Proactiveinvestors United Kingdom Shanta Gold Limited https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Shanta Gold Limited RSS feed en Mon, 20 May 2019 08:05:32 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Completion of buyback of convertible loan notes ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190516120536_14076933/ Thu, 16 May 2019 12:05:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190516120536_14076933/ <![CDATA[News - Shanta Gold eyes New Luika life extension as high grades continue at depth ]]> https://www.proactiveinvestors.co.uk/companies/news/219772/shanta-gold-eyes-new-luika-life-extension-as-high-grades-continue-at-depth-219772.html Shanta Gold Limited (LON:SHG) says exploration at the Bauhinia Creek deposit at the New Luika gold mine in Tanzania has indicated the mine life can be extended further at depth.

Drilling below the existing reserves suggested the underground mining operation can go down for at last another three levels, with the mineralisation remaining open at depth.

Three holes drilled saw grades between 4.77 g/t and 6.57 g/t. A further three will be drilled as part of the resource upgrade programme.

Eric Zurrin, chief executive, described the results as highly encouraging and point to a long mine life at Bauhinia Creek, one of the three producing deposits at New Luika.

“A mine life extension would require only minimal capex, limited predominantly to underground development to access new ore.

"Positive indications point to the existing underground decline being pushed down by at least three levels and new ounces added to our mine plan.”

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Tue, 07 May 2019 08:05:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219772/shanta-gold-eyes-new-luika-life-extension-as-high-grades-continue-at-depth-219772.html
<![CDATA[RNS press release - Bauhinia Creek Central Drilling Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190507070008_14063780/ Tue, 07 May 2019 07:00:08 +0100 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190507070008_14063780/ <![CDATA[RNS press release - Result of Annual General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190424132207_14050459/ Wed, 24 Apr 2019 13:22:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190424132207_14050459/ <![CDATA[Media files - Shiny Q1 numbers for Shanta Gold as CEO eyes a debt free future ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13055/shiny-q1-numbers-for-shanta-gold-as-ceo-eyes-a-debt-free-future-13055.html Thu, 18 Apr 2019 09:55:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13055/shiny-q1-numbers-for-shanta-gold-as-ceo-eyes-a-debt-free-future-13055.html <![CDATA[News - Shanta Gold makes strong start to year and confident of hitting targets ]]> https://www.proactiveinvestors.co.uk/companies/news/218835/shanta-gold-makes-strong-start-to-year-and-confident-of-hitting-targets-218835.html

Eric Zurrin, chief executive, described the quarter as an exceptional start to the year, with costs well below guidance.   Zurrin also highlighted the production of first ore from the Ilunga deposit with almost 6,000 tonnes mined at a head grade of more than six grams per tonne.   Feedback has also been good for the planned IPO of the Singida asset on the Dar es Salaam stock exchange.   Shore Capital said production in the quarter was ahead of expectations and Shanta looks well-positioned to meet its 2019 target. ]]>
Thu, 18 Apr 2019 08:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218835/shanta-gold-makes-strong-start-to-year-and-confident-of-hitting-targets-218835.html
<![CDATA[RNS press release - Q1 2019 Production & Operational Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190418070005_14045526/ Thu, 18 Apr 2019 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190418070005_14045526/ <![CDATA[RNS press release - Confirmation of buyback $5m convertible loan notes ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190410142826_14036467/ Wed, 10 Apr 2019 14:28:26 +0100 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190410142826_14036467/ <![CDATA[Media files - Shanta Gold's Eric Zurrin details Singida financing and latest exploration ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12907/shanta-gold-s-eric-zurrin-details-singida-financing-and-latest-exploration-12907.html Mon, 08 Apr 2019 10:21:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/12907/shanta-gold-s-eric-zurrin-details-singida-financing-and-latest-exploration-12907.html <![CDATA[News - Shanta Gold Limited looks to step up a level as Singida moves forward ]]> https://www.proactiveinvestors.co.uk/companies/news/217534/shanta-gold-limited-looks-to-step-up-a-level-as-singida-moves-forward-217534.html  

Tanzania-focused gold miner 2019 production to rise to 80-84,000oz Proposal to IPO Singida asset on Dar es Salaam stock exchange to raise US$20mln   How is it doing

Production in 2018 was 81,872 ounces of gold, all from the New Luika mine.

