1 Jul 2014 07:00
Shanta Gold Limited
("Shanta Gold" or the "Company")
Operational Update
Shanta Gold, the East African focused gold production and exploration company is pleased to announce that the Elution and Electro-Winning circuit at its New Luika mine has been fully commissioned and has been operating successfully over the past month. The Company is also pleased to confirm that a drilling campaign designed to extend the life of mine at New Luika has commenced with 2,920 metres of drilling expected to be completed in July 2014 with an updated resource statement to be released in Q3 2014.
Commissioning of Elution and Electro-Wining Circuit
An immediate observation has been an improvement in gold recoveries of 2% to 87.2% and as management better understand the process, in particular the handling of the much higher quantities of silver, further benefits in terms of recoveries and costs are anticipated. Silver recovery has improved by 40% and carbon usage has decreased as anticipated.
Management are anticipating additional revenue of approximately $1.5 million and cost savings versus the incineration process of approximately $8 per ounce attributable to the new circuit in the second half of 2014.
The construction of the new crushing circuit is progressing well and the Company anticipates that commissioning of this plant will commence in late August. Cost savings through the removal of rented equipment are expected to be approximately $20 per ounce.
New Luika drilling program
As part of Shanta's programme to extend the life of mine at New Luika, the Company has embarked on a drilling program with 1,500m of RC and 1,420m of diamond drilling (RC Pre-collar) which is expected to be completed in July 2014. The drilling is focused on upgrading additional resource from Inferred to Indicated at Bauhinia Creek and Luika. Some exploratory drilling will also be completed at the attractive Ilunga target to establish if this high grade ore body is open at depth.
Seven holes have been completed to date at Luika with positive mineralisation noted in all holes. It is anticipated assay results will be available from mid-July and the Company will notify the market as information is made available with a planned updated resource statement to be announced in Q3 2014.
Mike Houston, CEO of Shanta, commented:
"The commissioning of the Elution and Electro-winning plant is an important step in de-bottling this section of the process and the impact that has already been seen in terms of improving recoveries is very pleasing. Together with the soon to be commissioned crushing circuit, this gives Shanta a robust operation that has the capacity to increase throughput substantially.
We are making good progress on the Life of Mine extension project and the current drilling program is a key factor in further increasing the confidence level in the underground resource. Although it is still early days, the strong mineralisation seen in the holes drilled at Luika is very encouraging."
Enquiries: |
Shanta Gold Limited |
Tel: +255 (0) 22 2601 829 |
Mike Houston / Patrick Maseva-Shayawabaya |
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Nominated Adviser and Joint Broker |
Peel Hunt LLP |
Tel: + 44 (0)20 7418 8900 |
Matthew Armitt / Ross Allister |
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Joint Broker |
GMP Securities Europe LLP |
Tel: + 44 (0)20 7647 2800 |
Richard Greenfield / Alexandra Carse |
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Financial Public Relations |
FTI Consulting |
Oliver Winters / Sara Powell |
Tel: +44 20 3727 1535 |
About Shanta Gold Limited
Shanta Gold is an East African focused gold producing company. It currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licences over a number of additional properties. The Company's flagship New Luika Gold Mine commenced production in 2012 and produced 64,000 ounces in 2013. The Company is admitted to trading on AIM and has 464,163,073 ordinary shares in issue. For further information visit the Company's website: www.shantagold.com.