TIDMSHG
RNS Number : 1125Q
Shanta Gold Limited
04 June 2018
4 June 2018
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
New JORC Resource Estimate & Project Update at Singida
Shanta Gold (AIM: SHG), the East Africa-focused gold producer,
announces an updated JORC compliant Mineral Resource Estimate
("MRE" or "Resource") and project update on the Singida Gold Mining
Project ("the Project") in Central Tanzania.
Highlights
-- 56% increase in Measured Resource and a 12% increase in
Measured and Indicated Resource, totaling 381 koz of gold at 2.08
g/t;
-- Only 2 of the 7 targets within the Project mining licences
were tested in the recent drilling campaign;
-- As previously announced in April 2018, drilling intersections
include:
o 10 m @ 20.82 g/t gold from 138 m in hole SC702, including 3 m
@ 57.13 g/t gold from 138 m, and
o 5 m @ 10.35 g/t gold from 120 m in hole SC713
-- Ground geophysical work (IP) to commence in early Q3 2018,
testing the potential of the 2 km strike between Cornpatch and
Cornpatch West targets;
-- Construction of a high voltage power line, by Tanzania's
Rural Energy Agency (REA) has commenced; and,
-- Internally estimated Project Net Present Value (NPV) has been
enhanced following re-optimisation of the mine plan and improvement
in forecasted energy costs.
Singida Resource Estimate
-- JORC compliant Project Resource totaling 12.3 Mt, grading
1.84 g/t and containing 725 koz of gold using a cut-off grade of
1.0 g/t consisting of:
o Measured and Indicated Mineral Resource totaling 5.71 Mt,
grading 2.08 g/t gold and containing 381 koz of gold; and,
o Inferred Resource of 6.57 Mt, grading 1.63 g/t gold and
containing 344 koz of gold.
-- The MRE incorporates three mining licenses and seven
mineralised zones with a combined strike length of 4.9 km, with
widths ranging from 5-15 m and mineralisation extending
approximately 500 m below the topographical surface;
-- Gold Tree 1, which is at the centre of the three mining
licenses, contains measured and indicated resources of 1.61 Mt,
grading 2.80 g/t gold and containing 145 koz of gold at a cut-off
grade of 1.0 g/t which is located near to surface (<120 m
depth);
-- Independent minerology testing has been previously completed
with average recoveries of 91%;
-- Mineralisation is open at depth and along strike with
numerous parallel structures identified; and,
-- Shanta will shortly be commencing an exploration programme to
delineate further resources and upgrade the inferred resources near
to surface in the Cornpatch and Cornpatch West targets into
measured and indicated resource categories.
Singida Project Update
-- The Rural Energy Authority (REA) is an autonomous body of the
Ministry of Energy with an objective to improve access to modern
energy services across rural Tanzania;
-- The Singida project is a direct beneficiary of REA's
objective and will be connected to the central government power
grid, which is expected to pass within 500 metres of the proposed
location of the Project site;
-- Construction of the REA power supply line is expected to be
completed by the end of 2018, funded by the Government and external
donors;
-- In March 2018, Shanta established an internal Owners Team to
advance desktop work for the Project using existing internal
resources, at no additional cost to Shanta. A number of workstreams
are ongoing by the Owners Team across all disciplines including
geology, mine planning and process design; and
-- Project capital funding is being targeted from external third
parties at the Singida asset level.
Eric Zurrin, Chief Executive Officer, commented:
The objective of the modest 1,600 metre RC drilling programme in
Q1 2018, which targeted two of the seven key targets at Singida,
was to upgrade resources from the Inferred to the Measured and
Indicated (M&I) categories. This objective has been achieved -
M&I Resources have now increased to nearly 400,000 oz of gold
at 2.08 g/t. A geophysics programme is planned for Q3 to test
upside at the Cornpatch and Cornpatch West targets as we target
ongoing expansion and upgrading of the resource.
Analyst conference call
Shanta Gold will host an analyst conference call today, 4 June
2018, at 09:30 BST. Participants can access the call by dialling
one of the following numbers below approximately 10 minutes prior
to the start of the call.
UK Toll-Free Number: 08082370030
UK Toll Number: +44 (0)2031394830
PIN: 86675553#
A recording of the conference call will subsequently be
available on the Company's website.