Revenue rose to US$103.8mln, up from US$101.5mln in the prior year, while earnings (EBITDA) increased by 21% to US$47.7mln and operating profit by 75% to US$19.3mln. Net profit amounted to US$8mln.

Net debt reduced by US$8mln, to US$31.5mln. Shanta Gold Limited (LON:SHG) had US$9mln of cash and equivalent.

The company set production guidance for 2019 at 80,000 to 84,000 ounces.

"2018 was a transformational year for Shanta, both operationally and financially,” said Eric Zurrin, Shanta chief executive

 

Singida float

Shanta, meanwhile, is to float its Singida gold mining asset in Tanzania on the Dar es Salaam stock exchange.

The gold miner wants to raise US$20mln to develop Singida, with the IPO expected to take between 6-12 months.

Shanta will retain at least 51% ownership of Singida and will operate the project with the money to be used to start production and for exploration to expand the resource.

Newly published project economics suggest production will average 26,000oz per annum for an initial six-year period.

Singida will cost US$16mln to get up and running and a further US$3mln in working capital but the investment is expected to pay off as the project has a net present value of US$31mln and an internal rate of return of 67%.

A life project cash cost of US$794/oz is well below the price of gold.

Shanta sees “significant further upside” for the project with substantial resources – around 344,000oz – currently sitting outside the project economics.

An environmental and social impact assessment is expected in the first quarter of 2019, which would complete the permitting process at Singida.

 

Exploration targets

Elsewhere, Shanta has identified new targets including Lambo, which is 6.6km northwest of the New Luika plant, and Quartzberg, located 45km from the flagship gold mine.

Zurrin said trenching at Lambo target has yielded "excellent grades" and warrants further exploration while drilling at Quartzberg is underway. 

In 2019, the group aims to double its exploration budget from the US$1.5mln it spent this year with a focus on putting more money into the ground.

 

Video

VAT repayments

Regarding the VAT repayments Shanta Gold is owed by the government, Zurrin added: “We were told that there’s an ongoing process with a short-listed group of companies that are being reviewed, hopefully for a final time by the TRA (Tanzania Revenue Authority) so that doesn’t mean we know when we’re going to receive the money but it certainly shows that there’s intent from the government to go through with what they are saying.”

  Inflection points Details of Singida IPO Vat repayments from Tanzanian government Gold price continues to rise   Blue sky

Production above 100,000oz takes Shnata to next level in league of miners

Additional acreage around New Luika and Singida can boost output even more

 

 

 

 

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Fri, 29 Mar 2019 11:01:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/217534/shanta-gold-limited-looks-to-step-up-a-level-as-singida-moves-forward-217534.html
<![CDATA[News - Shanta Gold to float Singida gold asset on Tanzanian stock exchange ]]> https://www.proactiveinvestors.co.uk/companies/news/217503/shanta-gold-to-float-singida-gold-asset-on-tanzanian-stock-exchange-217503.html Shanta Gold Limited (LON:SHG) is to float its Singida gold mining asset in Tanzania on the Dar es Salaam stock exchange.

The gold miner wants to raise US$20mln to develop Singida, with the IPO expected to take between 6-12 months.

READ: Shanta Gold intersects first underground ore at Ilunga

Shanta Gold will retain at least 51% ownership of Singida and will operate the project with the money to be used to start production and for exploration to expand the resource.

An internal study at the end of last year estimated gold production of 26,000oz per year for six years at an upfront cost of US$19mln.

Cash costs were projected at US$794 per oz.

Eric Zurrin, chief executive, said using asset-level financing unlocks value for Shanta Gold shareholders while also allowing it to retain a controlling interest.

“He added he had been encouraged by the initial feedback from institutional investors across East Africa who are seeking US dollar-linked investments in support of industrialisation.

“The IPO will also offer Tanzanians a rare investment opportunity within their own mining sector.” 

