Shanta Gold Limited (AIM:SHG, OTC:SAAGF) has announced a five-year plan focussed on optimisation, cost reduction and lengthening the life of the Tanzanian Singida Gold Mine.
Gold production from the site is anticipated to be 169,000 oz over the five years from 2023 to 2027, Shanta said in a statement, with the site having begun commercial production last month.
Further expansion, including a proposed second ball mill could double the plant’s throughput to 2,000 tonnes a day, while reducing cut-off grades, Shanta unveiled.
There is significant scope for expanding the mine’s lifespan beyond seven years, Shanta added, with exploration opportunities including near 10mln tonnes of 2.11 grammes per tonne (g/t) graded resources outside of the plan’s boundaries.
“The Singida Process Plant was designed with expansion in mind and we have already identified potential for upsizing gold production through additional resources,” chief executive Eric Zurrin commented.
“We are confident that Singida will live up to the early reputation it has earned.
“Shortly after pouring first gold three months ago and following a phase of rapid ramp-up, the site has performed strongly and is proving to be a cash generator.”
Shanta added that the mine would see a reduced cost base from 2025 following the normalisation of waste stripping operations, with all in sustaining costs falling from US$1,357 per oz to US$947 by 2027.
The plans aim to help Shanta surpass 100,000 oz of annual gold production in the coming years, with the company expected to yield between 90,000-98,000 oz in 2023.