East Africa-focused gold producer, developer and explorer Shanta Gold in November released an update on the construction of the Singida Gold Project in Central Tanzania.

Shanta Gold CEO Eric Zurrin stated that the Singida project was progressing on schedule, with first production expected in early 2023.

“Reaching this milestone will transform Shanta from a single asset producer to a near-term 100 000 oz/y producer with a diversified revenue stream across two operations, further derisking our business and placing us in a strong position to maintain our sustainable dividend and fund the highly promising West Kenya asset.”

He added that the encouraging results of the grade control drilling at Singida reinforced the company’s confidence in the strength of the production profile, especially for the first 18 months to 24 months of production.

At New Luika, 99.5% of the workforce is Tanzanian and now at Singida, the company confirms that it has reached a 100% local-based workforce.

Project Projections

The project’s construction remained on track for first production in early 2023.

Shanta Gold also reported strong results from its grade control drilling programme, which increased confidence in the strength of the production profile at Singida.

Additionally, grade control drilling has been completed at the Gold Tree deposit.

The crushing circuit design and manufacturing has been secured with industrial machinery company Metso Group, for which shipment started in September with expected site delivery in December.

The manufacture of the grinding and gravity circuit mill is under way.

Other startup dates include the mill site civil works, with the start anticipated for December installation planned for May 2022.

Openpit mining operations started at Gold Tree pit on September 15.

The key infrastructure, including bulk power, water, buildings and fencing, are progressing on track and stockpiling of ore is under way.

Finally, the tailings storage facility dam design has been completed, all permits have been received, and approval has been granted by the regulators to start construction.