TIDMSHG
RNS Number : 6996H
Shanta Gold Limited
28 November 2022
28 November 2022
Shanta Gold Limited
("Shanta Gold" or the "Company")
West Kenya Drilling Results at Ramula Camp Indicate
Significant
Potential Resource Increase
Shanta Gold (AIM: SHG), the East Africa-focused gold producer,
developer and explorer, is pleased to provide an exploration update
for the West Kenya Project ("West Kenya", "Project") in Kenya,
including drilling results from three targets forming part of the
Ramula Camp.
Eric Zurrin, Chief Executive Officer, commented:
"I am delighted to announce further exciting news from West
Kenya, with today's drill results confirming our long-held belief
that the Project has the potential to become one of Africa's next
quality, high-grade gold mines. The team has encountered excellent
intersections from three new targets at the Ramula Camp that, in
time, may see the resource potentially increase from the original
Maiden Inferred Resource of 434koz grading 2.08 g/t to at least
another +1.5 million ounce gold camp within West Kenya.
Alongside the Ramula Camp and its growing resource, we have the
1.2 million ounce resource already established at the Isulu/
Bushiangala Camp. We look forward to providing shareholders with a
mineral resource update from Isulu/ Bushiangala before the year
end. Our focus will then turn to updating the market on the Ramula
mineral resource in the New Year where we have confidence in a
material upgrade to Indicated resources."
Yuri Dobrotin, Shanta Group Head of Exploration, commented:
"The three new and recently reassessed targets, Anomaly 22, the
Miruka system, and the Ochiegue system, situated within 5 km radius
from Ramula deposit, present several exciting additional open-pit
and underground development options for the Company in what is a
large prolific district owned by Shanta. As the team make great
progress in upgrading a portion of the Ramula deposit from Inferred
to the Indicated category, we are confident that these proximal
targets will be advanced by additional drilling and that the growth
potential is only starting to be realised.
The West Kenya Project continues to deliver excellent results
and we are very optimistic about its future."
Highlights:
-- The drilling programme at the Ramula deposit is aimed at the
conversion of the Inferred resources to Indicated;
-- Resource conversion drilling by Shanta at Ramula and proximal
targets has only begun in the last 12 months and confidence has
increased towards the line of sight to a +1.5 million ounce
resource;
-- Drilling has now expanded to district targets within the
wider Ramula Camp, currently including high priority targets
Ramula, Miruka, and Anomaly 22; reassessment of the Ochiegue target
is ongoing, which was previously drilled by Acacia;
-- The first part of this update relates to 1,509 m of drilling
across 6 diamond holes (out of 19 diamond holes drilled on the
target with pending assays) conducted in Q3 2022 at the Ramula
deposit. Drilling intersection highlights include:
Hole No. Interval Au (g/t) From To (m)
(m) (m)
========= ========= ====== =======
Ramula deposit
=================================================
RMD0024 1.5 29.50 95.4 96.9
========== ========= ========= ====== =======
incl. 0.6 64.20 95.4 96.0
========== ========= ========= ====== =======
RMD0024 7.0 3.06 122.0 129.0
========== ========= ========= ====== =======
incl. 0.8 21.20 125.2 126.0
========== ========= ========= ====== =======
RMD0025 2.0 28.90 125.1 127.1
========== ========= ========= ====== =======
incl. 0.5 110.00 126.6 127.1
========== ========= ========= ====== =======
RMD0025 9.6 2.42 141.2 150.8
========== ========= ========= ====== =======
incl. 1.8 7.77 149.0 150.8
========== ========= ========= ====== =======
RMD0026 6.1 20.30 112.5 118.6
========== ========= ========= ====== =======
incl. 0.8 149.00 114.8 115.6
========== ========= ========= ====== =======
RMD0026 0.6 62.00 126.9 127.5
========== ========= ========= ====== =======
RMD0026 2.9 3.36 165.2 168.1
========== ========= ========= ====== =======
RMD0027 24.9 3.80 128.0 153.0
========== ========= ========= ====== =======
incl. 4.8 15.40 142.0 147.0
========== ========= ========= ====== =======
RMD0029 4.4 16.50 219.6 224.0
========== ========= ========= ====== =======
incl. 2.1 33.90 220.1 222.2
========== ========= ========= ====== =======
Note: true width estimated at 70-80% of the intercept core
length and gold values uncapped
o Visible gold was identified in 5 intersections across 6 holes
drilled. Visible gold has been identified in 36 intersections
across 19 holes drilled since Q4 2021;
o Intersections reported today are the second set of results
received from the resource conversion drilling campaign, which is
targeting up to 240 vertical metres below surface; assay results
for 13 holes at Ramula are pending.
