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Shanta declares commercial production at its Singida gold mine in Tanzania

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(Kitco News) - Shanta Gold (AIM: SHG), the East Africa-focused gold producer and developer, announced today that its Singida gold mine in Tanzania has achieved commercial production, effective 1 June 2023.

The company said that all key internal commercial production measurements were achieved (including processing rate, plant availability, gold recovery, and plant utilization), adding that mining activities are progressing according to schedule with nearly six-months of feed already stockpiled.

Shanta Gold also reported that exploration drilling is planned for Q3 to target reserve additions and resource conversion, tapping into the 885 koz of resources currently outside the reserve-based mine plan.

The company commenced construction of Singida in late 2020, which became its second operating mine in Tanzania when it commenced production in Q1 2023, transforming Shanta Gold into a +100,000 oz/pa producer.

The Singida project's current mine life extends to the end of 2029, based on existing reserves. The processing plant is designed to treat 365 ktpa of fresh ore from the mine with planned average production of 32 koz per annum of doré over the life of mine.

CEO Eric Zurrin said, "With this key milestone achieved, I can confidently say that Shanta has reached an inflexion point at which the company can now look further forward for its next phase of growth. The cashflow contribution from Singida materially increases financial flexibility for the company allowing management to comfortably take the next steps required in its growth journey."

Shanta Gold is an East Africa-focused gold producer, developer, and explorer. The company develops its New Luika and Singida mining projects in Tanzania and owns exploration licences covering approximately 800 km2 in the country. Shanta also owns the high-grade West Kenya project in Kenya and licences with resources of 1.7 million ounces including 722 koz in the indicated category grading 11.45 g/t.

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