REG - Shanta Gold Limited - High Grade Drilling Results at West Kenya

Shanta GoldAnnouncement

01/07/2021 07:00

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RNS Number : 7458D  Shanta Gold Limited  01 July 2021

1 July 2021

Shanta Gold Limited

("Shanta Gold" or the "Company")

 

High Grade Drilling Results at West Kenya

Completion of Phase 1 Drilling Programme

 

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.

Highlights:

·    This update relates to 2,572 metres ("m") of drilling across 15 holes
conducted in April and May 2021 at the Isulu and Bushiangala deposits ("the
deposits") and reports new information received since the Company's previous
exploration update released 25 May 2021;

·    Drilling intersection highlights include:

 Hole No.         Interval (m)  Au (g/t)  From (m)  To (m)
 Isulu deposit:
 252              4.5           69.9      92.7      97.2
    Including:    3.0           94.4      92.7      95.7
 254              2.0           24.4      167.0     169.0
    Including:    1.0           48.2      167.0     168.0
 257              2.0           23.8      170.3     172.3
 260              1.5           55.6      131.3     132.8
 260              2.5           18.1      206.0     208.5
 263              1.9           20.3      216.2     218.1
 Bushiangala deposit
 249              8.8           6.1       46.0      54.8
    Including:    1.4           25.6      50.8      52.2
 250              8.4           4.6       57.0      65.4
    Including:    1.4           18.7      59.6      61.0
 253              7.5           7.6       <50 metres
    Including:    3.0           14.3
 253              22.0          3.5       57.0      79.0
    Including:    4.4           11.1      62.1      66.5
 259              10.0          2.73      80.0      90.0
    Including:    3.5           6.3       81.0      84.5

 

·    Visible gold was identified in 4 different intersections across 15
holes drilled. The true width of mineralisation is estimated at approximately
60-70% of the intercept core length;

·    Phase 1 drilling of 9,383 metres is now complete, and a resource
update will follow focused on approximately 10% of the total NI43-101 inferred
resource of 1.2 Moz, between 0-200 metres in depth;

·    Phase 2 drilling targeting 200-450 metres below surface commenced in
June and a third rig has now been mobilised to West Kenya; and,

·    Shanta is on track to complete approximately 35-40% of total planned
drilling at West Kenya by the end of 2021. 26% of total planned drilling for
2021 and 10% of total planned drilling over three phases has now been
reported.

Eric Zurrin, Chief Executive Officer, commented:

"We're delighted to have reported another set of exceptionally strong results
from Phase 1 of our drilling programme at West Kenya.

Throughout the course of this programme we have delivered some of the best
drilling results we've ever seen at Shanta, and we look forward to progressing
Phase 2 across our portfolio of licenses as we look to uncover West Kenya's
true potential.

Exploration is integral to our sustainable growth story and we look forward to
updating our stakeholders on further progress at New Luika and West Kenya in
the near-term. Our diversified portfolio has the potential to transform Shanta
into a mid-tier gold producer in Africa to support long-term returns for
shareholders."

 

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 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 is on
track to complete approximately 35-40% of total planned drilling at West Kenya
by the end of 2021. 26% of total planned drilling for 2021 and 10% of total
planned drilling over three phases has now been reported. Two drill rigs are
currently active at the Isulu and Bushiangala deposits in West Kenya, with a
third rig now mobilised and expected in July.

 

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 vary between 350 m and 650 m.

 

Phase 1 of the ongoing diamond drilling campaign at the Project is seeking to
infill two modelled zones at Isulu (IZ1.0 and IZ3.0) and three modelled zones
at Bushiangala (BZ1, BZ2 and BZ3). This drilling is being 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 is targeting both oxides and sulphides
within these zones.

 

Assay results shown below are those for fifteen diamond drill holes, received
since the Company's most recent exploration update in May 2021. To date this
takes the total number of holes with assays returned to forty-six, for the
current drilling campaign. Assay results for a further seven holes from this
first phase are currently pending and intersections including these will be
reported in due course. 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. Assay results for these fifteen drill holes
are tabulated below. Assays were analysed at an accredited laboratory operated
by SGS, an independent third party:

 

 Drill Hole  Interval (m)  Au (g/t)  From (m)  To (m)   Prospect
 LCD0248     1.5           0.62      <50 metres         Bushiangala
             1.5           4.09      59.3      60.8
 LCD0249     8.8           6.1       46        54.8     Bushiangala
             including:
             1.4           25.56     50.8      52.2
             7             2.13      63        70
             including:
             1             8.81      65        66
             1             2.04      73        74
             1             3.06      77        78
             1             1.57      81        82
 LCD0250     1.5           0.83      <50 metres         Bushiangala
             3.6           0.89      <50 metres
             including:
             0.6           2.83      <50 metres
             8.4           4.64      57        65.4
             including:
             1.4           18.66     59.6      61
 LCD0251     No significant intercepts                  Isulu
 LCD0252     4.5           69.93     92.7      97.2     Isulu
             including:
             3             94.4      92.7      95.7
             1             5.08      112.7     113.7
 LCD0253     7.5           7.66      <50 metres         Bushiangala
             including:
             3             14.3      <50 metres
             1.5           2.19      <50 metres
             22            3.5       57        79
             including:
             4.4           11.14     62.1      66.5
             6.6           1.17      85.4      92
             including:
             2.9           2.21      85.4      88.3
             0.9           13.2      113       113.9
 LCD0254     2             24.44     167       169      Isulu
             including:
             1             48.2      167       168
             0.8           1.13      202.4     203.2
 LCD0255     1             2.91      <50 metres         Bushiangala
             1.7           7.84      87        88.7
             including:
             0.6           16.3      87.5      88.1
             1             5.64      109       110
             0.6           2.68      120.6     121.2
             1             2.63      145       146
             1             1.97      225.6     226.6
             1.5           2.27      231       232.5
 LCD0256     No significant intercepts                  Isulu
 LCD0257     2             23.8      170.3     172.3    Isulu
 LCD0258     0.7           0.99      223.1     223.8    Isulu
 LCD0259     10            2.73      80        90       Bushiangala
             including:
             3.5           6.26      81        84.5
 LCD0260     1.5           1.47      107.3     108.8    Isulu
             1.5           55.6      131.3     132.8
             2.5           18.12     206       208.5
 LCD0262     0.5           8.03      165.5     166      Bushiangala
             4.1           0.96      207       211.1
 LCD0263     1.9           20.3      216.2     218.1    Isulu

 

.

 

 

 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 / Louis Davies / 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 / Genevieve Ryan                                  +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 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 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 625 koz grading 3.0 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 inferred
resources of 1.2 Mt grading 12.6 g/t 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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