REG - Shanta Gold Limited - New Luika Gold Mine Exploration Drilling Update
02/11/2022 07:17
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RNS Number : 0482F Shanta Gold Limited 02 November 2022
2 November 2022
Shanta Gold Limited
("Shanta Gold" or the "Company")
New Luika Gold Mine Exploration Drilling Update
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer, and
explorer, is pleased to provide an exploration drilling update at the New
Luika Gold Mine ("NLGM") in Southwestern Tanzania, relating to drilling
conducted in H2 2022.
These encouraging drilling intersections will be incorporated into the next
update of the mine plan as Shanta Gold continues to extend the mine life at
NLGM.
Website link to the slides covering today's announcement:
https://www.shantagold.com/investors/presentations/
(https://www.shantagold.com/investors/presentations/)
Eric Zurrin, Chief Executive Officer, commented:
"I am pleased to announce that we continue to deliver encouraging drilling
results at New Luika, adding to the exploration success that we have had
around the wider portfolio this year. These results give us confidence that
the reserve-based mine life at New Luika will continue to be extended beyond
its current timeline of H1 2027.
In 2023, we are scheduled to continue drilling, testing the Elizabeth Hill,
Porcupine South and Black Tree Hill targets following the encouraging results
from the recent drilling, modelling and technical studies, as well exploring
several outlined targets situated in proximity to the known orebodies, e.g.
Luika South, BC North West and Black Tree Hill western conceptual high-grade
shoot and Porcupine South Central. Today's announced NLGM drilling results are
being incorporated into our annual mineral reserve and resource update that
will be released in January 2023.
This is an exciting time for Shanta Gold as we transition towards becoming a
100,000 oz per year gold producer in March 2023 as Singida comes onstream.
With a diversified asset base and a healthy balance sheet, the company is
well positioned operationally to deliver on our strategy of sustainable growth
through exploration."
Highlights:
· A total of 7,891 metres drilled covering 47 holes at BC North,
Ilunga, Luika Deep, Black Tree Hill, and Elizabeth Hill targets at New Luika
Gold Mine within the mining licenses, and Porcupine South target on the
Porcupine South mining license
· Reported results are over strike lengths of 400 m, 130 m, 140 m, 410
m, and 550 m for BC North, Ilunga, Luika Deep, Black Tree Hill, and Elizabeth
Hill respectively
· Most of the these newly reported drilling intersections are outside
existing mineral reserves and will be incorporated into the next update of the
mine plan
· Mineralisation at Luika, Black Tree Hill, and Porcupine South remains
open at depth
Black Tree Hill:
· Hole CSR637: 9 m @ 17.33 g/t Au from 9 m
· Hole CSR639: 17 m @ 1.37 g/t Au from 123 m, including 3 m @ 2.92 g/t
Au from 137 m
· Hole CSR640: 11 m @ 1.72 g/t Au from 89 m, including 1m @ 14.86 g/t
Au from 92 m
· Hole CSR641: 7 m @ 2.80 g/t (mailto:7m@2.8g/t) Au from 95 m
· Hole CSR642: 9 m @ 3.24 g/t Au from 100 m, including 1 m @ 12.08 g/t
(mailto:1m@12.08g/t) Au from 105 m
· Hole CSR643: 8 m @ 2.44 g/t Au from 120 m, including 2 m @ 7.67 g/t
(mailto:1m@12.08g/t) Au from 121 m
Ilunga:
· Hole CSD322: 4.15 m @ 17.30 g/t Au from 75.76 m including 1.46 m @
46.53 g/t Au from 77.76 m
( )
Luika:
· Hole CSD330: 5.20 m @ 5.07 g/t Au from 567.80 m, including 2.70 m @
8.87 g/t Au from 567.80 m
· Hole CSD327: 2.40 m @ 2.10 g/t Au from 527.20 m.
