Shanta Pledges Among Unstable Gold Price

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(Miningweekly)- Consequently of the continuing volatile gold price environment and the capital spend required to attain the targeted production levels at its New Luika gold mine over the following year, Shanta Gold has committed to many forward-sale contracts for the main 2013 and 2014 anticipated production.

The agreements would see the organization delivering one more 9 000 oz at a typical price of $1 362/oz during the time scale to March 2014.

This brought its total outstanding forward-sales contracts to over 30 000 oz right through to March 2014, at a typical price of $1 398/oz.

On Friday, Shanta said in a record that the ramp-up of production at New Luika was “progressing satisfactorily” and, resulting a progressing of the crushing circuit this month, it estimated a considerable escalation in throughput from July.

The business would offer an update on its first-half operating performance by the end of July.

On Thursday, gold prices dropped to a two-and-a-half-year low following the US Federal Reserve signaled the curtailing of the quantitative easing program in the near future. Gold ran below its April low of $1 321/oz, declined to $1 295.74/oz.