West Kenya Resource Announcement

RNS Number : 8795N

Shanta Gold Limited

26 January 2023

 

26 January 2023

Shanta Gold Limited

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

West Kenya Project Resource Increases to 1.7 Moz Gold including
a 91% Increase in High Grade Indicated Ounces

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to announce an updated mineral resource estimate for the West Kenya Project ("West Kenya") in Kenya to 1.72 Moz gold, including a 91% increase in Indicated Resource to 722 Koz gold grading 11.45 g/t.

Highlights in 2022 (Isulu and Bushiangala):

· Resources of 1.29 million ounces ("Moz") grading 10.60 g/t Au at Isulu and Bushiangala, of which 56% have been upgraded to Indicated category up from 34% in March 2022;

· 91% increase in Indicated ounces to 721,900 grading 11.45 g/t Au;

· Current oxides for Bushiangala and Isulu in the Indicated category contain 100,600 oz grading 10.44 g/t Au, providing potential high margin cash flow during future construction ramp-up; and

· Mineral Resource Estimate update, including the conversion of the significant part of the Ramula deposit into Indicated category, is expected in February.

Summary 1	Indicated		Inferred		Total
Deposit	Grade (Au g/t)	Ounces (k)	Grade (Au g/t)	Ounces (k)	Grade (Au g/t)	Ounces (k)
Bushiangala	8.12	123	5.88	100	6.93	223
Isulu	12.49	599	11.25	463	11.92	1,062
Kakamega Camp	11.45	722	9.68	564	10.6	1,285
Ramula 2	-	-	2.08	434	2.08	434
West Kenya Project			3.74	998	5.21	1,719

1. Tonnages reported in the detailed Mineral Resource Estimate table below. Mineral resource estimate is unconstrained (Estimation and modelling techniques detailed in Appendix 1)
2. The Ramula Camp, located 35 km from Bushiangala and Isulu, currently hosts 7 targets including the Ramula deposit   
  Numbers may not add due to rounding

Eric Zurrin, Chief Executive Officer, commented:

"The West Kenya project continues to deliver material growth and quality results, with the latest Mineral Resource Estimate demonstrating a substantial 91% increase in the Indicated ounces category and an overall increase to 1.72 Moz. Not only was there a significant conversion of the deposit into Indicated ounces, but these ounces yet again demonstrated high-grades, averaging 11.45 g/t Au.

The drilling results that have been delivered at the West Kenya project over the past year have been some of the best we have ever delivered, and it is clear to the team here at Shanta that we possess a potentially very high quality high-grade African gold mine. The high-grade Indicated category from today's results points towards a high margin cash flow during future operations.

As we diversify our portfolio in Tanzania with Singida's first gold pour in March 2023, West Kenya demonstrates the Group's clear growth potential to shareholders. With a further updated Mineral Resource Estimate due in February, which will include the conversion of a significant part of the Ramula deposit, there is plenty of positive news to come."

West Kenya Project Resource Update - 2022

The West Kenya Project covers 580 km² of the highly prospective and underexplored greenstone Archaean Busia-Kakamega Gold Belt in western Kenya. Ongoing drilling at the Isulu and Bushiangala deposits is aimed at upgrading ounces from the Inferred Mineral Resource Estimate into the Indicated Resource category down to a depth of 800 metres by means of three drilling campaigns. All work carried out and reporting of the resource has been completed in accordance with Canadian NI 43-101 standards, unless otherwise noted.

This infill drilling is aimed at verifying the extent and geometry of the known mineralised zones developed for the current resource model.

Gold mineralisation at the Isulu and Bushiangala deposits is hosted by sheared pillowed to massive basalts, bounded between ultramafic volcanics and polymictic conglomerates on one side and carbonaceous mudstones and sandstones on the other side. The deposits occur within the Liranda Corridor area, a 12 km structural trend located on the eastern limb of a broad synclinal structure intruded in the center by granitoids and diorites, termed the Kakamega Dome. Mineralisation is associated with quartz and quartz-carbonate veinlets, which lie within the mineralised shear zones ranging from 0.5 m to 10 m in true width. The mineralisation style is classified as orogenic, shear-zone-hosted quartz-carbonate vein subtype. The strike lengths of the steeply-dipping zones range from 100 m to 300 m. Average drill intersection spacing is 40 m at Isulu and 30 m at Bushiangala.

