Shanta Gold’s Singida gold mine achieves commercial production

Aim-listed Shanta Gold has announced that its Singida gold mine, in Tanzania, has achieved commercial production.

CEO Eric Zurrin said this followed a rapid ramp-up period after the first gold pour on March 30, after achieving 30 consecutive days of mill throughput, exceeding 95% of nominal nameplate capacity of 1 000 t/d, overall plant use and gold recovery exceeding 95% and plant availability above 90%.

In addition, key necessary permits and equipment are all in place, along with key personnel required to maintain stable production at Singida, with the first gold shipments having been successfully completed last month.

“The mine delivered steady results against production key performance indicators, including consistent gold production and higher-than-expected gold recoveries, culminating in several successful gold shipments.

“I would like to acknowledge the hard work and dedication of our team, which has successfully designed and delivered the project over the past two years from construction through to commercial production,” Zurrin said on June 1.

He added that, with this key milestone achieved, he was confident that Shanta had reached an inflection point at which the company could now look further forward for its next phase of growth.

In addition, Zurrin said mining activities at the Gold Tree openpit were progressing according to schedule, with nearly six months’ worth of feed already stockpiled and positive grade reconciliation against the resource model being achieved.

The current stockpile totalled 187 673 t at 2.17 g/t gold, containing 13.09-million ounces, inclusive of 37 844 t grading 2.40 g/t gold, containing 2 917 oz for in-plant crushed ore.

Zurrin said the cash flow contribution from Singida materially increased financial flexibility for the company, allowing management to comfortably take the next steps required in its growth journey.

“This has already been demonstrated through our recent decision to undertake targeted investment in drilling throughout the Shanta portfolio, where we see material opportunities for reserves and resource growth.

“With our balance sheet in a healthy position, underpinned by two producing gold mines delivering 100 000 oz/y, we are excited by the potential that Shanta has to offer,” Zurrin said.

All key internal commercial production measurements have been achieved, including processing rate, plant availability, gold recovery and plant utilisation, with mining activities progressing according to schedule.

Zurrin said the 2023 financial year production guidance for Singida would be published later this month, along with a five-year forecast.

Meanwhile, exploration drilling is planned for the third quarter to target reserve additions and resource conversion, tapping into the 885 000 oz of resources currently outside the reserve-based mine plan.

Source: Mining Weekly