Shanta Gold posts record output in Tanzania


Shanta Gold’s output recovered strongly in the second half of 2015 after another record quarter at its New Luika mine in Tanzania, the miner has said in a statement.

The British company, which trades in Tanzania as Shanta Mining Company Limited, is engaged in both exploration and mining projects in highly prospective, under-explored areas in the country,

Its flagship 100 per cent owned New Luika Gold Mine in Chunya commenced gold production in 2012 and produced 84,028 ounces in 2014. 

Its other assets are Mgusu in Ilemela, Mwanza Region, 10 prospecting licences covering 474 km² in Singida, and 15 prospecting licences covering 378 km² in Mbinga and Songea districts in Ruvuma Region.

“New Luika’s output rose to 29,139 ounces (oz) in the three months to December, 19 per cent higher than the previous quarter, to take the total for the year to 81,873oz,” the company noted in the statement.

The 2015 total output was higher than the forecast of between 72-77,000oz for the year but still below the previous year’s slightly over 84,000 oz performance.

Shanta expects to exceed that this year. It forecast the 2016 output to range between 82,000 and 87,000 oz at a production cost of between US$750-US$800 per ounce. In 2014 and last year, the company produced each ounce at a cost of US$941 and US$845 respectively.

The record-breaking performance at Luika in the last two quarters of 2015 marked a strong recovery from a difficult start for company in an industry that has been reeling under falling prices.

On Thursday, spot gold prices went down US$3.50, or 0.32 per cent, at $1,098.70 compared to the previous day’s performance. On Wednesday, gold prices surged US$17.20, or 1.58 per cent, to settle at US$1,107.10 an ounce. 

It was the gold price's biggest gain in two weeks and highest close since January 7. Escalating fears of a global slowdown and an unrelenting slide in oil prices had investors piling into gold.

In January oil has fallen below US$30 per barrel, with no bottom in sight as crude producers seem to have reached a point of losing interest to keep pumping. On Thursday, March-dated Brent crude, the global oil benchmark, fell 0.9 per cent to US$27.63 a barrel on London's ICE Futures exchange.

New Luika is Shanta’s major asset and getting the mine back on track after first half re-development problems enabled the company to end the year with higher production, lower debts and sharply reduced costs.

| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 |

Tanzanian president splits energy and mining in ministry shake-up

  1. DAR ES SALAAM, Oct 7 (Reuters) - Tanzanian president John Magufuli split the energy and minerals ministry in two and appointed heads for the new ministries on Saturday, five months after sacking the p…
  2. {read by 39 people}

Tanzania: One Killed, Another Cheats Death Following Mine Accident in Geita

  1. Geita - A small-scale miner has been killed after he was trapped in a collapsed mine at Lwamgasa Village in Geita Rural District on Tuesday. The body of the victim was found Thursday following resc…
  2. {read by 24 people}

Tanzania to auction tanzanite from its source to curb smuggling

  1. Tanzania is expected to auction tanzanite in the mining site of Mererani on Saturday in efforts to sell the gemstones on its source to make the east African nation benefit from its natural resources. …
  2. {read by 37 people}

Two die in attack to Avocet Mining's convoy in Burkina Faso

  1. West Africa-focused Avocet Mining said Wednesday that two paramilitary police officers were killed and other two suffer injuries after unknown aggressors assaulted a convoy carrying fuel to its Inata …
  2. {read by 52 people}

Congo reinstates VAT on imports for mining companies

  1. KINSHASA, Aug 12 (Reuters) - Congo has reinstated a value added tax on mining company imports, the chamber of mines said on Saturday, part of what miners say is a deteriorating business climate in the…
  2. {read by 55 people}

Ghana's gold, diamond output to drop as govt curbs small-scale mining

  1. PANAJI, India, Aug 12 (Reuters) - Ghana's gold output is likely to drop sharply in 2017 because of curbs on the small-scale mining that lifted production last year but was causing damage to the enviro…
  2. {read by 130 people}