Shanta Gold Limited (AIM:SHG, OTC:SAAGF) has declared commercial production at its new Singida gold mine in Tanzania effective from today, 1 June 2023.
Eric Zurrin, chief executive, said the move followed a rapid ramp-up after the first gold pour, with the mine achieving 30 consecutive days of mill throughput exceeding 95% of nominal nameplate capacity of 1,000 tonnes per day.
“The mine delivered steady results against production KPIs including consistent gold production and higher-than-expected gold recoveries, culminating in several successful gold shipments,” he added.
Cash flow from Singida would allow Shanta financial flexibility over the rest of the portfolio, starting with an extensive drilling programme, said Zurrin.
A forecast for production for Singida will also be published this month alongside five-year guidance, with infill drilling to start shortly to upgrade the 885,000 ounces (oz) of resources currently outside the reserve-based mine plan.
Singida's current ore stockpile totals 187,673 tonnes at 2.17 grammes per tonne gold containing 13,085oz.