14 Jan 2013 07:00
14 January 2013
Shanta Gold Limited
("Shanta Gold" or the "Company")
Operational Update
Shanta Gold, the East African focused gold mining company, is pleased to provide an update on its operations at the New Luika Gold Mine in Tanzania.
Highlights
·; Gold production totalled 5,748oz in Q4 2012 with a further 1,917oz of gold on carbon
·; A tertiary crusher was successfully installed in early January. This has increased the throughput capacity to levels required for the 2013 production target.
·; Initial processing plant recovery issues are largely resolved and a consistent mill feed will further enhance efficiencies.
Following the commencement of production at New Luika at the end of August 2012, the Company produced 5,748oz of gold in Q4 2012 with a further 1,917oz of gold absorbed on carbon which has since been converted to dore.
As previously announced, the initial crushing circuit did not have the capacity to handle the run of mine ore which resulted in very poor plant availability and low volumes of tonnes milled in the quarter to December 2012. The original two-stage crushing circuit was upgraded to a three-stage crushing circuit in early January and has operated well with 870 ton per day having been crushed in the early commissioning period compared to an average of 390 ton per day in the last quarter.
While the Company expects to remain in a ramp up period during Q1 2013 the recent upgrades to the crushing circuit as well as removal of other plant bottlenecks is expected to lead to a continued increase in plant throughput.
Work on the revised medium term New Luika mine plan, incorporating the higher grade Bauhinia Creek resource, is continuing and is expected to be published in Q2 2013 following completion of additional in-pit geotechnical drilling .
Mike Houston, CEO of Shanta Gold, commented:
"I am pleased to be able to report that we are making progress in achieving both our operational and commercial goals. It is still early days but the commissioning of the recently upgraded three-stage crushing circuit has gone satisfactorily and will result in a more consistent feed to the mills and in addition allow the company to build up a stockpile of crushed ore which will assist in alleviating potential downstream plant outages.
While the ramp up will continue during the first few months of this year the changes put in place by the company to date, together with our strengthened financial position, has provided a sound base to meet the 2013 production target of 70,000oz+."
Enquiries:
Shanta Gold Limited | Tel: +255 (0) 22 2601 829 +27833011529 |
Mike Houston, CEO Edward Johnstone, FD | |
Nominated Adviser and Broker | |
Liberum Capital Limited | Tel: + 44 (0)20 3100 2000 |
Michael Rawlinson / Tom Fyson / Christopher Kololian | |
Financial Public Relations | |
FTI Consulting | Tel: +44 (0)20 7269 7100 |
Oliver Winters |
About Shanta Gold Limited
Shanta Gold is an East African focused gold mining 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 and achieved first gold pour in August 2012. The Company is admitted to trading on AIM and has approximately 462 million shares in issue.
For further information visit the Company's website: www.shantagold.com.