SHG.L Share News (SHG)

East African-focused explorer and producer Shanta Gold has improved gold and silver recovery at a mine in Tanzania after fitting new equipment.Shanta said gold recovery had increased by two percentage points to 87.2% and silver recovery had lifted 40% after it commissioned its Elution and Electro-Winning circuit at its New Luika pit.The company also said a drilling campaign to extend the life of New Luika has begun and is set to be completed in July 2014, with a market update set for the third quarter this year.Shanta also hopes to start running a new crushing circuit in late August, which it said should help it to remove rented equipment and cut costs by about $20 an ounce.Chief Executive Mike Houston said the new equipment being commissioned could increase throughput substantially.He added: "Although it is still early days, the strong mineralisation seen in the holes drilled at Luika is very encouraging."Shares rose 0.12p or 0.9% to 13.38p in early trading in London.PW