( )
Elizabeth Hill:
· Hole CSD336: 7.06 m @ 2.71 g/t Au from 103.65 m, including 1.90 m @
5.41 g/t Au from 106.90 m
· Hole CSR644: 16 m @ 3.51 g/t Au from 93 m, including 2 m @ 7.02 g/t
Au from 94 m and 3 m @ 8.33 g/t Au from 98 m
· Hole CSR645: 6 m @ 1.40 g/t Au from 142 m, including 1 m @ 4.26 g/t
Au from 145 m
· Hole CSR647: 5 m @ 3.69 g/t Au from 164 m, including 2 m @ 6.92 g/t
Au from 164 m
· Hole CSR648: 3 m @ 4.75 g/t Au from 153 m, including 1 m @ 12.08 g/t
Au from 154 m
Porcupine South:
· A further 1,156 metres of RC and core drilling covering 13 holes at
Porcupine South Mining License ("Porcupine South") located approximately 22
kilometres from the NLGM Processing Plant was drilled, including:
· Hole PSRC113: 4 m @ 1.87 g/t Au from 44 m, including 1 m @ 3.14 g/t
Au from 45 m
· Hole PSRC116: 9 m @ 3.76 g/t Au from 33 m, including 2m @ 13.21 g/t
Au from 38 m
· Reported results are over a strike length of 430 m at Porcupine South
target
BC North Exploration Drilling
The BC North target is located about 1.6 km to the north of the NLGM
Processing Plant. The target was initially inferred from structural study,
which delineated a WSW - ENE striking shear zone, with a similar
orientation/geometry and strike extent as that of the BC and Luika deposits,
and inferably represent a displaced offset of the Luika orebody by the late
displacement fault. Surface soil geochemistry was consistent with the inferred
shear zone trend, and the follow-up trenching program intersected encouraging
gold mineralisation over a strike extent of about 100 metres.
The BC North mineralised shear zone dips at about 60° to the NNW. The BC
North orebody is presently in a development stage and 9,374 ounces Au has
been mined to date.
Four DD holes totaling 1,267 metres were completed in H2 2022 at BC North. The
drilling programme was designed to test the continuity of the BC North
mineralised structure to the east and beyond "Fault 4" that has been mapped
underground. Holes were inclined at between minus 50 and 74 degrees and
averaged 316.75 metres in depth with a maximum of 1,267 metres down the hole.
These results are over a strike length of 400 metres with holes spaced at
about 100 m along strike. The mineralised zones are presented by moderately
dipping quartz veins hosted by tonalite.
The holes were designed to test the model of the BC North orebody based on the
structural modeling and observation collected during the mining of the
shallower parts of the orebody. Based on the model the mineralised structure
was displaced or terminated by the fault named the 'Fault 4'. The holes
confirmed the model and additional study is in progress to determine the
nature of the Fault 4 and a potential extension of the BC North structure.
The BC North most significant intersections from available assay results are
tabulated below:
HOLE ID TARGET DRILL TYPE FROM (m) TO (m) INTERVAL (m) Au (g/t)
CSD320 BCN DD 69.95 70.45 0.50 1.64
CSD323 BCN DD 233.54 234.52 0.98 1.61
Assay results are from onsite laboratory at NLGM operated by independent third
party.
Ilunga Exploration Drilling
Ilunga deposit is located about 2.6 km to the northeast of the NLGM Processing
Plant. Rock types are predominantly granite, tonalite, and diorite. The main
mineralised structure at Ilunga displays brittle to brittle - ductile
deformational features and trends NE - SW, dipping moderately (40° - 50°) to
the northwest. Gold mineralisation is associated with milky to smoky quartz
veining, which occurs at variety of scales, from metre-scale robust veins to
millimetre-scale veinlets hosted in the shear zone. Low concentration of
sulphides, mainly pyrite (3 - 5%) occur within the mineralised envelope.
Open pit mining at Ilunga started in July 2016 and was completed in July 2017.
A total of 247, 044 tonnes at an average grade of 3.21 g/t Au for 25,485
ounces were mined from the open pit. Underground mining at Ilunga started in
August 2018 and to date a total of 436,978 tonnes at an average grade of 3.29
g/t Au for 46,248 ounces has been mined to date.
