https://www.engineeringnews.co.za

Singida project economics estimate 26 000 oz/y of production, IRR of 67%

5th December 2018

By: Marleny Arnoldi

Online News Editor

     

Font size: - +

Aim-listed Shanta Gold has determined that openpit mining at its Singida gold mine, in Tanzania, will be capable of producing an average 26 000 oz/y for six years.

The company expects to increase its total gold production from all operations to more than 100 000 oz/y from 2020.

Project economics published by the company on Wednesday further determined a pre-production capital expenditure requirement of $16-million and $3-million for working capital at Singida.

The project has a net present value of $31-million and an internal rate of return (IRR) of 67%, at an 8% discount rate and using the current gold forward curve.

The life-of-project cash cost will be $794/oz.

Moreover, Shanta said there is significant further upside potential through the inclusion of substantial resources sitting outside the project economics. Geophysics have been completed to test continuity between the Corn Patch and Corn Patch West targets. The results are currently being interpreted.

The Singida environmental- and social-impact assessment is expected to be completed during the first quarter of 2019, which will complete the requirements for the project’s permitting process.

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

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Vikela Aluvin (Pty) Ltd
Vikela Aluvin (Pty) Ltd

Complete range of security sealing solutions including security seals bags and labels.

VISIT SHOWROOM 
Flanders Electrical SA
Flanders Electrical SA

FLANDERS Southern Africa provides integrated solutions for mining and industrial operations, covering field services, automation, electrification,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.055 1.134s - 140pq - 2rq
Subscribe Now