Shanta Gold Brochure - 2015

Developing Holistic Mining Practices

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SHANTA GOLD: Developing Written by: Nye Longman Produced by: Anthony Munatswa

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S H A N TA G O L D

Luika Gold Mine, Ball Mills

The gold mining company is making a significant contribution to Tanzania’s local communities through exemplary operations

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hanta Gold is a Guernsey-based gold mining and exploration company which operates across several sites in Tanzania through its subsidiary Shanta Mining Company Limited (SMCL); one of the most mineral-rich countries on the African continent.

Off the back of ÂŁ73.82 million revenues, the company is seeking to expand its gold production output through its existing and developing mines.

While Tanzania has some of the most impressive gold reserves on the continent, these remain largely undeveloped; it has been the mission of Shanta to develop these assets and share the bounty with the communities it works in.

MINING

New Luika Gold Mine What makes the New Luika Mine increasingly useful to Shanta is its position to become a potential hub for all of its mining activities in the region; the facility consists of a conventional three stage crushing plant, along with two parallel mills. It has extensive potential for further development, as it adjoins the 1,300 square kilometres covered under license by Shield Resources, which it fully owns.

Currently, the company’s gold production is concentrated at this mine (which its owns through a 100 percent stake) spanning 16 square kilometres covered by three mining licenses and a single prospecting license which covers some 49 square kilometres. In order to enable access to high grade open pit ore reserves, and ensure future flexibility, a pushback has been planned at the Bauhinia Creek site which is estimated to be completed by the end of 2015.

Following a recent resource assessment, it was established that this mine contained a total in-situ resource of 1.48 million ounces.

The mine has shown record gold production of 84,028 ounces driven by seven consecutive quarters of increased production ending Q3 of 2014. Further drilling is scheduled this year which will decrease the risk profile of the mine extension associated with the mining work.

In a statement, the company said: “The update for the open pit reserves reflects the redesign of the open pits with a markedly reduced strip

300 Number of staff employed

by Shanta Gold ‘Off the back of £73.82 million revenues, the company is seeking to expand its gold production output through its existing and developing mines’

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BC Mining Limited Plot 1401E Chole Road Msasani Peninsular Dar es Salaam info@bcmining.net

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.

Proud to be partnering Shanta Gold on their Journey

DRILLING

COMPLETE SOLUTIONS SERVICING THE EXPLORATION AND MINING SECTORS People you can work with

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.

BLOCK F10, TIRDO COMPLEX KIMWIRI ROAD, NAMANGA DAR ES SALLAM +255 755 367 371 darren@bamboo-rock.com

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ratio for a proportionally much smaller reduction in reserves. We look forward to announcing the underground feasibility study later this quarter.

This is a win-win for New Luika as the surface mine benefits from a substantial reduction in operating costs while a potential underground operation gets additional high grade resource.”

Singida Mine SMCL’s holdings at its Singida site are substantial to say the least; since 2011 the company has been conducting its definitive engineering study (which is undergoing an update scheduled to finish this year), which revealed up to 450,000 ounces of gold. Resettlement negotiations are currently underway (in line with the company’s strict CSR guidelines) which will enable construction to go

SUPPLIER PROFILE

Luika Gold Mine, Metallurgical Lab

BAMBOO ROCK DRILLING

Bamboo Rock Drilling provides complete drilling solutions to the exploration and mining Sectors on surface and underground operations. We are currently drilling for Shanta Mining Company Limited at their New Luika Gold Mine (blast hole, grade control, geo-tech and exploration drilling), Acacia - North Mara Gold Mine (Underground diamond, Surface Diamond and RC drilling) and Magnis Resources Limited (Exploration drilling).

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ORYX OIL COMPANY LIMITED

Wealth Unearthed

Oryx Energies has been supplying the saving for Shanta Gold Mine was identified Shanta Gold Mine at New Luika with diesel by changing from Diesel to Heavy Furnace Our diverse range of robust products for its generators, since the mine’s inception. Oil (HFO) for power generation. Oryx Oil are designed to cope with the most Thischallenging fuel is themining mine’senvironments lifeblood and requires Tanzania will be building a facility that will the fuel supplier to reliably supply products provide 400m3 of HFO storage capacity to to specification, on time and in full, to avoid fuel the generators on site. The fuel will be any interruption in operations. delivered from Dar es Salaam. “Partners” New Luika is a remote site, with road involved in this project will work closely conditions that make transport a challenge. together to ensure that this initiative is Oryx Energies’ affiliate in Tanzania, Oryx Oil delivered on time and that Shanta Gold can Tanzania, has taken on this challenge and, reap the benefits. in collaboration with the mine, has ensured Oryx Energies in Tanzania provides an that mining operations do not run dry. integrated energy platform that masters the Even during the recent transport strike, and defining value chain from product sourcing to in storage Advancing, constantly evolving the future of our technology Oryx Energies ensured that the New and distribution. the global mining industry We are proud of the strong Luika mine received enough fuel to keep business relationship we have with Shanta operations Gold and wish Mike Houston and his team AEL Mininggoing.

