In an update on its Singida gold project in northern central Tanzania, AIM-listed Shanta Gold – which also owns and operates the New Luika Gold Mine (NLGM) in the Lupa goldfield near Mbeya, says that pilot-scale production will start in Q1 2017 on the Gold Tree 1 prospect, building up to a milling rate of 10 t/h for gold production of approximately 800 ounces per month. The development capital of approximately US$4 million is to be funded from the company’s cashflow.
Singida is an advanced stage project with a mining licence in place. The project has had in excess of 80 000 m of drilling and a feasibility study was completed in 2011. As previously announced in the 2011 feasibility study, Singida has nine orebodies named Gold Tree 1, 2, 3, Jem, Vivian, Corn Patch, Corn Patch West, Gustav and Kaiser Chief. The nine orebodies have a combined resource of 858 000 ounces (at a 1 g/t cut-off).
The pilot operation is expected to run for at least two years subject to further resources being identified and a larger scale operation being initiated.
Based on previous exploration drilling results, as well as numerous gold deportment and metallurgical tests conducted, Shanta is confident that a significant quantity of gravity recoverable gold can be realised from near-surface sources, down to a depth of approximately 10 m below surface.
In parallel, Shanta is commencing work on a feasibility study on the broader resource as well as carrying out further exploration in the project area.
Toby Bradbury, Chief Executive Officer, commented: “Shanta is very optimistic about the prospects for Singida. Following an extensive consultation programme, the company is now able to progress development at Singida with the full support and enthusiasm from both the local communities and authorities. A new mine in this region of Tanzania has the potential to make a positive impact on the lives of many and Shanta intends to ensure that the economic benefit is extended beyond that of the mine itself. The company looks forward to working with our partners in Tanzania to bring this exciting project to life.”
Recognising the potential at Singida, Shanta engaged Philbert Rweyemamu, a highly regarded Tanzanian mining industry professional, to lead the project as its General Manager earlier this year. He was formerly with Acacia Mining from 2007 to 2015 where he held roles as General Manager of the Buzwagi and Tulawaka gold mines as well as Government Relations Manager and leader of major community projects. Prior to this, he was with De Beers where he gained experience in South Africa, Botswana, as well as in Tanzania.