Resources have been stated using a 1.0 g/t Au cut-off grade value for the oxidised rock and 3.0 g/t Au for fresh rock. The effective date of this resource is 31 December 2022.

Table 1 - Updated Isulu and Bushiangala Resource by Oxide vs Fresh Rock^{1, 2}

	Indicated			Inferred			Total
	Tonnes	Grade (Au g/t)	Ounces	Tonnes	Grade (Au g/t)	Ounces	Tonnes	Grade (Au g/t)	Ounces
Oxide	299,550	10.44	100,560	167,130	5.38	28,930	466,680	8.63	129,480
Fresh Rock	1,662,310	11.63	621,410	1,643,860	10.11	534,580	3,306,160	10.88	1,155,990
Total	1,961,860	11.45	721,970	1,810,990	9.68	563,510	3,772,840	10.60	1,285,470

¹ Figures may not total exactly due to rounding

² Oxidised rock cut-off grade (COG) at 1.0 Au g/t. Fresh Rock cut-off grade at 3.0 Au g/t

Table 2 - Updated Resource by Deposit ¹

Mineral Resource Category	Prospect	Tonnes	Grade (Au g/t)	Ounces
Indicated	Isulu	1,492,300	12.49	599,360
	Bushiangala	469,550	8.12	122,610
	Total	1,961,850	11.45	721,970
Inferred	Isulu	1,280,000	11.25	463,050
	Bushiangala	531,000	5.88	100,460
	Total	1,811,000	9.68	563,510
Total	Isulu	2,772,300	11.92	1,062,410
	Bushiangala	1,000,540	6.93	223,060
	Total	3,772,840	10.60	1,285,470

¹ Oxidised rock cut-off grade (COG) at 1.0 Au g/t. Fresh Rock cut-off grade at 3.0 Au g/t

In total, Isulu and Bushiangala contain 721,970 ounces grading 11.45 g/t Au Indicated category with cut-off grades applied of 1.0 Au g/t for oxidised rock and 3.0 Au g/t for fresh rock. The total Isulu and Bushiangala resource currently stands at 1,285,470 ounces grading an average of 10.60 g/t Au.

Table 3 - Isulu and Bushiangala deposits: mineral resource sensitivity to cut-off grades

FRESH ROCK
Cut-off Grade	Tonnes	Mean Grade Au g/t	Ounces
0	4,852,580	7.86	1,226,610
1	4,334,530	8.76	1,220,610
2	3,762,630	9.86	1,192,640
3	3,306,160	10.88	1,155,990
4	2,822,250	12.14	1,101,220
5	2,474,120	13.21	1,051,130
6	2,159,760	14.34	995,630
7	1,899,340	15.42	941,410

OXIDE
Cut-off Grade	Tonnes	Mean Grade Au g/t	Ounces
0	519,250	7.81	130,360
1	466,680	8.63	129,480
2	390,720	10.01	125,720
3	324,180	11.54	120,320
4	279,120	12.85	115,310
5	233,670	14.48	108,820
6	181,300	17.08	99,580
7	162,100	18.34	95,600

Source: Cath Pitman, P. Geo - Adiuvare Geology & Engineering (January 2023)

Resource classifications have been assigned according to the continuity of mineralisation, known geological controls and drill spacing. Each zone is divided into oxidised and fresh rock and a cut-off value supplied by Shanta (and accepted by the Independent Competent Person) has been applied. Mineralisation is well constrained withing the mineralised shears (as seen in Table 3), resulting in potentially increasing the number of resource ounces by lowering the cut-off while not significantly reducing the average gold grade.

