logo-loader

Shanta Gold hits new record at New Luika

Published: 17:07 28 Apr 2014 AEST

gold_ounce350_535dffc8d852d

Gold production from Shanta Gold's (LON:SHG) New Luika mine in Tanzania rose to a new record over the past three months with costs lower than expected.

Mike Houston, Shanta’s chief executive, said: "Performance for the quarter was ahead of expectations with record gold production on the back of higher throughput resulting from increased plant availability.

“The higher gold production has helped in managing costs and offsetting some delays being experienced at our plant improvement projects.”

Production totalled 20,254 ounces, a 3.5% increase over the previous three months, in the quarter to March, with sales of 22,059 ounces at a price of US$1,297.

Cash costs were US$767 per ounce with all-in sustaining-costs of US$965 per ounce. Both were lower than expected for the quarter, said the miner.

Going forward, Shanta added that work on the installation of both the elution/electro-winning plant and the crushing circuit is ongoing and production for the full year remains on course to hit the previous 80,000 ounce guidance at a cost of US$900 to US$1,000.

Shanta added it is also making good progress with the New Luika Life of Mine plan and its new project at Singida with Bankable Feasibility Studies for both expected to be completed by the end of this quarter with publication expected early in the third.

Net debt at the end of the quarter was US$45.1mln, including US$25mln convertible loan notes.

Mining Capital's Alastair Ford charts continued strength in gold price

Mining Capital's Alastair Ford addresses suggestions gold could be heading towards a new high of $2000/oz. ''I think that's quite an ambitious target to be setting at this point ... the next breakout number $1525/oz and thereafter the chartists will look for something like $1560/oz''. ''If...

on 16/8/19