(Alliance News) - Shanta Gold Ltd on Wednesday reported an increase in resources estimate for its Singida gold project in Tanzania.
The JORC-compliant mineral resource estimate reported 919,000 ounces of gold resources, a 27% climb from the previous estimate of 725,000 ounces.
The grading has also been improved, Shanta reported, to 2.25 grammes of gold per tonne of ore from 1.84.
The measured & indicated resources is up 8% to 412,000 ounces, Shanta said, at 2.63 grammes of gold per tonne of ore.
The was also a 48% boost to the inferred resource to 507,000 ounces, at 2.01 grammes of gold per tonne of ore.
Chief Executive Eric Zurrin said: "We have high confidence in Shanta's re-estimated resources. We look forward to declaring a reserve for Singida and publishing an updated mine plan for the project in the first quarter of 2020. With significantly improved measured & indicated resource grades of 2.63 grammes of gold per tonne of ore, up 26%, we expect the open pit mine to be a profitable, new operation for a modest capital outlay.
"The previously estimated net present value USD31 million is expected to increase significantly and I look forward to announcing plans to commence construction at Singida later this year."
Shares in the company were 3.3% higher at 10.98 pence each in London on Wednesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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Shanta Gold (SHG)