Table 4 - Consolidated West Kenya Mineral Resource Estimate¹

	Indicated			Inferred			Total
Deposit	Tonnes (kt)	Grade (Au g/t)	Ounces (k)	Tonnes (kt)	Grade (Au g/t)	Ounces (k)	Tonnes (kt)	Grade (Au g/t)	Ounces (k)
Bushiangala	469.6	8.12	123	531.0	5.88	100	1,000.5	6.93	223
Isulu	1,492.3	12.49	599	1,280.0	11.25	463	2,772.3	11.92	1,062
Liranda Region	1,961.9	11.40	722	1,811.0	9.68	564	3,772.8	10.56	1,285
Ramula 1	-	-	-	6,490.1	2.08	434	6,490.1	2.08	434
West Kenya Project	1,961.9	11.40	722	8,301.1	3.74	998	10,263.0	5.21	1,719

1. The Ramula Camp, located 35 km from the Liranda Region, currently hosts 7 targets including the Ramula deposit
Table above excludes the Bumbo polymetallic JORC compliant resource within the Kakamega Camp

For a map showing the West Kenya Project Licence Area including Isulu and Bushiangala deposits in Kakamega camp and Ramula deposit in the Ramula Camp, and a Long Section, and Cross Section of the Bushiangala and Isulu deposit please see the following link updated presentation on www.shantagold.com

Enquiries:

Shanta Gold Limited
Eric Zurrin (CEO)	[phone]
Luke Leslie (CFO)
Nominated Adviser and Joint Broker
Liberum Capital Limited
Scott Mathieson / Ed Thomas / Nikhil Varghese / Lucas Bamber	[phone]
Joint Broker
Tamesis Partners LLP
Charlie Bendon / Richard Greenfield	[phone]
Public Relations
FTI Consulting
Sara Powell / Nick Hennis	[phone]

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 666 koz grading 3.0 g/t, and exploration licences covering approximately 1,100 km² in the country. Alongside New Luika and Singida, Shanta also owns the West Kenya Project in Kenya with total mineral resources of 1.75 million ounces including 727 Koz in the Indicated category grading 11.4 g/t. 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.

Competent Person Statement  

The Mineral Resource Model in this report for Isulu, Bushiangala and Ramula was independently verified and the resource was estimated by Adiuvare GE (Cath Pitman P. Geo, ON and NL) Reporting of the resource has been completed in accordance with Canadian NI 43-101 standards.

Mineral Resource Model in this report at Bumbo is based on information compiled by Steve Rose, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy. Steve Rose is a full-time consultant with Rose and Associates, Mining Geology Consultants and is compliant with the JORC 2021 reporting standards.

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 Canadian National Instrument 43-101 (''NI 43-101").

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.

  Glossary

Glossary of Technical Terms

"Au"	chemical symbol for gold
"cut off grade" (COG)	the lowest grade value that is included in a resource statement.  It must comply with JORC requirement 19: "reasonable prospects for eventual economic extraction" the lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit.  It may be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification
"g/t"	grammes per tonne, equivalent to parts per million
"Inferred Resource"	that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence.  It is inferred from geological evidence and assumed but not verified geological and/or grade continuity.  It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability
"Indicated Resource"	that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence.  It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.  The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed
"JORC"	The Australasian Joint Ore Reserves Committee Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 (the "JORC Code" or "the Code").  The Code sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves
"koz"	thousand troy ounces of gold
"Measured Resource"	that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence.  It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.  The locations are spaced closely enough to confirm geological and grade continuity
"Mineral Resource"	a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction.  The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories when reporting under JORC
"Mt"	million tonnes
"oz"	troy ounce (= 31.103477 grammes)
"Reserve"	the economically mineable part of a Measured and/or Indicated Mineral Resource
"t"	tonne (= 1 million grammes)

