Name of the Project
Singida gold mining project.

Location
The Ikungi administrative district of the Singida region, in central Tanzania.

Project Owner/s
Gold producer, developer and explorer Shanta Gold.

Project Description
Project economics estimated in house provide for the processing of 2.5-million tonnes of ore from surface mining at an average grade of 3 g/t for the production of 221 000 oz of recovered gold over an initial seven-year mine life.

Singida will use conventional openpit mining methods.

Average life-of-mine gold production is estimated at 32 000 oz/y at an all-in sustaining cost of $869 /oz.

The processing plant will be a conventional carbon-in-leach plant with gravity concentrator and will have a nominal throughput of 365 000 t/y.

Singida is hosted in a greenstone deposit, lending itself well to upside exploration potential. Future exploration will target the extension of reserves and will be funded by cash flow from production at Singida.

Successful future exploration could justify an increase in the size of the processing plant to increase throughput and production.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Using a projected gold price of $1 700/oz, an after-tax net present value, at an 8% discount rate of $56.3-million, has been estimated, alongside and unlevered internal rate of return of 49%. Payback is estimated at 40 months.

Capital Expenditure
The preproduction capital expenditure required to develop Singida until first gold pour is estimated at $26.4-million, with an additional $10.4-million for preproduction stripping.

Planned Start/End Date
Shanta Gold achieved the first gold pour at its Singida gold mine on March 30, 2023.

Latest Developments
The  Singida gold mine has achieved commercial production following its first gold pour on March 30.

In addition, key necessary permits and equipment are all in place, along with key personnel required to maintain stable production at Singida, with the first gold shipments having been successfully completed in May.

CEO Eric Zurrin has said that the 2023 financial year production guidance for Singida will be published shortly, along with a five-year forecast.

Exploration drilling is planned for the third quarter to target reserve additions and resource conversion, tapping into the 885 000 oz of resources currently outside the reserve-based mine plan.

Key Contracts, Suppliers and Consultants
Metso (crushing circuit); and NCP (manufacturing of the grinding and gravity circuit mill).

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.