27th Jun 2016 08:23
LONDON (Alliance News) - Shanta Gold Ltd on Monday said it has started developing an underground operation at the New Luika gold mine in Tanzania after receiving all the required approvals from authorities.
Shanta is already operating a production operation from an open pit mine at New Luika. To add underground operations, decline development has began, it said, and the project has all the necessary employees and equipment on site.
Notably, the miner said existing operations, costs and production remain on track and on target, and shareholders can expect a further and more detailed update when it publishes its second-quarter results.
"The start of the underground development is a major milestone for New Luika as it provides on-going long-term access to high-grade resources in the Bauhinia Creek and Luika deposits for at least the next five years," said Toby Bradbury, chief executive of the company.
"We are particularly grateful for the constructive and timely assistance of the Tanzanian authorities in the processing of the company's permits," he added.
Shanta shares were trading up 3.9% to 7.01 pence per share on Monday.
By Joshua Warner; [email protected]; @JoshAlliance
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