APPENDIX 1 - ISULU AND BUSHIANGALA

Section 1: Sampling Techniques and Data

Sampling techniques	· Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. · Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. · Aspects of the determination of mineralisation that are Material to the Public Report. · In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	· Drill core (half) sampled and assayed at 1m with max. 1.5m and min. 0.5m intervals based on visually observed geology and mineralisation. · Reverse circulation (RC) samples of 1 m drill length taken at cyclone and riffle split to achieve a representative sub-sample of approximately 2-3kg analysis. · Core and RC samples are processed using industry standard practices of drying, crushing, splitting and Pulverization, then 50g fire assayed with  AAS finish for gold at the SGS Mwanza (Tanzania) and SGS Johannesburg (South Africa), and 30g fire assayed with AAS finish for gold at the MSA Labs (Canada) for 2022 drill program.
Drilling techniques	· Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	· Diamond core drilling; All holes are collared using HQ and lately triple tube is used to maximise core recovery in the weathered zone, drill hole diameter is usually reduced to NQ when the hole enters fresh rock. NQ core routinely oriented by Reflex core orientation tools. · Reverse circulation (RC) using a 5.5 inch face sampling hammer
Drill sample recovery	· Method of recording and assessing core and chip sample recoveries and results assessed. · Measures taken to maximise sample recovery and ensure representative nature of the samples. · Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	· Core recovery is recorded as a measure of the drill run against the actual core in tray, and stored in an acQuire software database. Triple tube is used to maximise core recovery in the weathered zone. The average core recovery equates to approximately 97%. · RC drill chip samples of 1m were weighted and weight recorded to determine weight was within a satisfactory range.
Logging	· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. · Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. · The total length and percentage of the relevant intersections logged.	· The geologist logs the diamond drill core for lithology, alteration, structure, mineralisation and geotechnical parameters. All core is logged and photographed after marking up metre intervals and prior to cutting and sampling. Logging data are entered into the acQuire database via a Panasonic Toughbook laptop computer on site. · RC drill chips were logged for lithology, alteration and mineralization type and a small sample kept from each metre in plastic chip trays as a logging record. · All of diamond drill and RC holes are geologically logged in entirety.
Sub-sampling techniques and sample preparation	· If core, whether cut or sawn and whether quarter, half or all core taken. · If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. · For all sample types, the nature, quality and appropriateness of the sample preparation technique. · Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. · Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. · Whether sample sizes are appropriate to the grain size of the material being sampled.	· Core samples are half core and sawn. Split line in consistent orientation with respect to orientation marks. · Dry RC samples are riffled and sub-sampled, while wet are tube sampled. · Sample preparation (drying, crushing, splitting, and pulverizing) is carried out by SGS Mwanza, SGS Jo'burg and MSA Labs (Canada) using industry-standard protocols: o  Kiln dried at 95 deg C. o  Entire sample crushed to sub 2mm to minimize bias. o  Riffle split 800g to 1kg sub-sample. o  Sub-sample pulverised to 90% passing 75um, monitored by sieving. o  Industry-standard from pulp packet. · Aggregated half core; Entire 2-3kg sample pulverized at laboratory prior to fire assay in order to minimize bias. · Drilling planned orthogonal to the strike of structures/lithologies in order to maximize representativity. · Quality Control (QC) samples (CRM) of low and high-grade and blank samples are inserted at least one sample in every ten samples interchangeably to monitor sample preparation and laboratory accuracy. All standards used are Certified Reference Materials (CRM). The insertion of QC (CRM, blanks and duplicates) is under the control of the Project geologist after logging. · The sampling protocols are adequate to ensure the representativity of orogenic, shear-zone-hosted quartz-carbonate vein subtype mineralisation.