-- The second part of this update relates to 1,137 m of drilling
across 4 diamond holes (out of 6 total diamond holes drilled on the
targets) conducted in Q3 2022 at the Miruka and Anomaly 22 targets,
situated less than 5km from the Ramula deposit. Drilling
intersection highlights include:
Hole No. Interval Au (g/t) From To (m)
(m) (m)
========= ========= ====== =======
Miruka
=================================================
RMD0030 5.7 4.23 77.0 82.7
========== ========= ========= ====== =======
incl. 0.7 26.50 81.3 82.0
========== ========= ========= ====== =======
RMD0030 5.0 3.11 104.0 109.0
========== ========= ========= ====== =======
incl. 2.0 7.12 107.0 109.0
========== ========= ========= ====== =======
RMD0031 9.0 4.65 141.0 150.0
========== ========= ========= ====== =======
incl. 2.0 8.50 146.0 148.0
========== ========= ========= ====== =======
RMD0032 9.2 4.35 114.0 123.2
========== ========= ========= ====== =======
incl. 3.0 7.75 119.0 122.0
========== ========= ========= ====== =======
1.3 9.62 179.5 180.8
========== ========= ========= ====== =======
RMD22B 8.0 4.45 348.0 356.0
========== ========= ========= ====== =======
incl. 2.3 10.40 352.7 355.0
========== ========= ========= ====== =======
5.4 2.08 368.6 374.0
---------- --------- --------- ------ -------
Note: true width estimated at 70-80% of the intercept core
length and gold values uncapped
Ramula Camp Drilling Campaign
The Ramula target is located about 40 km northwest of Kisumu
City and 40 km west-southwest from the Isulu-Bushiangala deposit.
It is the most advanced prospect in the Ramula region. Ramula Camp
currently includes 4 high priority targets including Ramula,
Miruka, Anomaly 22, and Ochiegue, located less than 5km from
Ramula. Several targets e.g., Ramba-Lumba, Aila, Nairobi Hill,
Barding-Masumbi, Rera and the former colonial mine Kiboko, are all
within 20 km of the Ramula deposit.
Ramula Deposit
The Ramula deposit lies primarily within a small dioritoid stock
and its contact zones. The stock has intruded a sequence of
intermediate volcanic rocks comprised of intermediate
volcaniclastic (breccias and tuffs) and volcanic rocks. The deposit
is situated less than 1km from the district-scale thrust fault and
unconformity with the polymictic 'Timiskaming-style' conglomerates.
Minor quartz feldspar porphyries are present. The elongate
dioritoid body is approximately 300 m by 500 m with a northwest-
southeast trending long axis. Mineralisation at Ramula is hosted
within a series of stacked, shallow-dipping, thin quartz tension
veins primarily hosted in the strongly altered diorite and
extending into the surrounding intermediate volcanic units.
Gold-bearing quartz veins are clustered in well-identifiable zones,
which have been modelled and now verified by the present infill
drilling. Lower-grade gold mineralisation also occurs between the
veins. The style of mineralisation of the Ramula deposit closely
resembles Sigma-Lamaque style at the Val'd-Or Camp of the Abitibi
Gold Belt, Canada.
Several drill programs have been completed on the prospect
including 14 diamond holes between 2012 and 2018 by Aviva and
Acacia (previous operators), Shanta completed an infill drill
program in Q4 2021 and continued in Q3 2022.
Ramula is open for extension to the southeast and Shanta's
drilling to 600 m depth confirms mineralisation is open at depth.
The greater upside is in viewing the prospect as part of the larger
Ramula-Ochiegue-Miruka-Anomaly22 mineralised system which has
potential for new discoveries.
