23rd Jul 2019 12:24
(Alliance News) - Shanta Gold Ltd on Tuesday announced underground operations at the New Luika gold project have commenced, on time and on budget.
The first ore stope at the Ilunga underground mine at New Luika is now producing, at a depth of 130 metres below surface.
Production comes, Shanta said, after just USD7.9 million of pre-production capital investment, and less than 12 months after the underground portal blast at Ilunga was carried out. Ilunga is now the third source of "high-grade" underground feed at New Luika, alongside Bauhinia Creek and Luika.
There is a probably ore reserve of 660,500 tonnes at Ilunga, at a grade of 5.6 grams of gold per tonne of ore, containing 118,000 ounces of gold.
Chief Executive Eric Zurrin said: "Bringing these high grade ounces online within budget and on time is yet another example of our model at work, namely: adding low cost ounces to resources at our well established operations, thereby increasing the mine life and the free cash flow generation potential at New Luika.
"Now we have reached commercial production, we hope to delineate further mineable ounces by upgrading our inferred resources via cost efficient underground drilling."
Shares were 2.9% higher on Tuesday at a price of 8.28 pence each.
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