East Africa-focused Shanta Gold (AIM: SHG) has obtained promising exploration drilling results at the New Luika Gold Mine (NLGM) in South Western Tanzania.
All of the these encouraging drilling intersections are outside existing mineral reserves and will be incorporated into the next update of the mine plan as Shanta Gold continues to extend the mine life at NLGM.
Highlights:
▪ A total of 4,505 metres drilled covering 17 holes at Bauhinia Creek Main, Bauhinia Creek East Area 1 (BC East Area 1), and Luika on the mining licences at New Luika Gold Mine
▪ BC Main: Hole CSD294 intersected 3.05 m @ 15.17 g/t Au from 110.20 m, incl. 1.23 m at 36.29 g/t Au
▪ BC East Area 1: Hole CSD251 intersected 10.56 m @ 22.67 g/t Au from 98.00m, incl. 4.30 m at 51.65 g/t Au
▪ Luika: Hole CSD227 intersected 4.88 m @ 4.72 g/t Au from 529.20 m, incl. 2.12 m at 8.07 g/t Au – Hole CSD269 intersected 5.44 m @ 5.84 g/t Au from 539.92 m, incl. 1.16 m at 17.88 g/t Au
▪ Reported results are over strike lengths of 160 m, 270 m, and 320 m for BC Main, BC East Area 1, and Luika, respectively;
▪ A further 3,733 metres of RC drilling covering 47 holes at Porcupine South (Porcupine South) located approximately 22 kilometres from the NLGM processing plant:
“Exploration drilling and mine life extension are core value drivers for Shanta,” CEO, Eric Zurrin, said.
“With another set of encouraging drilling results reported at New Luika, today’s update not only adds to our ongoing exploration success this year – strengthened by the discovery of high-grade resources at our West Kenya project – but also reinforces our confidence in our strategy to deliver sustainable growth through exploration.
“The current reserve life at New Luika has been extended to 2026, and we are continuing to invest in exploration programmes aimed at extending the mine life, with recent discoveries at the Porcupine South deposit adding further life to New Luika once incorporated into the mine plan.
“We look forward to publishing a reserve and resource update for New Luika in Q1 2022. As we transition to a 100,000+ oz gold producer in 2023, ongoing exploration will play a critical role in sustainably extending and adding to Shanta’s production profiles over time to maximise the social impact of our assets on the ground and in returns for shareholders.”
