Aim-listed Shanta Gold recorded a strong second quarter ended June 30, with initial crown pillar mining at the New Luika gold mine (NLGM), in Tanzania, having contributed to a 54% quarter-on-quarter increase in output to 17 527 oz.
CEO Eric Zurrin highlighted in a production and operational update for the period, published on July 21, that production for the month of June, at 7 538 oz, had been the highest output level achieved by the company in more than 12 months.
The company owns NLGM and the Singida project, in Tanzania, as well as the West Kenya project in Kenya.
Construction at Singida was 63% complete at the end of June and is on track for first gold production in March 2023.
“Singida will transform Shanta into a +100 000 oz/y producer with a diversified resource base,” Zurrin said.
He added that the company was also making material inroads at West Kenya, with three drill rigs in operation across the project, following on from the announcement of the high-grade, upgraded mineral resource estimate in the first quarter.
Shanta has also been awarded a maiden mining licence covering the Porcupine South resource area of the Lupa Goldfield, about 22 km from the NLGM processing plant.
Zurrin said Shanta had a strong balance sheet, underpinned by its new $20-million senior debt financing with the Stanbic Bank of Tanzania, announced in June, with disbursement completed on July 15. Singida construction is fully funded through to first production.
“This has been an encouraging first six months of the year and we are pleased to reiterate our full-year production guidance of 68 000 oz to 76 000 oz,” he added.
Shanta has cash and available liquidity of $14.5-million as at June 30.
It also holds 3 843 oz contained within doré available for sale at the end of the period.
Gross debt is $5.6-million.