Name of the Project
Singida gold mining project.

Location
Central Tanzania.

Project Owner/s
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.

Project economics estimated in house 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%.

Capital Expenditure
Preproduction capital expenditure is estimated at $16-million.

Planned Start/End Date
Not stated.

Latest Developments
Shanta Gold has announced a Joint Ore Reserves Committee- (Jorc-) compliant reserve and an updated and independently verified Jorc-compliant mineral resource estimate (MRE) for its Singida gold project.

The project has a gold reserve of 243 000 oz at 3 g/t.

More than 90% of contained gold within the reserve is between 0 m and 120 m from surface, highlighting the potential for reserve expansion at depth.

The project's MRE has also been re-estimated and independently verified by a third-party competent person.

This has resulted in a total MRE of 904 000 oz at 2.38 g/t, including a 17% increase in the measured and indicated resources to 484 000 oz at 2.66 g/t.

This externally verified MRE supports Shanta's previously announced in-house estimate and has formed the foundation of a Jorc reserve for the project.

An updated life-of-mine plan will be released shortly.

Financing discussions for the development of Singida are also at an advanced stage.

Key Contracts and Suppliers
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.