Tanzania focused gold miner Shanta Gold has begun gold production operations from its plant at the New Luika Gold Mine in south western Tanzania, prompting a jump in the share price.
The first gold pour is on track to take place before the end of this month now that the final stages of processing have been completed.
Shanta said it expects between 13,000-17,500 ounces of gold to be produced in the final quarter of the calander year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In a statement, Chairman Walton Imrie commented: "We are delighted to have achieved the historic milestone of gold production at New Luika, which establishes Shanta Gold as the newest emerging gold producer in Tanzania. Full commissioning of the plant has taken place without any major issues, which speaks to the quality and the efforts of the operational team at the mine.
"Looking to the future Shanta Gold is now well placed to grow through increasing production at New Luika which is underpinned by the recent increase in high grade resources at the mine. The GBG JV affords the possibility of other exciting, high grade, low capital intensity projects in the Lupa Goldfields."
The share price rose 5% to 28.88p by 09:06.
NR
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
