TIDMSHG
RNS Number : 8796X
Shanta Gold Limited
03 September 2020
3 September 2020
Shanta Gold Limited
("Shanta Gold" or the "Company")
New Luika Gold Mine Exploration Drilling Update
Shanta Gold (AIM: SHG), the East Africa-focused gold producer,
developer and explorer, is pleased to provide an update from the
first phase of its Luika Deposit ("Luika") and Black Tree Hill
Deposit ("Black Tree Hill") drilling campaigns at the New Luika
Gold Mine ("NLGM") in South Western Tanzania, conducted during the
second and third quarters of 2020 .
Highlights:
-- 12 diamond core holes drilled at Luika totalling 4,066 metres, with further drilling ongoing;
-- 18 Reverse Circulation ("RC") holes drilled at Black Tree Hill totalling 2,567 metres;
-- Drilled holes have returned encouraging intersections, which are currently being modelled;
-- Luika drilling highlights:
o Hole CSD168 intersected 8.12 metres grading 5.50 g/t Au;
o Hole CSD154 intersected 6.06 metres grading 6.59 g/t Au;
o Hole CSD179 intersected 5.34 metres grading 6.65 g/t Au;
o Hole CSD153 intersected 7.45 metres grading 2.37 g/t Au;
o Hole CSD176 intersected 7.87 metres grading 2.57 g/t Au, incl.
3.69 metres at 5.19 g/t Au; and,
o Hole CSD182 intersected 3.07 metres grading 3.34 g/t Au, incl.
1.53 metres at 5.95 g/t Au.
-- Black Tree Hill drilling highlights:
o Hole CSR590 intersected 4.00 metres grading 5.20 g/t Au, incl.
1.00 metre at 13.90 g/t Au;
o Hole CSR594 intersected 3.00 metres grading 6.64 g/t Au, incl.
1.00 metre at 15.90 g/t Au;
o Hole CSR589 intersected 6.00 metres grading 2.51 g/t Au, incl.
1.00 metre at 7.95 g/t Au; and,
o Hole CSR585 intersected 4.00 metres grading 2.15 g/t Au, incl.
1.00 metre at 5.29 g/t Au; also intersected 4 metres grading 2.54
g/t Au, incl. 1.00 metre at 4.47 g/t Au.
-- All of these newly reported drilling intersections are
outside the existing mineral reserves and will be incorporated into
the mine plan;
-- Reported results are over a strike length of 553 metres for
Luika and 700 metres for Black Tree Hill;
-- Luika is one of NLGM's three actively mined underground
deposits and Black Tree Hill is currently scheduled to be a
location for future open pit mining; and,
-- Mineralization at both Luika and Black Tree Hill remains open at depth.
Eric Zurrin, Chief Executive Officer, commented:
"The positive results of this Phase 1 drilling have contributed
to the replacement of mined ounces and an overall increase to our
JORC reserves which has also been announced today. The New Luika
Gold Mine consists of 7 known deposits which all have the potential
to increase in size. High grade mineralisation remains open at
depth at Luika underground and will be targeted by phase 2 of the
drilling campaign while diamond drilling at depth is being planned
for Black Tree Hill."
Drilling Campaign - Phase 1
Luika is located about 1.8 km to the northwest of NLGM
Processing Plant. The orebody strikes approximately NNE - SSW and
dips 50deg to NW. Luika and Bauhinia Creek ("BC") deposits are
located within a 0.6 km wide shear zone, which has been interpreted
from airborne magnetic data and are considered to be part of the
same vein which has been offset by a 'Thrust Fault', with the plane
of thrust modelled to dip at 40deg towards 240deg with a 650 m
dextral displacement.
Black Tree Hill is located about 0.8 km to the south of the NLGM
Processing Plant. The orebody strikes approximately WNW - ESE and
dips steeply (88deg) to SSW. Three main veins (including Black Tree
Hill North) have so far been drilled and modelled covering a strike
extent of approximately 0.7 km.
Gold mineralization at Luika and Black Tree Hill are closely
associated with quartz veining (silicification) and low sulphide
mineralization (dominantly disseminated pyrite 1-3%). The
mineralized zones are presented by moderately to sub-vertical
dipping quartz veins hosted by granodioritic rocks. The deposits
depict relatively higher-grade westerly plunging shoots which have
potential to host significant economic mineralization and will be
the target of the subsequent phases of exploration drilling.
Phase 1 of the drilling campaigns at Luika and Black Tree Hill
are targeting areas on the central and western side of the current
extents, which are yet to be drill tested or had only been sparsely
drilled historically. Moreover, this phase of drilling is focused
on infill drilling to increase confidence, resource conversion from
Inferred to Measured & Indicated ("M&I") category between
levels 830mRL and 670mRL, and resource generation below level
670mRL for Luika underground; and between levels 960mRL and 830mRL
for Black Tree Hill open pit.
A total of 12 diamond drill holes totaling 4,066 metres have
been completed for the ongoing Luika drilling program. At Black
Tree Hill, 18 RC holes totaling 2,567 metres have been drilled.
These h oles were collared on surface (approximately 1000mRL),
inclined at between minus 48 deg and 80 deg with depth ranging from
78 metres to a maximum of 430 metres down the hole.
