Shanta Gold Ltd produced 11,408 ounces of gold in the first quarter of 2022, as mining began at the Bauhinia Creek Crown Pillar, a new section of the New Luika project in Tanzania.
All-in costs per ounce of production were US$1,760.
“With the initial ore being mined at the expected grades of eight grams per tonne, we are confident that our 2022 guidance of between 68,000 and 76,000 ounces has been significantly de-risked,” said chief executive Eric Zurrin.
Meanwhile, the Singida project is well into construction, and remains on budget and on schedule, which gives Shanta a clear pathway to becoming a 100,000 ounce per year gold producer by this time next year.
Elsewhere, at West Kenya, the company announced a 31% increase in the resource estimate during the period. The current number rings in at 1.55mln ounces, but there could be more to come. The feasibility study workstream will begin at West Kenya in May 2022.
As at the end of March, Shanta had cash and available liquidity of US$13.4mln, with 3,446 ounces contained within doré available for sale.
Gross debt stood at US$6.8mln, although the company did note that it is considering taking on more debt.