Successful Wet Commissioning of New Luika Plant (8274F)
June 21 2012 - 2:00AM
UK Regulatory
TIDMSHG
RNS Number : 8274F
Shanta Gold Limited
21 June 2012
21 June 2012
Shanta Gold Limited
("Shanta Gold" or the "Company")
Successful Wet Commissioning of the New Luika Plant
Shanta Gold (AIM: SHG), the near-term gold producer with
operations in Tanzania, is pleased to provide an update on mining
and construction activities at its first producing gold mine in the
Lupa gold region of the country, the New Luika Gold Mine ("New
Luika").
Highlights:
-- Plant wet commissioning certificate awarded by plant design
and engineering firm;
-- Remaining US$2.5m tranche of US$15m FBN Bank facility
approved post-wet commissioning;
-- Hot commissioning to commence imminently;
-- First gold production expected by mid-Q3, followed by cash
receipts by the end of Q3;
-- Current ore and gravels stockpiles estimated to contain over
22,000 ounces of gold;
-- Q4 2012 production guidance of approximately 13,000 - 17,500
ounces of gold.
Shanta Gold Executive Chairman Walton Imrie said today:
"The New Luika Gold Mine is on the verge of completion in all
respects with first gold production on schedule for mid-Q3. The hot
commissioning of the New Luika plant and commencement of gold
production will mark a new chapter in Shanta Gold's history as we
evolve from developer to producer. This historic milestone is a
testament to the hard work of the management and operational teams
who have worked tirelessly to deliver Shanta Gold's first producing
gold mine."
New Luika Plant Commissioning
The Company has successfully completed wet commissioning of the
plant and has received the wet commissioning certificate from DRA
providing third party confirmation. The successful wet
commissioning satisfies the final condition for the receipt of the
remaining US$2.5m of the US$15m FBN Bank facility, which has now
been approved by FBN Bank. The on-site laboratory has been fully
commissioned allowing for the quick turnaround of assay samples for
grade and metallurgical controls. Hot commissioning of the plant
will commence imminently, which will include powering the crushers,
aligning the ball mills and lining the CIL tanks. Key
infrastructure for hot commissioning has now arrived on site. The
final items yet to be delivered but currently in transit include
the gold room safe and a replacement transformer, which can be
substituted by the generator sets until it arrives. First treatment
of ore is expected in the next few weeks followed by production of
carbon in leach. The Company remains on schedule for first gold
pour by mid-Q3. In addition, the company looks forward to providing
an updated New Luika resource statement in July.
Working Capital Update
Following the combined US$40 million equity and convertible loan
note placings in April, the Company is in a strong cash position
and expects to have sufficient capital to cover the remaining
working capital needs of the business through to production and
into cash flow in mid-Q3, subject to no major unforeseen delays
occurring during the commissioning of the plant. Project capital
costs remain in-line with original forecasts. The additional funds
have been used for working capital requirements for ongoing mining
and stockpiling activities. As of 31 May 2012, the Company had a
stockpile inventory of approximately 117,000 tonnes of gold bearing
ore; average grade control sampling suggest that the stockpile may
contain over 22,000 ounces of gold (approximately US$35m at current
gold prices).
Enquiries:
Shanta Gold Limited Tel: +255 (0) 22 2601 829
Walton Imrie / Gareth Taylor
Nominated Adviser and Broker
Liberum Capital Limited Tel: + 44 (0)20 3100 2000
Michael Rawlinson / Clayton Bush
/ Christopher Kololian
Financial Public Relations
Tavistock Communications Tel: +44 (0) 20 7920 3150
Emily Fenton / Mike Bartlett
About Shanta Gold Limited
Shanta Gold is a Tanzania focussed gold explorer and mine
developer. It currently has defined ore resources on the New Luika,
Singida and Mgusu projects and holds exploration licences over a
number of additional properties. The New Luika Gold Mine is
currently under construction and is expecting first production in
Q3 2012. The Company is admitted to trading on AIM and has
approximately 319 million shares in issue.
For further information visit the Company's website:
www.shantagold.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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