Aim-listed Shanta Gold’s Ilunga underground mine, at the New Luika gold mine (NLGM), in Tanzania, has achieved commercial production on schedule and within budget, the East Africa-focused gold miner has announced.
Ilunga underground has a probable ore reserve of 660 500 t at 5.56 g/t for 118 000 oz contained and inferred resources of 636 647 t at 3.57 g/t for 73 067 oz.
Underground drilling targeting the conversion of the inferred ounces into the mine plan and extending the mine life at Ilunga is expected to take place during the first half of 2020.
With the primary ventilation fan and underground infrastructure now installed and operational, the first ore stope is now in production at 98 m below the portal and 130 m below surface.
Commercial production comes following gross pre-production capital investment of only $7.9-million and about $5-million after netting off pre-production revenue, and less than a year after the underground portal blast at Ilunga was carried out in August 2018.
Ilunga is now the third source of high-grade underground feed from NLGM alongside the Bauhinia Creek and Luika mines, the miner said on Tuesday.
Commenting on the milestone, Shanta CEO Eric Zurrin said that, after having reached commercial production, the miner “hopes to delineate further mineable ounces by upgrading its inferred resources via cost efficient underground drilling".