The diamond drilling campaign at Ramula is seeking to infill 19
modelled zones (RZ0 to RZ19) to 240 m depth. This drilling program
amounts to approximately 6,000 m of planned drilling and was
completed in October 2022. It is expected to generate an average
spacing of 20 m to 40 m for conversion of the Inferred resource to
Indicated category. Following the completion of 2021 drilling, the
Ramula modelled zones were updated, and the maiden mineral
resource estimate (of 433,900 ounces grading 2.08 g/t, using a
cut-off grade of 0.7g/t Au) was announced in March 2022.
Composited assay results shown below are those for 6 diamond
drill holes received since the Company's most recent exploration
update on Ramula on 07 November 2022. The lengths shown are the
down hole metres and it is estimated that the true widths of the
mineralised zones are approximately 70-90% of the widths
intersected in the drill holes. All assays are reported without
application of a top cut. Composited assay results for these 6
drill holes are tabulated below. Samples were analysed at an
accredited laboratory operated by MSALABS in Canada and SGS in
Tanzania, both independent third parties:
Drill Interval Au (g/t) From (m) To (m) Prospect
Hole (m)
RMD0024 1.5 2.02 29.4 30.9 Ramula
----------- --------- --------- ------- ---------
2.0 1.43 61.0 63.0
---------
4.8 1.14 69.2 74.0
including:
2.8 1.70 69.2 72.0
----------- --------- --------- -------
2.0 1.10 78.0 80.0
1.5 29.50 95.4 96.9
including:
0.6 64.20 95.4 96.0
----------- --------- --------- -------
1.4 1.09 104.7 106.1
1.0 2.09 109.0 110.0
----------- --------- ---------
7.0 3.06 122.0 129.0
including:
0.8 21.20 125.2 126.0
2.4 1.06 134.0 136.4
----------- --------- ---------
0.7 1.43 155.8 156.5
----------- --------- --------- -------
0.7 1.06 160.3 161.0
1.0 7.75 164.0 165.0
----------- --------- --------- ---------
RMD0025 6.0 1.51 32.5 38.5 Ramula
5.4 0.75 80.0 85.4
including:
0.7 2.04 84.7 85.4
1.0 0.86 93.2 94.2
----------- --------- ---------
2.0 28.90 125.1 127.1
including:
0.5 110.00 126.6 127.1
0.7 1.78 135.3 136.0
----------- --------- ---------
9.6 2.42 141.2 150.8
including:
1.8 7.77 149.0 150.8
----------- --------- --------- -------
6.6 0.53 159.2 165.8
including:
0.8 1.78 159.2 160.0
----------- --------- --------- -------
RMD0026 6.2 1.26 57.8 64.0 Ramula
including:
2.0 2.23 62.0 64.0
1.0 3.14 73.1 74.1
----------- --------- ---------
6.1 20.30 112.5 118.6
including:
0.8 149.00 114.8 115.6
----------- --------- --------- -------
0.6 62.00 126.9 127.5
1.7 4.52 138.4 140.1
----------- --------- ---------
1.0 5.25 157.2 158.2
2.9 3.36 165.2 168.1
----------- --------- ---------
RMD0027 1.1 11.00 43.5 44.6 Ramula
--------- ---------
0.6 2.61 48.1 48.7
--------- ----------- --------- --------- ---------
0.8 2.74 56.7 57.5
3.2 1.60 68.3 71.5
----------- --------- ---------
2.4 0.90 80.9 83.3
----------- --------- --------- -------
1.4 2.21 95.9 97.3
1.1 2.18 118.5 119.6
----------- --------- ---------
24.9 3.80 128.3 153.2
including:
4.8 15.40 141.9 146.7
including:
3.7 3.19 149.5 153.2
1.0 2.36 162.0 163.0
----------- --------- ---------
0.6 2.19 171.1 171.7
----------- --------- --------- -------
4.2 0.45 222.8 227.0
including:
0.7 1.88 222.8 223.5
2.8 5.74 258.0 260.8
----------- --------- ---------
1.0 12.64 322.0 323.0
--------- ---------
RMD0028 0.5 2.57 39.4 39.9 Ramula
--------- ----------- --------- --------- ---------
2.1 1.13 48.9 51.0
--------- ----------- --------- --------- ------- ---------
6.0 1.54 59.0 65.0
including:
0.7 7.33 64.3 65.0
----------- --------- --------- -------
1.0 1.84 350.0 351.0
--------- ----------- --------- --------- ------- ---------
RMD0029 14.8 1.51 60.0 74.8 Ramula
