AMN - TANZANIA: Singida gold project updated

Shanta Gold, the East Africa-focused gold producer, developer and explorer, has updated its Singida gold project in northern central Tanzania. Singida is an advanced stage project with a mining licence in place.

The project has had in excess of 80,000 metres of drilling and a feasibility study was completed in 2011. As announced in the 2011 feasibility study, Singida has nine ore bodies named Gold Tree 1, 2, 3, Jem, Vivian, Corn Patch, Corn Patch West, Gustav and Kaiser Chief. The nine ore bodies have a combined resource of 858,000 oz (at a 1 gram/tonne cut-off).

The company continues to operate steadily at the New Luika gold mine (NLGM) with stable production and robust cashflows and intends to update the market in the second quarter of 2016 production and operations soon. This continued operational success at NLGM has allowed the company an opportunity to advance its second project, Singida where significant progress on the relocation program has been made in recent months.

Highlights:

-          Singida now fully supported by communities and authorities

-          Pilot-scale production to start in the first quarter of 2017, on Gold Tree 1 Prospect, building up to a milling rate of 10 tonnes/hour for gold production of approximately 800 oz/month

-          Development capital of approximately $4 million to be funded from company cashflow

-          Pilot production program expected to be cashflow positive and complements exploration for the new feasibility study and work program required as part of the Mining Licence

-          Philbert Rweyemamu appointed as general manager to lead the development

-          Existing Environmental and Social Impact Assessment being reviewed and updated

-          In parallel, Shanta is starting work on a feasibility study on the broader resource as well as carrying out further exploration in the project area

-          5000 metres of reverse circulation drilling planned from surface to approximately 100 metres to start in the second half of 2016.

Shanta Gold CEO Toby Bradbury says: “Shanta is very optimistic about the prospects for Singida. Following an extensive consultation program, the company is now able to progress development at Singida with the full support and enthusiasm from both the local communities and authorities. A new mine in this region of Tanzania has the potential to make a positive impact on the lives of many and Shanta intends to ensure that the economic benefit is extended beyond that of the mine itself. The company looks forward to working with our partners in Tanzania to bring this exciting project to life.”

www.shantagold.com

News courtesy of International Mining