Gold miner Shanta Gold has announced a new five-year plan for its Singida gold mine, in Tanzania, for 2023 to 2027. 

"The five-year plan . . . demonstrates the long-term potential for Singida. Our strategy is focused on three clear pillars of optimising operations, reducing costs and maximising the mine life,” CEO Eric Zurrin said on July 3. 

He said the Singida process plant was designed with expansion in mind, with the company having already identified potential for upsizing gold production through additional resources both within the existing and surrounding mining licences.  

“Shortly after pouring the first gold three months ago and following a phase of rapid ramp-up, the site has performed strongly and is proving to be a cash generator. Singida contributes to our financial flexibility to reinvest into our growth initiatives across the wider portfolio, enabling us to drive further value," Zurrin said. 

He noted that Shanta was targeting gold production of 90 000 oz to 98 000 oz this year, reflecting only nine months of production from Singida. An average of about 103 000 oz/y of gold production is expected thereafter. 

Over the next five years, Singida is expected to produce about 169 000 oz of gold, with an average production rate of 34 000 oz/y. The mining schedule is also being improved with the addition of a second ball mill that could double the plant throughput to 2 000 t/d, while reducing cut-off grades. 

Singida also has substantial exploration and expansion opportunities. With a reserve-based mine life extending until 2030, there is potential for further expansion within and around the current mining licences. 

Currently, Singida has Joint Ore Reserves Committee-compliant gold reserves of 231 000 oz and resources of 885 000 oz. Further, there is upside potential through the conversion of an additional 9.8-million tonnes of resources grading 2.11 g/t, amounting to 664 000 oz of gold resources that are currently not included in the plan. 

Shanta also expects a reduced cost base at Singida starting from 2025 onwards. The average adjusted operating costs and all-in sustaining costs (AISC) are projected to be $888/oz and $1 085/oz, respectively, throughout the plan period. Cash flows are expected to increase from 2025 as waste stripping is normalised. 

The company's 2023 gold production guidance indicates that New Luika is expected to produce between 66 000 oz and 72 000 oz of gold, with AISC ranging from $1 200/oz to $1 300/oz. Singida, on the other hand, is projected to produce between 24 000 oz and 26 000 oz of gold, at an AISC of $1 300/oz to $1 400/oz. 

PRODUCTION SCHEDULE 

The updated mining plan for Singida involves the use of conventional openpit mining methods.   

Over the course of the plan, Singida is expected to produce a total of 169 000 oz of gold, with an average production of 34 000 oz/y. 

For an initial life-of-mine (LoM) period of seven years, extending until at least 2030, average gold production is expected to be 31 000 oz/y. 

A total of 1.8-million tonnes will be milled during this period, with potential to increase throughput to 2 000 t/d by installing a second mill. 

The expected average recovery rate is expected to be above 91%, indicating efficient extraction of gold from the ore. 

About 91% of the gold ounces contained in the plan are located within 150 m of the surface, facilitating easier access and extraction. 

Ongoing exploration activities are expected to yield further discoveries and improvements, enhancing and extending the plan in the future, as there is a significant opportunity to extend LoM.  

To date, only about 75 000 m of drilling has been completed and, with commercial production now started, additional funds have been committed to exploration at Singida to add reserves. 

There is further upside potential from resources of about 9.8-million tonnes grading 2.11 g/t for 664 000 oz, currently sitting outside the reserve-based plan.  

The orebodies are open along strike and at depth with numerous previously identified parallel structures. 

Currently, Shanta is delineating potential drill targets through pit wall mapping and drill hole relogging with trenching ongoing, which aims to better understand all structures relating to mineralisation and to enhance the geological model. 

Following this, an exploration drilling campaign is planned in the third quarter. 

PLANT THROUGHPUT EXPANSION PLANS 

The Singida gold project plant is designed to extract gold through a gravity circuit and a carbon-in-leach (CIL) circuit. 

The current production process of 1 000 t/d, or 30 000 t a month, of ore at a feed grade of 3.5 g/t and recovery of 91% results in production of about 3 000 oz a month. 

The capital budget for the Singida plant is based on sizing the crushing circuit, consisting of a primary jaw crusher and secondary cone crusher, to a capacity of 150 t/h or 3 000 t/d, and a ball mill of 800 000 W with a capacity of 45 t/h or 1 000 t/d, with a provision of adding a second ball mill of the same capacity in future. 

The stream of CIL circuit comprises a thickener of 12 m in diameter, and CIL including six tanks of 255 m³ each with a provision of adding two more tanks of the same capacity in future. 

Moreover, there is potential for further optimisation of the mining schedule with a throughput expansion. A second ball mill plus additional pumps and leaching capacity, estimated to cost about $6.5-million, will double plant throughput to more than 2 000 t/d and reduce cut-off grades.