The reported results are over a strike length of 553 metres with
holes spacing of 40 - 50 metres for Luika and over a strike length
of 700 metres with holes spacing of 25 - 50 metres for Black Tree
Hill. It is estimated that the true widths of the mineralized zones
are > 86% of the intersected widths in the drillholes.
Assay results for the drillholes were received as tabulated
below:
Deposit Drill From (m) To (m) Interval Au (g/t)
Hole
Luika CSD153 203.45 210.90 7.45 2.37
-------- --------- ------- --------- ---------
CSD154 220.89 221.53 0.64 4.98
--------------------- --------- ------- --------- ---------
229.35 235.41 6.06 6.59
--------------------- --------- ------- --------- ---------
CSD155 143.65 144.43 0.78 2.76
--------------------- --------- ------- --------- ---------
196.44 199.91 3.47 3.11
--------------------- --------- ------- --------- ---------
CSD156 235.63 236.52 0.89 1.46
--------------------- --------- ------- --------- ---------
239.52 242.35 2.83 1.26
--------------------- --------- ------- --------- ---------
CSD158 No Significant Intersection
-------- ----------------------------------------
CSD160 237.34 237.83 0.49 4.12
--------------------- --------- ------- --------- ---------
239.24 241.00 1.76 1.77
--------------------- --------- ------- --------- ---------
247.35 248.70 1.35 1.67
--------------------- --------- ------- --------- ---------
CSD166 373.12 373.83 0.71 1.36
--------------------- --------- ------- --------- ---------
CSD168 366.99 375.11 8.12 5.50
--------------------- --------- ------- --------- ---------
CSD176 381.20 389.07 7.87 2.57
---------------------
Including:
--------
386.00 389.69 3.69 5.19
--------------------- --------- ------- --------- ---------
CSD179 364.55 365.24 0.69 0.98
--------------------- --------- ------- --------- ---------
397.75 403.09 5.34 6.65
--------------------- --------- ------- --------- ---------
CSD180 396.22 397.54 1.32 2.52
--------------------- --------- ------- --------- ---------
403.65 406.26 2.61 0.70
--------------------- --------- ------- --------- ---------
CSD182 390.10 393.17 3.07 3.34
---------------------
Including:
--------
391.64 393.17 1.53 5.95
--------------------- --------- ------- --------- ---------
Black Tree
Hill CSR585 101.00 105.00 4.00 2.15
--------
Including:
--------
103.00 104.00 1.00 5.29
--------- ------- --------- ---------
108.00 112.00 4.00 2.54
Including:
109.00 110.00 1.00 4.47
--------------------- --------- ------- --------- ---------
CSR589 140.00 146.00 6.00 2.51
---------------------
Including:
--------
144.00 145.00 1.00 7.95
--------- ------- --------- ---------
158.00 160.00 2.00 2.76
Including:
159.00 160.00 1.00 4.30
--------------------- --------- ------- --------- ---------
CSR590 133.00 137.00 4.00 5.20
---------------------
Including:
--------
134.00 135.00 1.00 13.90
--------- ------- --------- ---------
139.00 143.00 4.00 1.37
--------------------- --------- ------- --------- ---------
CSR591 167.00 173.00 6.00 1.41
--------------------- --------- ------- --------- ---------
CSR592 153.00 154.00 1.00 2.13
--------------------- --------- ------- --------- ---------
172.00 173.00 1.00 0.60
--------------------- --------- ------- --------- ---------
175.00 176.00 1.00 0.99
--------- ------- --------- ---------
193.00 194.00 1.00 1.97
--------------------- --------- ------- --------- ---------
CSR593 146.00 149.00 3.00 1.68
--------------------- --------- ------- --------- ---------
152.00 153.00 1.00 0.61
--------------------- --------- ------- --------- ---------
154.00 155.00 1.00 0.61
--------------------- --------- ------- --------- ---------
CSR594 77.00 80.00 3.00 6.64
---------------------
Including:
--------
78.00 79.00 1.00 15.90
--------------------- --------- ------- --------- ---------
The drilling program at Luika will continue through to the end
of 2020 and will focus on upgrading known Inferred resources into
the M&I category, generating new additional resources by
drill-testing the continuity of higher grade shoots at depth, and
better defining mineralized vein geometry on the western side of
Luika deposit through infill drilling.
Enquiries:
Shanta Gold Limited
Eric Zurrin (CEO) +44 (0) 1481 732 153
Luke Leslie (CFO)
Nominated Adviser and Broker
Numis Securities Limited
Paul Gillam + 44 (0) 20 7260 1000
The technical information contained in this announcement was
reviewed by Evance Rwiza (the Company's Senior Resource Geologist)
and Paul W. Mbuya (the Company's Exploration Manager), who are
Members of The Australasian Institute of Mining and Metallurgy
(AusIMM).
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 announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
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 1,200km(2) in the country. Shanta Gold also owns the
West Kenya Project in Kenya with defined ore resources of 1.2Mt
grading 12.6 g/t. Shanta's flagship New Luika Gold Mine commenced
production in 2012 and produced 84,506 ounces in 2019. The Company
has been admitted to trading on London's AIM and has approximately
849 m shares in issue. For further information please visit:
www.shantagold.com .
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END
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