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Shanta Gold records rise in throughput, expects higher production in 2022

January 26, 2022

Shanta Gold has announced a 7 percent higher annual throughput than its prior budget and expects much higher production in 2022.

The gold producer recorded an annual throughput of 834,607 tonnes milled.

“Despite some challenges in 2021, we are pleased to have exited the year in line with our revised guidance and forecasted production growth for 2022. Our robust fundamentals that underpin our business continued to strengthen with an exceptional safety record, strong balance sheet and a self-funded exploration and development programme,” commented Eric Zurrin, Chief Executive Officer.

With its African assets, including New Luika Gold Mine and Singida Project in Tanzania, and West Kenya Project in Kenya, the gold miner’s quarterly gold production went down to 12,244 oz during the last quarter of 2021 from 14,194 oz in the previous quarter.

Gold sales over the year were at an average price of $1,801/oz compared to operating cash costs of $1,081 /oz and sustaining costs per ounce of $1,439 /oz.

Shanta Gold expects an annual gold production between 68,000 and 76,000 oz this year

“Looking ahead to 2022, we’ve announced increased production guidance of 68,000 – 76,000 oz, with production weighted towards the second half of the year once mining of the high grade Bauhinia Creek crown pillar has commenced,” added Mr Zurrin.

Current throughput averaged 2,380 tonnes per day during the last quarter of 2021 with the plant exceeding targeted throughput of 2,300.

The miner affirms that Singida’s construction remains on track for its planned first production in early 2023, which will add a second revenue stream and further strengthen its diversified portfolio of assets in the region.

While Shanta Gold’s three mining licences at Singida’s Gold Mine was extended for 10 years, the licence for New Luika mine was extended to 2026.

The low-cost New Luika Gold Mine, which is located in the Songwe District of southwestern Tanzania approximately 700km south-west of Dar es Salaam, started operations in May last year.