Quality of assay data and laboratory tests	· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. · For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. · Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	· All diamond core and RC samples are assayed for gold by 30g Fire Assay with AAS finish for 2022 drilling onwards. · 2022 drilled Core samples were sent to on-site lab-prep for preparation and shipped for analysis at MSA labs (Canada) and 2011/2012 drilled Core samples shipped for preparation and analysis at ALS Johannesburg SA. The documentation regarding sample analyses is well documented. · Given the occurrence of coarse gold, Gravimetric checks are routinely undertaken. · The QA/QC with CRMs, blanks, quartz flush checks and grind checks routinely monitored. The coarse duplicates from crush residue, and pulp duplicates from pulp residues were regularly monitored to test the quality of sub sampling stages. Blank and CRM results are reviewed on receiving assays and any failure triggers investigations. Regular communication was had with analytical Laboratories. · Umpire analyses were undertaken at ALS  Johannesburg Laboratories for approximately 10% of samples selected from the total. Results show a reasonable correlation with the original samples. · The QAQC procedures and results show acceptable levels of accuracy and precision, hence the sample data was used for the Mineral Resource Estimate.
Verification of sampling and assaying	· The verification of significant intersections by either independent or alternative company personnel. · The use of twinned holes. · Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. · Discuss any adjustment to assay data.	· There are strong visual indicators at West Kenya Project for high grade mineralisation observed in drill core and significant intersections are visually validated against drill core, check calculated by alternative company personnel. · To date no holes have been twinned. · All assay data is stored in the acQuire database in an as received basis with no adjustment made to the returned data.
Location of data points	· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. · Specification of the grid system used. · Quality and adequacy of topographic control.	·   Drill collars have been surveyed in by differential GPS (Leica GNSS receivers) by a registered survey contractor. ·   Downhole surveys are recorded at 12m intervals by using a Reflex digital downhole survey camera tool, holes drilled between 2016 and 2017 were gyroscope surveyed and MS shot for holes drilled in 2022.  ·   Drillholes surveyed in UTM Coordinates System Arc 1960 and converted to UTM36N WGS84. · Surface topography in the West Kenya Project is based on a combination of DGPS surveyed ground pick-ups and DEM data from air surveys. DEM data is levelled by ground surveyed points.
Data spacing and distribution	· Data spacing for reporting of Exploration Results. · Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. · Whether sample compositing has been applied.	· Drillhole spacing was generally at 20-30m at Bushiangala and 30 to 50m at Isulu deposits. · The data spacing is sufficient to establish the degree of geological and grade continuity appropriate for Indicated Mineral Resource classification . · All samples were composited to 1m length, with a minimum allowable length of 0.5m.
Orientation of data in relation to geological structure	· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. · If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	· Drill holes are designed to intersect known mineralised features in a nominally perpendicular orientation as much as is practicable given the availability of drilling platforms. All drill core is oriented to assist with interpretation of mineralisation and structure. · There does not appear to be any bias between drilling orientation and assay results.
Sample security	· The measures taken to ensure sample security.	· Samples are transported from drill site to the core shed by company personnel. On completion of cutting the core, the samples are dispatched by hired truck to the SGS Laboratory in Mwanza, Tanzania or by courier to SGS in South Africa, or the MSA labs Canada. Sample dispatches are reconciled against Laboratory samples received and discrepancies are reconciled by geology staff.
Audits or reviews	· The results of any audits or reviews of sampling techniques and data.	· No audits or reviews of sampling techniques and data have been performed.