Underground exploration drill holes at Ilunga were designed with center
spacing of 20 - 60 m aimed to test the orebody continuity to the eastern and
western ends of Ilunga Main between levels 900 mRL and 840 mRL. A total of 12
exploration diamond drill holes representing 1,977 m were completed at Ilunga
in H2 2022. The holes were collared at underground stockpiles SP#09 and SP#10
(approximately 880 mRL and 860 mRL respectively) and inclined at between -35°
and 13° with depth ranging from 86 m to a maximum of 291 m down the hole. It
is estimated that the true widths of the mineralised zones are about 85% - 92%
of the intersected widths in the drillholes.
The Ilunga most significant intersections from available assay results are
tabulated below:
HOLE ID TARGET DRILL TYPE FROM (m) TO (m) INTERVAL (m) Au (g/t)
CSD321* IL DD 108.77 109.38 0.61 1.47
CSD322* IL DD 75.76 79.91 4.15 17.30
Incl
udin
g:
77.76 79.22 1.46 46.53
93.75 94.24 0.49 2.20
128.80 129.80 1.00 1.75
CSD333 IL DD 102.14 103.03 0.89 0.60
CSD335 IL DD 97.52 101.00 3.48 2.64
Incl
udin
g:
98.13 98.99 0.86 5.28
107.52 108.21 0.69 1.28
Assay results are from the onsite laboratory at NLGM operated by independent
third party.
*Assay results are from the accredited independent commercial laboratory (SGS
Mwanza).
The drillholes intercepted the mineralised structure which represent western
and eastern extensions of the known Ilunga orebody. Based on the drill
results, the western extension has very limited potential. The eastern orebody
extension testing delivered mixed results, returning high-grade and wide
mineralised intercept, yet with the limited continuity. Modelling is in
progress.
Luika Exploration Drilling
Luika is located 1.8 km to the northwest of the NLGM Processing Plant. The
Luika deposit is currently in production by way of underground mining. The
orebody strikes approximately NNE - SSW and dips ~50° to NW. Gold
mineralisation at Luika is closely associated with quartz veining
(silicification and albitization) and low sulphides mineralisation
(predominantly disseminated pyrite ~1-3%).
Underground mining at Luika started in May 2017 and to date a total of 625,680
tonnes at an average grade of 2.61 g/t Au for 52,544 ounces has been mined
The mineralised zones are presented by moderately to sub-vertical dipping
quartz veins hosted predominantly by tonalite and locally by diorite. The
deposit depicts relatively higher-grade westerly plunging shoots which have
potential to host significant economic mineralisation below the presently
explored area and continue to be the target of future exploration drilling
programs.
Surface exploration drill holes at Luika were designed with center spacing of
40 - 60 m aimed to increase confidence for the Indicated resources down to a
level of 560 mRL below surface. Two exploration diamond drill holes for a
total of 1,207 m were completed at Luika in H2 2022. The holes were collared
on surface (approximately 990 mRL), inclined at minus 52° and 56° with
depths of 602 m and 604 m respectively. It is estimated that the true widths
of the mineralised zones are about 85 - 100% of the intersected widths in the
drillholes.
Luika most significant intersections from available assay results are
tabulated below:
HOLE ID TARGET DRILL TYPE FROM (m) TO (m) INTERVAL (m) Au (g/t)
CSD227 LK DD 527.20 529.60 2.40 2.10
CSD330 LK DD 175.39 175.86 0.47 2.44
563.93 564.47 0.54 0.56
567.80 573.00 5.20 5.07
Including:
567.80 570.50 2.70 8.87
576.37 577.12 0.75 2.80
Assay results are from onsite laboratory at NLGM operated by independent third
party.
The holes confirmed the presence of the minable mineralised structure
comparable with the previous intercepts on the higher levels, providing
additional confidence for the current resource. Additional drilling is
designed to test the downdip - down-plunge extension of the orebody.
Black Tree Hill Exploration Drilling
Black Tree Hill target is located about 1 km to the west of the NLGM
Processing Plant. The mineralisation is hosted in a brittle-ductile shear zone
that trends WNW - ESE, and dips vertically - sub-vertically to the NNE.
Recent soil sampling for the ME-MS61 multielement analysis confirmed a strong,
large and zoned gold and path-finder anomaly, elevating the potential of the
target.
