REG - Shanta Gold Limited - Final 2021 West Kenya Drilling Results

Shanta GoldAnnouncement

28/02/2022 07:00

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RNS Number : 9410C  Shanta Gold Limited  28 February 2022

28 February 2022

Shanta Gold Limited

("Shanta Gold" or the "Company")

 

Final 2021 West Kenya High Grade Drilling Results

 

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and
explorer, is pleased to provide an exploration update for the West Kenya
Project ("West Kenya") in Kenya.

 

Eric Zurrin, Chief Executive Officer, commented:

"Today's announcement concludes the reporting of yet another set of
outstanding high grade intersections from our drilling in 2021. Drilling
results have been consistently high grade and extend from surface down through
at least 500 metres deep, and open from all angles.

Looking forward to March, we expect to announce the upgraded mineral resource
estimate at Isulu and Bushiangala, and new maiden resources at the Ramula and
Bumbo targets following very encouraging results in the district. The
Feasibility Study workstream will commence in Q2 to quantify the potential
value of this hugely exciting project and potential multi-million ounce gold
district comparable with other prolific greenstone belts in the world.

With new high-grade resources discovered at both New Luika and West Kenya and
a rapidly approaching first production at Singida on target for early 2023, we
remain excited in our near and longer-term prospects across our diversified
portfolio of assets in East Africa."

Highlights:

·    A total of 31,484 metres ("m") were drilled at West Kenya in 2021 -
including 3,704 m across district targets - costing US$4.8 million of direct
drilling expenditure;

·    Today's update relates to 3,460 m of drilling across 7 holes
conducted in Q4 at the Isulu and Bushiangala deposits and is the final update
relating to 2021 drilling activities;

·    Visible gold was identified in 3 intersections across 7 holes
drilled. Visible gold, including spectacular occurrences, have been identified
in 38 intersections across 107 holes drilled in 2021;

·    Drilling intersection highlights include:

 Hole No.   Interval (m)  Au (g/t)  From (m)  To (m)
 Isulu deposit
 320        0.7           41.9      249.6     250.3
 325        0.5           20.5      178.0     178.5
 325        3.9           17.8      402.0     405.9
    incl    2.9           23.4      403.0     405.9
 Bushiangala deposit
 323        3.2           16.1      339.0     342.2
    incl    2.2           23.1      340.0     342.2
    incl    1.0           28.6      341.2     342.2
 326        4.8           13.9      302.4     307.2
    incl    0.6           66.2      303.9     304.5

                      Note: true width estimated at
60-70% of the intercept core length and gold values uncapped

·    Intersections reported today include the fourth set of results
received from Phase 2 of the ongoing drilling campaign, which is targeting up
to 550 metres below surface; and

·    Up to 42,000 m of drilling is planned for 2022;

·    A consolidated resource update, including Phase 2a and Phase 1 which
has already been announced, is expected to be released in the next few weeks.

 

Isulu and Bushiangala Drilling Campaign

The West Kenya Project covers 1,162 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 Project's NI43-101 compliant Inferred Mineral Resource
Estimate (2,909,700 tonnes at 12.6 g/t Au for 1,182,300 ounces stated in 2017)
into the Indicated Resource category down to a depth of 600 metres across
three drilling phases.

 

This infill drilling is aimed at verifying the extent and geometry of the
known mineralised zones developed for the current resource model. Shanta
completed 37% of total planned drilling at West Kenya by the end of 2021. 100%
of total drilling for 2021 and 37% of total planned drilling over three phases
has now been reported.

 

Gold mineralisation at the Project 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
centre by granitoids and diorites, termed the Kakamega Dome. Mineralisation is
associated with quartz, quartz-carbonate veinlets 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 350 m to 650 m.

