughput beyond 2,450 tonnes per day and reduce cut-off grades.