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Fri, 29 Mar 2019 07:51:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/217503/shanta-gold-to-float-singida-gold-asset-on-tanzanian-stock-exchange-217503.html
<![CDATA[RNS press release - Singida Financing Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190329070002_14020370/ Fri, 29 Mar 2019 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190329070002_14020370/ <![CDATA[RNS press release - Posting of Annual Report and Notice of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190318154319_14006297/ Mon, 18 Mar 2019 15:43:19 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190318154319_14006297/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190313164039_14001276/ Wed, 13 Mar 2019 16:40:39 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190313164039_14001276/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190313163546_14001266/ Wed, 13 Mar 2019 16:35:46 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190313163546_14001266/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190313090526_14000444/ Wed, 13 Mar 2019 09:05:26 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190313090526_14000444/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190313090029_14000438/ Wed, 13 Mar 2019 09:00:29 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190313090029_14000438/ <![CDATA[News - Shanta Gold intersects first underground ore at Ilunga ]]> https://www.proactiveinvestors.co.uk/companies/news/216161/shanta-gold-intersects-first-underground-ore-at-ilunga-216161.html Shanta Gold LTD (LON:SHG) has intersected development ore at the underground Ilunga mine, part of the wider New Luika gold mining complex.

The intersection comes three months ahead of schedule and occurred as predicted by the company’s geological model.

WATCH: Shanta Gold CEO on Singida financing and looks ahead to further exploration

Ore from Ilunga will add a third source of feed to the New Luika processing operation.

Ore from satellite projects currently under development is also expected to add to production in due course.

Shanta produced nearly 82,000 ounces of gold in 2018.

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Mon, 11 Mar 2019 08:01:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216161/shanta-gold-intersects-first-underground-ore-at-ilunga-216161.html
<![CDATA[RNS press release - Ilunga Underground First Ore Intersected ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190311070011_13996487/ Mon, 11 Mar 2019 07:00:11 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190311070011_13996487/ <![CDATA[Media files - Shanta Gold CEO on Singida financing and looks ahead to further exploration ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12522/shanta-gold-ceo-on-singida-financing-and-looks-ahead-to-further-exploration-12522.html Fri, 08 Mar 2019 11:50:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12522/shanta-gold-ceo-on-singida-financing-and-looks-ahead-to-further-exploration-12522.html <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190308082755_13995369/ Fri, 08 Mar 2019 08:27:55 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190308082755_13995369/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190307085652_13993822/ Thu, 07 Mar 2019 08:56:52 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190307085652_13993822/ <![CDATA[RNS press release - Director Dealing and Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190228150005_13985831/ Thu, 28 Feb 2019 15:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190228150005_13985831/ <![CDATA[News - Shanta Gold revenue and earnings rise as gold production beats expectations ]]> https://www.proactiveinvestors.co.uk/companies/news/215500/shanta-gold-revenue-and-earnings-rise-as-gold-production-beats-expectations-215500.html Shanta Gold Limited (LON:SHG) reported higher revenue and earnings as the New Luika gold mine produced above expectations through 2018.

New Luika produced some 81,872 ounces of gold, above guidance for 80,000 ounces.

WATCH: Shanta Gold CEO on Singida financing and looks ahead to further exploration

Revenue was reported at US$103.8mln, up from US$101.5mln in the prior year, while earnings (EBITDA) increased by 21% to US$47.7mln and operating profit rose by 75% to US$19.3mln. Net profit amounted to US$8mln.

Net debt reduced by US$8mln, to US$31.5mln. Shanta had US$9mln of cash and equivalent.

The company set production guidance for 2019 at 80,000 to 84,000 ounces.

"2018 was a transformational year for Shanta, both operationally and financially,” said Eric Zurrin, Shanta chief executive.

“It was the company's first full year of underground mining at our flagship New Luika Gold Mine, from which the company produced 81,872 oz of gold, above revised guidance of approximately 80,000 ounces and at AISC of US$730 per ounce.”

In early afternoon trading, shares in Shanta Gold were 2% higher at 5.15p.

