REG - Shanta Gold Limited - 2023 Group Exploration Update

Shanta GoldAnnouncement

22/05/2023 07:00

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RNS Number : 1140A  Shanta Gold Limited  22 May 2023

22 May 2023

 

Shanta Gold Limited

 

("Shanta Gold" or the "Company")

 

2023 Group Exploration Update

 

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and
explorer is pleased to announce an exploration update at its assets in
Tanzania and Kenya.

 

Summary

·    Following the successful ramp-up of the Singida Gold Mine
("Singida"), a total of 34,000 meters of drilling has now recommenced at New
Luika Gold Mine ("NLGM") and West Kenya Project ("West Kenya")

·    The Singida operation is successfully meeting targeted production
objectives including steady state throughput and gold production; commercial
production expected shortly

 

NLGM - Phase 1 Drilling

·    Total of 8,000 meters across 51 holes at surface and underground
deposits

·    Programme spans 4 months, with potential for Phase 2

·    Planned exclusively for deposits already permitted within the
existing mining licences

·    Expected cost of US$1 million targeting the replacement of mined ore
reserves in 2023

 

West Kenya

·    Current resource of 1.76 Moz grading 5.55 g/t expected to increase to
approximately 3+ million ounces over time

·    Up to 26,000 meters drilling across 80 holes

·    Centered around the Isulu and Ramula deposits

·    Targeting both conversion to Indicated category plus resource
extensions

·    Third party consultants are now being engaged to accelerate technical
studies

·    Workstream toward mining licence application and permitting is now
underway

·    Total 2023 budget of up to US$10 million, consistent with previous
years

 

Singida

·    Only 26% of total resource included in the reserve-based mine plan

·    Exploration drilling of US$0.5 million planned for Q3 2023

·    Targeting reserve additions and resource conversion

 

 

Eric Zurrin, CEO, commented:

"With the successful ramp-up of Singida to full production, we are confident
in our ability to responsibly allocate capital to high impact exploration
programmes across our asset portfolio. Although only 8 weeks in, Singida is
performing ahead of expectations and gold production is promising. We have now
completed two gold shipments from Singida and the mine is free cash flow
positive.

Reserve life addition and mine life extension at NLGM are core to Shanta's
equity case. Over the last 4 years, we have added 473,000 oz of new reserves
at NLGM, illustrating the sustainability of the mine.

West Kenya continues to impress and is the next clear leg in Shanta's growth
story now that we have two producing gold mines in Tanzania.

We expect to announce drilling assay results beginning in July and updates to
our reserves and resource estimates throughout Q3 and Q4."

 

Investor Conference Call

Shanta Gold is hosting a live investor presentation via the Investor Meet
Company platform today, 24 May 2023, at 10:00 am BST. The presentation is open
to all existing and potential shareholders and questions can be submitted any
time during the live presentation.

Shanta's Group Head of Exploration, Yuri Dobrotin, will attend the call to
present highlights of the 2023 exploration programme.

Investors can sign up to Investor Meet Company for free and add to meet Shanta
Gold via:
https://www.investormeetcompany.com/shanta-gold-limited/register-investor
(https://protect-za.mimecast.com/s/Z9HnCVmrpNhwlrGCGefj-)

Investors who already follow Shanta Gold on the Investor Meet Company platform
will automatically be invited.

 

Enquiries:

 

 Shanta Gold Limited
 Eric Zurrin (CEO)                               +44 (0) 14 8173 2153
 Michal Devine (CFO)

 Nominated Adviser and Joint Broker
 Liberum Capital Limited
 Scott Mathieson / Ed Thomas / Nikhil Varghese   +44 (0) 20 3100 2000

 Joint Broker
 Tamesis Partners LLP
 Charlie Bendon / Richard Greenfield             +44 (0) 20 3882 2868

 Public Relations
 FTI Consulting
 Sara Powell / Nick Hennis                      +44 (0) 20 3727 1426

 

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 625 koz grading 2.91 g/t, and exploration licences covering
approximately 800 km(2) in the country. Alongside New Luika and Singida,
Shanta also owns the high-grade West Kenya Project in Kenya and licences with
resources of 1.7 million ounces including 722 Koz in the Indicated category
grading 11.45 g/t. With a healthy 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 1,051 million shares in
issue.

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