Shanta Gold (LON:SHG) has published a first resource at Singida, one of its two main deposits in Tanzania.
The junior operates the New Luika mine but Singida, in the centre of the country, is at a much earlier stage of development.
The Australian standard JORC resource of 728,000oz stems from 12.3mt at a grade of 1.84 g/t. The cut-off grade was 1.0 g/t.
Of that, measured and indicated resources, the most certain resource category, were 5.11 Mt, grading 2.09 g/t gold or 345,000 oz.
Gold Tree 1, at the centre of three mining licences at Singida, contains 111.000 oz at 3.14 g/t gold.
Eric Zurrin, Shanta’s chief executive, said it had also identified a number of other targets at the project that might increase both the potential size and amount of Measured & Indicated resource ounces.
Added to the resources already identified at New Luika, Shanta now has 2mln ounces of gold delineated in Tanzania.
Shanta added it has reduced costs by US$5mln at New Luika (in the south west) through renegotiating contracts with suppliers and lowering staff numbers.
So far, 45% of Shanta's supplier contracts have either been reviewed or replaced
Shanta is also targeting higher recoveries through the installation of an additional pre-leach tank with commissioning scheduled for the end of June 2018.
A change to the underground mining method will lower costs by an estimated US$3.6m in 2018.