Shanta Gold (LON:SHG) told investors its New Luika gold mine is on-track to meet production guidance.
Production is expected to be within 72,000 to 77,000 ounces, and Shanta added that costs are being maintained within the ‘all-in sustaining costs’ budget of US$850 to US$900 per ounce.
“We are pleased to note that production and costs have remained at budgeted levels and we remain on course to hit full year guidance,” said chief executive Toby Bradbury.
Shanta also said that a life of mine plan for New Luika is due to be delivered before the end of the month.
Meanwhile the assessment of Elizabeth Hill, an expansion project which is part of New Luika, is revealing improved definition of near surface resources, the company added.
"Upgrading the Elizabeth Hill Prospect is the first of a number of programs aimed at improving our understanding of the true value of New Luika Gold Mine resources,” Bradbury said.
“We will now go about determining how best Elizabeth Hill fits into the Life of Mine Plan, which we are scheduled to release the base case for at the end of this month.
“Elizabeth Hill, along with a number of other prospects within our development program, will be integrated to the Life of Mine Plan as a subsequent update to the base case.”
Shanta continues ongoing exploration work in adjacent areas, and Bradbury says that can provide the potential for additional medium-term resources.