Enquiries:
Shanta Gold Limited
+ 255 (0) 22 292
Eric Zurrin (CEO) 5148
Luke Leslie (CFO)
Nominated Adviser and Broker
Numis Securities Limited
+ 44 (0) 20 7260
Paul Gillam / John Prior / James Black 0000
Financial Public Relations
Tavistock
+ 44 (0) 20 7920
Charles Vivian / Barnaby Hayward 3150
About Shanta Gold
Shanta Gold is an East Africa-focused gold producer. It
currently has defined ore resources on the New Luika and Singida
projects in Tanzania and holds exploration licenses covering
approximately 1,500km(2) in the country. Shanta's flagship asset
New Luika Gold Mine commenced production in 2012 and produced
79,585 ounces in 2017. The Company has been admitted to trading on
London's AIM and has approximately 778 m shares in issue. For
further information please visit: www.shantagold.com.
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
Singida
The Singida Mineral Resource is based on seven-shear zone
related gold deposits with a combined strike length of 4.9 km. All
of these deposits are situated within three, 100% Shanta owned,
mining licenses. The deposits trend east-west to
north-west-south-east.
The westernmost deposits, consisting of Corn Patch and Corn
Patch West, are moderate to steep dipping, SE/NW striking
brittle-ductile structures. The central set of brittle-ductile
shears host three deposits: Gold Tree, Gem, and Vivian. These
deposits occur in a succession of basaltic host rock and
meta-sediment units. The mineralised structures trend from 295 to
310 , dipping steeply to the southwest.
To the east of the Property are two east-west trending, steep
dipping mineralised shear zones comprising the Kaizer Chief and
Gustav deposits. The Kaizer Chief deposit is a sub-vertical
structure with gold mineralisation localised along a distinct
brittle ductile shear zone within mafic metavolcanic host rock.
Gold mineralisation in the Gustav mineralised prospect is located
within a distinct brittle-ductile shear zone characterized by
significant percentages of pyrite, chalcopyrite, pyrrhotite and
arsenopyrite mineralisation.
The MRE has been delineated by diamond core drilling ("DD"),
reverse circulation ("RC") and rotary air blast ("RAB"). The
initial drilling campaigns were completed between 2006 and 2009 and
consisted of 322 (37,827 m) RC holes, 86 (1,496 m) RAB holes and 42
(6,562 m) DD holes. A drilling phase that started late in 2016 and
continued into 2017 involved drilling of 179 RC holes totaling
5,527 m. The last drilling phase was completed in February and
March 2018 on the Gold Tree and Jem deposits and comprised 15 RC
holes totaling 1,603m.
Drilling Summary
Gold Tree Jem Vivian Cornpatch Cornpatch Kaizer Chief Gustav
West
Drilling
Holes Metres Holes Metres Holes Metres Holes Metres Holes Metres Holes Metres Holes Metres
RAB 71 1,052 15 445
(Phase
1)
------ ------- ------ ------ ------ ------- ------ ------- ----- ------ ------ -------- ------ -------
RC (Phase
1) 122 13,307 43 5,767 20 2,605 27 3,628 57 6,454 28 2,969
DD (Phase
1) 10 1,106 14 1,408 1 67 2 340 5 814 4 610
RC (Phase
2) 25 3,097
DD (Phase
2) 3 1,108 3 1,109
2016/17
RC 179 5,527
------ ------- ------ ------ ------ ------- ------ ------- ----- ------ ------ -------- ------ -------
2018 RC 9 991 6 612
------ ------- ------ ------ ------ ------- ------ ------- ----- ------ ------ -------- ------ -------
Total 323 22,039 137 9,947 21 2,672 44 4,413 25 3,097 62 7,268 32 3,579
All samples are submitted to the SGS Laboratories in Mwanza,
Tanzania, which is accredited to conform to ISO/IEC standards. All
QA/QC results have been reviewed by Sphynx Consulting CC.
It should also be noted that DRA Mineral Projects (PTY) Ltd
completed an advanced metallurgical study in February 2014, based
on mineralogy reports by SGS Ltd and gravity/leach test work
completed by Mintek (SA) and Peacock and Simpson (Zimbabwe). The
overall estimated recovery was discounted for plant inefficiencies
and calculated to be 91%, from a head grade of 2.6 g/t Au,
utilising discounted gravity and leach recovery values of 50% and
82.45% respectively.
As part of a number of studies completed at Singida, SRK
Consulting (SA) (Pty) Ltd (SRK) conducted a mining geotechnical
study. The scope of the study was to provide recommendations for
pit slope designs on a feasibility level in order to facilitate the
safe and economical mining of the Singida Open Pits. The results
from the study recommended overall slope angles from 49-51 degrees,
berms widths of 15 m and bench widths ranging from 2.84 m to 8.83 m
dependent on the degree of weathering.
The Company is completing the final phase of the resettlement at
Singida and continues its Corporate Social Responsibility program
in the district.