 

Phase 1 drilling at the Project, completed in June 2021, sought to infill two
modelled zones at Isulu (IZ1.0 and IZ3.0) and three modelled zones at
Bushiangala (BZ1, BZ2 and BZ3). This drilling was carried out to generate an
average spacing of 40 m at Isulu and 30 m at Bushiangala, up to a depth of
150-200 m from surface, and targeted both oxides and sulphides within these
zones. Following the completion of Phase 1 drilling, an updated mineral
resource estimate was announced in September 2021.

 

Phase 2 of the ongoing diamond drilling campaign at the Project is seeking to
infill ten modelled zones at Isulu (IZ1.0, IZ1.1, IZ2.0, IZ3.0, IZ3.1, IZ3.2,
IZ4.0, IZ4.1, IZ4.2 and IZ5.0) and seven modelled zones at Bushiangala (BZ0,
BZ1, BZ2 and BZ3.1, BZ3.2, BZ3.3 and BZ4). This phase amounts to 75,000 m of
planned drilling and is due to be completed in Q4 2022. Phase 2 drilling is
expected to generate an average spacing of 40 m at Isulu and 30 m at
Bushiangala, up to a depth of 450-500 m from surface.

 

Assay results shown below are those for 7 diamond drill holes, received since
the Company's most recent exploration update on 16 February 2022. To date this
takes the total number of holes with assays returned to 107, for the current
drilling campaign. The lengths shown are the down hole metres and it is
estimated that the true widths of the mineralized zones are approximately
60-70% of the widths intersected in the drill holes. All assays are reported
without application of a top cut. Composited assay results for these 9 drill
holes are tabulated below. Samples were analysed at an accredited laboratory
operated by SGS, an independent third party:

 

 Drill Hole  From (m)  To (m)  Interval (m)  Au (g/t)  Prospect
 LCD0318     273.30    274.00  0.70          2.12      Isulu
             343.60    345.70  2.10          3.20
 incl.       343.60    344.20  0.60          10.4
             373.00    374.70  1.70          4.39
             414.60    415.10  0.50          3.38
             568.30    572.30  4.00          2.83
 incl.       568.30    568.90  0.60          6.51
 incl.       571.80    572.30  0.50          12.7
 LCD0320     249.60    250.30  0.70          41.9      Isulu
             264.80    266.00  1.20          9.60
 LCD0321     437.80    441.00  3.20          1.67      Isulu
 incl.       439.50    440.30  0.80          4.08
             526.00    527.00  1.00          2.64
 LCD0323     313.00    314.00  1.00          3.17      Bushiangala
             339.00    342.20  3.20          16.1
 incl.       340.00    342.20  2.20          23.1
 incl.       341.20    342.20  1.00          28.6
 LCD0324     272.00    273.00  1.00          1.11      Isulu
 LCD0325     178.00    180.00  2.00          5.88      Isulu
 incl.       178.00    178.50  0.50          20.5
             395.00    396.00  1.00          2.49
             402.00    405.90  3.90          17.8
 incl.       403.00    405.90  2.90          23.4
             489.00    491.00  2.00          1.37
             599.00    602.00  3.00          1.37
 incl.       601.00    602.00  1.00          2.43
 LCD0326     302.40    307.20  4.80          13.9      Bushiangala
 incl.       303.90    304.50  0.60          66.2
             321.80    322.60  0.80          1.55
             339.20    340.40  1.20          1.77

 

 

Results reported today represents new information received since the Company's
previous exploration update released 16 February 2022.

 

 

 

 Shanta Gold Limited
 Eric Zurrin (CEO)                               +44 (0) 14 8173 2153
 Luke Leslie (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

 

 

The technical information contained in this announcement was reviewed Yuri
Dobrotin, P.Geo. Membership No.0702 (Shanta's Group Exploration Manager), who
is a practicing member of t\he 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 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.

 

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 3.04 g/t, and exploration licences covering
approximately 1,100 km(2) in the country. Alongside New Luika and Singida,
Shanta also owns the West Kenya Project in Kenya with defined high grade
indicated and inferred resources and licences covering approximately 1,162
km(2). 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.

 

END

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