Name of the Project
Singida gold mining project.

Location
The project is located in the Ikungi administrative district in the Singida region, in central Tanzania.

Project Owner/s
Shanta Gold.

Project Description
The Singida gold mining project aims to produce 26 000 oz/y of gold using openpit mining over an initial seven-year mine life, based on reserves.

Project economics estimated in house provide for the processing of 2.4-million tonnes of ore from surface mining at an average grade of 2.3 g/t for the production
of 158 000 oz of recovered gold over the mine’s life.

The project economics are currently designed to maximise mill throughput during the first five years of production and, as such, any resource conversion has the potential to extend the mine life beyond the initially expected seven-year period.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $31-million and an internal rate of return of 67%.

Capital Expenditure
Preproduction capital expenditure is estimated at $16-million.

Planned Start/End Date
Not stated.

Latest Developments
A Joint Ore Reserves Committee- (Jorc-) compliant reserve for the Singida project was announced in the quarter ended June 30, 2020, totalling 2.51-million tonnes, grading 3 g/t and containing 243 000 oz of gold at a cutoff grade of 0.75 g/t.

This reserve is being incorporated into an updated mine plan for the project and, of the total reserve estimate, 91% of contained gold is within 120 m from surface, highlighting the potential for reserve expansion at depth. An updated, independently verified Jorc-compliant mineral resource estimate was also announced during the quarter, totalling 11.8-million tonnes at 2.38 g/t for 904 000 oz contained gold using a cutoff grade of 1 g/t.

The project’s newly announced reserve represents an estimated 50% conversion of measured and indicated ounces within this updated mineral resource estimate.

The Singida project is fully permitted and financing discussions for its development are advanced.

Key Contracts and Suppliers
Not stated.

Contact Details for Project Information
Shanta Gold (Tanzania), tel +255 22 292 5148, fax +255 22 292 5151 or email mining@shantagold.com or info@shantagold.com.