Modern Mining May 2016

GOLD

New Luika heads underground Currently an entirely open-pit operation, the New Luika Gold Mine (NLGM) of AIM-listed Shanta Gold in Tanzania will have transitioned by the second half of 2017 into primarily an underground mine, a move which will involve a pre-production capital expenditure of approximately US$38 million (including new power generating capacity). Commissioned in 2012, New Luika is the first – and still the only – modern, commercial scale gold mine in the historic Lupa goldfield of south-west Tanzania and

“When the mine was originally planned and developed, Shanta was very much a junior company with limited resources and inevitably compromises were made,” he states. “Literally every function was outsourced and there was very little technical competence in house. Also, there were shortcomings with the building and commissioning of the plant. All these issues have now been addressed. A new elution and electrowinning plant was installed in Q2 2014 and a new crusher/screening plant was com- missioned later in the same year. In addition, we now have very strong technical and engi- neering skills within Shanta.” Bradbury says that his predecessor Mike Houston, who ran Zimplats in Zimbabwe before joining Shanta and who took over the management of the company just as New Luika was starting its production ramp up, was quick to identify the problem areas in the plant and launched initiatives to get the operation up and running at an increased throughput capacity of 50 000 tonnes per month (tpm) from the original 30 000 tpm design. “Since taking over as CEO in April last year, I’ve been able to build on the foun- dation created by Mike and I believe New Luika is now operating very efficiently, with

produced 82 000 ounces of gold in its 2015 financial year (to 31 December 2015). Modern Mining’s Arthur Tassell recently spoke to Shanta CEO Dr Toby Bradbury to learn more about New Luika and its prospects.

W hile New Luika now ranks as a healthy operation (with its production in the last quar- ter of 2015 being a record 29 139 ounces and its All in Sustaining Cost (AISC) a very competitive US$595 an ounce), Bradbury says the mine has had a “difficult childhood” and that it has taken a great deal of hard work to get it to the point where it is starting to realise its full potential.

22  MODERN MINING  May 2016