Guys, this is hotly tipped, anybody know anything about them, short-term 35p, long-term 60p+

Looks interesting and lots going on.

Shanta Gold* (SHG LN) 26.5p mkt cap 47m - Target price rises to 61p from 49p - Larger ball mills for New Luika gold mine to increase capacity
By John Meyer | 23 November 2010, 08:44 BST



John Meyer, Fairfax



Shanta Gold* (SHG LN) 26.5p mkt cap 47m - Larger ball mills for New Luika gold mine to increase capacity


Target price raised to 61p (from 49p)




Shanta Gold management have placed orders for two larger scale ball mills for the New Luika (Chunya) Gold mine.


The new mills to be delivered next year should have +50% additional processing capacity at around 75tph than for the 50tph mills specified in the feasibility study work.


Recent data from drilling at New Luika appears to have raised confidence in the mine's ability to feed additional tonnages of gold bearing ore into the mills resulting in the upgrade in scale at this stage.


Expansion of the New Luika Gold mine should now require the mining of around 0.5mt of ore in 2012 rising to 1mtp from 2013. The mine currently has a gold resource of 8.36mt grading 2.39g/t containing 642,716ozs assuming a 1g/t cut off and average operating cash costs of US$643/oz. At this rate the mine may last just 7-8 years although it is our view that the resource should continue to expand to enable the operation of the mine for another five years.


The capital cost of the mills also appears to be lower than specified in the feasibility and while we will not reduce our forecasts for the capital cost at this early stage this feels like a good indication for cost control for now.


Valuation: We have raised our forecast mill throughput for the New Luika gold mine to 75tph for 2012 from 50tph. We have also doubled the milling capacity from 2013 by adding a further two similar sized ball mills to our modelling. We have maintained our NPV discount rate at 11% but have cut our market discount as the bulk of the capital cost of the New Luika gold mine is now financed.



Conclusion: The New Luika gold mine is already expanding from its feasibility study form and should continue to impress shareholders on the upside as new drilling reveals additional in ground gold reserves and resources.

Lots of buys going through? was tipped to go to 35p then 60! is there is news coming?

Yes news could be here any day. Drilling result and jorc upgrade plus mine construction news. Rated as a buy from housebroker (valued @67p) currently and thats using a gold price of $1100!!

I know, if there is more gold, wow, could be very lucrative this one, seems cheap?

The trades are all buys again, x10 against sells, same yesterday, must be nearly 1.5m traded or rather bought in last 24hours.

Yes still cheap and alot more to come way undervalued. DYOR

Shanta Gold Limited

Feasibility Study supports development of gold mine in Singida, Tanzania

23 August 2011

Shanta Gold Limited, ('Shanta' or the 'Company') (AIM: SHG), the near-term gold
producer with operations in Tanzania, is pleased to announce the positive
results of its Feasibility Study ('FS' or the 'Study') supporting the
development of the Company's 100%-owned mine in the district of Singida in
Tanzania.

The Study has determined that a mine producing 45,000 ounces of gold per annum
at a capital cost of US$39m and an average escalated operating cost of US$412
per ounce, and (based on a US$1200 per ounce gold price an 11% discount rate)
should generate a net present value of US$130 million and would have an internal
rate of return of 126%.

Walton Imrie, the Company's Executive Chairman commented:

"The significant results from the Singida Feasibility Study show attractive
investment outcomes and will allow Shanta to proceed to project construction.
Singida will enable Shanta to transform into a mid-tier gold producer by 2013,
as the Company's annual gold production should increase to more than 100,000
ounces once the new project is in production alongside the New Luika Gold Mine.

The Board of Shanta will now consider the most appropriate timing for the
development of the Singida mine.

It is currently anticipated that the New Luika Gold Mine, currently in the final
phase of construction, should generate sufficient funds for the construction of
the Singida mine during 2012. Bridging finance may be required. The New Luika
Gold Mine is expected to ramp up to full production in 2012."