To the west, the mineralised structure appears to splay resulting in two
mineralised shear zones. The mineralisation is open to the west and at depth.
The Black Tree Hill shear zone is hosted within tonalite and diorite
lithological units and partially controlled by their contacts. The mineralised
shear zone is associated with quartz veining of variable intensity.
Surface exploration drill holes at Black Tree Hill were designed with the aim
of increasing confidence for the Indicated resources of 81k ounces grading
2.00 g/t Au to level 900 mRL. Seven RC holes totaling 882 m were completed at
Black Tree Hill in H2 2022. The holes were collared on surface (approximately
1020 mRL) and inclined at between minus 48° and 63° with depth ranging from
90 m to a maximum of 156 m down the hole. It is estimated that the true widths
of the mineralised zones are about 85% - 95% of the intersected widths in the
drillholes.
The most significant intersections from available assay results for Black Tree
Hill are tabulated below:
HOLE ID TARGET DRILL TYPE FROM (m) TO (m) INTERVAL (m) Au (g/t)
CSR637* BTH RC 7 18 11 15.35
Incl
udin
g:
14 17 3 47.98
CSR639* BTH RC 123 132 9 1.41
137 141 4 2.53
Incl
udin
g:
138 140 2 3.79
CSR640 BTH RC 90.00 93.00 3.00 5.41
Incl
udin
g:
92.00 93.00 1.00 14.86
96.00 100.00 4.00 0.58
CSR641 BTH RC 84.00 88.00 4.00 1.23
95.00 102.00 7.00 2.82
Incl
udin
g:
99.00 101.00 2.00 6.42
CSR642 BTH RC 10.00 11.00 1.00 0.54
73.00 74.00 1.00 0.56
85.00 86.00 1.00 0.50
90.00 93.00 3.00 0.36
96.00 97.00 1.00 0.64
100.00 109.00 9.00 3.24
Incl
udin
g:
101.00 102.00 1.00 6.64
105.00 106.00 1.00 12.08
114.00 115.00 1.00 0.62
118.00 119.00 1.00 1.30
126.00 127.00 1.00 1.26
CSR643 BTH RC 70.00 71.00 1.00 0.92
84.00 85.00 1.00 0.56
120.00 128.00 8.00 2.44
Incl
udin
g:
121.00 123.00 2.00 7.67
130.00 131.00 1.00 0.90
141.00 145.00 4.00 1.20
Assay results are from onsite laboratory at NLGM operated by independent third
party.
*Assay results are from the accredited independent commercial laboratory (SGS
Mwanza).
Drilling confirmed a presence of the high-grade and wide parts of the Black
Tree mineralised structure, as well as the potential extension to the west
towards the conceptual higher-grade shoot inferably controlled by the
intersection of two structures i.e., Black Tree and Black Tree North splay.
Additional drilling is designed to further test these targets and improve and
extend the previous resources of the Black Tree orebody.
Elizabeth Hill Exploration Drilling
The east - west trending Elizabeth Hill (EH) Main and North structures are
located about 4 km to the east of the NLGM Processing Plant. Elizabeth Hill is
a brittle - ductile 5 km long shear zone hosting robust quartz veins (locally
up to 10 metres wide) within tonalite. The EH North shear zone is an ENE - WSW
trending splay of the NW - SE trending EH Main shear zone. The intersection
zone between EH Main and EH North has potential for a discovery of a
higher-grade shoot. Quartz veins occurring within the shear zone display a
high degree of variability in appearance, from smoky vein quartz to massive,
largely undeformed white to milky white quartz veins occurring in close
association with highly brecciated and foliated quartz veins that display
evidence of intense structural deformation.
The Elizabeth Hill Pit is currently in production by open pit mining and
contains a total resource of 231koz grading 1.72g/t Au as of 31(st) December
2021.
During H2 2022, exploration and resource infill drilling involved completion
of nine drill holes totaling 1,403 metres at Elizabeth Hill. The drilling
programme was designed to infill areas that were identified to have potential
to convert some inferred resources into Measured & Indicated category
resources following a review of the geological model.
