Aim-listed Shanta Gold is on track to meet its full-year production guidance of between 80 000 oz and 85 000 oz of gold, with 20 167 oz produced in the first quarter of the year.
This compares with the 19 550 oz produced in the fourth quarter of last year.
The company says the plant at its New Luika gold mine, in Tanzania, continues to perform above nameplate capacity, with 174 069 t milled in the first quarter, compared with 177 913 t milled in the fourth quarter of last year.
Shanta reported adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $15-million in the quarter under review, compared with Ebitda of $8.6-million in the fourth quarter of last year.
Meanwhile, the company’s acquisition of TSX-listed Barrick Gold Corporation’s assets in Kenya is expected to be concluded in mid-2020. The West Kenyan project has an inferred mineral resource estimate of 1.1-million ounces, grading 12.6 g/t gold.
Shanta is paying Barrick $7-million in cash, $7.5-million in shares and a 2% net smelter royalty on future gold production.
Further, Shanta continues with underground exploration drilling at the Bauhinia Creek and Illunga deposits at New Luika.
The company continues to take precautionary measures to prohibit the spread of Covid-19, as well as its economic impacts, but the Songwe region in Tanzania has had no confirmed cases of the virus.