Exploration Update, Nkuluwisi, Lupa Goldfields

RNS Number : 7894Y
Shanta Gold Limited
08 March 2017
 

8 March 2017

Shanta Gold Limited

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

Exploration Update, Nkuluwisi, Lupa Goldfields

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to provide an update on its ongoing exploration programme, within and surrounding, the New Luika Gold Mine ("NLGM" or "the Mine"), located in the Lupa Goldfields, southwest Tanzania.

Reverse Circulation ("RC") drilling at the Nkuluwisi Mineralised Target ("Nkuluwisi"), located approximately 12 kilometers ("km") northwest of the NLGM's central processing hub, has intersected encouraging mineralisation which is open along strike and at depth.   

A total of 44 RC drill holes comprising 5,833 meters of drilling have been completed at Nkuluwisi, identifying mineralisation down to vertical depths of approximately 120 metres below surface. Exploration to date has covered a strike length of about 900 metres and significant portions of the regionally prominent Nkuluwisi Shear Zone remain untested and exploration work is ongoing.

The drilling results are currently being modelled and will be submitted to the Company's independent resource consultants for resource estimation purposes in the near future with a maiden resource for Nkuluwisi anticipated to be delivered in Q2 2017.

Drilling highlights include:

·     13m @ 6.31 g/t gold from 60m in hole SGR090, including 5m @ 10.81 g/t

·     19m @ 3.58 g/t from 22m in hole SGR178, including 10m @ 5.3 g/t

·     15m @ 4.16 g/t gold 27m in hole SGR185, including 3m @ 10.48 g/t and 1m @ 10.8 g/t

·     12m @ 3.54 g/t gold from 54m in hole SGR186

·     10m @ 3.13 g/t gold from 116m in hole SGR098

·     5m @ 5.05 g/t gold from 24m in hole SGR179

·     4m @ 5.47 g/t gold from 7m in hole SGR088, including 1m @ 13.7 g/t

·     5m @ 4.11 g/t gold from from 30m in hole SGR181

·     9m @ 2.05 g/t gold from 120m in hole SGR099

·     6m @ 2.81 g/t gold from 56m in hole SGR122, including 1m @ 10.95 g/t

·     4m @ 4.21 g/t gold from 30m in hole SGR182

·     3m @ 3.87 g/t gold from 38m in hole SGR089

Toby Bradbury, Chief Executive Officer, commented:

"The excellent exploration results from Nkuluwisi once again showcases the geological potential of the Lupa Goldfields. Furthermore, after resource upgrades at Elizabeth Hill in 2015 and Ilunga in 2016, Shanta's exploration team continues to demonstrate its ability to convert its knowledge and experience into value-creation through the drill bit.

"The grades and thicknesses of the mineralisation at Nkuluwisi are very encouraging. The deposit remains open at depth, and strike, and we are confident that further exploration will add to the forthcoming expected maiden resource at Nkuluwisi due in Q2 2017."

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


Jos Simson / Emily Fenton / 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 87,713 ounces in 2016. 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.

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. 

Nkuluwisi Mineralised Target

Nkuluwisi was identified after regional soil geochemical surveys commissioned in the general area resulted in the identification of significant gold-in-soil anomalism. The gold-in-soil anomalism identified was found to coincide with airborne magnetometry and radiometrics anomalism interpreted earlier. A trenching programme targeting the achieved geochemical anomaly resulted in the identification of a mineralized ductile/brittle shear zone displaying strike extent extending several kilometers.

To date, a total of 44 RC drill holes comprising 5,833 meters of linear drilling has been completed at Nkuluwisi. Significant portions of the regionally prominent Nkuluwisi Shear Zone remain untested and further evaluation by means of focussed trenching programs is under consideration.

Thus far, a total strike expression of approximately 900 meters has been targeted with trenching and channel sampling, as well as RC drilling. Mineralised intersections in drill holes have been achieved up to a maximum vertical depth of approximately 120 meters below surface.

The drilling results are currently being modelled and will be submitted to the Company's independent resource consultants for Resource Estimation purposes in the near future. Nkuluwisi is located outside of the NLGM Mining Licence Area (Figure 1). The Company has secure licence tenure on the area in question and envisages that satellite deposits identified within reasonable hauling distance from NLGM may, in future, contribute to the project's resource baseline.