Section 2: Reporting of Exploration Results

Mineral tenement and land tenure status	· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. · The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	· The Western Kenya Project area is located in the County of Kakamega in western Kenya. The Isulu and Bushiangala prospects lie within the Liranda Corridor approximately 48 km north northwest of Kisumu City (Kenya's third largest City) and 30 km southwest of Kakamega town. · Isulu and Bushiangala deposits are situated within PL/2019/0225, granted 1st Aug 2022 and covering 156.37 sq km. is wholly owned by Shanta Gold Kenya Ltd. · There are no material issues affecting the tenements.
Exploration done by other parties	· Acknowledgment and appraisal of exploration by other parties.	· Gold prospecting and small-scale mining commenced in the area by 1920s, as part of the Kakamega Gold Rush. The focus was on eluvial and alluvial gold and narrow high-grade veins. Most of this activity ceased in the 1950s. Between 1982-2000, the Bureau de Recherches Géologiques et Minières (BRGM) carried out gold and base metals exploration. In 2003, AfriOre Ltd took up exploration licences, which included the Liranda Corridor. Their exploration focused on investigating known gold occurrences rather than following a grassroots approach. In 2007 Lonmin Plc took over AfriOre Ltd, but exploration work was restricted to regional soil surveys in areas outside the Liranda Corridor area. Aviva Mining Ltd (Aviva) entered into a Joint Venture agreement with AfriOre in 2010. Aviva collected and collated all existing data into a single data set. They acquired regional airborne magnetics and radiometrics and combined them with existing BRGM data to create a seamless geophysical dataset. Regional mapping and prospect scale mapping was done and used together with historical data to reinterpret the geology. Extension and infill of existing soil grids was completed followed up by shallow diamond and RC drilling. In late 2012 African Barrick Gold (now Acacia Mining Ltd) purchased Aviva Mining Ltd and commenced exploration activities and declared a maiden resource at Isulu and Bushiangala in 2017. Shanta Gold took over the project in August 2020.
Geology	· Deposit type, geological setting and style of mineralisation.	The Liranda Corridor is located on the eastern most margin of the Busia-Kakamega Belt. Here rocks form a broad synclinal structure intruded in the centre by granitoids and dioritoids, informally termed the Kakamega Dome. The Liranda Corridor is situated on the eastern limb of this synclinal structure within a 12 km structural zone known informally as the Liranda Corridor . Lithologies of the Isulu and Bushiangala prospects include sediments, iron-rich basalts, ultramafic volcanic rocks, gabbros, dolerites and small felsic intrusions. The mafic volcanic unit also includes thin layers of sulphidic carbonaceous interflow mudstone. The Isulu and Bushiangala prospects mineralisation are classified as orogenic, shear-zone-hosted quartz-carbonate vein subtype. Mineralisation of this sub-type consists of quartz-carbonate veins and veinlet arrays associated with Mg-Fe carbonate alteration and sulphidation, which are developed within shear zones and their splays, within competent rock units. Mineralisation is concentrated in zones of enhanced fluid flow, such as jogs or changes in strike along the larger-scale fault zones.
Drill hole Information	· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o  easting and northing of the drill hole collar o  elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o  dip and azimuth of the hole o  down hole length and interception depth o  hole length. · If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	· No exploration results are reported in this release. · The treatment of drill data has been articulated in Section 1.
Data aggregation methods	· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. · Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. · The assumptions used for any reporting of metal equivalent values should be clearly stated.	· At Isulu the assay high grades used for this estimate were cut to between 70 g/t and 100g/t for the mineralised veins and 5 g/t for the background mineralization. Aat Bushiangala variable capping between 6 g/t and 100 g/t for the mineralised veins and 3 g/t for the background mineralizationwere used. · Capping grades were applied after compositing of the raw assay data into 1m lengths. · Blank intervals contained within the mineralisation were treated as zero. Due to selective sampling of the core, blank intervals lying outside of the veins had a grade of 0.005 g/t Au applied to them.
Relationship between mineralisation widths and intercept lengths	· These relationships are particularly important in the reporting of Exploration Results. · If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. · If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').	· The holes drilled varied between -44 and -80 degrees from surface, with the mineralisation being sub-vertical. It is estimated that the true widths of the mineralized zones are approximately 60-70% of the widths intersected in the drill holes.
Diagrams	· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	· No exploration results are reported in this release.
Balanced reporting	· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	· No exploration results are reported in this release.
Other substantive exploration data	· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	· No exploration results are reported in this release.
Further work	· The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). · Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	· Approximately 95 holes for 40,000m planned infill drilling for conversion to mineable resources and expansion drilling across the Liranda Region has been budgeted for in 2022.

