viewShanta Gold Limited

Shanta Gold brings Ilunga underground into production on time and on budget

Shanta already has a well-established track record of production at New Luika

Mine life at Ilunga could be extended by more drilling in 2020

Shanta Gold Ltd (AIM: SHG) has achieved commercial production at the Ilunga underground mine, part of its well-established New Luika gold project in south western Tanzania.

The primary ventilation fan and underground infrastructure are installed and operational. The first ore stope is now in production at a depth of 98 metres below the portal and 130 metres below surface.

WATCH: Shanta Gold moves into second half with 'strong balance sheet and operations'

Commercial production comes following gross pre-production capital investment of only US$7.9mln, or US$5mln after netting off pre-production revenue, and less than 12 months after the underground portal blast at Ilunga was carried out in August 2018.

The project came in on time and on budget.

Ilunga is now the third source of high-grade underground feed from New Luikia, alongside Bauhinia Creek and Luika mines.

Ilunga underground has a probable ore reserve of 660,500 tonnes at 5.56 grams per tonne for 118,000 ounces contained, as well as inferred resources of 636,647 tonnes at 3.57 grams for 73,067 ounces.

Quick facts: Shanta Gold Limited

Price: 9.25 GBX

Market: AIM
Market Cap: £72.83 m

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