SHANTA Gold has forecast average annual gold production of 103,000 ounces over the next first years with potential for expansion from its recently commissioned Singida mine.
Singida, situated in Tanzania, is expected to average 34,000 oz a year over five years after pouring first gold three months ago. There were “significant exploration and expansion opportunities”, said Shanta of the mine’s seven year reserve-based mine life through to 2030, with “significant potential for expansion”.
The Singida Process Plant was designed with expansion in mind and we have already identified potential for upsizing gold production through additional resources both within our existing and surrounding mining licenses,” said Eric Zurrin, CEO of Shanta Gold. “We are confident that Singida will live up to the early reputation it has earned as a transformational asset for Shanta,” he added.
Gold reserves total 231,000 oz grading 3.01 grams per ton (g/t) while gold resources total 885,000 oz grading 2.36 g/t. There is substantial upside through the potential conversion of 9.8 million tons of ore grading at 2.11 g/t for some 664,000 oz resources wihch are currently sitting outside the mine plan.
The average adjusted operating costs and all-in sustaining sosts of Singida are estimated to be $888 /oz and $1,085 /oz respectively over the five year period, the company said.
“As a company, we are guiding for 90,000-98,000 oz of gold production in 2023, reflecting only nine months of production from Singida, and +100,000 oz of annual gold production thereafter, establishing Shanta as Africa’s newest 100,000+ oz pa gold producer,” said Zurrin.