 -- Adds share price --

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Thu, 28 Feb 2019 08:29:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215500/shanta-gold-revenue-and-earnings-rise-as-gold-production-beats-expectations-215500.html
<![CDATA[RNS press release - Final Results for the year ended 31 December 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190228070018_13984458/ Thu, 28 Feb 2019 07:00:18 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190228070018_13984458/ <![CDATA[RNS press release - Partial Buyback Of Convertible Loan Notes ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190118070003_13938872/ Fri, 18 Jan 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190118070003_13938872/ <![CDATA[Media files - Shanta Gold sets new records in fourth quarter as exploration remains key focus ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11874/shanta-gold-sets-new-records-in-fourth-quarter-as-exploration-remains-key-focus-11874.html Thu, 17 Jan 2019 11:07:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11874/shanta-gold-sets-new-records-in-fourth-quarter-as-exploration-remains-key-focus-11874.html <![CDATA[News - Shanta Gold to double exploration spend as annual production beats target ]]> https://www.proactiveinvestors.co.uk/companies/news/212763/shanta-gold-to-double-exploration-spend-as-annual-production-beats-target-212763.html Higher grades at one of the main deposits at its New Luika mine in Tanzania helped Shanta Gold Limited’s (LON:SHG) underlying profits jump 21% in 2018.

Gold production for the year was 81,872oz against guidance of 80,000oz as the higher grades at Bauhinia Creek meant fourth-quarter output rose to almost 24,000oz.

WATCH: Shanta Gold sets new records in fourth quarter as exploration remains key focus

Eric Zurrin, chief executive, said the fourth quarter had seen a number of new operational records while net debt of US$32mln was the lowest in six years.

"This is despite not receiving any VAT refunds in 2018 and with continued investment across our operations,” he said

"Exploration remains a key priority for Shanta and we have doubled the budget for 2019.

“Shanta's drilling programme will commence in the next few months starting with Bauhinia Creek high-grade underground targets."

Annual guidance for 2019 is 80,000−84,000 oz at sustaining costs of US$740-800/oz.

For the year just ended, cash costs were US$538 /oz and AISC of US$731 /oz.

 

 

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Thu, 17 Jan 2019 08:40:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212763/shanta-gold-to-double-exploration-spend-as-annual-production-beats-target-212763.html
<![CDATA[RNS press release - Q4 2018 Production & Operational Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190117070004_13937347/ Thu, 17 Jan 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20190117070004_13937347/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181224124033_13915310/ Mon, 24 Dec 2018 12:40:33 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181224124033_13915310/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181224123532_13915285/ Mon, 24 Dec 2018 12:35:32 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181224123532_13915285/ <![CDATA[RNS press release - Blocklisting Six Monthly Return ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181218070008_13907057/ Tue, 18 Dec 2018 07:00:08 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181218070008_13907057/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181214150003_13904860/ Fri, 14 Dec 2018 15:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181214150003_13904860/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181206091345_13894004/ Thu, 06 Dec 2018 09:13:45 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181206091345_13894004/ <![CDATA[Media files - Shanta Gold's Eric Zurrin discusses Singida economics as funding talks progress ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11454/shanta-gold-s-eric-zurrin-discusses-singida-economics-as-funding-talks-progress-11454.html Wed, 05 Dec 2018 10:42:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11454/shanta-gold-s-eric-zurrin-discusses-singida-economics-as-funding-talks-progress-11454.html <![CDATA[News - Shanta Gold production to top 100,000oz a year once Singida comes on stream in 2020 ]]> https://www.proactiveinvestors.co.uk/companies/news/210556/shanta-gold-production-to-top-100000oz-a-year-once-singida-comes-on-stream-in-2020-210556.html Shanta Gold Limited (LON:SHG) expects to be producing more than 100,000 ounces of gold every year once its Singida project in Tanzania comes on stream in 2020.

Newly published project economics suggest production will average 26,000 oz per annum for an initial six-year period.

READ: Shanta says Q4 to be strongest period yet

It will cost Shanta US$16mln to get the project up and running, followed by a further US$3mln in working capital. Financing is expecting to be completed at the Singida asset level, with various options being considered.

But there is good money to be made according to the figures, with the project boasting a net present value of US$31mln and an internal rate of return of 67%.

A life project cash cost of US$794/oz is well below the price of gold, which currently sit just above US$1,200/oz.

Shanta reckons there is “significant further upside” as well, with substantial resources – around 344,000oz – currently sitting outside the project economics and work is ongoing to boost that figure.

Importantly, most of the key infrastructure requirements are in place, including Tanesco grid power, resettlement and an operating camp.