including:
2.8 5.87 64.7 67.5
1.3 2.89 77.9 79.2
----------- --------- --------- -------
1.5 1.34 88.2 89.7
----------- --------- --------- -------
5.7 2.10 96.0 101.7
including:
1.0 7.45 96.0 97.0
1.0 1.24 122.0 123.0
----------- --------- --------- -------
17.3 1.90 130.7 148.0
including:
0.9 13.93 138.1 139.0
4.9 2.41 151.0 155.9
----------- --------- --------- -------
1.0 1.10 166.0 167.0
----------- --------- --------- -------
12.0 1.79 171.0 183.0
including:
1.7 5.26 180.5 182.2
6.2 4.57 187.0 193.2
including:
3.6 7.20 188.9 192.5
----------- --------- --------- -------
4.4 16.52 219.6 224.0
including:
2.1 33.91 220.1 222.2
----------- --------- --------- -------
Regional Exploration Targets (Miruka and Anomaly 22)
Miruka
The Miruka target is located 2km from the Ramula deposit. It is
one of the high priority targets in Ramula region, that had
previously been delineated by geochemical, geophysical and
geological data; these data were recently reviewed. RC drill
intercepts from a 2017 drill program confirmed potential for
economic mineralization with better intercepts of 4m @ 5.43 g/t Au
and 6m @ 2.20 g/t Au, both at shallow depths returned from two
holes.
Miruka's geology is comprised of volcanics of intermediate
composition, intruded by intermediate and felsic porphyries and
diorite. The main target is defined by an east-west trending gold
in soil (>50ppb Au) anomaly, extending over 600 m strike length,
coincident with a shear structure mapped on surface. The main
mineralisation zone is hosted in a fractured sericite-carbonate
altered intermediate volcanic rock/porphyry with the gold found in
the fractured quartz-carbonate veinlets or associated with pyrite.
The Miruka system extends over 2km, and is situated in less than 1
km from the district-scale thrust fault and unconformity with the
polymictic 'Timiskaming-style' conglomerates.
The drilling program was aimed at testing continuity and the
grades of the mapped mineralised structure, confirmed by the 2017
RC intercepts. A total of 4 diamond holes were drilled in Q3 2022.
Results from these holes returned intercepts with economic range
mineralisation, confirming continuity of the mineralisation to
+120m depth and +150m lateral extent. The mineralisation is open
both at depth and along strike.
Composited assay results shown below are for 3 out of the 4
maiden diamond holes drilled at the target, the lengths shown are
the down hole metres and it is estimated that the true widths of
the mineralised zones are approximately 70-80% of the widths
intersected in the drill holes. All assays are reported without
application of a top cut. Composited assay results for these 3
drill holes are tabulated below. Samples were analysed at an
accredited laboratory operated by MSALABS in Canada and SGS in
Tanzania, both independent third parties:
Drill Interval Au (g/t) From To (m) Prospect
Hole (m) (m)
RMD0030 5.7 4.23 77.0 82.7 Miruka
including:
0.7 26.50 81.3 82.0
1.0 1.67 100.0 101.0
----------- --------- ------
5.0 3.11 104.0 109.0
including:
2.0 7.12 107.0 109.0
1.0 2.00 119.0 120.0
----------- --------- ------
1.0 1.42 149.7 150.7
0.7 4.08 179.9 180.6
----------- --------- ------
1.0 1.14 196.0 197.0
RMD0031 9.0 4.65 141.0 150.0 Miruka
---------
including:
---------
2.0 8.50 146.0 148.0
----------- --------- ------ ------- ---------
RMD0032 9.2 4.35 114.0 123.2 Miruka
including:
3.0 7.75 119.0 122.0
1.3 9.62 179.5 180.8
----------- --------- ------ -------
Anomaly 22
Anomaly 22 is located in the vicinity of Ramula. It is the most
recently identified prospect in the potential Ramula Mining Camp
and was delineated based on the geological, geophysical and
geochemical data.
