TIDMSHG
RNS Number : 1990O
Shanta Gold Limited
01 October 2019
1 October 2019
Shanta Gold Limited
("Shanta Gold" or the "Company")
New Luika Gold Mine Exploration Update
Shanta Gold (AIM: SHG), the East Africa-focused gold producer,
developer and explorer, is pleased to report positive surface
exploration drilling results from its ongoing exploration
programmes within its existing mining licences at the New Luika
Gold Mine ("NLGM") in South Western Tanzania.
Highlights:
-- Following a detailed review of the exploration portfolio over
the last 12 months, new targets within the existing mining licences
at NLGM were identified;
-- Two such high-potential targets include Bauhinia Creek ("BC")
North and Elizabeth Hill ("EH") North;
-- Exploration drilling at BC North and EH North has intersected
encouraging mineralisation with sizeable widths, suggesting
significant potential for additional resources to add to the mine
plan;
-- BC North overview and drilling highlights:
o Located approximately 300 metres to the north of the high
grade BC deposit, which is currently being mined from underground
at NLGM;
o Located about 3 km to the west of the NLGM processing
plant;
o A total of 19 drill holes representing 2,762 metres have been
completed over three phases;
o Hole BNRC013 intersected 4.00 metres grading 8.38 g/t Au and
6.00 metres grading 8.62 g/t Au;
o Hole BNRC009 intersected 4.00 metres grading 8.94 g/t Au;
o Hole BNRC017 intersected 3.00 metres grading 5.41 g/t Au;
o Hole BNRC001 intersected 4.00 metres grading 3.83 g/t Au;
o Hole BNRC018 intersected 10.00 metres grading 3.43 g/t Au.
-- EH North overview and drilling highlights:
o Located about 4 km to the east of the NLGM processing
plant;
o Phase 1 drilling programme designed to infill the previously
wide spaced drill fences aimed to test the down-dip continuity of
the orebody at a 30-metre vertical depth;
o A total of 24 drill holes representing 2,316 metres have been
completed over two phases;
o Hole CSR525 intersected 9.00 metres grading 6.62 g/t Au;
o Hole CSR522 intersected 9.00 metres grading 5.56 g/t Au;
o Hole CSR518 intersected 8.00 metres grading 3.29 g/t Au;
-- Strike lengths of the BC North and EH North mineralised
structures are estimated to be 150 metres and 350 metres
respectively and remain open at depth.
Mine Plan Update
Drilling is continuing at depth and along strike at both targets
and additional results are expected in Q4 2019.
The results of this drilling campaign and the second drilling
campaign in Q4 2019 will be combined and analysed, with an updated
Mineral Resource Estimate and resultant life of mine extension
expected in the next few months.
Eric Zurrin, Chief Executive Officer, commented:
"With mine life extension at New Luika a continuing priority for
Shanta, it is exciting to see these latest results from our focused
drilling programmes. By prioritising exploration targets that can
potentially be converted quickly and cheaply into mine plan ounces,
our exploration budget is being spent with our production pipeline
and mine life in mind.
"We would expect that these results and the next round of
drilling will provide sufficient information for us to declare new
resources at these targets in the near future and contribute as
another source of ore to feed the NLGM plant."
BC North exploration drilling
BC North is a northeast - southwest trending mineralised system
located 300 metres from the BC deposit and close to existing
infrastructure. Prior to the drilling programme, the BC North
target was delineated by a trenching programme in early 2019, which
was designed to test the coincident airborne magnetic and soil
geochemistry anomalies.
A total of 19 drill holes representing 2,762 metres have been
completed in the ongoing exploration drilling at BC North. The
completed drilling has been carried out in three phases that have
progressively targeted the down-dip and plunge of the mineralised
structures. All of the drilling has been Reverse Circulation (RC)
except for 4 drill holes that were completed by diamond tails.
Drilling has been progressively targeting the westerly plunging
continuity of the mineralised structure. Holes were inclined at
between minus 40 and 70 degrees and averaged 70 metres in depth
with a maximum of 168 metres down the hole. These results are over
a strike length of 150 metres with holes spaced using 30-metre
drill fences. It is estimated that the true widths of the
mineralised zones are about 90% of the intersected widths in the
holes. The mineralised zones are presented by moderately dipping
quartz veins hosted by granodioritic rocks.
Significant BC North drilling results are tabulated below:
Phase BHID From To (m) Interval Au (g/t)
(m) (m)
1 BNRC001 46 50 4 3.83
-------- ------- ------- --------- ---------
BNRC002 17 19 2 1.14
-------- ------- ------- --------- ---------
48 56 8 1.79
-------- ------- ------- --------- ---------
BNRC003 16 18 2 2.04
-------- ------- ------- --------- ---------
37 43 6 1.79
-------- ------- ------- --------- ---------
2 BNRC005 50 51 1 1.67
------ -------- ------- ------- --------- ---------
BNRC006 74 75 1 1.11
------ -------- ------- ------- --------- ---------
89 93 4 2.41
-------- ------- ------- --------- ---------
BNRC007 50 51 1 5.75
-------- ------- ------- --------- ---------
84 86 2 1.24
-------- ------- ------- --------- ---------
BNRC008 25 26 1 1.47
-------- ------- ------- --------- ---------
47 48 1 7.02
-------- ------- ------- --------- ---------
59 61 2 1.29
------- ------- --------- ---------
81 83 2 4.14
------ -------- ------- ------- --------- ---------
3 BNRC009 73 74 1 1.94
------ --------
111 115 4 8.94
------ --------
Including:
112 113 1 27.50
-------- ------- ------- --------- ---------
BNRC013 57 62 5 1.35
-------- ------- ------- --------- ---------
86 90 4 8.38
--------
Including:
86 87 1 23.10
87 88 1 8.18
93 99 6 8.62
Including:
97 98 1 25.50
98 99 1 12.40
-------- ------- ------- --------- ---------
BNRC014 113 114 1 5.40
-------- ------- ------- --------- ---------
BNRC015 118 119 1 4.44
-------- ------- ------- --------- ---------
BNRC017 83 84 1 1.58
--------
86 89 3 5.41
--------
Including:
87 88 1 10.70
------- ------- --------- ---------
143 146 3 1.70
-------- ------- ------- --------- ---------
BNRC018 10 11 1 1.42
-------- ------- ------- --------- ---------
21 22 1 1.17
-------- ------- ------- --------- ---------
45 55 10 3.43
Including:
46 47 1 7.80
74 76 2 1.28
-------- ------- ------- --------- ---------
CSD128 138.85 139.42 0.57 4.61
CSD129 105.75 106.43 0.68 1.21
--------
124.76 125.35 0.59 1.94
-------- ------- ------- --------- ---------
133.33 136.44 3.11 1.30
------ -------- ------- ------- --------- ---------
True widths are approximately 90% of the intersected downhole
widths.
