DECEMBER 2015www.endeavourmagazine.com

INSPIRED BY YOUR SUCCESS

Shanta GoldDigging Deep

A forerunner into the markets of gold exploration, mining and development, Shanta Gold has carved itself a reputation that has expanded beyond the borders of Tanzania. Under the leadership of a new CEO, great things are to be expected from them in 2016. Especially as they have set themselves as a company of doers and not just big talkers.

WRITTEN BY JACK SLATER

DIGGING DEEP

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SHANTA GOLDWWW.SHANTAGOLD.COM

255 22 260 1831

SHANTA GOLD

Of course, breaking into the gold mining industry was never going to be a small investment endeavour and shortly after its creation in 2001, Shanta spent over US$ 4.5 million acquiring

gold properties in Tanzania with a principal focus in the Mgusu and Simba Nguru projects, which sit in the northern and central parts of Tanzania respectively, as well as three projects in the country’s Musoma district.

Getting the company off to a fantastic start, these locations provided Shanta with opportunities to generate significant interest as well as contributing to the accruing of an impressive reputation within the industry. However, as with all forward thinking and progressive organisations, these locations were gradually phased out in favour of a new mine.

Over the years, Shanta Gold’s focus has shifted to the New Luika Gold Mine located in the Lupa Goldfields district in South Western Tanzania and the Singida mine (currently in the development stage) located in Central Tanzania. In addition to this, we are examining properties covering over 1300 km2 in the underexplored ex-colonial mining areas of the geologically rich Lupa Goldfields surrounding the New Luika Gold Mine.

Having bought the New Luika mine, Shanta efficiently pushed it into production in 2012 and it is now considered to be the flagship mine of the entire organisation. Unwilling to merely continue at the same production levels however, Shanta is currently undertaking

steps to upgrade the mine’s production capacity to an impressive 83,000 ounces a year.

Discussing other markets that the company is involved with, it becomes clear that focusing on one specialty is considered to be of the utmost importance and today, Shanta Gold is an East Africa focused gold production company, nothing else. The operations are located in Tanzania where investor-friendly mining laws and favourable tax rules have enabled the industry to become one of the fastest growing sectors. Tanzania has developed a solid, sophisticated infrastructure system of roads, rail networks, ports, two international airports and good telecommunications.

Despite having become Africa’s third largest gold producing country, Tanzania remains under-explored in comparison with other gold producers of its size and there has therefore a high potential for future discoveries.

Thanks to a firm direction and a strong location, Shanta Gold is in a privileged position whereby it can concentrate solely on its current operations and upgrading systems for higher yields at lower cost. A natural concern for any organisation, this might seem like a logical process but it becomes a necessity when an understanding of the gold industry is acquired. Having suffered a dramatic cut in value (reportedly the worst for 30 years), gold, and subsequently the gold industry as a whole, is only now beginning to recover. In a bid to further aid the sector, unprofitable mines have been

BC Mining is a local Tanzanian company providing contract mining services and mining infrastructure development. Having completed all the mine infrastructure, in February 2013 BC Mining began with the opencast mining contract at Shanta Gold’s New Luika project. Our Management Team have successfully managed an average production volume of 300,000 bcms per month, which has been consistently achieved with a 90% equipment availability during this period.

Bamboo Rock Drilling provides complete drilling solutions to the exploration and mining sectors on surface and underground mining

operations. We are currently providing services to Shanta Mining Company Limited at their New Luika Gold Mine for blast hole, grade

control, geo-tech and exploration drilling.

BC Mining LimitedPlot 1401E Chole RoadMsasani PeninsularDar es Salaaminfo@bcmining.net

Proud to be partnering Shanta Gold on their Journey

Block F10,Tirdo ComplexKimwiri Road,NamangaDar es Salaam+255 755 367 371darren@bamboo-rock.com

SHANTA GOLD

Having sat on the London Stock Exchange’s Alternative Investment Market since 2005, the company is concerned primarily with mining and site development and exploration and has always focused its efforts within Tanzania, a country located within Africa that is renowned for its gold-yielding potential.

