| Shanta Gold granted licence for Chunya project | Send to a friend |
| Thursday, 02 September 2010 10:05 |
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Shanta Gold Limited said has been granted a mining licence for its Chunya project. The London Stock Exchange listed company said yesterday in a statement that the licence allows for construction to start as soon as the detailed planning has been completed - currently scheduled for the last quarter of this year. "This is the first modern era gold project to be developed in the Lupa goldfield, and we believe a successful mine will benefit not only the company but importantly the development of our neighbours and the economy of Tanzania,” said the firm’s executive chairman Walton Imrie. The licence follows the approval from the Tanzanian minister of Energy and Minerals of the company's application and a letter of offer issued to Shanta on Monday. Commissioning is planned for the last quarter of 2011, with initial production at approximately 30,000 tonnes per month/year or 28,000 ounces of gold per annum. Last week the company received environmental certification after completing a definitive feasibility study within 12 months. Contracts are currently being negotiated with the construction and production suppliers. Negotiations are also underway with other supply contractors including critical agreements with the power utility, Tanesco. The Chunya mine development project is situated near the Saza and Mbagala villages in the Mbeya Region. In August Shanta announced the completion of the feasibility study on the project, which saw total production of 313,000oz of gold, from a total resource of 642,716oz, at an average grade of 2.39g/t. The Chunya project has an estimated capital cost of $23.19 million, and Shanta has hired Environmental, Process and Mining Consultants Ltd (EPMC) to carry out a detailed design of the Chunya mine. EMPC previously carried out the feasibility study for the project. The detailed design of the Chunya mine is expected to be completed by November 2010, and mine construction is expected to start before the year’s end. Shanta is also studying the economic viability of another gold project, the Singida project, which if proven viable would be turned into a gold mine. Add this page to your favorite Social Bookmarking websites           |
