Aim-listed Shanta Gold continued to pay down its debt and improve its financial position in the third quarter of the year, while also improving its mineral resource estimate.
The company’s New Luika mine, in Tanzania, produced 22 726 oz of gold, compared with the 19 856 oz produced in the second quarter.
With year-to-date production of 64 956 oz, Shanta remains on track to meet its full-year guidance of between 80 000 oz and 84 000 oz of gold.
The company’s net debt ended the third quarter at $20.7-million – the lowest it has been in more than six years – compared with $26.9-million in the second quarter.
Shanta achieved an improved head grade during the reporting quarter of 4.5 g/t gold, compared with 3.9 g/t gold in the second quarter of the year.
The company converted 126 787 oz of inferred resources, grading 3.15 g/t gold, to 83 543 oz of indicated resources, grading 7.85 g/t gold. Shanta also added 58 553 oz of new inferred resources, grading 4.79 g/t, to the mineral resource at New Luika.
Meanwhile, the company was exploring the high-potential Bauhinia Creek North and Elizabeth Hill North deposits, which had intersection mineralisation with sizeable widths, including 6 m grading 8.62 g/t, 4 m grading 8.38 g/t and 9 m grading 6.62 g/t gold.