BC Mining is a local Tanzanian company providing contract mining services and mining infrastructure development. Having completed all the mine infrastructure, in February 2013 BC Mining began with the opencast mining contract at Shanta Gold’s New Luika project. Our Management Team have successfully managed an average production volume of 300,000 bcms per month, which has been consistently achieved with a 90% equipment availability during this period.

Bamboo Rock Drilling provides complete drilling solutions to the exploration and mining sectors on surface and underground mining

operations. We are currently providing services to Shanta Mining Company Limited at their New Luika Gold Mine for blast hole, grade

control, geo-tech and exploration drilling.

BC Mining LimitedPlot 1401E Chole RoadMsasani PeninsularDar es Salaaminfo@bcmining.net

Proud to be partnering Shanta Gold on their Journey

Block F10,Tirdo ComplexKimwiri Road,NamangaDar es Salaam+255 755 367 371darren@bamboo-rock.com

SHANTA GOLD

eliminated and mergers put in place to help investors see a return on their financial injections.

Turning to the topic of staff, there is an underlying theme of sustainability that permeates every facet of personnel accruement and development. The company carries an objective to train and employ local residents, thereby yielding direct and sustainable benefits to the local communities as well as the company. Over 90% of the organisation, and all major contractor’s employees, are Tanzanian nationals, half of which are permanent residents of the local villages.

Despite already aligning with these impressively conscientious principles, Shanta has gone one step further by acknowledging the importance of effective training and development, The company has instituted various training and development programs in an effort to upgrade the skill level of all employees. The goal is to have a workforce where each individual takes full accountability for his/her and work colleagues’ safety and the critical role he/she plays in the success of the company. We recognise that staff development is critical in assuring the company’s in-country, long-term development strategy and that individuals are empowered to develop their skills in relation to the requirements of their roles.

Unsurprisingly, this enlightened attitude towards staff is accompanied by a stringent welfare policy, and the company as a whole is deeply committed to the safety, health, and welfare of our employees, contractors, management and visitors to their worksites in Tanzania where they maintain a policy of zero tolerance of any negligence of health and safety best practices. Education, training and on-going communication has proven to be key to ensuring an injury-free workplace and the promotion of safety. Beyond preventative measures, they have also built an onsite health clinic at the New Luika Gold Mine, lead by a physician with international medical training.

With fantastic locations, a clear focus and a healthy, committed workforce in place, the future must promise even more success for Shanta Gold and sure enough, there are plans for exciting new projects. An underground study is underway at the New Luika mine and its initial findings indicate underground mining, in conjunction with plant expansion, will be viable. With the Life-of-Mine and plant extension plans at New Luika due to be published in the late part of 2014, Shanta Gold has the potential to grow to a 140,000oz producer in the short to medium term.

With demonstrable growth and development

SHANTA GOLD

potential within its grasp, Shanta does not neglect its other sites and with confidence levels at an all-time high, thanks to the underground study, the transition depth from open cast to underground at Bauhinia Creek has been established, allowing the new pit design to be completed. This will ensure continued access to high-grade resource. Additionally, the Singida project continues to focus on resource evaluation and relocation.

Despite exciting prospects ahead of it, Shanta Gold is not a company to risk its viability and hard-earned reputation chasing potential endeavours and continues to primarily focus on the New Luika’s life-of-mine extension and expansion project. With the livelihood of a large workforce and the sustainability of the locality in mind, the company is considering alternative funding options for the Singida Project in order to not place undue stress on the company’s financials. Combined, these elements paint the picture of a highly successful, responsible and long-term operational organisation, making Shanta Gold a glittering example of business acumen and adaptability in an uncertain financial market. A rarity indeed.

Despite exciting prospects ahead of it, Shanta Gold is not a company to risk its viability and hard-earned reputation chasing potential endeavours and continues to primarily focus on the New Luika’s life-of-mine extension and expansion project.

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