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Shanta Gold unveils new resource upgrade for Singida project

The gold producer has reassessed the Singida model, resulting in a new upgrade, as it looks to advance toward a development programme later in 2020.

Shanta Gold Limited - Shanta Gold unveils new resource upgrade for Singida project
Singida - Image source: @shanta_gold

Shanta Gold Limited (LON:SHG) has unveiled a new mineral resource estimate for the Singida project in central Tanzania, adding 194,000 additional ounces of gold.

The new estimate gives Singida 919,000 ounces, grading 2.25 grams per tonne, which represents an improvement of around 725,000 ounces.

A further independently verified JORC 2012 gold reserve is expected to be declared in March 2020, alongside an updated life-of-mine plan and an enhanced net present value estimate for the project.

Today’s upgrade follows a reassessment of historically modelled mineral resource – remodelled geological structures across individual shear zones to a higher level of detail, consistent with company practice elsewhere.

READ: Shanta eyes net cash position as production beats forecast

"We have high confidence in Shanta's re-estimated resources,” said chief executive Eric Zurrin.

“We look forward to declaring a reserve for Singida and publishing an updated mine plan for the project in Q1 2020.

“With significantly improved M&I (measured and indicated) resource grades of 2.63 g/t, up 26%, we expect the open pit mine to be a profitable, new operation for a modest capital outlay.”

Zurrin added: "The previously estimated NPV announced on 5 December 2018 of US$31mln is expected to increase significantly and I look forward to announcing plans to commence construction at Singida later this year."

M&I resources increased by around 8% whilst the number of ounces in the inferred resource category rose by 48%. At the same time, there the M&I Resource grade increased by 26% and Inferred Resource grade increased by 23%.

Quick facts: Shanta Gold Limited

Price: 11.065 GBX

Market: AIM
Market Cap: £87.85 m

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