Shanta Gold rises on higher gold production

21st Oct 2013 16:52

Shares in Shanta Gold sparkled 1p to 14.75p by the close in London as the East Africa-focused miner reported higher production and a possible reserves upgrade.Shanta, which runs the New Luika and Singida projects in Tanzania, said third-quarter gold production rose 31% to 18,914 ounces against the second quarter.It also said drilling results had confirmed the potential for underground mining and a resource upgrade in the final three months of 2013.Chief executive Mike Houston said: "Gold production at New Luika has stabilized and the company is well positioned to increase production."This, supported by our debt restructuring and cost reduction initiatives, has given the company a solid platform not only to ride out the current volatile gold market, but also drive returns for shareholders."PW