Shanta Gold starts underground development at New Luika
Updated : 12:34
East Africa-focused gold producer Shanta Gold said on Monday that its New Luika gold mine has received all requisite approvals for its underground project and the decline development has kicked off.
The AIM-listed company said the underground project is fully resourced in terms of employees and equipment, while current production, operating and capital costs remain on target.
A full update will be provided with the second quarter results.
Chief executive officer Toby Bradbury said: “The start of the underground development is a major milestone for New Luika as it provides on-going long term access to high grade resources in the Bauhinia Creek and Luika deposits for at least the next five years.
“We are particularly grateful for the constructive and timely assistance of the Tanzanian authorities in the processing of the company's permits."
SP Angel said: “We believe that exploration of near surface open pit deposits in the vicinity of the plant, such as the Elizabeth Hill deposit, continues and should provide opportunities to supplement ore feed from underground mining in the years ahead.”
Meanwhile, Shore Capital said the project was “key to New Luika’s future”.
At 1233 BST, Shanta shares were up 12% to 7.55p.