JOHANNESBURG (miningweekly.com) – East Africa-focused Shanta Gold produced 14 664 oz of gold in the quarter ended June 30, selling 11 590 oz at an average price of $1 222/oz.

The remaining 2 673 oz was in transit at quarter-end.

Output was up 8.49% on the 13 516 oz produced in the first quarter of the year, but was lower than the 19 114 oz and 22 720 oz produced in the third and fourth quarters of 2014 respectively.

"During [the second quarter], Shanta delivered on its targeted recovery. As expected, June was a watershed month in which the company achieved gold production of 7 480 oz.

“Guidance of 72 000 oz to 77 000 oz for the year is maintained and I believe that confirms [this year] will be a year of two distinct halves,” CEO Toby Bradbury noted.

The Aim-listed company further noted that while its all-in sustaining cost (AISC) guidance for the year remained at $850/oz to $900/oz, the cost per ounce was adversely affected by low gold production during the quarter, with cash costs of $834/oz and AISC at $1 157/oz.

Bradbury said active and balanced ore mining in the Bauhinia Creek pit was achieved for the first time in May.

“The redesign and reoptimisation of the current pits has been completed with life-of-pit strip ratios significantly reduced.

“The first half of the year has been one of major mine redevelopment and I am very pleased with the positive impact that our reinforced management team has delivered. We eagerly anticipate a consequent reduction in mining costs being realised from July, [which is] also important in combating a lower gold price environment,” he added.

Shanta’s New Luika project, in the Lupa goldfield of south-west Tanzania, meanwhile, also provided a stable platform for the continued development of a sustainable mine plan.

“Our exploration pipeline will now receive renewed focus and the company as a whole considers this a turning point in which the true value of its assets and people will become clear for all its shareholders and stakeholders,” Bradbury said.

The mine’s underground mining feasibility study and life-of-mine plan were on schedule for completion in the third quarter.