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Shanta Gold is a low cost gold producer with significant resource upside, within and surrounding its New Luika Gold Mine, with additional development opportunities in Tanzania

New Luika Gold Mine

Key facts

Location
Songwe Administrative District, Songwe Region in the Lupa Goldfield of south west Tanzania, the second largest gold producing region in Tanzania in the 1900s.
Size
One prospecting licence covering 49 km² and three mining licences covering
16 km2.
Ownership
100% owned by Shanta Mining Company Limited (SMCL).
Production
Conventional three stage crushing, two mills in parallel and a carbon in leach operation.

2016 ended with record gold production of 87,713 oz for the year
Project status
The low-cost New Luika Gold Mine achieved its first full year of commercial production in 2013. The mine delivered production off 87,713 oz in 2016.

The ore bodies at New Luika comprise high grade (>6g/t Au), medium grade (3 – 6 g/t Au) and low grade (1 – 3 g/t Au) to average 3.9g/t Au. The processing is metallurgically simple and conventional involving crushing and milling techniques with carbon-in-leach gold extraction delivering robust gold recoveries (average 90% recovery). The high quality of the resources combined with tight operational control, make New Luika one of the lowest cost gold mines in its peer group and on the global cost curve.

The New Luika Gold Mine has a central processing facility capable of processing 50,000 tonnes of ore per month. The plant is fed with open pit and underground ores from one or more of eight satellite orebodies within the mining licence area. The plant has built-in redundancy of 50% in the crushing and elution electro winning circuits that, with appropriate additional milling and leach capacity, could enable throughput to expand to 75,000 tonnes per month with limited capital.

In September 2015, Shanta announced its Base Case Mine Plan, providing an updated reserves statement for New Luika with a definitive plan to produce 462,000 ounces from January 2016 – 2022.

This was then subsequently updated in March 2017, with the release of the Revised Mine Plan. Increasing the forecast gold production by 39% from 2017-2023, from 359,000 ounces to 500,000 ounces. The Revised Mine Plan highlighted the true prospectivity and potential future long life of the New Luika Gold Mine.

In May 2017, the first underground ore was produced from the first stope in the Bauhinia Creek deposit. Throughout 2017 New Luika will transition from an exclusively surface mining operation to one that is predominantly underground.

 

New Luika Reserves & Resources (31 December 2016)

Gold Oz (000s)
Deposit Reserve grade (g/t) Reserve Resources
Bauhinia Greek 6.2 253 167
Luika 4.9 73 158
Elizabeth Hill 1.3 32 83
Jamhuri 2.0 7 75
Illunga (UG + OP) 5.2 135 92
Shamba 2.2 16 8
Black Tree Hill na na 8
Black Tree North na na 59
Luika South na na 32
Nkuluwisi* na na 141
Total NLGM 4.4 515 824

Regional geology

The regional geology is characterised by deformed, folded, sheared and metamorphosed paleoproterozoic rocks with major fold axes trending east southeast to west northwest. The following main lithological units occur in the region:


  • Ilunga Granite Formation
    The Ilunga Granite is located in the northern portion of the Lupa Goldfield and is mostly comprised of a medium to coarse grained leucogranite (aplogranite). Biotite and muscovite are commonly associated secondary minerals.
  • Saza Granite Formation
    The Saza Granite is located in the central portion of the Lupa Goldfield and consists of numerous rock types including hornblende rich granites and hornblende-biotite rich granodiorites.
  • Gneiss Formation
    The Gneiss Formation, the main ore bearing host, is the dominant rock unit within the Lupa Goldfield. The Gneiss Formation has been subjected to at least three granitic intrusive events that have given rise to a variety of rock types such as felsitic gneiss, biotite and hornblende granite gneiss, leucocratic granular gneiss. Diorite, granodiorite and granite rocks are evident within the Gneiss Formation.

Mineralised quartz veined targets are hosted within brittle-ductile to ductile deformational features of variable orientation.