Table 1: Detailed Intersection Summary - Significant intersections > 1g/t

 

Borehole ID

Depth From (m)

Depth To (m)

Intersection Width (m)

Composite Au Grade (g/t)

SGR088

7

11

4

5.47

And





SGR088

49

52

3

1.01

And





SGR088

56

65

9

1.17






SGR089

38

41

3

3.87

And





SGR089

51

52

1

1.61

And





SGR089

55

59

4

1.12

And





SGR089

74

76

2

1.15

And





SGR089

89

92

3

1.23







SGR090

60

73

13

6.31

And





SGR090

93

98

5

1.51






SGR091

1

3

2

1.06

And





SGR091

8

9

1

2.61

And





SGR091

59

70

11

1.81

And





SGR091

72

73

1

2.09






SGR092

42

44

2

3.70

And





SGR092

54

56

2

1.25

And





SGR092

62

67

5

1.34

And





SGR092

69

77

8

1.04






SGR093

54

60

6

2.72






SGR094

65

70

5

1.38






SGR096

111

119

8

1.48






SGR097

2

3

1

2.10

And





SGR097

106

111

5

1.10






SGR098

112

115

3

1.39

And





SGR098

116

126

10

3.13






SGR099

120

129

9

2.05

And





SGR099

133

142

9

1.02

And





SGR099

145

147

2

2.34

And





SGR099

153

154

1

1.85






SGR100

175

176

1

1.16

And





SGR100

185

186

1

1.00






SGR114

38

40

2

1.07

And





SGR114

58

69

11

1.74






SGR115

135

145

10

1.17






SGR116

59

62

3

1.13

And





SGR116

63

68

5

1.40






SGR118

64

68

4

1.33

And





SGR118

85

86

1

1.13






SGR119

121

123

2

1.13

And





SGR119

130

132

2

1.42






SGR120

64

65

1

7.72

And





SGR120

67

72

5

1.44

And





SGR120

78

79

1

1.59

And





SGR120

108

109

1

1.64






SGR121

117

123

6

1.62

And





SGR121

155

156

1

1.07






SGR122

56

62

6

2.81






SGR123

110

112

2

1.20






SGR124

61

62

1

1.55






SGR176

96

99

3

1.14






SGR177

17

22

5

2.04

And





SGR177

54

62

8

1.92

And





SGR177

66

69

3

1.10






SGR178

22

41

19

3.58






SGR179

24

29

5

5.05

And





SGR179

31

32

1

1.07






SGR180

78

83

5

1.02

And





SGR180

87

92

5

1.23

And





SGR180

106

110

4

1.62

And





SGR180

111

115

4

1.11






SGR181

30

35

5

4.11

And





SGR181

63

68

5

1.72






SGR182

30

34

4

4.21

And





SGR182

45

51

6

1.07

And





SGR182

55

58

3

1.28

And





SGR182

75

76

1

1.89

And





SGR182

81

82

1

3.19






SGR183

69

70

1

1.23

And





SGR183

73

74

1

1.12

And





SGR183

100

111

11

1.04






SGR184

12

17

5

1.23

And





SGR184

25

40

15

1.72

And





SGR184

42

45

3

1.14

And





SGR184

56

59

3

1.78

And





SGR184

60

66

6

2.54






SGR185

27

42

15

4.16

And





SGR185

48

60

12

1.09






SGR186

54

66

12

3.54

And





SGR186

67

76

9

1.85

And





SGR186

91

92

1

2.54






SGR187

47

48

1

1.18

And





SGR187

50

56

6

1.07

And





SGR187

87

89

2

2.00






SGR188

21

23

2

1.63






SGR189

22

23

1

2.27

And





SGR189

32

42

10

1.36






SGR190

49

57

8

1.30






SGR191

56

61

5

1.65

 

1 See link for accompanying plan of drill hole locations

http://www.rns-pdf.londonstockexchange.com/rns/7894Y_-2017-3-7.pdf

2 All holes were drilled at inclinations of -50o to -60o into a sub-vertical mineralised zone

3 No top-cut applied

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

ENDS


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