Shanta Gold posts 11 pct increase in production in Q3, 2022

East Africa-focused gold producer, Shanta Gold that operates New Luika and Singida projects in Tanzania weathered the storm to post a solid performance during Q3, 2022.

The company’s Chief Executive Officer, Eric Zurrin, commented “The team has once again delivered a very strong operational performance, with production up 11 per cent on the previous quarter,”

 In addition the company’s drilling at West Kenya and construction work at Singida are both progressing well, and we remain on track for first gold pour at Singida in March 2023.

“This operational excellence continues to be underpinned by our first-rate health and safety standards, as shown by the total of over one million man-hours worked at New Luika without a Lost Time Injury,” Zurin said in a statement.

He added,”We continue to maintain a healthy cash position, boosted by the drawdown of the US$20 million loan facility, and we are using this to accelerate growth in Shanta’s portfolio. As we soon transform into a +100,000oz producer in Q1 2023, with a diversified asset base and an enhanced balance sheet, I am confident in the growth opportunities available to Shanta. I would like to thank all our employees for their continued efforts, and I look forward to updating the market further in due course.”

Highlights

·    Gold production of 19,532 oz (Q2: 17,527 oz), up 11% from Q2 production with full year 2022 production expected to achieve the low end of the 68,000 – 76,000 oz guidance range;

·    Singida construction is 78% complete at the end of September 2022 (63% at end of Q2) and remains on track and on budget for first gold pour in March 2023;

·    Phase 2 drilling programme continued at the West Kenya Project where drilling took place across 29 holes with further occurrences of visible gold identified in drilling intersections, bringing the total number of visible gold identifications to 53 intersections across 142 holes drilled since January 2021;

·    Updated Mineral Resource Estimate, targeting conversion from Inferred to Indicated resource category at both Isulu/Bushiangala and Ramula, expected in Q1 2023;

·    Completion and drawdown of the US$20 million loan facility agreement with Stanbic Bank Tanzania, which is being used to accelerate the growth in Shanta’s portfolio; and,

·    At New Luika, a total of 1,018,906 man-hours has been worked without a Lost Time Injury (LTI).