Shanta Gold Limited (LON:SHG) has produced first stope ore from its new underground operation at the New Luika gold mine in Tanzania.
The underground ore is being sourced from a long-hole open stope between the 900 - 880 metre levels in the Bauhinia Creek orebody.
Establishment of further stopes will continue throughout 2017 to support the increasing production scheduled from the underground operations, Shanta said.
A total of 37,000 tonnes of development ore at 7.70 grammes per tonne (g/t) has been produced from Bauhinia Creek underground.
Ore has also been intersected in the Luika orebody on the 937 metre level, ahead of schedule, with first production ore scheduled in the final quarter of this year.
Toby Bradbury, chief executive, said: "In September 2015, Shanta announced its Base Case Mine Plan with a commitment to commence underground production from Bauhinia Creek in Q2 2017 at the New Luika Gold Mine. Every material milestone has been achieved in the delivery of this project which is a credit to the entire Shanta team."
"After a strong Q1 2017, gold production in Q2 is running ahead of expectations with favourable grades being achieved from the Ilunga open pit, reaffirming the Company's production guidance for 2017 of 80-85,000 oz."