 

Section 3: Estimation and Reporting of Mineral Resources

Database integrity	· Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. · Data validation procedures used.	· Data are stored in an SQL acQuire database. Assay and geological data are electronically loaded into acQuire and a validation process run. Regular reviews of data quality are conducted by site and management teams prior to resource estimation.
Site visits	· Comment on any site visits undertaken by the Competent Person and the outcome of those visits. · If no site visits have been undertaken indicate why this is the case.	· Site visits to the West Kenya Project were undertaken by the independent consultant Catherine Pitman of Adiuvare GE (Competent Person for the Mineral Resource estimate) in 2016, 2018 and 2019.
Geological interpretation	· Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit. · Nature of the data used and of any assumptions made. · The effect, if any, of alternative interpretations on Mineral Resource estimation. · The use of geology in guiding and controlling Mineral Resource estimation. · The factors affecting continuity both of grade and geology.	· The level of confidence in the interpretations of the mineralised zones is reflected by the Mineral Resource classification. · Geological data from core and RC drilling provides the information for the deposits. The main mineralisation zone s were defined by the presence of gold values at cut-off of 0.5 g/t Au , as well as the presence of other indicators such as shear intensity, brecciation, sulphide content and alteration. The interpretations were completed along sections typically at spacings of 2 0m at Bushiangala and 40m at Isulu . The i nterpretations were triangulated to form 3D solids (mineralised zone s) using Leapfrog software . · There are no alternative detailed interpretations of geology using the current data. · The geology has guided the resource estimation, particularly the lithological and structural control. · Grade and geological continuity have been established by the existing 3D data. The continuity is well understood at Isulu, especially in relation to structural effects, while at Bushiangala, part of the deposit requires more data to be better understood.
Dimensions	· The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	· The main zone s of mineralisation at Isulu extend up to 240m along strike. The resource estimate (Phase 1) generally includes mineralisation down to 5 00m depth. · At Bushiangala the mineralisation extends over 31 0m along strike in the NNW-SSE trend and 150m along strike in the E-W trend. T he resource estimate extends to a maximum depth of 4 5 0m. · Both deposits remain open along strike and at depth.
Estimation and modelling techniques	· The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. · The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. · The assumptions made regarding recovery of by-products. · Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation). · In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. · Any assumptions behind modelling of selective mining units. · Any assumptions about correlation between variables. · Description of how the geological interpretation was used to control the resource estimates. · Discussion of basis for using or not using grade cutting or capping. · The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	Grade estimation for each of the two prospects carried out using Datamine software to generate a block model; with the individual zones separated out for grade interpolation within each area. For each prospect, the following process was followed. · All the individual mineralisation zone wireframe solids were verified using Datamine® software · Drill data was de-surveyed and assessed for overlaps and outlier values · Individual assay samples were selected from within each zone · The selected samples were composited to 1m intervals · Statistical analysis was carried out to define capping levels · Gold values were adjusted for true absent or zero values · The block model used dimensions of: · X = 9 m · Y =30 m · Z = 9 m · Each individual zone was filled with blocks using sub-cells down to 1.5 m in the east and vertical directions and 0.5 m in the north direction · Block grades and density values were estimated into each parent block within individual zones · Blocks falling within the modelled intrusives at Isulu had their grades set to zero · A default specific gravity using the mean value of 2.75 for Isulu and Bushiangala was used for fresh rock blocks that may not have been estimated. · At Bushiangala a default specific gravity value of 1.9 was applied to oxide rock due to a lack of SG data, with the same applied as a default for Isulu All samples were composited to 1m length, with a minimum allowable length of 0.5m. Capping of the composites was carried out by zone for both Isulu and Bushiangala. The capping levels were assigned using log probability plots for the grade. The Table  below shows the value applied to each zone. Prospect Number of samples Capping value (Au g/t) Isulu Zone 1 341 100 Isulu Zone 2 78 70 Isulu Zone 3 