Shanta Gold Doubles Gold Reserves

PUBLISHED: 30 Jul 2012 @ 13:15 | Comments (0) | More info about Kenneth G. Mondero

Tanzania-focussed gold explorer Shanta Gold Limited (LSE:SHG) has more than doubled its total gold resource from its New Luika Mine and now has 1.4 million ounces of the yellow metal with an average grade of 3.22 grams per tonne, the company said today.

The new JORC-compliant report follows the exploration and infill drilling at five of nine known gold deposits, focussing particularly on the Luika and Bauhinia Creek, after the May 2011 resource assessment.

Exciting Times

“These are exciting times for Shanta Gold,” stated Chairman Walton Imrie, who also confirmed that the company will have its first gold pour in the middle of the third quarter this year.

In its final results statement, Shanta Gold said their stockpiles contain over 22,000 ounces of gold ready for processing by the third quarter and an estimated 13,000 – 17,000 ounces for the fourth quarter, backed by the commissioning of the New Luika Plant, which has recently completed wet commissioning certification.

“The coming months will see us further develop our mining plan at New Luika as well as transition from a junior developer to an emerging gold producer.”

The company’s Board said the impressive increase in the resource validates their decision to concentrate investment and development in the said area.

Tanzania is regarded as the third largest producer of gold in Africa after South Africa and Ghana.

Shares of Shanta Gold were up 8.6% to 25.375 pence a share by 2:00 PM GMT, at a volume of over 3.4 million shares.

Company Spotlight

Shanta Gold Limited is an AIM-listed gold exploration and development company and soon to be producer, holding 31 licences covering 962 square kilometres containing a total resource of over 2.6 million ounces of gold, all located in Tanzania.

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