East Africa-focused Shanta Gold announces New Luika plant capacity expansion
28-09-2020 07:57:00 | by: Pie Kamau | hits: 1354 | Tags:

Shanta Gold, East Africa-focused gold producer announced the expansion of processing capacity at the New Luika Gold Mine (NLGM). Integration of a new pilot plant has started with commissioning scheduled for January 2021.

Following commissioning, the annual nameplate processing capacity at NLGM is expected to increase to a baseline of 708Ktpa (current nameplate capacity of 620Ktpa) with the projected annual processing rate increased to a baseline of 783Ktpa (current processing rate of 695Ktpa).

The Company has commenced the New Luika plant upgrade through the integration of the 10 tonne per hour pilot plant, which was previously purchased in 2016 for the Singida Project. Installation of the pilot plant at Singida was abandoned following a review of the project economics and it has been in storage in South Africa since purchase. The cost to integrate the pilot plant at NLGM is estimated at $1.2 million and will be financed from cash flow.

The New Luika plant upgrade will focus on increased ball mill power, with upgrades to other components including an increase to pumping capacity, a tailings discharge system, and additional leach capacity to support the higher throughput and increase operability.Increased plant capacity will provide New Luika with the flexibility to reduce cut off grades, thus lowering the hurdle for resources to be converted to minable ounces.

Detailed engineering design is complete, and the Company has started civil works on the mill floor and foundation. Plant capacity expansion is expected to be completed in January 2021 with milled throughput to increase immediately thereafter.

www.shantagold.com