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New mine boosts Shanta Gold

By BFN News | 12:41 PM | Monday 20 May, 2013


Shanta Gold has reported that it has made significant operational progress since beginning production at the New Luika gold mine last August, with gold sales of over 22,000ozs to date generating significant revenue. At the company's Annual General Meeting today, Walton Imrie, the outgoing Chairman, said: "The operational team continues to work through short term bottlenecks in the plant resulting mainly from crushing constraints but, with additional capacity coming on line in June as planned enabling plant throughput to be increased, there is the expectation of considerable volume improvements in the second half of the year. "The Board remains very encouraged and excited in the longer term growth of the company. We recently announced a five year production plan for New Luika mine which is forecast to produce 430,000ozs of production at 6,3g/t. "The major New Luika ore bodies remain open at depth, with the potential to become an underground mine which, combined with the ongoing revised feasibility study for the Singida project as well as the consolidation of the Lupa Goldfields, gives the company significant opportunity to deliver longer term value for shareholders. "The directors are acutely aware of the need for a securing reliable cash flow and a robust balance sheet especially during the Company's first year of production. With this in mind and to remove some uncertainty in a volatile gold market, the company entered into forward sale contracts over 30,000ozs to be delivered during the period to December 2013 which were secured at an average price of $1,429 per oz. "We continue to make constructive progress in relation to restructuring our near term debt and expect to provide further updates shortly." At 12:41pm: (LON:SHG) Swan Hill Group share price was -0.5p at 10.88p Story provided by StockMarketWire.com

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