Mineral Resources
Singida's Measured and Indicated Resource at 26 May 2018 is an
estimated 5.71 Mt, grading 2.08 g/t and containing 0.381 Moz of
gold at a cut-off grade of 1.0 g/t. The majority of the measured
and indicated resources are less than 120 m from surface.
Estimated Inferred Resources total over 6.57 Mt, grading 1.63
g/t and containing 0.344 Moz of gold at a cut-off grade of 1.0
g/t.
Shanta Gold Ltd - Singida Gold Project Tanzania
Mineral Resource Estimate (MRE) - 26 May 2018
JORC 2012 Classification Tonnes Gold Grade Gold
Mt g/t Moz
Measured 2.35 2.50 0.189
Indicated 3.36 1.78 0.192
Sub - Total M+I 5.71 2.08 0.381
Inferred 6.57 1.63 0.344
Total 12.28 1.84 0.725
The Singida Mineral Resource is based on seven-shear zone
related gold deposits with a combined strike length of 4.9 km.
Historical drilling has identified mineralisation extending down to
500 m from surface in the Gold Tree One deposit.
MEASURED INDICATED INFERRED TOTAL RESOURCES
TONNES GRADES OUNCES TONNES GRADES OUNCES TONNES GRADES OUNCES TONNES GRADES OUNCES
('000) g/t ('000 ('000) g/t ('000 ('000) g/t ('000 ('000) g/t ('000
oz) oz) oz) oz)
------- ------ ------ ------- ------ ------ ------- ------ ------ ------ ------ -------
CORNPATCH
WEST - - - 722 1.67 39 995 1.4 45 1,716 1.51 84
CORNPATCH - - - 415 1.73 23 474 2.07 31 889 1.91 54
VIVIAN - - - 259 2.27 19 153 2.25 11 412 2.26 30
------- ------ ------ ------- ------ ------ ------- ------ ------ ------ ------ -------
JEM ZONE
1&2 577 2.62 49 430 1.96 27 655 1.98 42 1,663 2.19 117
GOLD TREE
ZONE 1 1,179 2.95 112 431 2.37 33 1,479 1.68 80 3,089 2.26 224
GOLD TREE
ZONE 2 172 1.51 8 130 1.31 5 250 1.2 10 552 1.32 23
GOLD TREE
ZONE 3 295 1.67 16 303 1.71 17 1,867 1.61 96 2,464 1.63 129
KAIZER
CHIEF - - - 234 1.27 10 398 1.36 17 632 1.33 27
GUSTAV 128 1.12 5 435 1.41 20 295 1.29 12 858 1.33 37
TOTAL 2,351 2.50 190 3,359 1.78 193 6,566 1.63 344 12,275 1.84 725
------- ------ ------ ------- ------ ------ ------- ------ ------ ------ ------ -------
Estimation Methodology
The top and bottom contacts of the orebodies were defined along
section lines using geological, structural and alteration data as
well as gold assay grades. The orebodies were defined by 3D
wireframe interpretation with sub cell block modelling.
Statistical analysis of the data was undertaken for each
prospect in order to inform decisions on treatment of extreme grade
values, compositing length, variography and orientation of the
resource model.
In order to determine the optimum model block size, the Kriging
Efficiency and Regression slope was studied for the Gold Tree 3
orebody and the block size obtained was applied to the other
deposits.
Ordinary Kriging was used as the estimator and a three-pass
search strategy was utilised with either an octant search method or
a limit placed on the amount of data per hole that informed the
estimate so that the informing data was not clustered.
The resultant block models were validated against the raw input
data to ensure the block model grades are both realistic and
representative.
The resource was classified into Measured, Indicated and
Inferred mineral resources according to guidelines compliant with
the Australasian Code for Reporting (2012) as published by the
Joint Ore Reserves Committee of the Australasian Institute of
Mining and Metallurgy (JORC).
Recommendations to get to PFS and Mine Reserve
The Company will now focus on reviewing and upgrading the
inferred resources near to surface in the Jem, Gold Tree and Corn
Patch deposits into measured and indicated resource categories,
with the objective of establishing and completing a Singida Mineral
Resource and Ore Reserve statement.
The MRE was completed by independent consultants - Sphynx
Consulting CC from South Africa. The technical information
contained within this announcement has been reviewed and approved
by Mr. Awie Pretorius MSc.Pri.Sci.Nat. Mr. Pretorius is a
consultant to Shanta and a member of the South African Council for
Natural Scientific Professionals (SACNASP Membership Number
400060/91).
He has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves' and for
the purposes of the AIM Guidance Note on Mining and Oil & Gas
Companies dated June 2009.
