Publicly listed Shanta Gold provided an update on the progress of construction at the Singida gold project in central Tanzania, which remains on track for first production in the first quarter of 2023.

“Singida will transform Shanta from a single-asset gold producer into a diversified gold miner of over 100,000 oz/yr, with two independent operations generating significant cash flow.

“Never before has Shanta been in this position to capitalize on its growth potential, with a healthy balance sheet in a net cash position, excellent financial flexibility and a continued commitment to paying a sustainable dividend to our shareholders,” said the CEO. Eric Zurrin.

Singida is progressing on schedule and in line with capital expenditure expectations.

Several major project milestones have now been completed at the site, with construction now 45% complete and a clear path to achieving first production within the next 12 months.

Successful delivery of the crushing circuit built by Metso in December 2021 followed the completion of design and manufacturing. All equipment and steel are now in place, with assembly to begin in March.

Manufacturing of the grinding circuit and gravity mill by NCP in South Africa is 100% complete. Shipment to the targeted site is scheduled for March and on-site installation is scheduled for May.

Construction of the tailings storage facility and waste rock pile commenced following permit approval in 2021.

Ore stockpiling continues following Gold Tree’s first successful open pit explosion in October 2021.

Key infrastructure, including bulk electricity, water, buildings and fencing, is either complete or progressing according to expectations.

Recently completed Phase 1 grade control drilling at the Gold Tree deposit yielded greater than 5% reconciliation to the reserve model and de-risked the initial production plan 12 months post-commissioning. The Gold Tree deposit contains 49% of all of Singida’s current mineral resources.

Zurrin notes that the project also has considerable growth potential given its location in a greenstone deposit, meaning it is well suited for future exploration growth. Future drilling will target areas within the mining licenses with the aim of expanding Singida’s reserves.

In addition to further de-risking the business from a financial and operational perspective, Singida is also expected to add considerable time to the life of the business in Tanzania, Zurrin said, noting that 100% of the labor- Singida’s workforce is Tanzanian.

Total capital expenditure at Singida for this year is estimated at approximately $25 million.

“With the short-term introduction of the Singida mine into Shanta’s portfolio, in addition to the recent reserve replacement update at New Luika, there is an attractive opportunity for investors to gain exposure to a gold mining company. with a strong production profile, very promising exploration opportunities across Tanzania and western Kenya, and a sustainable dividend,” says Zurrin.

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