Shanta Gold Limited First underground ore produced from the NLGM (8848F)
May 23 2017 - 1:00AM
UK Regulatory
TIDMSHG
RNS Number : 8848F
Shanta Gold Limited
23 May 2017
23 May 2017
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
First underground ore produced from the New Luika Gold Mine
Shanta Gold (AIM: SHG), the East Africa-focused gold producer,
developer and explorer, is pleased to announce that first stope ore
has been produced from the New Luika Gold Mine ("NLGM") underground
operation.
The underground ore is being sourced from a long-hole open stope
between the 900 - 880 metre levels in the Bauhinia Creek orebody.
Establishment of further stopes will continue throughout 2017 to
support the increasing production scheduled from the underground
operations.
Coincidentally, on 19 May 2017, ore was intersected in the Luika
orebody on the 937 metre level, ahead of schedule, with first
production ore from Luika scheduled in Q4 2017.
A summary of the current status of the underground operation at
the NLGM is as follows:
-- Over 3,000 metres of total underground development, including
the portal development from the 960 metre level, has been completed
since 24 June 2016;
-- A total of 37,000 tonnes of development ore at 7.70 grammes
per tonne ("g/t") has been produced from Bauhinia Creek undergound
to date;
-- Development of the Bauhinia Creek orebody has been completed
on the 915, 900 and 880 levels, is in progress on the 865 level and
the main decline is now approaching the 845 level turn-out;
-- The Bauhinia Creek main fan was commissioned in early May 2017;
-- The final ventilation raise bore shaft for the Luika orebody
is on track for completion this quarter;
-- The Cement Rock Fill plant construction is underway to commence operation this quarter;
-- Two loaders have been equipped with tele-remote operation, with training completed; and
-- The underground workforce now stands at 138
Toby Bradbury, Chief Executive Officer, commented:
"In September 2015, Shanta announced its Base Case Mine Plan
with a commitment to commence underground production from Bauhinia
Creek in Q2 2017 at the New Luika Gold Mine. Every material
milestone has been achieved in the delivery of this project which
is a credit to the entire Shanta team."
"The performance of New Luika Gold Mine through the transition
from an exclusively surface mining operation to a predominantly
underground operation has been well planned and well executed.
Naturally there have been, and will continue to be challenges, but
the resolve with which this achievement was accomplished reflects
the way in which Shanta will continue to deliver in the
future."
"After a strong Q1 2017, gold production in Q2 is running ahead
of expectations with favourable grades being achieved from the
Ilunga open pit, reaffirming the Company's production guidance for
2017 of 80-85,000 oz."
Enquiries:
Shanta Gold Limited
Toby Bradbury (CEO) +255 (0)22 2601
Eric Zurrin (CFO) 829
Nominated Adviser and Broker
Peel Hunt LLP
Matthew Armitt / Ross Allister
/ Chris Burrows +44 (0)20 7418 8900
Financial Public Relations
Tavistock
Jos Simson / Emily Fenton
/ Barney Hayward +44 (0)20 7920 3150
About Shanta Gold
Shanta Gold is an East Africa-focused gold producer, developer
and explorer. It currently has defined ore resources on the New
Luika, Nkuluwisi and Singida projects in Tanzania and holds
exploration licences over a number of additional properties in the
country. Shanta's flagship New Luika Gold Mine commenced production
in 2012 and produced 87,713 ounces in 2016. The Company is admitted
to trading on London's AIM and has approximately 583 million shares
in issue.
For further information please visit: www.shantagold.com.
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
ENDS.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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