350 70 Isulu Zone 4 146 80 Isulu Zone 5 185 90 Isulu Background 142,246 5 Bushiangala V1 20 10 Bushiangala V2 167 14 Bushiangala V3 152 25 Bushiangala V4 315 100 Bushiangala V5 100 30 Bushiangala V6 205 11 Bushiangala V7 104 20 Bushiangala V8 300 20 Bushiangala V9 195 50 Bushiangala V10 13 6 Bushiangala V11 53 15 Bushiangala V12 64 Bushiangala V13 72 20 Bushiangala V14 14 Bushiangala V15 89 6 Bushiangala Background 41,342 3 Estimation at Isulu and Bushiangala was carried out using Inverse Distance to the power of 2. For Isulu the search ellipses were orientated with the primary axis along an azimuth of 065 with a plunge of 65 degrees from horizontal for the mineralisation. The search ellipse radii were X=100 m; Y=40 m and Z=80 m. The search range factors were 1.5 for the second pass and 3 for the third pass. Each vein was estimated independently. For Bushiangala the primary search axis was orientated along an azimuth of 090, with a plunge of 70 degrees from horizontal for the mineralisation. The search ellipse radii were X=34 m; Y=26 m and Z=60 m. The search range factors were 1.5 for the second pass and 3 for the third pass. Each vein was estimated independently. Resource classification was assigned according to the continuity of the mineralization, known geological controls and drill spacing. In order to categorise the blocks into Indicated, Inferred and unclassified the following steps were completed: · All blocks outside of the modelled wireframes for both deposits were coded as unclassified; · Blocks that were estimated with an average distance of less than 40 m to the samples were coded as Indicated; · The models were visually inspected and both outlier and inlier values were adjusted so that the Indicated blocks were large continuous areas; Each zone was divided into Oxide and Fresh rock using the Top of Fresh Rock surface..
Moisture	· Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	· Tonnages are reported on a dry basis.
Cut-off parameters	· The basis of the adopted cut-off grade(s) or quality parameters applied.	· The Mineral Resource reported cut-off grades of 1 g/t Au for the oxidised rock and 3 g/t Au for the fresh rock to r eflect current commodity prices geometry of mineralised zones and comparison with the analogous operations. · Additional cut-off values have been included in order to assess the sensitivity of output ounces to change in the cut-off value .
Mining factors or assumptions	· Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	· Based on the currently identified mineralization, probable extraction is by various underground mining. · Mining factors such as dilution a nd ore loss have not been applied.
Metallurgical factors or assumptions	· The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.	· No metallurgical assumptions have been built into the resource models .
Environmental factors or assumptions	· Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	· The Isulu and Bushiangala deposits are at an early stage of evaluation a nd environmental studies have not yet been undertaken.
Bulk density	· Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. · The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. · Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	· Specific gravity sampling has continued through the life of the project, the measurements are carried out in accordance with site standard procedures for Specific Gravity. Intervals for bulk density determination are selected according to lithology/ alteration/mineralization type to best represent certain intervals as defined by the geologist. The measurements are performed on site by geologists or geological assistants as part of the logging process. Measurements are generally after every 20 metres or a change in lithology within the 20 metres and 1-metres interval for mineralized zones.
Classification	· The basis for the classification of the Mineral Resources into varying confidence categories. · Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). · Whether the result appropriately reflects the Competent Person's view of the deposit.	· Classification for the Isulu and Bushiangala Mineral Resources is b ased upon the continuity of geology, mineralisation and grade, using d rillhole data spacing and quality and estimation statistics . · The Mineral Resources are classified as Indicated and Inferred. · The classification considers all available data and quality of the estimate a nd reflects the Competent Person's view of the deposit.
Audits or reviews	· The results of any audits or reviews of Mineral Resource estimates.	· The resource estimate (Inferred Category) has been reviewed by the Shanta staff Tanzanian Operations.
Discussion of relative accuracy/ confidence	· Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. · The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. · These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	· The assigned classification of Indicated and Inferred reflects the Competent Person's a ssessment of the accuracy and confidence levels in the global Mineral Resource estimate .

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