Name of the Project
West Kenya gold project.
Location
Kakamega County, in western Kenya.
Project Owner/s
East Africa-focused gold producer, developer and explorer Shanta Gold.
Project Description
The project comprises the greenfield Isulu and Bushiangala prospects.
A pit optimisation study has suggested the potential of developing an initial openpit at each of the deposits.
Following pit optimisation results, a pit shell has been selected for each deposit. Standard drill, blast, truck and shovel methods will be used for openpit mining.
Underground mining will start after openpit mining, with the proposed mining method for the deposits being longhole open stoping with backfill. The envisaged underground mine will be accessed through two portals, at Isulu and Bushiangala, from which declines will be driven down at each deposit.
The project will include a 480 000 t/y carbon-in-leach processing plant.
Average gold production over the project’s nine-year mine life is estimated at 105 000 oz/y.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $507-million and an internal rate of return of 196%.
Capital Expenditure
The project has an estimated preproduction cost of $161-million.
Planned Start/End Date
Not stated.
Latest Developments
Shanta Gold has expanded the mineral resources at the West Kenya project to 1.72-million ounces of gold.
The company has also increased the project's indicated resource by 91% to 722 000 oz gold grading 11.45 g/t.
The latest mineral resource estimate has demonstrated a substantial increase in indicated ounces and an overall resource increase.
CEO Eric Zurrin has noted that the drilling results that have been delivered at the project over the past year have been some of the best ever delivered and point towards a high-margin cash flow possibility in future operations.
Another mineral resource update is due in February, once Shanta converts a large part of the Ramula deposit into indicated resources.
Key Contracts, Suppliers and Consultants
Bara Consulting (scoping study review and cash-flow modelling); Adiuvare Geology & Engineering (mineral resource estimate); ALS Global and SGS Laboratories (metallurgical testwork); Lycopodium Mineral (process engineering and infrastructure); Rescology (permitting, baseline and environmental studies); Knight Piésold (tailings, waste rock and surface water management); and MineScope Service (scoping study management).
Contact Details for Project Information
Shanta Gold, tel +255 22 2925148 or email mining@shantagold.com.