The focus of the exploration programme at BC North for the
remainder of 2019 is to continue to expand the down-plunge and
lateral extensions of the mineralised structure with the objective
of adding new near-mine Mineral Resources.
EH North exploration drilling
The east - west trending EH North structure is located about 4
km to the east of the NLGM processing plant. Delineation and
exploration drilling at EH North involved completion of 24 infill
RC drill holes totalling 2,316 metres and was carried out in two
phases.
The Phase 1 drilling programme at EH North was designed to
infill the previously wide-spaced (60 metre) drill fences aimed to
test the down-dip continuity of the orebody at a 30-metre vertical
depth. The Phase 2 drilling programme was aimed at testing the
mineralisation depth continuity at a vertical depth of 60
metres.
Holes were drilled at between minus 40 and 60 degrees and
averaged 90 metres in depth with a maximum of 150 metres down the
hole. These results are over a strike length of 350 metres with
holes spaced using 30-metre drill fences. It is estimated that the
true widths of the mineralised zones are about 80% of the
intersected widths in the holes. The mineralised zones are
presented by a package of steeply dipping quartz veins hosted by
granodioritic rocks.
Significant EH North drilling results are tabulated below:
Phase BHID From (m) To (m) Interval Au (g/t)
(m)
1 CSR503 5 11 6 1.27
------- --------- ------- --------- ---------
CSR504 88 89 1 1.49
------- --------- ------- --------- ---------
CSR505 113 114 1 1.24
------- --------- ------- --------- ---------
CSR507 127 130 3 1.06
------- --------- ------- --------- ---------
131 133 2 1.09
------- --------- ------- --------- ---------
CSR508 49 52 3 1.03
------- --------- ------- --------- ---------
61 64 3 1.59
------- --------- ------- --------- ---------
65 66 1 1.52
--------- ------- --------- ---------
67 68 1 1.15
------- --------- ------- --------- ---------
CSR509 3 4 1 1.03
------- --------- ------- --------- ---------
CSR510 42 44 2 2.29
------- --------- ------- --------- ---------
2 CSR512 38 39 1 1.92
------- --------- ------- --------- ---------
CSR518 49 51 2 1.21
------- --------- ------- --------- ---------
53 61 8 3.29
-------
Including:
53 54 1 12.3
--------- ------- --------- ---------
59 60 1 6.37
------- --------- ------- --------- ---------
CSR519 27 28 1 1.99
------- --------- ------- --------- ---------
90 95 5 1.58
------- --------- ------- --------- ---------
CSR522 47 49 2 1.56
------- --------- ------- --------- ---------
62 71 9 5.56
-------
Including:
64 66 2 15.50
------- --------- ------- --------- ---------
CSR523 77 78 1 6.44
------- --------- ------- --------- ---------
CSR524 36 41 5 1.73
-------
Including:
-------
37 38 1 5.08
------- --------- ------- --------- ---------
CSR525 80 89 9 6.62
-------
Including:
-------
84 88 4 11.00
------- --------- ------- --------- ---------
CSR526 65 66 1 3.16
------- --------- ------- --------- ---------
True widths are approximately 80% of the intersected downhole
widths.
The Q3 and Q4 2019 surface exploration drilling programme at EH
North will continue to focus on delineating and extending the
high-grade mineralised shoots with the objective of defining
additional Mineral Resources proximal to the current mining
operations.
Enquiries:
Shanta Gold Limited
Eric Zurrin (CEO) +255 (0) 22 292 5148
Luke Leslie (CFO)
Nominated Adviser and Broker
Numis Securities Limited
Paul Gillam / John Prior / James Black + 44 (0) 20 7260 1000
Financial Public Relations
Tavistock
Charles Vivian / Barnaby Hayward / Gareth
Tredway +44 (0) 20 7920 3150
About Shanta Gold
Shanta Gold is an East Africa-focused gold producer. It
currently has defined ore resources at the New Luika and Singida
projects in Tanzania and holds exploration licences covering
approximately 1,500km(2) in the country. Shanta's flagship New
Luika Gold Mine commenced production in 2012 and produced 81,872
ounces in 2018. The Company has been admitted to trading on
London's AIM and has approximately 787 million shares in issue.
For further information please visit: www.shantagold.com.
Qualified Person
The technical information contained within this announcement has
been reviewed by George Kondela (the Company's Mineral Resource
Geologist) and Paul W. Mbuya (the Company's Exploration Manager),
who are Members of The Australasian Institute of Mining and
Metallurgy (Aus.I.M.M).
They have 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 Persons 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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