East Africa-focused gold producer, developer and explorer, Shanta Gold announce that the company's plan to reduce its costs by US$7 million on an annualised basis has been achieved, three months ahead of schedule.
Since announcing its target to reduce annualised costs by a further US$2 million in January 2018, Shanta Gold has achieved an additional US$2.1 million of recurring cost reductions, taking the total annualised cost reductions achieved to US$7.2 million.
These 2018 cost reductions are the result of renegotiated contracts with suppliers and the elimination of non-essential G&A spend.
The full benefit of the 2018 cost reductions will be realised from Q3 2018.
Importantly, the underground operation has been ringfenced during this exercise to ensure that underground production continues as planned.
“These further cost reductions cement Shanta Gold's position as one of the lowest cost producing gold mining companies in Africa and form part of our overriding strategy of maximizing value for our shareholders," comments Shanta Gold CEO, Eric Zurrin.
With its abundance of natural resources, thriving economy and booming tourism industry, Tanzania is an attractive country for business and investment.
Shanta Gold's portfolio of properties includes mining licences held at both New Luika and Singida.
The new Luika gold mine is located in the Lupa Goldfield of southwest Tanzania. The flagship asset delivered 87,713 ounces of gold in 2016.
Underground ore was produced from the first stope in the Bauhinia Creek deposit in May 2017 and the mine has now successfully transitioned from an exclusively surface mining operation to one that is predominantly underground.
In addition Singida is an advanced stage exploration and development project with a mining licence granted in 2012.
Drilling results from an exploration programme to expand the understanding of the deposit in 2016 have increased the company’s confidence that, subject to an updated Feasibility Study, Shanta Gold will be able to significantly add to its production of low cost ounces, at a competitive capital cost.
The Lupa Goldfield is the second largest goldfield in Tanzania outside of the Lake Victoria Goldfield. From 1935 to 1959 an estimated 650,000 ounces of gold were extracted from the area.
Through its Tanzanian subsidiaries, Shanta Gold holds over 1,560 km2 of prospective exploration ground with a further 101 km2 under application in the Lupa Goldfield.