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Shanta Gold studies new Tanzania gold mine

Publication: Mining Weekly

Author: Chanel de Bruyn

6 July 2010

JOHANNESBURG (miningweekly.com) - A feasibility study at Aim-listed Shanta Gold’s Chunya project, in southern Tanzania, has shown that it would have to spend about $23-million to build a mine capable of producing about 28 400 oz/y of gold over an 11-year life-of-mine.

The exploration and development company said on Tuesday that the study, which was conducted by South African-based Environmental, Process and Mining Consultants (EPMC), supported a 360 000-t/y metallurgical process plant, fed from a number of openpit operations within 3 km from the plant.

Construction of the operation was expected be completed within about nine months from start-up.

Shanta was still investigating ways of obtaining financing to build the project, but noted that it has also found that there was an opportunity to double the mine’s capacity for an additional $5-million in capital expenditure.

The Chunya project, which comprised four prospecting licences over a 340-km² area, had a current total resource of 845 519 oz of gold.