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April 2017
MODERN MINING
5
MINING News
Shanta Gold revises New Luika Mine Plan
Shanta Gold, whose shares are quoted on
AIM, has announced a Revised Mine Plan
(RMP) from January 2017 to December
2023 and an updated reserves statement
for its New Luika Gold Mine (NLGM) near
Mbeya in south-west Tanzania.
The RMP provides for underground min-
ing, surface mining and a tailings recovery
project and now incorporates the addi-
tional open-pit reserves at Elizabeth Hill
and additional underground reserves at
Ilunga. It provides for processing from
underground and surface mining of 4 Mt
of ore at an average grade of 4,2 g/t for
the production of 500 000 oz from January
2017 to 2023.
Underground operations accessing
high grade orebodies will provide the
majority of plant feed – 2,4 Mt at 5,8 g/t for
444 500 oz contained – over the life of the
mine. A separate tailings recovery project
scheduled from 2019 will produce a fur-
ther 14 600 oz with a standalone project
NPV of US$2,8 million at an 8 % discount
rate and a pre-tax Internal Rate of Return
(IRR) of 39 %. Potential remains to further
optimise the mine schedule, with optional-
ity through the addition of the high grade
Ilunga underground reserve.
Toby Bradbury, Chief Executive Officer,
commented: “The Revised Mine Plan high-
lights the true prospectivity and future long
life of the New Luika Gold Mine. The plan
provides for a longer mine life, increased
production and most importantly, greater
returns for all Shanta stakeholders.
“Considerable depth has been added
to an already robust business case due to
our delivery over the past 18 months and
we will look to extend the planning hori-
zon for the New Luika operation again in
future.
“We will continue to explore on-mine
to bring existing indicated and inferred
resources into the future mine plan and
also in surrounding prospecting tene-
ments to define new resources. Since the
Base Case Mine Plan was published in
September 2015, the Elizabeth Hill and
Ilunga reserves have been successfully
proven and incorporated into the Revised
Mine Plan. We will take the same approach
following positive results recently
announced at the Nkuluwisi prospect,
and with the highly prospective ground
we hold in the Lupa Goldfield.”
A striking night view of Bouly. The mine is a heap leach operation (photo: Nordgold).
and Noungou satellite pits. Once these are
complete, mining licence applications will
be submitted in mid-2017.
Nordgold is also seeking to obtain
access to three additional exploration
areas in Burkina Faso near Bissa. In parallel,
aggressive brownfield exploration includ-
ing geological mapping, geochemical
sampling and drilling will continue on per-
mits near Bissa with particular emphasis on
the Baola II permit.
Listed on the LSE, Nordgold operates
mines in Africa, Russia, and Kazakhstan.
Apart from the Bissa-Bouly operation,
the African mines are Taparko in Burkina
Faso and Lefa in Guinea. Taparko pro-
duced 111,2 koz of gold in 2016, a 39 %
increase year-on-year, while Lefa produced
194,7 koz, a decrease of 9 % on the 2015
figure, caused mainly by flooding in the
higher grade Karta pit.