Glossary of Terms
the lowest grade, or quality, of mineralised material
cut-off grade that qualifies as economically
mineable and available in a given deposit. May be
defined on the basis of
economic evaluation, or on physical or chemical
attributes that define an
acceptable product specification.
----------------------------------------------------------
Grams per metric tonne. The unit of measurement
g/t of metal content or grade,
equivalent to parts per million.
----------------------------------------------------------
A 'Measured Mineral Resource' is that part of a
Measured Mineral Resource for which
quantity, grade (or quality), densities, shape,
Mineral and physical characteristics are
estimated with confidence sufficient to allow the
Resource application of Modifying Factors
to support detailed mine planning and final evaluation
of the economic viability
of the deposit.
Geological evidence is derived from detailed and
reliable exploration, sampling
and testing gathered through appropriate techniques
from locations such as
outcrops, trenches, pits, workings and drill holes,
and is sufficient to confirm
geological and grade (or quality) continuity between
points of observation where
data and samples are gathered.
A Measured Mineral Resource has a higher level of
confidence than that
applying to either an Indicated Mineral Resource
or an Inferred Mineral
Resource. It may be converted to a Proved Ore Reserve
or under certain
circumstances to a Probable Ore Reserve.
----------------------------------------------------------
the process or processes by which a mineral is introduced
Mineralisation into a rock, resulting
in a valuable or potentially valuable deposit. It
is a general term, incorporating
various types; e.g., fissure filling, impregnation,
and replacement.
----------------------------------------------------------
A 'Mineral Resource' is a concentration or occurrence
Mineral of solid material of
economic interest in or on the Earth's crust in
Resource such form, grade (or quality), and
quantity that there are reasonable prospects for
eventual economic extraction.
The location, quantity, grade (or quality), continuity
and other geological
characteristics of a Mineral Resource are known,
estimated or interpreted from
specific geological evidence and knowledge, including
sampling. Mineral
Resources are sub-divided, in order of increasing
geological confidence, into
Inferred, Indicated and Measured categories.
----------------------------------------------------------
An 'Indicated Mineral Resource' is that part of
Indicated a Mineral Resource for which
quantity, grade (or quality), densities, shape and
Mineral physical characteristics are
estimated with sufficient confidence to allow the
Resource application of Modifying Factors
in sufficient detail to support mine planning and
evaluation of the economic
viability of the deposit.
Geological evidence is derived from adequately detailed
and reliable exploration,
sampling and testing gathered through appropriate
techniques from locations
such as outcrops, trenches, pits, workings and drill
holes, and is sufficient to
assume geological and grade (or quality) continuity
between points of
observation where data and samples are gathered.
An Indicated Mineral Resource has a lower level
of confidence than that applying
to a Measured Mineral Resource and may only be converted
to a Probable Ore
Reserve.
---------------------------------------------------------
An 'Inferred Mineral Resource' is that part of a
Inferred Mineral Mineral Resource for which
quantity and grade (or quality) are estimated on
Resource the basis of limited geological
evidence and sampling. Geological evidence is sufficient
to imply but not verify
geological and grade (or quality) continuity. It
is based on exploration, sampling
and testing information gathered through appropriate
techniques from locations
such as outcrops, trenches, pits, workings and drill
holes. An Inferred Mineral
Resource has a lower level of confidence than that
applying to an Indicated
Mineral Resource and must not be converted to an
Ore Reserve. It is reasonably
expected that the majority of Inferred Mineral Resources
could be upgraded to
Indicated Mineral Resources with continued exploration.
---------------------------------------------------------
In-Situ In its natural position or place.
---------------------------------------------------------
The Australasian Code for Reporting of Exploration
JORC Code Results, Mineral
Resources and Ore Reserves (the 'JORC Code' or 'the
Code') sets out
minimum standards, recommendations and guidelines
for Public Reporting in
Australasia of Exploration Results, Mineral Resources
and Ore Reserves. The
Joint Ore Reserves Committee ('JORC') was established
in 1971 and
published several reports containing recommendations
on the classification
and Public Reporting of Ore Reserves prior to the
release of the first edition of
the JORC Code in 1989.
Revised and updated editions of the Code were issued
in 1992, 1996, 1999, and
2004. The 2012 edition supersedes all previous editions.
---------------------------------------------------------
One thousand Troy ounces. All references to ounces
Koz are Troy ounces with the
conversion factor being 31.1034768 metric grams
per Troy ounce
---------------------------------------------------------
Mt One million metric tonnes
---------------------------------------------------------
That portion of the metal contained within the ore
Recoverable that can be recovered through
Ounces metallurgical processing
---------------------------------------------------------
Mined ore that can be processed by the recovery
ROM plant
---------------------------------------------------------
ENDS
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END
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