REG - Shanta Gold Limited - First Gold Pour at Singida Gold Mine

Shanta GoldAnnouncement

31/03/2023 07:00

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RNS Number : 9046U  Shanta Gold Limited  31 March 2023

31 March 2023

 

Shanta Gold Limited

 

("Shanta Gold" or the "Company")

 

First Gold Pour at Singida Gold Mine

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer, and
explorer, is pleased to announce the first gold pour at the Singida Gold Mine
("Singida") in Central Tanzania on March 30(th) 2023, on schedule and on
budget.

 

Eric Zurrin, Chief Executive Officer, commented:

 

"This is a significant milestone and inflection point for Shanta Gold, one
that marks our next phase of growth as a 100,000 oz per year gold producer.
With first production at Singida completed, the mine will add 45-50% to the
Group's annual production profile. We are now positioned to capitalise on our
full growth potential, armed with a diversified resource base, a de-risked
balance sheet, and financial flexibility.

 

Today's announcement is also an important milestone for the Ikungi region of
Central Tanzania. We have invested in the project to ensure it delivers
sustained and long-term benefits to the local community and the wider
Tanzanian economy. Through increased local employment and subsequent economic
activity, as well as our investment in initiatives focused on improving
health, water, and education services, Singida has already started to
transform the social and economic potential of the region.

 

Importantly, the project was delivered on time and on budget, a testament to
our dedicated project management team. Despite global inflationary cost
pressures, no material capital cost inflation was incurred in the construction
costs. This was a direct result of the excellent supervision, advanced
planning, and overall flexibility from the Singida team in Tanzania.

 

Looking ahead, Singida is transitioning from a cost centre to a cash
generator. As our focus turns to mine life extension, we are confident that we
will unlock further long-term value for our shareholders."

 

Singida Project Highlights:

 

·    First gold pour of 35 ounces was successfully conducted at Singida on
March 30(th) 2023;

·    Approximately 500 ounces currently in the CIL and gravity circuit as
the processing plant is ramping up;

·    The Singida mine will employ around 270 Tanzanian nationals as
permanent staff;

·    The introduction of the Singida mine to the Ikungi district has
already seen Shanta invest substantially in health, water and education
services for the local community; and

·    The Singida 2023 guidance and 5-year mine plan is expected to be
communicated in Q2 2023.

 

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 / Lucas Bamber   +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 km2 in the country. Alongside New Luika and Singida, Shanta
also owns the high-grade West Kenya Project in Kenya and licences with
resources of 1.76 million ounces including 722 Koz in the Indicated category
grading 11.45 g/t. With a strong 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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