Shanta Gold issues 2023 group exploration update

Following the successful ramp-up of the Singida Gold Mine, a total of 34 000 m of drilling has now recommenced at New Luika Gold Mine (NLGM) and West Kenya Project. The Singida operation is successfully meeting targeted production objectives including steady state throughput and gold production; commercial production expected shortly.

NLGM – Phase 1 Drilling

• Total of 8000 m across 51 holes at surface and underground deposits.
• Programme spans 4 months, with potential for Phase 2.
• Planned exclusively for deposits already permitted within the existing mining licences.
• Expected cost of US$1 million targeting the replacement of mined ore reserves in 2023.

West Kenya

• Current resource of 1.76 million oz grading 5.55 g/t expected to increase to approximately 3+ million oz over time.
• Up to 26 000 m drilling across 80 holes.
• Cantered around the Isulu and Ramula deposits.
• Targeting both conversions to Indicated category plus resource extensions.
• Third party consultants are now being engaged to accelerate technical studies.
• Workstream toward mining licence application and permitting is now underway.
• Total 2023 budget of up to US$10 million, consistent with previous years.

Singida

• Only 26% of total resource included in the reserve-based mine plan.
• Exploration drilling of US$0.5 million planned for 3Q23.
• Targeting reserve additions and resource conversion.

Eric Zurrin, CEO, commented: “With the successful ramp-up of Singida to full production, we are confident in our ability to responsibly allocate capital to high impact exploration programmes across our asset portfolio. Although only 8 weeks in, Singida is performing ahead of expectations and gold production is promising. We have now completed two gold shipments from Singida and the mine is free cash flow positive. Reserve life addition and mine life extension at NLGM are core to Shanta’s equity case. Over the last 4 years, we have added 473 000 oz of new reserves at NLGM, illustrating the sustainability of the mine. West Kenya continues to impress and is the next clear leg in Shanta’s growth story now that we have two producing gold mines in Tanzania. We expect to announce drilling assay results beginning in July and updates to our reserves and resource estimates throughout Q3 and Q4.”

Read the article online at: https://www.globalminingreview.com/exploration-development/22052023/shanta-gold-issues-2023-group-exploration-update/