(Alliance News) - Shanta Gold Ltd on Tuesday said that, for the third consecutive year, it has replaced with exploration all of the gold that it mined.
Shares in Shanta Gold were up 18% at 7.95 pence on Tuesday morning in London.
The gold miner focused on East Africa reported total gold reserves of 645,000 ounces, grading 3.04 grams per tonne of ore, across the company's two projects in Tanzania. Shanta Gold explained this was an increase of 20,000 ounces net of depletion.
A total of 110,000 ounces of newly defined reserves were added in 2021 before depletion. The company said this was predominantly from the Luika underground project. Shanta added that it had extended the mine life at the Luika mine to at least the end of 2026.
A total of 80,000 ounces grading 4.31 grams per tonne have been upgraded from probable to proven reserves following grade control drilling which has de-risked the 12-month production outlook.
By Heather Rydings; heatherrydings@alliancenews.com
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Shanta Gold (SHG)