Shanta Gold eyes up production on progress at Singida in Tanzania

(Alliance News) - Shanta Gold Ltd on Monday said it was delighted with progress at Singida, its gold project in Tanzania, as it looks to start production next month.

Overall construction activity at the project is 93% complete, the East Africa-focused gold producer, developer and explorer told investors, while all essential equipment for operation has now been delivered.

Further, the stockpile of crushed ore at Singida has reached 32,300 tonnes, equal to over one month of supply. Shanta Gold said this has significantly de-risked the ramp-up period of operations.

The run of mine stockpile at the process plant is currently at 127,000 tonnes with an average grade of 3.34 grams per tonne, containing 13,581 ounces of gold equal to four months of processing.

Looking ahead, the company said that hot commissioning of the NCP-manufactured milling circuit is on track for the second half of February, while the tailings storage facility HDPE liner for partial deposition should be complete by March.

Shanta has also welcomed back George Kondela as its new general manager of the Singida Mine. Kondela is a Tanzanian national with 24 years of mining experience. He previously worked with Shanta in 2019 and 2020 before being recruited to Barrick.

"We are delighted with the great progress being made at Singida, with construction on schedule for first production next month. The completion of this mine will transform Shanta Gold into a 100,000 ounces per annum producer with a diversified resource base, de-risking the balance sheet and providing the business with further financial flexibility," said Chief Executive Officer Eric Zurrin.

Shanta Gold shares were trading 4.8% higher at 11.40 pence each in London on Monday morning.

By Holly Beveridge; Alliance News reporter

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