Shanta Gold Ltd (LON: SHG) says its West Kenya project has an average annual production of 105,000 ounces forecast over nine-years according to an independent Scoping Study.
The West Kenya Project is made up of two greenfield deposits, the Isulu and Bushiangala Prospects and the company says the study which is still at an early stage estimation of the project, will still require a pre-feasibility and bankable feasibility study before construction approval, a process that could take up to three years, according to Shanta Gold CEO, Eric Zurrin.
“The board is committed to making the investment to confirm the viability of a mine with a construction decision expected within three years,” he said.
West Kenya has been scoped to produce gold at an AISC of $681/oz (and $850/oz including pre-production costs) compared to 2020 AISC which has been guided to $830 to $850/oz. The project has a pre-production cost of $161m.
The project was acquired from Barrick Gold in February for $14.5m in cash and shares.
The West Kenya Project is located in western Kenya in the county of Kakamega. The project lies within the Liranda Corridor.
Shanta Gold is also investigating the Singida project in Tanzania where production is currently estimated at 32,000 oz/year.