Anomaly 22 is primarily hosted within intermediate volcanics,
diorite, felsic and intermediate porphyries and cherty sediments.
High-magnesium basalts or ultramafic rocks are interpreted by the
geochemical indicators and located immediately to the south. The
target is delineated by a strong and continuous (>1.5km) NW-SE
trending gold in soil anomaly coincident with pathfinder elements
Bi (Bismuth), Te (Tellurium) and Mo (Molybdenum). Anomaly 22
mineralisation is developed on or near the contact of the
intermediate porphyry and diorite based on interpretation of
results for the holes drilled at the target to date. The results
also show that the porphyry and diorite carry continuous anomalous
gold values.
The first hole was completed in Q4 2021, and two more holes were
completed in Q3 2022. Results from the second hole returned
intercepts with economic range mineralisation, inferably related to
the mineralised structure intersected approximately 300m to the
north-west by the first hole drilled on the target last year, which
returned 7.9m @ 2.45 g/t Au incl. 0.6m @ 20.60 g/t Au from 216m.
The drill hole results confirm the presence of a large mineralised
system as outlined by the gold (and pathfinders) in soil anomaly
footprint.
Assay results shown below are for the second hole drilled at the
target (out of 3 total diamond holes). The lengths shown are the
down hole metres and it is estimated that the true widths of the
mineralised zones are approximately >80% of the widths
intersected in the drill holes. All assays are reported without
application of a top cut. Samples were analysed at an accredited
laboratory operated by MSALABS in Canada, an independent third
party:
Drill Interval Au (g/t) From (m) To (m) Prospect
Hole (m)
Anomaly
RMD22B 0.7 1.14 127.9 128.6 22
-------- ----------- --------- --------- ------- ---------
3.6 1.22 341.4 345.0
-------- ----------- --------- --------- ------- ---------
8.0 4.45 348.0 356.0
including:
2.3 10.40 352.7 355.0
5.4 2.08 368.6 374.0
-------- ----------- --------- --------- ---------
Shanta Gold Limited
Eric Zurrin (CEO) +44 (0) 14 8173 2153
Luke Leslie (CFO)
Nominated Adviser and Joint Broker
Liberum Capital Limited
Scott Mathieson / Ed Thomas / Nikhil Varghese
/ Lucas Bamber +44 (0) 20 3100 2000
Joint Broker
Tamesis Partners LLP
Charlie Bendon / Richard Greenfield +44 (0) 20 3882 2868
Public Relations
FTI Consulting
Sara Powell / Nick Hennis +44 (0) 20 3727 1426
The technical information contained in this announcement was
reviewed by Yuri Dobrotin, P.Geo. Membership No.0702 (Shanta's
Group Exploration Manager), who is a practicing member of the
Association of Professional Geoscientists of Ontario, Canada
(PGO).
Mr Dobrotin has sufficient experience that is relevant to the
style of mineralization and type of deposit under consideration and
to the activity being undertaken to qualify as a Competent Person
as defined for the purposes of the AIM Guidance Note on Mining and
Oil & Gas Companies dated June 2009, and National Instrument
43-101 ("NI 43-101").
About Shanta Gold
Shanta Gold is an East Africa-focused responsible gold producer,
developer, and explorer. The company has an established operational
track record, with defined ore resources on the New Luika and
Singida projects in Tanzania, with reserves of 645 Koz grading 3.0
g/t Au, and exploration licences covering approximately 800 km2 in
the country. Alongside New Luika and Singida, Shanta also owns the
high-grade West Kenya Project in Kenya and licences (580 km(2) )
with resources of 1.6 million ounces including 378 Koz in the
Indicated category grading 11.70 g/t Au. With a strong balance
sheet, a growing diversified portfolio and a maiden dividend paid
in 2021, Shanta offers a resilient investment opportunity for the
near and long-term. Shanta is quoted on London's AIM market (AIM:
SHG) and has approximately 1,048 million shares in issue.
END
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