Shanta Gold Limited (LON:SHG), the East Africa-focused gold producer, developer and explorer, announced that its New Luika Gold Mine (NLGM) in South West Tanzania has successfully connected to the state power grid supplied by TANESCO.
In a statement, the group said the initial connection represents approximately 10% of NLGM's power needs and this is anticipated to increase over the next 12-24 months.
It noted that the cost of state grid power is approximately half that of self-generated power.
The company pointed out that connection to the TANESCO grid further diversifies power sources at NLGM, thereby reducing risk.
NLGM now sources power from solar, grid electricity, and HFO which has recently undergone a routine 12,000 hour rebuild of its engines refurbishing the gensets and ensuring longevity.
Eric Zurrin, Shanta Gold chief executive officer, commented: "This is a significant milestone for the New Luika Gold Mine given power generation currently represents over 25% of our cash costs.
“Lowering New Luika's costs reduces the cut-off grade required for ounces to make it into the mine plan effectively reducing the hurdle for exploration success."