Shanta Gold’s (LON:SHG) New Luika mine development programme is improving on the economics initially expected in the feasibility study.
This morning it revealed that it has ordered two new ball mills, which have greater capacity and are cheaper than those previously envisaged in the feasibility stage.
These are the latest long-lead items to be procured for the New Luika Gold Mine in Tanzania which is scheduled to be commissioned in Q4 2011.
"The procurement of these mills ensures that the principal long lead items for the New Luika Gold Mine project are delivered and installed well ahead of the scheduled commissioning,” chairman Walton Imrie said.
“Furthermore the capacity of these mills will also facilitate a milling capacity that exceeds the feasibility study design capacity, opening the company to the opportunity this presents to improve the project financials."
The mills cost US$2.515 million and have a combined 75 tonnes per hour capacity, while the feasibility study envisaged a 50 tonnes per hour capacity at a cost of US$2.914 million.
Fairfax mining analyst John Meyer highlighted that the New Luika gold mine is already expanding from its feasibility study.
“[Shanta] should continue to impress shareholders on the upside as new drilling reveals additional in ground gold reserves and resources,” Meyer said.