Shanta Gold Limited (AIM:SHG, OTC:SAAGF) has reported an 18% rise in annual gold production from its flagship New Luika gold mine in Tanzania and said it shortly expects to announce a “significant update” to the mineral resource estimate for its Isulu and Bushiangala deposits in Kenya.
The East Africa-focused miner produced 16,742 ounces of gold in the fourth quarter, taking its full-year output to 65,209 ounces in 2022.
It announced record annual throughput from New Luika of 884,702 tonnes milled, up 6% from 2021, although gold production missed a revised target of 68,000 ounces.
“Despite a near miss on guidance, I am happy to report that there are numerous initiatives underway and in place for 2023 to decrease operational risks and optimise production,” said Shanta chief executive Eric Zurrin in a statement.
“These include the team adding 40% to the open pit mining capacity with the addition of mining equipment from a second contractor as well as Shanta taking the delivery of a newly purchased underground production rig," he added.
The company expects to produce about 66,000 to 72,000 ounces of gold from New Luika in 2023 at an all-in-sustaining cost (AISC) of US$1,200 to US$1,300 an ounce.
Output guidance for its new Singida mine in Tanzania will be released following the start of commercial production, it said.
“The new Singida mine is now 90% complete, with operations being progressed on time and on budget,” noted Zurrin. “The mine is currently forecast to add a further 45-50% to the group production profile, transforming the company's short-term future and diversifying the asset portfolio.”
Singida is on track for first production in March 2023, said Shanta.
The AIM-traded company ended the year with cash and available liquidity of US$13.0mln.