REG - Shanta Gold Limited - Singida Project Update

Shanta GoldAnnouncement

14/02/2022 07:00

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RNS Number : 5096B  Shanta Gold Limited  14 February 2022

14 February 2022

Shanta Gold Limited

 

("Shanta Gold" or the "Company")

 

Singida Project Progressing on Track for Q1 2023 First Production

 

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and
explorer, is pleased to provide a positive update on the construction progress
at the Singida Gold Project ("Singida") in Central Tanzania.

 

Eric Zurrin, Chief Executive Officer, commented:

 

"Singida will transform Shanta from a single asset gold producer to a +100,000
oz pa diversified gold miner with two independent operations generating
significant cash flow. Never before has Shanta been in this position to
capitalise on its growth potential, with a healthy balance sheet in a net cash
position, excellent financial flexibility, and ongoing commitment to pay a
sustainable dividend to our shareholders.

 

Singida is progressing on schedule and in line with capital spending
expectations which is positive news for the Company. Several major project
milestones have now been completed on site with construction now 45% complete
and a clear path to realising first production within the next 12 months.

 

The project also has considerable upside potential given its location within a
greenstone deposit, meaning it is well suited to further exploration growth.
Future drilling will target areas within the mining licenses with the aim of
extending the reserves at Singida.

 

As well as further de-risking the business from a financial and operational
perspective, Singida will also add significant time to the Company's life in
Tanzania where we have fantastic relationships across both government and
local community levels. Building and maintaining those relationships is
central to how we operate, and we are proud to say that 100% of our workforce
at Singida is Tanzanian. Singida will have a major positive impact on the
Ikungi region in Tanzania as we continue to invest in community initiatives
that benefit the people on the ground, as evidenced by a recent project we
invested in upgrading local schools in the Malumbi and Samburu villages as
well as roads, numerous water projects, and renovation of a local dispensary.

 

Total capital spend at Singida in 2022 is estimated at approximately US$25
million resulting in production early 2023, assuming the current guided
production forecast at our operating mine New Luika Gold Mine and an average
gold price of approximately US$1800/oz.

 

With the near-term introduction of the Singida mine to the Shanta portfolio,
in addition to the recent reserves replacement update at New Luika, there is a
compelling opportunity for investors to gain exposure to a gold company with a
strong production profile, highly prospective exploration opportunities across
Tanzania and West Kenya, and a sustainable dividend."

 

Please see following link for photos and drone footage taken on 3 February
2022 at Singida:

https://shantagold.com/operations/singida/#gallery
(https://protect-za.mimecast.com/s/gz35C0gpq9uoRLpswUq46)

 

Singida Project Update Highlights:

 

·      Singida remains on track for first production in early 2023 and
will transform Shanta Gold into a +100,000 oz/pa producer with a diversified
resource base;

 

·      Successful delivery of the Metso built Crushing Circuit in
December 2021 followed the completion of the design and manufacturing. All
equipment and steel is now on site with assembly due to begin in March 2022;

 

·      Manufacturing of the Grinding & Gravity Circuit Mill by NCP
in South Africa is 100% complete;

o  shipment to site targeted for March 2022;

o  site installation is planned for May 2022;

 

·      Tailings Storage Facility ("TSF") and Waste Rock Dump
construction has begun following the approval of permits in 2021;

 

·      Stockpiling of ore continues following the first successful Gold
Tree open pit blast on 15th October 2021;

 

·      Key infrastructure including bulk power, water, buildings,
fencing are either completed or progressing in line with expectations;

 

·      Recently completed phase 1 grade control drilling at the Gold
Tree deposit returned +5% reconciliation versus the reserve model and de-risks
the initial 12 month production plan following commissioning. The Gold Tree
deposit contains 49% of all of the current mineral resources at Singida.

 

Health, Safety, Environment and Communities:

 

·      The Company continues to maintain a strong health and safety
track record with zero LTIs since commencement of construction;

 

·      Commitment to recruiting and developing Tanzanian nationals at
New Luika and Singida; 100% of employees and contractors on Singida site,
totalling 282 people, are Tanzanian nationals;

 

·      Growth of Singida is benefitting the local economy in Tanzania
with increasing economic activity in the local villages;

 

·      Continue to expand the community investment initiatives by
partnering with the government to deliver two school upgrades in the
neighbouring Mlumbi and Samburu villages, renovating a dispensary in the
Mang'onyi village, as well as providing access to clean water in two bordering
villages close to the Singida Project. This follows the Company upgrading
roads and surrounding infrastructure in local villages during 2021.

 

 

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                                 +44 (0) 20 3727 1426
 Sara Powell / Nick Hennis / Jourdan Webb

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 645 koz grading 3.04 g/t, and exploration licences covering
approximately 1,100 km2 in the country. Alongside New Luika and Singida,
Shanta also owns the West Kenya Project in Kenya with defined inferred
resources of 1.2 Moz grading 12.6 g/t and licences covering approximately
1,162 km2. 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.

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