JOHANNESBURG (miningweekly.com) – The decline development at the New Luika gold mine has started after Aim-listed Shanta Gold secured all the required approvals for the Tanzania mine to move from a surface operation to a high-grade underground mining operation.
The East Africa-focused gold producer, developer and explorer was becoming increasingly underground focused, with a fairly new base case mine plan showing the production of 443 000 oz – 133 000 oz openpit and 310 000 oz underground – from 2016 to 2022.
“The start of the underground development is a major milestone for New Luika, as it provides ongoing long-term access to high-grade resources in the Bauhinia Creek and Luika deposits for at least the next five years,” said Shanta CEO Toby Bradbury.
The underground project, which was fully resourced in terms of employees and equipment, was aimed at bolstering production as New Luika’s openpit operations were gradually mined out by March 2018.
Shanta previously indicated its intention of starting underground production in the second quarter of 2017.
Meanwhile, Shanta’s current production, operating and capital costs remained on target, with a full update expected to be released alongside the company’s results for the second quarter of 2016.
Edited by: Creamer Media Reporter
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