An environmental and social impact assessment is expected in the first quarter of 2019, which would complete the permitting process at Singida.

October and November were good for Shanta

“Singida has always been an exciting project for the company and has the potential to propel Shanta to a gold producer with over 100,000 oz per year by 2020. The development of Singida unlocks value for us, with very attractive economics including an IRR of 67%,” said chief executive Eric Zurrin.

"We are making steady progress with the Singida funding plan, which as we have stated previously, will be completed at the asset level and not through Shanta Gold shareholders. I look forward to providing a more detailed update in Q1 2019, with a target to complete the funding during the course of 2019.”

As for current operations, Shanta said October and November were the strongest two months in terms of production, including 584 ounces in one day at New Luika.

That leaves it on track to hit full-year guidance of 80,000oz at an all-in sustained cost of US$750/oz.

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Wed, 05 Dec 2018 08:19:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210556/shanta-gold-production-to-top-100000oz-a-year-once-singida-comes-on-stream-in-2020-210556.html
<![CDATA[RNS press release - Singida NPV and Project Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181205070002_13891589/ Wed, 05 Dec 2018 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181205070002_13891589/ <![CDATA[News - Shanta Gold says fourth quarter looks set to be strongest period yet ]]> https://www.proactiveinvestors.co.uk/companies/news/210475/shanta-gold-says-fourth-quarter-looks-set-to-be-strongest-period-yet-210475.html The fourth quarter is shaping up to be the strongest period yet for Shanta Gold Ltd (LON:SHG), according to chief executive Eric Zurrin.

October and November were the strongest two months in terms of production, including 584 ounces (oz) of gold in one day at the New Luika mine in Tanzania - the company's flagship asset.

That leaves it on track to meet its target of 80,000oz of gold production and all-in sustaining costs (AISC) of US$750 per ounce for the year.

“Hopefully we can do better than that but we’ll have to see,” Zurrin said. 

Singida project expected to boost production to over 100,000oz a year

Shanta expects to be producing more than 100,000oz of gold each year once its Singida project in Tanzania comes on stream in 2020.

Newly published project economics suggest production will average 26,000oz per annum for an initial six-year period.

Singida will cost US$16mln to get up and running and a further US$3mln in working capital but the investment is expected to pay off as the project has a net present value of US$31mln and an internal rate of return of 67%.

A life project cash cost of US$794/oz is well below the price of gold, which currently sits just above US$1,200/oz.

Financing is expected to be completed at the Singida asset level, with various options being considered.

Shanta sees “significant further upside” for the project with substantial resources – around 344,000oz – currently sitting outside the project economics and work is ongoing to boost that figure.

Most of the key infrastructure requirements are in place, including Tanesco grid power, resettlement and an operating camp.

An environmental and social impact assessment is expected in the first quarter of 2019, which would complete the permitting process at Singida.

“Singida has always been an exciting project for the company and has the potential to propel Shanta to a gold producer with over 100,000 oz per year by 2020. The development of Singida unlocks value for us, with very attractive economics including an IRR of 67%,” Zurrin said. 

"We are making steady progress with the Singida funding plan, which as we have stated previously, will be completed at the asset level and not through Shanta Gold shareholders. I look forward to providing a more detailed update in Q1 2019, with a target to complete the funding during the course of 2019.”

Strong performance at New Luika 

The New Luika mine has also continued to make strong progress. 

In the third quarter, the mine delivered gold production of 19,723oz at an AISC of US$553/oz.  A total of 19,737oz of gold was sold at an average price of US$1,218, compared to an average spot price of US$1,212.

Drilling at Bauhinia Creek (BC) East added 21,081oz of indicated resources to the life of New Luika mine plan at 3.43 grams per tonne.

The miner started Phase 1 of drilling at BC West in September, targeting a small conversion of inferred resources, which has intersected mineralisation. Further exploration was being carried out in the fourth quarter.

 “We’re exclusively in Bauhinia Creek right now, which has always been the one that has pleased to the upside…we are seeing healthy grades, particularly in October, and in November its so far so good,” Zurrin said.

Shanta aims to double exploration budget next year

Elsewhere, Shanta has identified new targets including Lambo, which is 6.6km northwest of the New Luika plant, and Quartzberg, located 45km from the flagship gold mine.

