Shanta Gold announces updated resource for Singida

East Africa-focussed gold producer Shanta Gold announced a JORC-compliant reserve, and an updated and independently verified JORC-compliant mineral resource estimate for the Singida Gold Mining Project in central Tanzania on Tuesday.

The AIM-traded firm reported a JORC 2012-compliant gold reserve of 243,000 ounces at three grams per tonne, adding that more than 90% of contained gold within the reserve was between 0 and 120 metres from surface, highlighting the potential for reserve expansion at depth.

It said an updated life-of-mine plan would be released “shortly”.

The updated JORC-compliant mineral resource at Singida totalled 11.8 million tonnes, grading at 2.38 grams per tonne and containing 904,000 ounces of gold, using a cut-off grade of one gram per tonne.

That included a 17% increase in measured and indicated mineral resources, totaling 5.7 million tonnes, grading at 2.66 grams per tonne and containing 484,000 ounces.

Shanta said the mineral resource estimate had been independently estimated and verified by a third-party competent person.

It added that financing discussions for the development of Singida were “advanced”, saying an announcement would follow.

“The Singida reserve allows the company to move forwards towards construction and first production at Singida, confident in the fact that we have a number of high-grade open pits,” said chief executive officer Eric Zurrin.

“Importantly, it is expected that this foundation will allow Singida to generate significant cash flow to, amongst other things, pay for regional exploration which will, over time, illuminate the project's full potential.”

Zurrin explained that the Singida reserve sits within a “substantial” resource, on a 4.9 kilometre strike in a “highly prospective” greenstone belt.

“The reserve represents just 26% of the existing total contained resources and is nearly all within only 120 meters from surface, highlighting the potential for reserve expansion.

“The project is fully permitted, and financing discussions are well advanced with an announcement expected soon.”

At 1458 BST, shares in Shanta Gold were down 1.7% at 11.55p.