MwanaKijiji.COM

Ngeleja (Left) Minister of Energy and Mining

By: Brindaveni Naidoo

1st July 2011

JOHANNESBURG (miningweekly.com) – Aim-listed Shanta Gold is gearing up to start production at its New Luika gold mine in Tanzania by the end of the year.

The company, which reported a loss of $7.8-million for the financial year ended December 31, would commission the New Luika gold mine in the fourth quarter, chairperson Walton Imrie said on Friday.

Construction at New Luika, which will produce an average 40 000 oz/y of gold, has been under way since the first quarter of 2011.

But Imrie said that while efforts were concentrated on bringing the New Luika gold mine into production “as expeditiously as possible”, the company also remained committed to the success of its other projects.

Other developments included the Saza Village tailings dump joint-venture project, located 7 km from the New Luika gold mine, which would add further value to Shanta's operations in the goldfield.

Encouraging geological results at Singida has led to a full feasibility study and an application for a mining licence, which would provide an indication of the viability of the approval of a second mine, and move the company into mid-tier gold-producer status, Imrie said.

Consultations with the local community and Ministry of Mines in relation to the Mgusu project were ongoing. Artisanal mining on Shanta Gold’s property continues, and the company hoped that a mutually agreeable solution would be found during the coming year.

Basic loss a share increased from $4.29 at December 31, 2009, to $5.95 for the period under review, with exploration and evaluation costs increasing from $2.7-million to $5-million and operational loss rising to $7.8-million.

But Shanta remained confident that it was in an advantageous position to meet ongoing exploration and mine construction costs.

Comments (0)

Name

Email-Address (Will Not Be Published)

Comment

smaller | bigger

I have read and agree to the Terms of Usage.

Add Comment Preview