East Africa-focused gold producer, developer and explorer Shanta Gold (AIM: SHG) announced the first gold pour at the Singida Gold mine in central Tanzania.
Eric Zurrin, Chief Executive Officer, commented: “This is a significant milestone and inflexion point for Shanta Gold, one that marks our next phase of growth as a 100,000 oz per year gold producer. With the 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. 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. Despite global inflationary cost pressures, no material capital cost inflation was incurred in the construction costs.”
“Looking ahead, Singida is transitioning from a cost centre to a cash generator. As our focus turns to the mine life extension, we are confident that we will unlock further long-term value for our shareholders,” Zurrin concluded.
Singida Project Highlights:
- The first gold pour of 35 ounces was successfully conducted at Singida on March 30th 2023;
- Approximately 500 ounces are currently in the carbon-in-leach and gravity circuit as the processing of the 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.
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 other mine in Tanzania, the New Luika Gold Mine, is currently the 4th largest mine in the country with gold production of 65,209 ounces in 2022, up 18% from 2021.