SHANTA'S Singida Gold Mine will employ some 270 locals as permanent staff as it celebrates the start of production.

The mine said that the first pour was on schedule and on budget while the move marked the next phase of their growth as a 100,000 oz per year gold producer.

The Singida mine is the second gold mine for Shanta Gold after Luika Mine in Chunya, Mbeya.

Shanta's Chief Executive Officer, Mr Eric Zurrin said the commerce of production was a significant milestone that marks their next phase of growth as a 100,000 oz per year gold producer.

"We are now positioned to capitalise on our full growth potential, armed with a diversified resource base, a de-risked balance sheet, and financial flexibility," Mr Zurrin said in a statement issued recently.

With the first production at Singida completed, the mine will add 45-50 per cent to the group's annual production profile.

The announcement was also an important milestone for the Ikungi one of the six districts in Singida since it will benefit from the mine's corporate social responsibility.

"We have invested in the project to ensure it delivers sustained and long-term benefits to the local community. Through increased local employment and subsequent economic activity, as well as our investment in initiatives focused on improving health, water, and education services," Mr Zurrin said.

Importantly, he added, despite globally inflationary cost pressures, no material capital cost inflation was incurred in the construction costs.

"As our focus turns to the mine life extension, we are confident that we will unlock further long-term value for our shareholders," the CEO said.

The first gold pour of 35 ounces was successfully conducted at Singida last week. The statement said approximately 500 ounces are currently in carbon-in-leach (CIL) and gravity circuits.

The Singida 2023 guidance and five-year mine plan is expected to be communicated in this quarter.