Singida Gold Mine Construction at 70%, First Gold Production in Q1 2023

SINGIDA GOLD PROJECT CONSTRUCTION

East Africa-focused gold mining company Shanta Gold (AIM: SHG) recently released its interim results for the six months ended 30 June 2022 in which it also updated on the development of the Singida gold project.

The company’s asset portfolio includes New Luika Gold Mine (“NLGM” or “New Luika”) and Singida Project (“Singida”) in Tanzania, and West Kenya Project (“West Kenya”) in Kenya.

According to these latest results, to date, the overall construction activity at the Singida project is approximately 70% complete, and the mine remains on track for the first gold production in Q1 2023.

Eric Zurrin, Chief Executive Officer, commented: “I am pleased to report that the performance of the company has continued to go from strength to strength throughout the first half of the year, and we expect that to continue into H2 2022. Revenues and production materially increased from Q1 to Q2 [of 2022] whilst our AISC dramatically improved quarter on quarter. We have begun the second half of the year very strongly, with July production of 7,259 oz, and August production of 6,707 oz, and we remain confident of hitting guidance.”

The company has reconfirmed its annual production guidance at 68-76,000 oz for 2022, and the forecasted production for September-December 2022 remains strong with 81% of H2 2022 underground ounces having undergone grade control drilling.

Singida Gold Project

The Singida gold mine is located in the Ikungi region of Central Tanzania. Shanta Mining Company Limited holds 100% of the mining licenses. The current Life of Mine extends to the end of 2029, based on existing reserves.

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Mining operations commenced in September 2021, with ore currently being stockpiled, until it can be processed through the Carbon in Leach plant, which is currently being constructed.

Tanzania Gold

Tanzania’s gold reserves are estimated at about 45 million ounces and Tanzania’s gold production in Tanzania stands at around 50t per year.

Shanta Gold’s New Luika Gold Mine is currently the 4th largest mine in the country with gold production of about 80,000 ounces per year although it was only 55,280 ounces in 2021.

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