Shanta Gold Limited (AIM:SHG, OTC:SAAGF) is on track to add a second revenue stream to its gold production interests in Africa by 2023, as construction at the Singida project in Tanzania continues apace.
Recent results from a grade control drilling programme have further increased confidence in the strength of the production profile at Singida.
A total of 1,515 meters of grade control drilling complete was completed as part of a phase one drilling program including, with results including 11 metres grading 6.64 grams gold per tonne and 10 metres grading 6.8 grams gold.
The crushing circuit design and manufacturing has completed with Metso Group, and shipment started in September. Delivery is expected in November and December 2021.
The manufacture of the grinding and gravity circuit mill is ongoing, and mining is already underway.
"Today we've reiterated that our Singida project is progressing on schedule, with first production due in early 2023,” said Shanta chief executive Eric Zurrin.
“Reaching this milestone will transform Shanta from a single asset producer to a near-term 100,000 ounce per year producer with a diversified revenue stream across two operations, further de-risking our business and placing us in a strong position to maintain our sustainable dividend and fund the highly promising West Kenya asset.”