LONDON (Alliance News) - Shanta Gold Limited Monday posted strong third-quarter gold production figures, as it completed its first reserve estimate at the New Luika Gold Mine.
The East Africa-focused gold production and exploration company said gold production increased 31% to 18,914 ounces for the three months ended September 30 compared to the same period the previous year.
The company also said its average gold grade increased 3% to 5.95 grams per tonne compared to the previous year and its gold volume sales increased 85% to 19,235 ounces during the period.
Shanta said it is on track to deliver its full-year gold production guidance of 63,000 ounces.
The company said it has completed its first reserve estimate at the New Luika Gold Mine in Tanzania, which has shown a probable ore reserve of 2.5 million tonnes at 6.1 grams per tonne for 479,000 ounces of gold.
Shanta said its drilling at depth tests at the Bauhinia Creek and Luika sites in Tanzania have confirmed a potential for underground mining at the sites and a resource upgrade is expected in the fourth quarter.
The company went on to say it has completed future sales of 25,500 ounces of gold at an average price of USD1,344 per ounce.
Shanta Gold shares were up 3.6% to 14.25 pence in early trading Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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