Source - RNS
RNS Number : 4513L
Shanta Gold Limited
03 October 2016
 



3 October 2016

 

Shanta Gold Limited

("Shanta Gold", "Shanta" or the "Company")

High grade intercepts at Singida

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to announce high grade intercepts at its Singida project ("Singida") located in northern central Tanzania.

Singida is an advanced stage project with a mining licence in place and is expected to become an important contributor to Shanta's growth. As previously announced, Shanta is conducting a new exploration programme concurrent with a pilot plant project which will improve the Company's understanding of Singida's high grade orebody in advance of a full scale development plan. The pilot project is making progress and has been rescheduled to start in Q2 2017 targeting the Gold Tree 1 ore body while the Company prioritises expanding the resource through further exploration.

In 2009, a resource estimate at Singida identified 432,000oz of Measured Resources at a grade of 4.1g/t Au, 118,000oz of Indicated Resources at 2.0g/t Au and 309,000oz of Inferred Resources at 2.3g/t Au. The majority of the Measured Resources relate to a shear structure at the Gold Tree 1 ore body ("GT1"), one of nine identified ore bodies and begins at surface.

During historic definition drilling at GT1, several of the deeper holes intersected mineralisation high in the hanging wall. A very small proportion of the overall Indicated and Inferred resource was ascribed to these structures, Gold Tree 2 and Gold Tree 3 ("GT2" and "GT3") but they remained underexplored.

A recent exploration programme, completed in September by Shanta, was carried out to increase the drill density in the hanging wall shears. Thirty nine holes, for 4,204m were drilled and confirmed mineralisation along 400m of strike and down to a vertical depth of approximately 100m. High grade intersections indicate some potential pay-shoots within the plane of the shears GT2 and GT3 within zones of weaker mineralisation. The drill results will be incorporated into the resource model.

Drilling highlights:

·      1m @ 7.72g/t from 68m-69m in SC653

·      3m @ 9.94g/t from 59m-62m in SC657

·      1m @ 12.45g/t from 65m-66m in SC662

·      6m @ 3.81g/t from 52m-58m in SC665

·      3m @ 5.66g/t from 105m-108m in SC668

·      5m @ 6.91g/t from 69m-74m in SC676

·      3m @ 4.44g/t from 100m-103m in SC677

·      12m @ 9.24g/t from 130m-142m in SC679

The upper, shallow portion of the Measured Resource at GT1 is now the focus of the pilot plant project. Future work will include water supply hole drilling, then close-spaced grade control holes covering the "pit footprint" of the pilot mining slot, as well as further resource drilling on GT1, GT2 and GT3. Shanta is also planning IP surveys to track a Volcanogenic Semi Massive Sulphide horizon that is believed to be a preferred locality for brittle-ductile deformation and mineralisation.

Toby Bradbury, Chief Executive Officer, commented: 

"With New Luika's expanding resource generating strong free cash flow, we have refocused on Shanta's original flagship project at Singida. The recent Singida drill results increase our confidence that, subject to an updated Feasibility Study, Shanta will be able to significantly increase its production of low cost ounces at an extremely competitive capital cost.

The results from this latest drilling campaign further reinforce the value that our exploration emphasis is creating and the exciting prospectivity of Shanta's portfolio both at Singida and in the Lupa Goldfield.

The portion of the GT2 and GT3 mineralisation that is near-surface may hold stripping ratio benefits when establishing an open pit for the Gold Tree 1 ore body. The drilling programme also highlights the potential to access multiple mineralised structures from underground infrastructure designed to exploit the Gold Tree 1 ore body with associated cost benefits.

Further exploration will continue to target resource drilling on the other known ore bodies that make up the Singida project. Meanwhile, we look forward to updating the market on progress at the pilot project in due course. Studies on the high grade, low tonnage, low capex pilot plant continue to look attractive and serve to demonstrate the Company's continued commitment to the development of the Singida Project."

