Shanta Gold produced a record 24.6 koz of gold in Q3, 8% higher than the corresponding quarter of 2014 as the grade increased from 4.47 g/t to 5.68 g/t at its New Luika gold mine, in Tanzania.
The result was a marked improvement on the previous quarter when production was only 14.7 koz of gold. Ore milled increased by 25% following the re-design and re-optimisation of the Bauhinia Creek and Luika pits. Ore grades were 33% higher than Q2 15 owing to the availability of higher-grade ore from the two pits.
The company expects to operate the plant at full capacity for the rest of the year as well as rebuilding ore inventories.
Cash costs in Q3 were US$453/oz, a significant improvement from the US$671/oz reported in Q3 14 and from the US$834/oz recorded in the June 2015 quarter. AISC were US$608/oz, 47% lower than Q2 15.
With a portion of gold production sold under a forward sales contract (at higher than spot prices), the operations generated cash of US$13.2 million.
The company remains on course to meet 2015 production guidance of 72-77 k oz of gold at AISC of US$850/oz-US$900/oz.
Significant production increase at Shanta’s Tanzanian gold mine: SHG