Zurrin said trenching at Lambo target has yielded "excellent grades" and warrants further exploration while drilling at Quartzberg is underway. 

He said the company is going to have a “really good push” to the end of the year.

In 2019, the group aims to double its exploration budget from the US$1.5mln it spent this year with a focus on putting more money into the ground.

Tanzanian government pleased with Shanta's local support

Zurrin recently met with the Tanzanian government in the country's capital, Dodoma, about the company’s projects in the nation. He said the feedback he received from the government was encouraging.

“They are applauding our efforts, we are now a 99% Tanzanian workforce, we have eight expats in the entire company," he said.

"They are really happy about how we operate, the way we behave, the way we co-operate with local suppliers in the country, we’re a taxpayer, we pay our royalties, we contribute PAYE to the government and we’re well regarded in their eyes so it’s been really good to get their support."

Regarding the VAT repayments Shanta Gold is owed by the government, Zurrin added: “We were told that there’s an ongoing process with a short-listed group of companies that are being reviewed, hopefully for a final time by the TRA (Tanzania Revenue Authority) so that doesn’t mean we know when we’re going to receive the money but it certainly shows that there’s intent from the government to go through with what they are saying.”

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Tue, 04 Dec 2018 07:16:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210475/shanta-gold-says-fourth-quarter-looks-set-to-be-strongest-period-yet-210475.html
<![CDATA[Media files - Shanta Gold Limited's Eric Zurrin confident on a strong finish to 2018 ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11205/shanta-gold-limited-s-eric-zurrin-confident-on-a-strong-finish-to-2018-11205.html Thu, 15 Nov 2018 10:32:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11205/shanta-gold-limited-s-eric-zurrin-confident-on-a-strong-finish-to-2018-11205.html <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181026110545_13844169/ Fri, 26 Oct 2018 11:05:45 +0100 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181026110545_13844169/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181024070003_13839873/ Wed, 24 Oct 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181024070003_13839873/ <![CDATA[Media files - Shanta Gold reports 'steady quarter' and remains confident on VAT repayments ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10909/shanta-gold-reports-steady-quarter-and-remains-confident-on-vat-repayments-10909.html Thu, 18 Oct 2018 14:28:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10909/shanta-gold-reports-steady-quarter-and-remains-confident-on-vat-repayments-10909.html <![CDATA[News - Shanta Gold whittles away debt ]]> https://www.proactiveinvestors.co.uk/companies/news/207343/shanta-gold-whittles-away-debt-207343.html Shanta Gold Limited (LON:SHG) produced 19,723 ounces of gold in the third quarter at its New Luika mine in South-Western Tanzania.

Production was lower than budgeted as mine grades were lower than expected.

WATCH: Shanta Gold Limited's Eric Zurrin confident on a strong finish to 2018

In a production and operational update, the company said it now expects to produce around 80,000 ounces of gold in 2018 at an all-in sustainable cost (AISC) of US$750 an ounce. This represents a lowering of previous guidance, which was for output of 82,000 – 88,000 ounces at an AISC of US$680-730 per ounce.

The gold was produced at a cash cost of US$553 an ounce in the third quarter, or an AISC of US$769 an ounce, up from AISC of US$748 an ounce in the second quarter.

Capital expenditure during the third quarter rose to US$US$5.3mln from US$4.5mln in the second quarter, which was predominantly related to underground development and equipment, inclusive of Ilunga pre-production capital.

At the end of September, the company’s cash balance had ebbed to US$8.6mln from US$8.9mln at the end of June but net debt narrowed to US$35.1mln from US$38.1mln.

“Shanta continues to deleverage its balance sheet despite not receiving the long-awaited VAT refund,” said Eric Zurrin, the chief executive officer of Shanta.

On the plus side, the company said “encouraging communication” had been received from the Tanzania Revenue Authority and Treasury regarding preparations for the resumption of VAT refunds.

READ: Shanta Gold swings into profit as cost-cutting initiatives take hold

"Exploration is a key focus for Shanta and it is, therefore, a positive development for us that our preliminary drilling has already replaced mined ounces during the Quarter. Trenching at the new Lambo target only 6.6km from our plant has yielded excellent grades and warrants further exploration. Further afield at the Quartzberg deposit, we have prioritised eight new high-grade targets and look forward to providing updates on these targets going forward," Zurrin said.

