East Africa-focused gold producer, developer, and explorer Shanta Gold (AIM: SHG) has recently provided an update on the construction progress at the Singida Gold Project in Central Tanzania, confirming it remains on track for the first gold production to take place in early 2023.
Shanta Gold CEO Eric Zurrin commented: “The encouraging results of our grade control drilling at Singida reinforces our confidence in the strength of the production profile, especially for the first 18-24 months of production.”
The Singida Gold Proejct
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 is 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.
Tanzania’s gold reserves are estimated at about 45 million ounces.
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, Golden Pride, and New Luika (Shanta Gold).