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Shanta Gold Limited - Upgrade in Singida JORC Resource by 27%

RNS Number : 2182B
Shanta Gold Limited
29 January 2020
 

29 January 2020

Shanta Gold Limited

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

Upgrade in Singida JORC Resource by 27%

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, announces an updated JORC compliant Mineral Resource Estimate ("MRE" or "Resource") and project update on the Singida Gold Mining Project ("the Project") in Central Tanzania.

Highlights

 

§ 194,000 oz increase in gold resources to 919,000 oz at 2.25 g/t, equivalent to a 27% improvement to the previously announced 725,000 oz at 1.84 g/t;

8% increase in M&I Resources, totaling 412,000 oz at 2.63g/t;

o 48% increase in Inferred Resources, totaling 507,000 oz at 2.01g/t;

§ Significant increase in gold grades with M&I Resource grade increasing 26% and Inferred Resource grade increasing 23%; and,

§ Independently verified JORC 2012 gold reserve expected to be declared in March 2020 alongside an updated life of mine plan with enhanced Project Net Present Value ("NPV").

Singida Resource Estimate

Shanta has recently reassessed the historically modelled mineral resource estimate at the Project that was completed by third party consultants. Shanta has remodeled the geological structures across individual shear zones to a higher level of detail, consistent with Company practice elsewhere, and specifically without extrapolating grade assays across a single ore body as was done previously.

 

 

Eric Zurrin, Chief Executive Officer, commented:

 

"We have high confidence in Shanta's re-estimated resources. We look forward to declaring a reserve for Singida and publishing an updated mine plan for the project in Q1 2020. With significantly improved M&I Resource grades of 2.63 g/t, up 26%, we expect the open pit mine to be a profitable, new operation for a modest capital outlay.

 

"The previously estimated NPV announced on 5 December 2018 of US$31 m is expected to increase significantly and I look forward to announcing plans to commence construction at Singida later this year."

 

 

 

Enquiries:

 

Shanta Gold Limited

 

Eric Zurrin (CEO)

+ 255 (0) 22 292 5148

Luke Leslie (CFO)

 

 

 

Nominated Adviser and Broker

 

Numis Securities Limited

 

Paul Gillam / Alamgir Ahmed

+ 44 (0) 20 7260 1000

 

 

Financial Public Relations

 

Tavistock

 

Charles Vivian / Barnaby Hayward / Gareth Tredway

+ 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 project in Tanzania and holds exploration licenses covering approximately 1,500km2 in the country. Shanta's flagship New Luika Gold Mine commenced production in 2012 and produced 84,506 ounces in 2019. The Company has been admitted to trading on London's AIM and has approximately 787 m shares in issue. For further information please visit: www.shantagold.com.

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

 

 

Qualified Person

The technical information contained within this announcement has been reviewed by Juma Kisunda (the Company's Chief Mine Geologist) and George Kondela (the Company's Senior Resource Geologist), who are Members of The Australasian Institute of Mining and Metallurgy (Aus.I.M.M). They have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Persons 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.

 

 

 

Singida Mineral Resource Estimate

 

The Singida Mineral Resource is based on seven shear-zone related gold deposits with a combined strike length of 4.9 km. All of these deposits are situated within three mining licenses. The deposits trend east−west to north-west−south-east.

 

 

Singida Gold Project Tanzania

Mineral Resource Estimate (MRE) comparison
(20 January 2020 vs 26 May 2018)

JORC 2012 Classification

 

 

 

20 January 2020

26 May 2018

Change

 

Tonnes

Grade

Gold

Tonnes

Grade

Gold

Tonnes

Grade

Gold

 

 

 

 

 

 

 

 

 

 

 

Mt

g/t

000s oz

Mt

g/t

000s oz

Mt

% change

000s oz

 

 

 

 

 

 

 

 

 

 

Measured & Indicated 1

4.88

2.63

412

5.71

2.08

382

-0.83

+26%

+30

 

 

 

 

 

 

 

 

 

 

Inferred

7.84

2.01

507

6.57

1.63

343

+1.28

+23%

+164

 

 

 

 

 

 

 

 

 

 

Total

12.72

2.25

919

12.28

1.84

725

+0.44

+22%

+194

 

 

 

 

 

 

 

 

 

 

 

 

1.     Non-inferred resources have been grouped in the Indicated category in the 20 January 2020 update.

 

 

Mineral Resources

Singida's Measured and Indicated Resource at 20 January 2020 is an estimated 4.88 Mt, grading 2.63 g/t and containing 412,000 oz of gold at a cut-off grade of 1.0 g/t. The majority of these resources are less than 120 metres from surface.

Estimated Inferred Resources total over 7.84 Mt, grading 2.01 g/t and containing 507,000 oz of gold at a cut-off grade of 1.0 g/t.

 

Historical drilling has identified mineralization extending down to 500 m from surface in the Gold Tree One deposit.

 

Singida Gold Project Tanzania

Mineral Resource Estimate (MRE)

(20 January 2020)

JORC 2012 Classification

 

 

INDICATED

INFERRED

TOTAL RESOURCES

 

TONNES

GRADES

OUNCES

TONNES

GRADES

 

OUNCES

 

TONNES

GRADES

OUNCES

 

 

 

 

 

 

 

 

 

 

 

 

 

('000)

g/t

('000 oz)

('000)

g/t

 

('000 oz)

 

('000)

g/t

('000 oz)

CORNPATCH WEST

458

3.06

21

1,208

2.10

 

82

 

1,666

2.37

127

 

 

 

 

 

 

 

 

 

 

 

 

CORNPATCH

327

2.02

21

215

2.43

 

17

 

542

2.18

38

 

 

 

 

 

 

 

 

 

 

 

 

VIVIAN

195

2.51

16

216

2.26

 

16

 

411

2.42

32

JEM ZONE 1&2

939

2.98

90

667

2.91

 

62

 

1,606

2.94

152

 

 

 

 

 

 

 

 

 

 

 

 

GOLD TREE ZONE 1

1,337

3.41

147

1,832

1.92

 

115

 

3,169

2.57

262

 

 

 

 

 

 

 

 

 

 

 

 

GOLD TREE ZONE 2

240

1.70

13

486

1.26

 

20

 

726

1.41

33

 

 

 

 

 

 

 

 

 

 

 

 

GOLD TREE ZONE 3

505

2.02

33

2,269

Quick facts: Shanta Gold Limited

Price: 9.36

Market: AIM
Market Cap: £74.31 m
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