20 Aug 2012 07:00
Shanta Gold Limited
("Shanta Gold" or the "Company")
Shanta Commences Gold Production at New Luika
Shanta Gold, the East African focused gold mining company, is pleased to announce that the operation of the gold production plant at New Luika Gold Mine ("New Luika") in south western Tanzania has commenced.
Highlights
§ Final stages of process including hot commissioning, loading of carbon and cyanide into leach tanks now completed
§ First gold pour on track to occur before end of August 2012
§ 13,000-17,500 ounces of gold expected to be produced in Q4 2012
Following the successful wet commissioning of the New Luika gold plant in June 2012, Shanta Gold announces that the remainder of the stages to gold production have been successfully completed. These include the hot commissioning of the plant, treatment of ore and leaching of gold in the carbon in leach circuit. First dore bars are expected by the end of August which is one month ahead of guidance.
Walton Imrie, Chairman of Shanta Gold, commented: "We are delighted to have achieved the historic milestone of gold production at New Luika, which establishes Shanta Gold as the newest emerging gold producer in Tanzania. Full commissioning of the plant has taken place without any major issues, which speaks to the quality and the efforts of the operational team at the mine. With gold production now beginning, we are also pleased to reiterate our production guidance for Q4 2012 of 13,000 to 17,500 ounces of gold which will also mark our transition to becoming a cash generative company. Looking to the future Shanta Gold is now well placed to grow through increasing production at New Luika which is underpinned by the recent increase in high grade resources at the mine. The GBG JV affords the possibility of other exciting, high grade, low capital intensity projects in the Lupa Goldfields."
Enquiries:
Shanta Gold Limited | Tel: +255 (0) 22 2601 829 |
Walton Imrie / Gareth Taylor | |
Nominated Adviser and Broker | |
Liberum Capital Limited | Tel: + 44 (0)20 3100 2000 |
Michael Rawlinson / Clayton Bush / Christopher Kololian | |
Financial Public Relations | |
FTI Consulting | Tel: +44 (0)20 7269 7100 |
Billy Clegg / Oliver Winters |
About Shanta Gold Limited
Shanta Gold is a Tanzania focused gold mining company. It currently has defined ore resources on the New Luika, Singida and Mgusu projects and holds exploration licences over a number of additional properties. The New Luika Gold Mine has commenced production and will achieve first gold pour in Q3 2012. The Company is admitted to trading on AIM and has approximately 319 million shares in issue.
For further information visit the Company's website: www.shantagold.com.