Shanta Gold finishes Chunya feasibility study

6th Jul 2010 12:59

Shanta Gold has completed its feasibility study on the Chunya gold project in the Lupa goldfield in southern Tanzania.The miner says it's been investigating various avenues of financing for the project, which it expects to be finalised in due course.The study supports a 360,000 tonnes per annum metallurgical process plant capable of producing an average of 28,400 ounces of gold a year over 11 years.Construction is estimated to take one year at a capital cost estimated at $23.2m with payback in two years.An opportunity exists to double the mine's capacity to exploit the additional resource already evaluated and any further ore resulting from ongoing discoveries. That would cost about $5m.