Gold mining company Shanta Gold (AIM: SHG) recently announced that the construction of the Singida gold project is being commenced.
The Singida project is an open pit gold project covering an area of about 98 km2 located in the greenstone belt within the Ikungi district in the Singida region of central Tanzania.
Total capital investment in the project comes at USD 26 million over a 24-month construction period. The investment will be funded by Shanta’s internal cash flows.
Expected annual production is projected at 32,000 ounces over an initial life of mine of seven years.
The Singida project currently employs 60 people, expected to increase to 300 at steady state production. Shanta is targeting a workforce comprising 100% of Tanzanian nationals.
Eric Zurrin, Chief Executive Officer, commented: “[…] Singida will have a major positive impact on the Ikungi region. Shanta intends to roll out its well-regarded CSR program into the surrounding villages which will lead to improvements in livelihoods, water, health and education.”
Tanzania gold reserves are estimated at about 45 million ounces. Gold exploration has been centered mostly on the greenstone belts around Lake Victoria, where several large deposits have already been discovered and are being developed.
Tanzania’s gold production increased by more than 700% over the past 25 years, from 5 to 40-50 tonnes per year, while South Africa’s production of gold decreased from over 500 tonnes in 1990 to 117 tonnes in 2018.
Current active gold mines include Buckreef, Bulyanhulu, Buzwagi, North Mara, Geita, New Luika, and Golden Pride.