East Africa-focused gold producer, developer and explorer Shanta Gold has achieved an 11% quarter-on-quarter increase in gold production to 19 532 oz for the quarter ended September 30 and expects its full-year output to be at the low end of the 68 000 oz to 76 000 oz guidance range.
"The team has, once again, delivered a very strong operational performance, with production up 11% on the previous quarter. In addition to this, drilling at West Kenya and construction work at Singida are both progressing well, and we remain on track for first gold pour at Singida in March 2023.
"This operational excellence continues to be underpinned by our first-rate health and safety standards, as shown by the total of over one-million man-hours worked at New Luika without a lost-time injury," comments CEO Eric Zurrin.
At the New Luika gold mine, in Tanzania, 217 108 t was milled from undergound and openpit sources during the third quarter, compared with the 216 184 t milled in the second quarter of the year. Average recoveries of 88% were achieved.
Further, construction of the Singida project, also in Tanzania, was 78% complete as at September 30, remaining on track for the first gold pour in March 2023.
Once in operation, Singida will increase Shanta's production to more than 100 000 oz/y.
Shanta has, thus far, invested $27-million on building the project, with a further $12-million still to be invested to complete the project.
"As we soon transform into a +100 000 oz producer in 2023, with a diversified asset base and an enhanced balance sheet, I am confident in the growth opportunities available to Shanta," says Zurrin.
Meanwhile, at the West Kenya project, in Kenya, drilling continued at the Isulu and Bushiangala deposits in the third quarter. Shanta has completed 65% of planned drilling at West Kenya.
The West Kenya feasibility study workstream is under way, with the development of a Ramula Mine conceptual model expected to be completed in the fourth quarter.
In terms of its financial performance, Shanta had cash and available liquidity of $14-million as at September 30.