Aim-listed Shanta Gold says construction at the Singida gold project, in Central Tanzania, remains on track for first production in early 2023, adding a second revenue stream across the portfolio and further strengthening its diversified portfolio of assets in East Africa.

Moreover, it notes that strong results from a grade control drilling programme have further increased confidence in the strength of the production profile at Singida.

Grade control drilling was completed at the Gold Tree deposit.

Updated reserves for the Gold Tree deposit are expected in the first quarter of 2022.

Crushing circuit design and manufacturing have also been completed with Metso Group, with shipment started in September and expected site delivery in November and December.

Grinding and gravity circuit mill manufacturing is ongoing with NCP in South Africa.

Mill site civil works are set to start in December and mill site installation is planned for May 2022.

Openpit mining operations started at Gold Tree pit on September 15. Shanta had the first successful Gold Tree openpit blast on October 15. Stockpiling of ore is under way.

The tailings storage facility dam design is completed, all permits have been received and approval has been granted by the regulators to begin construction.

Key infrastructure, including bulk power, water, buildings and fencing are progressing on track.

Shanta notes that it maintained a strong health and safety record with zero lost-time injuries since start of construction.

A Tanzanian GM, Jiten Divecha, has been appointed. He has 20 years’ experience, including as a former operations manager for African Barrick Group in Tanzania

Shanta notes that 100% of employees and contractors on the Singida site, totalling 210 people, are Tanzanian nationals.

Community investment initiatives have started, including upgrading of roads and surrounding infrastructure and the launch of schools in surrounding villages.