TANZANIAN SUNRISE The outlook for the Tanzanian gold sector in the short and medium term is very positive
Aim-listed Tanzanian gold mining company Shanta Gold has acquired TSX-listed Barrick Gold Corporation’s Acacia Exploration subsidiary, in Kenya.
Mining Weekly Online reported in April that the West Kenya project had an inferred mineral resource estimate of 1.1-million ounces grading 12.6 g/t gold.
The transaction increases Shanta’s high-quality gold resource inventory to more than three-million ounces of contained gold.
Shanta CEO Eric Zurrin notes that the West Kenya asset, which has never been explored properly, will be “a very interesting project” for Shanta over the next ten to 15 years because one of the crucial aspects of the project is its proposed mining method.
“The mining method is long haul stoping, which is precisely what we do at our New Luika gold mine, in Tanzania. Shanta is very good at long haul stoping and can mine, using this approach, at a below-average cost. “This would give us a huge advantage with regard to the West Kenya project,” he tells Mining Weekly.
The New Luika mine has been in production for eight years and Zurrin underscores that the company would like to continue to expand and extend its mine life for the betterment of the Tanzanian economy.
The company’s second property is the Singida gold project, which he says “has all the right features to be a large-scale operation”.
Shanta aims to further develop Singida over the next two years to finally bring it into production.
The company, which has strong ties to its surrounding communities and good relations with the Tanzanian government, remains hopeful about the future of the “very healthy” gold sector in Tanzania that has been well developed over the past century.
He highlights that the outlook in the short and medium term is very positive.
“President John Magufuli has taken an anti-corruption stance since being elected in 2015. He has also promoted local content and the distribution of wealth back into Tanzania, which we welcome.”
To this end, 99% of Shanta’s workforce comprises Tanzanians and the company uses as many local suppliers and vendors as possible in its procurement processes.