Name of the Project
Singida gold mining project.

Location
Central Tanzania.

Client
Shanta Gold.

Project Description
The Singida gold mining project aims to produce 26 000 oz/y of gold openpit mining over an initial six-year period.

Internally estimated project economics provide for the processing of 2.4-million tonnes of ore from surface mining at an average grade of 2.3 g/t for the production
of 158 000 oz of recovered gold over the mine’s life.

Total inferred resources that are currently outside of the project economics amount to 6.57-million tonnes grading at 1.63 g/t of gold for 344 000 oz.

These resources can potentially benefit from further exploration, have been prioritised for further evaluation and have the advantage of being situated within the current mining licence areas, with close proximity to the proposed processing plant.

The project economics are currently designed to maximise mill throughput during the first five years of production and, as such, any resource conversion has the potential to extend the mine life beyond the initially expected six-year period.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $31-million and an internal rate of return of 67%.

Value
Preproduction capital expenditure is estimated at $16-million.

Duration
Not stated.

Latest Developments
Shanta Gold has proceeded with a targeted $20-million minimum equity offering through an initial public offering for its Singida project.

Shanta, which owns the gold project, will retain at least 51% ownership following the IPO.

The IPO proceeds will be used to finance the upfront capital cost to bring the project to production, as well as for exploration to expand the Singida resource.

Most key infrastructure, including water, grid power, resettlement and an operating camp, is already in place.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Shanta Gold (Tanzania), tel +255 22 292 5148, fax +255 22 292 5151 or email mining@shantagold.com or info@shantagold.com.