REG - Shanta Gold Limited - Commercial Production Declared at Singida

Shanta GoldAnnouncement

01/06/2023 07:00

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RNS Number : 2472B  Shanta Gold Limited  01 June 2023

1 June 2023

 

Shanta Gold Limited

 

("Shanta Gold" or the "Company")

 

Shanta Declares Commercial Production at Singida Gold Mine

 

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and
explorer is pleased to announce that its Singida Gold Mine ("Singida") in
Tanzania has achieved commercial production, effective 1 June 2023.

 

Eric Zurrin, CEO, commented:

"I am delighted to announce that commercial production has been declared at
Singida following what has been a rapid ramp-up period after first gold pour.
The mine delivered steady results against production KPIs 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.

With this key milestone achieved, I can confidently say that Shanta has
reached an inflexion point at which the Company can now look further forward
for its next phase of growth. The cashflow contribution from Singida
materially increases 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 pa, we are excited by the potential that Shanta has to offer and
look forward to unlocking further long-term value for our shareholders going
forwards."

 

Highlights

·    Commercial production is declared following the construction and
ramp-up period, with nameplate capacity of 1,000 tonnes per day achieved
within weeks following the first gold pour on 30 March 2023;

·    All key internal commercial production measurements achieved
(including processing rate, plant availability, gold recovery, and plant
utilisation);

·    Mining activities are progressing according to schedule with nearly
six-months of feed already stockpiled;

·    Singida gold production has strengthened the Company's free cash flow
generation;

·    FY 2023 production guidance for Singida to follow in June 2023
including 5-year forecast; and,

·    Exploration drilling is planned for Q3 to target reserve additions
and resource conversion, tapping into the 885 Koz of resources currently
outside the reserve-based mine plan.

Commercial production has been declared at Singida based on achieving 30
consecutive days of mill throughput exceeding 95% of nominal nameplate
capacity of 1,000 tonnes per day ("tpd"), overall plant utilisation and gold
recovery exceeding 95% and plant availability above 90%.

In addition, key necessary permits and equipment are all in place and key
personnel required to maintain stable production at Singida, with the first
gold shipments being successfully completed in May 2023.

Mining activities at the Gold Tree open pit are 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 totals 187,673 tonnes at 2.17 g/t Au containing 13,085 Koz,
inclusive of 37,844 tonnes grading 2.40 g/t Au containing 2,917 oz for
in-plant crushed ore.

 

Enquiries:

 

 Shanta Gold Limited
 Eric Zurrin (CEO)                               +44 (0) 14 8173 2153
 Michal Devine (CFO)

 Nominated Adviser and Joint Broker
 Liberum Capital Limited
 Scott Mathieson / Ed Thomas / Nikhil Varghese   +44 (0) 20 3100 2000

 Joint Broker
 Tamesis Partners LLP
 Charlie Bendon / Richard Greenfield             +44 (0) 20 3882 2868

 Public Relations
 FTI Consulting
 Sara Powell / Nick Hennis                      +44 (0) 20 3727 1426

 

About Shanta Gold

Shanta Gold is an East Africa-focused responsible gold producer, developer,
and explorer. The company has an established operational track record, with
defined ore resources on the New Luika and Singida projects in Tanzania, with
reserves of 625 Koz grading 2.91 g/t, and exploration licences covering
approximately 800 km(2) in the country. Alongside New Luika and Singida,
Shanta also owns the high-grade West Kenya Project in Kenya and licences with
resources of 1.7 million ounces including 722 Koz in the Indicated category
grading 11.45 g/t. With a healthy balance sheet, a growing diversified
portfolio and a maiden dividend paid in 2021, Shanta offers a resilient
investment opportunity for the near and long-term. Shanta is quoted on
London's AIM market (AIM: SHG) and has approximately 1,051 million shares in
issue.

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