Preliminary exploration at Bauhinia creek has already replaced all mined ounces over the last three months. New discovery at Lambo, 6.6km north east of the plant, has hit bonanza grades in trenches totalling 2.1 metres at 47.12g/t Au and 3.15 metres at 32.73g/t Au

— Shanta Gold (@shanta_gold) October 11, 2018 ]]>
Thu, 18 Oct 2018 07:31:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207343/shanta-gold-whittles-away-debt-207343.html
<![CDATA[RNS press release - Q3 2018 Production & Operational Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181018070004_13833073/ Thu, 18 Oct 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181018070004_13833073/ <![CDATA[News - Shanta Gold pleased with results of recent exploration activities ]]> https://www.proactiveinvestors.co.uk/companies/news/206860/shanta-gold-pleased-with-results-of-recent-exploration-activities-206860.html Shanta Gold Limited (LON:SHG) said drilling at Bauhinia Creek (BC) East has converted 27,240 ounces into indicated resources from 33,746 ounces of inferred resources.

The East Africa-focused miner said a total of 21,081 ounces of indicated resources at 3.43 grams per tonne (g/t) have been added to the life of mine plan at the New Luika gold mine at an implied conversion cost of US$8 per ounce.

READ: Shanta Gold updates on the Singida and New Luika gold projects in Tanzania

Exploration drilling at BC Central is scheduled for the first half of 2019 with the aim of converting further inferred resources to indicated resources. BC Central includes a historical drill hole CSD055 intersecting eight metres averaging 8.52g/t gold (Au) that is not included in the current mine plan.

On the new Lambo target at New Luika, the recent trenching programme excavated and sampled relatively short trenches (8 – 36 metres) to test the strike continuity of the mineralisation.

Shanta said17 trenches totalling 249.70 metres have been excavated and sampled at Lambo. Nine of the 17 trenches returned significant gold mineralisation with two trenches returning very high-grade gold including 2.1 metres (m) at 47.12g/t Au and 3.15m at 32.73g/t Au.

Additional trenching on the Lambo target and interpretation of airborne magnetic images will be completed before the end of this year to delineate the widths of mineralised zones and grade continuity along strike to help define drill targets.

At the Quartzberg targets, Shanta undertook a campaign in July to evaluate the company’s regional licence potential across the Lupa goldfields.

Some of the encouraging rock chip grab samples results include 27.22 g/t Au, 19.28 g/t Au, 17.82 g/t Au, 16.98 g/t Au, 15.28 g/t Au and 14.68 g/t Au from quartz veins and country rocks.

The potential presence of favourable litho-structural setting for gold mineralisation was interpreted but unfortunately the disturbed ground by artisanal mining activities make the conventional exploration methods of soil sampling and trenching not suitable for these areas, Shanta said. Further exploration has been planned for later this year to test the depth continuity of the interpreted zones of mineralisation as well as the approximate widths of the zones.

"Shanta's preliminary exploration activities at BC East has allowed us to quickly replace the company's mined reserves over the past quarter, at a compelling conversion cost of US$8/oz. Once the inferred resources have been converted to indicated resources across the portfolio, we look forward to exploring for potentially transformational down-dip extensions across all three underground orebodies (Bauhinia Creek, Ilunga and Luika), the development of which is not capital intensive for the company," said Eric Zurrin, the chief executive officer.

"Separately, we are encouraged by the strong results from our regional exploration programme, including Lambo which is located close to our existing plant and Quartzberg. I look forward to receiving the next phase of results from these programmes and updating the market in due course," he added.

Our new leach tank is now operational after 9 weeks of installation and commissioning #unlockingvalue pic.twitter.com/os1ZlL8A57

— Shanta Gold (@shanta_gold) September 24, 2018 ]]>
Thu, 11 Oct 2018 07:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206860/shanta-gold-pleased-with-results-of-recent-exploration-activities-206860.html
<![CDATA[RNS press release - New Luika Gold Mine Exploration Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181011070004_13824256/ Thu, 11 Oct 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20181011070004_13824256/ <![CDATA[News - Shanta Gold updates on the Singida and New Luika gold projects in Tanzania ]]> https://www.proactiveinvestors.co.uk/companies/news/204029/shanta-gold-updates-on-the-singida-and-new-luika-gold-projects-in-tanzania-204029.html Shanta Gold LTD (LON:SHG) has commenced underground decline work at Ilunga, part of the ongoing development at the producing New Luika project, three months ahead of schedule. First ore is expected in mid-2019.

