SHANTA Gold, operating New Luika Gold Mine, said its energy costs have gone down by 20 per cent after connecting to national power grid.
The Shanta, Tanzaniafocused gold producer, developer and explorer, said the costs had gone down after its Luika Mine is powered by national grid by 14 per cent.
The mine based in Chunya said in a tweet that the New Luika “is now powered by the state grid, which is on track to increase to 25 per cent within 12 months”.
“Our power costs are already lower by over 20 per cent since 2019 and increasingly sourced from renewable energy,” Shanta said.
The low-cost New Luika Mine, which is located in Songwe District, Songwe Region approximately 700km south-west of Dar es Salaam, achieved its first commercial production in 2012.
The ore bodies at New Luika comprise high grade some six grammes per tonne of gold, medium grade (3 – 6 grammes per tonne of gold) and low grade (1 – 3 grammes per tonne of gold) ore which average 3.9 grammes per tonne of gold.
The processing is ‘metallurgically’ simple and conventional involving proven crushing and milling techniques with carbon-in-leach gold extraction delivering robust gold recoveries (average 91per cent recovery).
The high quality of the resources combined with tight operational control, makes New Luika one of the lowest cost gold mines in its peer group and on the global cost curve.
Meanwhile Shanta’s Singida Resources initial public offer (IPO) is awaiting technical agreement regarding transaction between two government authorities to start.
Singida Resources, a subsidiary of Shanta, wants to list the entire 30 million US dollar IPO at value of 500/- a share on DSE’s Enterprise Growth Market (EGM).
Shanta will retain at least 51 per cent ownership of Singida and will operate the project.