17th Sep 2015 07:21
LONDON (Alliance News) - Shanta Gold PLC on Thursday saw its shares rise in early trade after it said the resource estimate for the Elizabeth Hill prospect at the New Luika Gold Mine in Tanzania has been upgraded, and as it said trading has been in line with its expectations.
Shanta said the optimisation work carried out on the Elizabeth Hill prospect at the mine has established a greater grade continuity between drill holes and surface trenches, resulting in a 46% uplift to the total resource estimate for the prospect to 40,000 ounces of gold.
Shanta also said production and costs at New Luika have been in line with budget and it remains on track to hit its full-year production guidance of 72,000-77,000 ounces.
"Upgrading the Elizabeth Hill Prospect is the first of a number of programs aimed at improving our understanding of the true value of New Luika Gold Mine resources. We will now go about determining how best Elizabeth Hill fits into the Life of Mine Plan, which we are scheduled to release the base case for at the end of this month," said Toby Bradbury, Shanta's chief executive.
"We are pleased to note that production and costs have remained at budgeted levels and we remain on course to hit full year guidance," he added.
Shanta shares were up 7.8% on the news to 4.4449 pence, the best performer in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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