Shanta Gold on track to hit 2013 gold production target

East African-focused mining company Shanta Gold is back on track to hit its 2013 production target of 70,000 ounces of gold in the New Luika Gold Mine in Tanzania, according to a trading update published this morning.

East African-focused mining company Shanta Gold is back on track to hit its 2013 production target of 70,000 ounces of gold in the New Luika Gold Mine in Tanzania, according to a trading update published this morning.

New crusher speeds up productionThe AIM-listed mining company revealed that, following the successful installation of a tertiary crusher at the mine, it had more than doubled the volume of material broken down daily since the initial crushing circuit installed struggled to handle the run of mine ore.

The original two-stage crushing circuit was upgraded to a three-stage crushing circuit in early January resulting in 870 tonnes of material being crushed per day in the early commissioning period compared to an average of 390 tonnes per day in the last quarter.

Following the commencement of production at New Luika at the end of August 2012, the company produced 5,748 ounces of gold in the fourth quarter of 2012 with a further 1,917 ounces of gold absorbed on carbon which has since been converted to dore.

Houston: 'we're making progress'

Mike Houston, Chief Executive Officer of Shanta Gold, commented: "I am pleased to be able to report that we are making progress in achieving both our operational and commercial goals. It is still early days but the commissioning of the recently upgraded three-stage crushing circuit has gone satisfactorily and will result in a more consistent feed to the mills and in addition allow the company to build up a stockpile of crushed ore which will assist in alleviating potential downstream plant outages.

"While the ramp up will continue during the first few months of this year the changes put in place by the company to date, together with our strengthened financial position, has provided a sound base to meet the 2013 production target of 70,000oz plus."

Shanta Gold's share price was up 10.65% to 23.38p at 10:29 on Monday morning.

MF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
What does the Coinbase listing mean for bitcoin and other cryptocurrencies?
Bitcoin

What does the Coinbase listing mean for bitcoin and other cryptocurrencies?

As the bitcoin price hit new highs, the world's biggest cryptocurrency exchange, Coinbase, listed on the stockmarket. John Stepek looks at what that m…
15 Apr 2021
Properties for sale for around £400,000
Houses for sale

Properties for sale for around £400,000

From a converted church in Banffshire with views towards the Cairngorms National Park, to a period property in the Georgian market town of Beverley, e…
2 Apr 2021