Key Project Fundamentals

- Singida has nine ore bodies with a combined resource of 858,000 ounces (at a
1 g/t cut-off). The study focused on seven of these, Gold Tree 1, 2 and 3, Jem,
Vivian, Corn Patch and Corn Patch West and excludes Gustav and Kaiser Chief;



- The ore bodies are all located within a 5km radius of the proposed
metallurgical recovery plant;



- The study envisages an annual mill feed of 255,000 tonnes from a series of
open pits, representing an average production rate of 21,250 tonnes per month
('tpm') through a plant with a 35 tonnes per hour ('tph') capacity;



- Average stripping ratio of the open pit operations is 3.65:1;



- Ore-body morphology and attitude have determined that mining will be by
conventional open pit methods;



- Ore processing will consist of crushing, milling, a combined cyanidation and
adsorption circuit, elution, electro-winning and smelting, achieving a 91%
recovery;



- Average production of 45,000 ounces per annum is planned;



- The FS mine plan has an annual production totaling approximately 452,000
ounces over a 10 year mine life;



- Capital cost(1) is estimated at US$39 million for the construction and pre-
strip;



- The total cash operating cost is estimated at US$412 per ounce.



The FS was conducted by Environmental, Process and Mining Consultants (Pty) Ltd
("EPMC"), independent third party consultants, who carried out the recently
completed New Luika detailed feasibility study.

Shanta submitted three mining licence applications covering the ore bodies
included in the preliminary feasibility study to the Ministry of Energy and
Minerals of Tanzania on 8 December 2010 and the Environmental and Social Impact
Assessment ("ESIA") was submitted to the National Environmental Management
Committee on 18 July 2011. The ESIA was conducted by MTL Consulting, a
consulting firm with extensive experience in environmental certification studies
in the mining industry, in Tanzania. It is hoped that mining licences will be
awarded by the end of 2011.





The Table below sets out the salient feasibility parameters.

+------------------------------+--------------+-----------------+-------------+
| | | Pre-feasibility | Feasibility |
+------------------------------+--------------+-----------------+-------------+
| Annual mill feed | tonnes | 540,000 | 255,000 |
+------------------------------+--------------+-----------------+-------------+
| Monthly mill feed | tonnes | 45,000 | 21,250 |
+------------------------------+--------------+-----------------+-------------+
| Mill throughput | tph | 75 | 35 |
+------------------------------+--------------+-----------------+-------------+
| Average strip ratio | | 9.0 | 3.7 |
+------------------------------+--------------+-----------------+-------------+
| Average feed grade | g/t | 4.97 | 4.97 |
+------------------------------+--------------+-----------------+-------------+
| Plant recovery | % | 91 | 91 |
+------------------------------+--------------+-----------------+-------------+
| Average annual gold produced | ounces | 43,000 | 45,000 |
+------------------------------+--------------+-----------------+-------------+
| Life of mine | years | 9 | 10 |
+------------------------------+--------------+-----------------+-------------+
| Total gold production | ounces | 387,000 | 452,000 |
+------------------------------+--------------+-----------------+-------------+
| Surface mine capex | USD millions | 30 | 39 |
+------------------------------+--------------+-----------------+-------------+
| Underground mine capex | USD millions | 43 | 0 |
+------------------------------+--------------+-----------------+-------------+
| Total capex | USD millions | 73 | 39 |
+------------------------------+--------------+-----------------+-------------+
| Construction period | months | 12 | 12 |
+------------------------------+--------------+-----------------+-------------+
| Operating cost (escalated) | USD / ounce | 699 | 412 |
+------------------------------+--------------+-----------------+-------------+
| Gold price() | USD / ounce | 1,200 | 1,200 |
+------------------------------+--------------+-----------------+-------------+
| NPV(11) | USD millions | | 130 |
+------------------------------+--------------+-----------------+-------------+
| IRR | % | | 126 |
+------------------------------+--------------+-----------------+-------------+



Note
(1)The underground operation mentioned in the preliminary feasibility study has
not been incorporated in this feasibility study.

Shanta's New Luika potential prompts bullish upgrade from broker
http://www.proactiveinvestors.co.uk/companies/news/38412/shantas-new-luika-potential-prompts-bullish-upgrade-from-broker-38412.html

Shanta's in a bit of bother.

http://www.moneyam.com/action/news/showArticle?id=4334140

Sold these @40 , a favourite share of Tom W , in his Gold fund

aldwickk

Well done, I don't hold but I did like this share while watching it going up still looks good long term.

Not looking so good now..

back in these again today @14.63 - on the basis that gold is due a bounce medium term...
of course, there is a possibility i could be wrong !