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Feasibility study launched on Singida project

AIM listed Shanta Gold has commissioned a feasibility study at its wholly owned Singida project in central Tanzania to determine the economic viability of mining this gold resource. The JORC compliant Singida gold resource of 1.03 million ounces includes a measured resource of 480, 546 ounces.

The study will be conducted in two phases, with a pre-feasibility to been completed by the end of September 2010, and the final feasibility due for completion by the end of March 2011. The results of the study will be used to support a mining licence application which is planned for submission before the end of the 4th quarter of 2010.

Shanta has appointed a number of contracting companies to manage the various aspects of the study, including Environmental, Process and Mining Consultants (EPMC) which will coordinate and contract the specialist engineers. MTL Consulting will conduct the environmental and social impact assessment, which is scheduled to be completed within three months.

The feasibility study will define in detail the infrastructure, mining and process design, including the capital and operating costs. In addition, further metallurgical test work will be conducted under EPMC’s guidance to optimise the recoveries shown by the preliminary metallurgical test results.

Shanta chairman, Walton Imrie, says: “In December 2008 the company announced a strategy to progress the development of mining operations at its projects, Chunya and Singida. The expected robust grades of the Singida orebodies, coupled with the favourable metallurgy, indicate an operation with strong cash flows. This, and our recent announcement of the Chunya mine development, should move Shanta from a successful explorer to profitable producer within 24 months.”

The Singida licences held by Shanta comprise 13 prospecting licences covering about 551 km² in the Singida region. To date seven mineralised prospects within a five kilometer radius have been identified on these properties.