Shanta Gold posts record quarterly production

Shanta Gold has hit a new quarterly gold production record at its New Luika Gold Mine in Southwest Tanzania.

The AIM listed gold producer, developer and explorer announced its third quarter update to 30 September on Tuesday.

It revealed gold production for the period was at 24,552 ounces, up from 14,664 ounces in the previous quarter.

Gold sales also rose dramatically from 11,590 ounces at an average price of $1,222 per ounce to 26,254 ounces at $1,175.

As a result, cash generated from operations was up to $13.2m from the previous quarter’s loss of $3m.

It also noted that the company expects to achieve its target of an all in sustaining cost of between $850 and $900 per ounce, and total production between 72,000 to 77,000 ounces.

Shanta Gold chief executive Toby Bradbury said the third quarter results further reduced the risk to the company’s guidance for 2015.

“The operating platform we have established at New Luika Gold Mine underpins the value accretive base case mine plan, the underground feasibility study and updated reserves statement released to the market last month.

"The quarter reported marks an important point at which our initiatives targeting operational efficiencies, senior operational appointments and value improvement programmes are taking measurable effect.”