17th Jan 2019 10:50
LONDON (Alliance News) - Shanta Gold Ltd on Thursday said it has doubled its exploration budget for 2019 on the back of improved gold production in 2018.
The East Africa-focused explorer said its gold production in the three months to the end of December was 23,942 ounces, up 21% from the third quarter, and up from 21,288 ounces produced in the same period a year prior.
For 2018, gold production totalled 81,872 ounces, exceeding the company's guidance of 80,000 ounces. In 2017, Shanta produced 79,585 ounces of gold.
Looking forward, Shanta said it expects to produce between 80,000 ounces and 84,00 ounces of gold in 2019 at all-in sustaining costs in a range of USD740 and USD800.
The company also said its Ilunga underground pre-production well in Tanzania was developed ahead of schedule and first development ore now expected in March, ahead of the original mid-2019 target.
"The company set a number of all-time records in the fourth quarter, both operationally and financially," said Chief Executive Eric Zurrin.
"Exploration remains a key priority for Shanta and we have doubled the exploration budget for 2019," added Zurrin.
Shanta Gold shares were trading 6.1% higher on Thursday morning at 5.60 pence each.
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