- East Africa-focused gold producer Shanta Gold said construction work had commenced at the Singida project in central Tanzania.

The mine would involve a total capital investment of $26 million over a 24-month construction period, excluding pre-stripping.

Shanta Gold said the project had an estimated net present value of $73 million and internal rate of return of 59% at a gold price of $1,900 an ounce.

'The Singida project has very attractive economics for Shanta with considerable upside through potential conversion of mineral resources currently outside of the reserve-based mine plan,' chief executive Eric Zurrin said.

'The project will increase group production to over 110,000 ounces per year while maintaining our attractive cost base.'

At 9:37am: [LON:SHG] Shanta Gold Ltd share price was +0.38p at 18.38p

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