REG - Shanta Gold Limited - New Luika Gold Mine Operational Update

Shanta GoldAnnouncement

07/12/2021 07:00

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RNS Number : 8020U  Shanta Gold Limited  07 December 2021

7 December 2021

Shanta Gold Limited

("Shanta Gold", "Shanta" or the "Company")

Operational Update

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and
explorer announces an operational update for its New Luika Gold Mine ("NLGM"
or "New Luika") in Tanzania.

Due to operational difficulties relating to the supply by a 3(rd) party vendor
of an unreliable emulsion product and underground production charging units
during Q4, production guidance for 2021 has been reduced from a range of
60,000 to 65,000 ounces to a range of 55,000 to 57,000 ounces. Emulsion
product quality has been restored and the underground production charging
units have been fixed.

 

Eric Zurrin, Chief Executive Officer, commented:

"Whilst operationally we had very much remained on track to meet our
60,000-65,000 ounces guidance for 2021, the challenges wholly relating to our
emulsion product and production charging units supplier means we've had to
temporarily change our underground mining sequence to prioritise ore
development headings with lower grades rather than mining from stopes that
were available.

"Positively, following increased grade control drilling at New Luika
underground deposits over the last 6 months, reconciliation of mined ounces
has been pleasing and averaged +4% versus the grade control model. This
continues to point to the long-term value opportunity created by New Luika in
the Shanta portfolio.

"Shanta is well funded with cash and available liquidity of US$24.7 million at
30 November 2021 plus operating cash flow from unhedged gold sales. Shanta's
negligible debt position of US$1.4 million provides significant additional
liquidity on the balance sheet.

"Growth projects at Singida and West Kenya continue on track and we look
forward to providing a resource update in early 2022 for the latter."

 

 

Enquiries:

 

 Shanta Gold Limited
 Eric Zurrin (CEO)                               +44 (0) 14 8173 2153
 Luke Leslie (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 / Jourdan Webb                      +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 666 koz grading 3.0 g/t, and exploration licences covering
approximately 1,100 km(2) in the country. Alongside New Luika and Singida,
Shanta also owns the West Kenya Project in Kenya with defined inferred
resources of 1.2 Mt grading 12.6 g/t and licences covering approximately 1,162
km(2). 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 1,048 million shares in issue.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019.

 

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