Services (PTY) Ltd With the greater emphasis on cost reduction every success in the future.

Tel: +27 11 606 0000 in many mining due toEstate theNorth dip 1 Platinum Drive, companies Longmeadow Business Modderfontein, 1645 in the gold price, a significant operational www.oryxenergies.com www.aelminingservices.com

Oryx Energies is one of Africa’s oldest and longest established independent providers of Fuel,Lubricants, LPG and and associated services, with a presence in over 20 countries across the continent.

As a supplier to the Mining Industry in Tanzania. We are proud to be a partner of Shanta Gold

www.oryxenergies.com

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ahead which will eventually see a mine come into production with an expected lifespan of 10 years.

The future potential of the mine is covered by three prospecting licences which together span approximately 92 square kilometres and three mining licenses which enclose a total area of 30 square kilometres. One licence is wholly owned by SMCL, while GL Jossue and JB Joel Limited hold a 10 percent minority interest in two of the mining licences; Shanta fully owns all three of the prospecting licenses, giving it full direction and control in this regard.

Shanta Gold’s Singida open-pit mine revealed up to 450,000 ounces of gold

Songea Mine Shanta is also in the very early stages of exploring gold deposits at its site in the w w w. s h a n t a g o l d . c o m

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‘Despite having projects in differing stages of completion, Shanta is more than willing to invest in capitalising its operations’

Ruvuma Region of southern Tanzania using three prospecting licenses covering an area of roughly 65 square kilometres.

Following airborne magnetic and radiometric surveying in 2008, it was revealed that the site at Songea displayed uranium anomalism, which was later confirmed in 2009 using scintillometry surveys which further established the uranium potential in the area. Alongside these findings, the area also contains tourmaline, sapphire, topaz, and garnet (rhodolite) as well as gem quality cordierite, although whether Shanta is seeking to develop these assets remains to be seen.

Aerial view of the Songea mine

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MINING

Poised for Growth Despite having projects in differing stages of completion, Shanta is more than willing to invest in capitalising its operations. In January 2015 it carried out some additional infill drilling (totalling 2,676 metres) across nine drill holes which has increased the resource at both Bauhinia Creek and Luika and further improves confidence in the potential for underground mining at both deposits.

Last month, the company completed formal documentation for loan facilities with Investec Bank, following receipt of regulatory approval from the Bank of Tanzania. The loan facilities total $40 million, of which $20 million has been

Bauhinia Creek Pit

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HARD TO BEAT AND ROBUST SCOOPTRAM ST7LP The Atlas Copco Scooptram ST7LP combines superior productivity, proven reliability and global distribution.

A revolution of underground loaders built for demanding low-seam mining applications where back heights are as low as 1600mm, and where safety is paramount.

Atlas Copco Tanzania Ltd. Phone: +255 22 286 1571 www.atlascopco.co.tz

MANUFACTURERS OF PIPING SOLUTIONS FOR MINING APPLICATIONS

MINING APPLICATIONS PLASCO HDPE Pipes can be used for a variety of above and below ground installations in mining operations, including water transfer, treatment and recovery of mining minerals as well as slurry lines to convey suspended solid matter in quarries. HDPE Pipes are available up to 630mm PN20.

FABRICATED AND ELECTRO FUSION FITTINGS

FIELD SERVICES PLASCO offers professional on-site welding services to install HDPE pipelines using Butt fusion and Electro fusion welding technologies as well as pressure testing for up to 630mm diameter pipes.

VALVES AND FITTINGS

PLASCO also manufactures various types of custom-made HDPE fabricated fittings for specialized Mining applications as well as Compression fittings for a wide range of other uses.

Plot No.112, Mbozi Road, Chang’ombe P.O. Box 19956, Dar es salaam, Tanzania.

Tel (Landlines): +255-(0)-22-2199 820/ 821/ 822/ 823 Fax: +255-(0)-22-2863 551 Website: www.plasco.co.tz

Email: plascosales@plasco.co.tz

Sales Hotlines: +255 717 752 726 +255 686 350 543 +255 769 756 495

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used to refinance an existing bank loan from FBN Bank while the rest of the balance will be used as during the implementation of the New Luika Gold Mine Life of Mine Extension Project.

The finalisation of the loan will enable the company to decrease its cost of funding and will also provide greater financial flexibility for the entirety of SMCL’s projects across the country.

A statement from the company said: “We are delighted to have received regulatory approval for these new and competitive loan facilities with Investec. Together with our positive operating cash flow, the loan will put the company in a strong position to pursue upside potential through expansion and exploration opportunities.”

