LONDON (Alliance News) - Shanta Gold Ltd Wednesday announced its maiden ore reserve for the Singida Gold Mining Project in central Tanzania.
The East Africa-focused gold production and exploration company said its proven on site ore reserve is now 1.39 million tonnes at 5.1 grams per tonne, for 230,000 ounces of recovered gold.
The company said the ore reserve is based on a gold price of USD1,300 per ounce and its average cash cost inclusive of contingencies and royalties at the site is USD605 per ounce.
Shanta said the drilling indicated that ore bodies extend at depth, showing the potential for underground mining operations at the site.
The company said the reserve supports a mine plan covering its first phase of operations at the site; a five year opencast mine producing 265,000 tonnes of ore with an average grade of 5.1 grams per tonne at 40,000 ounces of gold per year.
"We are also excited about the longer term potential of Singida, with five other deposits in the vicinity that are being investigated that could provide additional opencast ore," Chief Executive Mike Houston said in a statement. "Our Singida project will form a significant part of our long term growth strategy."
The company announced earlier this month that its full-year gold production was marginally ahead of guidance after a 3.6% increase in the fourth quarter.
Shanta Gold shares were up 2.9% to 13.25 pence Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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