Exploration drilling from underground is continuing, targeting, at a minimum, the replacement of reserves on an ongoing basis.

WATCH: Shanta Gold expectingis strong H2 with improved grades and further cost savings

Meanwhile, a further net annualised saving of US$1mln is expected from January 2019, following an agreement to owner-operate Shanta's power plant at NLGM;

There will also be an increase in recoveries, following the commissioning of the third pre-leach tank, which will start on September 12.

Elsewhere, at Singida, a second phase of exploration will get underway this month, with detailed project economics to be announced in the fourth quarter.

And in an additional bonus the company could receive a VAT rebate of US$19mln.

"With operations performing well at New Luika, and following the cost-cutting initiatives implemented since September 2017, we expect the balance sheet to continue deleveraging," said chief executive Eric Zurrin.

"We will shortly have three active sources of high-grade ore following the commencement of underground development at Ilunga. With mining flexibility providing operational stability, Shanta is renewing its focus on exploration. Over the next two years, Shanta is targeting high priority exploration targets on its mining licences which include down dip extensions at Shanta's high-grade Bauhinia Creek and Ilunga deposits."

 

 

 

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Mon, 03 Sep 2018 07:38:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204029/shanta-gold-updates-on-the-singida-and-new-luika-gold-projects-in-tanzania-204029.html
<![CDATA[RNS press release - Operations update ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180903070007_13775595/ Mon, 03 Sep 2018 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180903070007_13775595/ <![CDATA[News - Shanta Gold swings into profit as cost-cutting initiatives take hold ]]> https://www.proactiveinvestors.co.uk/companies/news/203030/shanta-gold-swings-into-profit-as-cost-cutting-initiatives-take-hold-203030.html Shanta Gold Limited (LON:SHG) hailed the success of its cost-cutting programme as it swung into profit at the half-year stage.

The East Africa-focused gold producer made a profit before tax of US$8.45mln in the first half of 2018, compared to a loss the year before of US$649,000.

READ: Shanta Gold tipped for big profit hike as underground operations hit stride

Revenue eased to US$50.24mln from US$52.75mln the year before, with the company selling 37,827 ounces (oz) of US$1,303 an ounce. Cash costs of production for the first half of the year was US$549 an ounce, up from US$549 in the same period of 2017, but were reduced to US$505 an ounce in the second quarter.

All-in sustaining costs rose to US$757 an ounce from US$715 an ounce the previous year, within the company’s full-year guidance range of US$680 to US$730 an ounce.

Shanta said it had achieved US$7.2mln of recurring cost reductions since September, improving the cost base by roughly US$85 per ounce produced in less than 12 months.

The miner achieved a new record for monthly underground production in June 2018 of 51,130 tonnes at 5.30 grams per tonne (g/t) for 8,705 oz contained gold. Guidance for full-year production was left unchanged at 82,000 to 88,000 ounces.

"Operationally, we are doing very well at New Luika - we achieved a record monthly underground production in June and importantly remain on track to achieve our annual production guidance for the year of 82,000 to 88,000 oz," said Eric Zurrin, the chief executive officer of Shanta.

"In addition to a strong operational performance and with a vision to increase our mine life, we have achieved a number of exploration successes in the first half of this year. At New Luika, we completed Phase 1 underground drilling at Bauhinia Creek, confirming the extension of high-grade mineralisation adjacent to our existing underground operation. At our second asset, Singida, we also announced two phases of exploration drilling results with encouraging intersections and I look forward to providing further updates on the project in the second half of the year," he added.

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Thu, 16 Aug 2018 08:05:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/203030/shanta-gold-swings-into-profit-as-cost-cutting-initiatives-take-hold-203030.html
<![CDATA[RNS press release - Interim results ]]> https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180816070006_13757275/ Thu, 16 Aug 2018 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180816070006_13757275/