Shanta Gold is listed on London’s Alternative Investment Market (AIM) which belies that the company is not only in a position to receive funding on the world’s most successful growth market, but is also subject to world-class requirements and standards. The economy of Tanzania is heavily reliant on agriculture as a source of income and although mining only currently accounts for 3 percent of its GDP, SMCL’s current exploration efforts are set to make a significant contribution to the country’s economic diversification.

Leach Tanks

Gold Room

Responsible Mining The company has an exemplary CSR programme which covers everything from how it manages and develops its employees, to w w w. s h a n t a g o l d . c o m

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Your Home In Rough Terrain

SBS Ltd. Supplying logistic solutions, quality camp and catering services in remote areas.

Small Business Solutions Ltd. Plot 5 Zambia Road, Oyster Bay P.O. Box 105933, Msasani Dar es Salaam, Tanzania Jason@sbslogistics.com +255 (0) 784 325 403 www.sbslogistics.com

+255 28 2501018 info@minetrade.co.tz • www.minetrade.co.tz

Tanzania • Mwanza • Dar es Salaam 1921

Ignazio Messina & C.

THE ITALIAN LINE

1994

Ignazio Messina & C. Pty Ltd

SHIPPING AGENCY IN SOUTH AFRICA

- WORKING C Professional Procurement Service forAFRICA Africa CA

THE ONLY INDEPENDENT RO-RO CONTAINER SERVICE IN THE TRADE WITH OWN CONNECTING SERVICES THROUGHOUT THE MEDITERRANEAN

Supporting Shanta with a Professional Procurement and Logistics Service NEW ENTERPRISE TRADING (PROPRIETARY) LIMITED Unit 2, Ferndale Mews, 15 Dover Street, Cnr Oak Avenue, Ferndale, Randburg, Johannesburg, South Africa Tel: (+ 27 11) 781 1387 | Fax: (+ 27 11) 326 4214 | Email: mstevenson@newent.co.za

For rates, bookings & enquiries: Jhb: 011 881 9500 Dbn: 031 365 5200 Cpt: 021 418 4848 Maputo: I.Messina Mocambique Limitada + 258 21 300020/35/37

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the ways in which it can reduce its impact on the environment and the communities that its mining operations come into contact with.

The company has constructed classrooms and medical facilities and has provided access to water through establishing and developing a range of local and national partnerships; it has even funded the sustainable, smallscale business initiatives. SMCL’s website captures the pride it has in its impact on the communities it operates in. The company said: “Employment of over 300 hundred local residents has also improved the disposable income in the area and is also allowing selfdevelopment within the family unit.”

Roughly 90 percent of the company’s employees are Tanzanian nationals, which sets

‘Roughly 90 percent of the company’s employees are Tanzanian nationals, which sets a clear precedent in an industry that receives criticism for the over-use of expat workers’

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Companies like Shanta are proving that profitable gold mining and exploration can be achieved while paying sincere attention to the needs of local people and the environment

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a clear precedent in an industry that receives criticism for the over-use of expat workers.

Shanta has stringent health and safety requirements in its mines: “Health and safety is an integral pillar of our key performance indicators used to evaluate the performance of all employees on a monthly basis. Employees are recognised for their safety awareness and performance each month as a way to encourage safe practices.� This method of integrating health and safety with employee performance not only ensures that each team

MINING

member is aware of its importance, but it also enables exemplary practices to be shared and celebrated across the company.

Backing up its strong framework on employee safety is a dedicated health centre for employees, manned by a fully trained doctor; the company even has its own ambulance and aircraft on site at the New Luika Gold Mine in order to ensure the fastest possible response to any incident.

The company also has a range of initiatives in place to make its practices greener and more efficient, which is realised through its environmental management program.

Reforestation has made up the bulk of its work so far, but the company is moving towards something greater: self-sufficiency. Much of this is aided via the company’s strategic patnership with Balton Tanzania; a company that provides security, networking technology, agricultural, and public health solutions.

Although still in a relatively early stage, the company already recycles and composts much of its waste generated through food consumption and is set to build on this positive momentum.

Companies like Shanta are proving that profitable gold mining and exploration can be achieved while paying sincere attention to the needs of local people and the environment.

Through its well-financed operations at the New Luika Mine, it has developed its own field-tested framework for successful future operations in its other developing projects.

Company Information INDUSTRY

Mining and Exploration HEADQUARTERS

Tanzania FOUNDED

2001 EMPLOYEES

c.300 (in Tanzania) REVENUE

ÂŁ73.82 million PRODUCTS/ SERVICES

A gold mining and exploration company, currently it is developing several new gold mines, one of which has newly discovered uranium deposits

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Dar es Salaam, Masaki, Tanzania P.O Box 79408 T +255 (0) 22 2601 829 F +255 (0) 22 2112 341 Info@shantagold.com shantagold.com