Shanta Gold Limited (LON:SHG) has raised its expectations for gold production growth as it announced a revised mine plan that will extend the life of the New Luika gold mine in Tanzania.
Shares rose 3.4% to 9.66p in morning trading.
Under the revised mine plan for January to December 2023, Shanta raised its forecast for its gold production across the period by 39% to 359,000 ounces (oz) to 500,000 oz.
The New Luika plant will be extended by four years to maximise its value and mine life.
The plan includes additional open pit reserves at Elizabeth Hill and further underground reserves at Ilunga.
It also provides for processing from underground and surface mining of 4.0mln tonnes of ore at an average grade of 4.2 grams/ tonne for the production of 500,000 oz from January 2017 to 2023.
“The plan provides for a longer mine life, increased production and most importantly, greater returns for all Shanta stakeholders,” said chairman Toby Bradbury.
"Considerable depth has been added to an already robust business case due to our delivery over the past 18 months and we will look to extend the planning horizon for the New Luika operation again in future.”
Shanta said it remains on track to achieve its full year production guidance for 2017 of 80,000 to 85,000 oz at all-in sustaining costs of US$800 - US$850 /oz.
The group also announced Eric Zurrin will return as its chief financial officer. “Eric is very familiar with Shanta having worked with the company in 2013 and most recently as interim CFO leading the financial restructuring that was completed in May 2016,” Shanta said.