Shanta Gold, East Africa-focused gold producer, developer and explorer posted a net loss of KSh874.7 million in its West Kenya project last year. This reflects the capital expenditure it is making with a goal of starting production in the future.
According to the company’s latest annual report, the loss in the local operation rose nearly eight times from KSh113.1 million the year before.
The West Kenya project did not have revenues in the two years when the firm has been spending heavily on feasibility studies to determine the full scale of gold deposits and whether to proceed to production.
The area is estimated to have resources of 1.6 million ounces of gold.
Barrick Gold sold its gold mining licences to Shanta Gold in a cash-and-stock transaction worth a total of KSh1.4 billion. Shanta Gold also agreed to pay Barrick Gold a royalty rate at a rate of 2%, based on actual gold production in the future.
The deal saw Shanta Gold take over the rights to mine gold over a 1,161 square kilometre area straddling Kakamega, Kisumu, Siaya, and Vihiga counties.
The company recently reported great progress of it’s phase two drilling at Isulu-Bushiangala where so far 10,082 metres of drilling has been completed across 35 holes, representing a 65% completion.
The latest phase of drilling at West Kenya has continued to deliver consistently high-grade results that are indicative of the vast potential West Kenya offers in the Shanta Gold growth story. The 2022 drilling campaign is two-part, focused on upgrading existing resources to the Indicated category and resource expansion across our numerous targets,
Chief Executive Officer Eric Zurrin
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