 

Table 1: Intersection Summary - Singida Gold Tree 2 & Gold Tree 3 RC Drilling

BHID

From

To

Intersection Width

Au_Ave

Notes

SC652

34

39

5

2.07


And






SC652

69

71

2

1.31


SC653

60

63

3

2.27


And






SC653

68

69

1

7.72


SC655

3

7

4

2.03


And






SC655

11

12

1

1.10


SC657

35

37

2

1.04


And






SC657

59

62

3

9.94

Including 1m @ 24.76g/t

SC658

0

1

1

2.05


And






SC658

22

23

1

2.50


SC659

74

77

3

1.07


SC660

136

137

1

10.30


And






SC660

141

142

1

1.05


SC662

65

66

1

12.45


And






SC662

69

82

13

2.51

Including 2m @ 9.53g/t

And






SC662

96

97

1

5.81








SC664

66

67

1

2.07


SC665

3

7

4

3.55


And






SC665

42

43

1

3.44


And






SC665

52

58

6

3.81

Including 1m @ 11.53g/t

SC666

79

86

7

3.31


And






SC666

135

139

4

2.93


SC667

41

43

2

1.45


SC668

48

51

3

0.95


And






SC668

105

108

3

5.66

Including 1m @ 14.45g/t

And






SC668

111

112

1

1.28


SC669

3

6

3

2.78


SC671

34

35

1

2.77


SC672

47

48

1

3.46


And






SC672

108

113

5

1.75


SC673

31

32

1

1.44


And






SC673

54

55

1

5.83


And






SC673

61

62

1

1.31


SC674

8

12

4

1.51


SC675

91

92

1

1.80


SC676

0

1

1

2.39


And






SC676

69

74

5

6.91

Including 2m @ 11.2g/t

And






SC676

113

114

1

4.63


And






SC676

158

159

1

2.00


SC677

100

103

3

4.44

Including 1m @ 11.5g/t

And






SC677

106

107

1

1.39


SC678

33

34

1

1.51


And






SC678

126

129

3

1.23


SC679

130

142

12

9.24

Including 8m @ 12.35g/t

SC680

19

21

2

1.12


SC681

12

16

4

1.93


SC682

26

27

1

2.91


And






SC682

76

77

1

2.29


SC686

49

52

3

1.12


SC687

21

22

1

1.01


And






SC687

33

34

1

7.10


SC688

78

79

1

3.03


SC690

117

121

4

2.76


1.     Down hole intersection widths quoted, not true widths. Holes drilled at -50o and -60o

2.     See links for accompanying plan and section view of the drilling programme

http://www.rns-pdf.londonstockexchange.com/rns/4513L_-2016-10-2.pdf

http://www.rns-pdf.londonstockexchange.com/rns/4513L_1-2016-10-2.pdf

http://www.rns-pdf.londonstockexchange.com/rns/4513L_2-2016-10-2.pdf

 

3.     Compositing guidelines: Internal waste excluded >1m @ <0.5g/t, External waste excluded >1m @ <0.5g/t

 

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

 

Enquiries:

 

Shanta Gold Limited


Toby Bradbury (CEO)

Mark Rosslee (CFO)

+255 (0)22 2601 829



Nominated Adviser and Broker


Peel Hunt LLP


Matthew Armitt / Ross Allister / Chris Burrows

+44 (0)20 7418 8900



Financial Public Relations


Tavistock


Emily Fenton / Jos Simson / Barney Hayward

+44 (0)20 7920 3150

About Shanta Gold 

Shanta Gold is an East Africa-focused gold producer, developer and explorer. It currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licences over a number of additional properties in the country. Shanta's flagship New Luika Gold Mine commenced production in 2012 and produced 81,873 ounces in 2015. The Company is admitted to trading on London's AIM and has approximately 583 million shares in issue. For further information please visit: www.shantagold.com.

Competent Person

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 mineralization 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. 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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