Holes were drilled at between minus 45 and 62 degrees and averaged 170 metres
in depth with a maximum of 210 metres down the hole. These results are over a
strike length of 550 metres with holes spaced using 30-metre drill fences. It
is estimated that the true widths of the mineralised zones are 90-100% of the
intersected widths in the holes.
The most significant intersections from available assay results for Elizabeth
Hill are tabulated below:
HOLE ID TARGET DRILL TYPE FROM (m) TO (m) INTERVAL (m) Au (g/t)
CSD336 EH DD 27.25 27.98 0.73 3.38
101.78 102.76 0.98 0.66
103.65 110.71 7.06 2.71
Incl
udin
g:
106.90 108.80 1.90 5.41
CSR644 EH RC 93.00 109.00 16.00 3.51
Incl
udin
g:
94.00 96.00 2.00 7.02
98.00 101.00 3.00 8.33
CSR645 EH RC 142.00 148.00 6.00 1.40
Including:
145.00 146.00 1.00 4.26
CSR647 EH RC 161.00 162.00 1.00 0.84
164.00 169.00 5.00 3.69
Incl
udin
g:
164.00 166.00 2.00 6.92
172.00 173.00 1.00 1.62
CSR648 EH RC 153.00 156.00 3.00 4.75
Incl
udin
g:
154.00 155.00 1.00 12.08
Assay results are from onsite laboratory at NLGM operated by independent third
party.
The programme is confirming the expected grade and width of the Elizabeth Hill
orebody and the results will be included into the resource update before the
end of 2022.
Porcupine South Exploration Drilling
Porcupine South is located about 20 km to the east of the NLGM Processing
Plant. The structure that hosts the current Porcupine South Main strikes west
northwest - east southeast and dipping sub-vertically to the north northeast.
Gold mineralisation is associated with quartz veins hosted by a shear zone at
the granite - dolerite contact. The relatively higher gold mineralisation
grades at Porcupine South Main appear to be closely associated with strong
silica/albite and sulphides (pyrite) alteration. Pyrite occurs mainly as
disseminations in the quartz veins and the country rock, and locally as semi
massive bands and stringers infilling fractures.
In H2 2022, drilling at Porcupine South focused on the western extension of
Porcupine South Main in the gap between Area 1 and Area 2 targets. Area 1 and
Area 2 targets are located about 930 m and 1,450 m to the east of Porcupine
South Main.
The Porcupine South Mining licence contain a total resource of 114k ounces
grading 1.94g/t Au as of 31(st) December 2021.
A total of 12 RC holes and one DD holes have been drilled in H2 2022 for a
total of 1,156 m. The holes were collared on surface (approximately 1232 mRL),
inclined at between minus 50° and 70° with depth ranging from 48 m to a
maximum of 130 m down the hole.
The reported results are over a strike length of 430 m. It is estimated that
the true widths of the mineralised zones are approximately 90-95% of the
intersected widths in the drillholes.
The most significant intersections from available assay results for Porcupine
South are tabulated below:
HOLE ID TARGET DRILL TYPE FROM (m) TO (m) INTERVAL (m) Au (g/t)
PSRC110* PS RC 31 33 2 0.94
PSRC111* PS RC 60 68 8 1.44
Incl
udin
g:
61 62 1 2.47
67 68 1 3.19
PSRC112* PS RC 38 42 4 0.48
PSRC113* PS RC 44 47 3 1.99
Incl
udin
g:
45 46 1 3.08
PSRC114* PS RC 33 34 1 0.5
37 38 1 0.63
45 50 5 0.74
53 54 1 0.89
PSRC116* PS RC 33 42 9 3.76
Incl
udin
g:
38 40 2 13.21
PSRC118 PS RC 16.00 17.00 1.00 1.60
104.00 105.00 1.00 0.72
PSRC119 PS RC 51.00 58.00 7.00 0.77
Incl
udin
g:
56.00 58.00 2.00 1.51
67.00 68.00 1.00 0.90
81.00 83.00 2.00 0.66
PSRC120 PS RC 2.00 3.00 1.00 0.88
60.00 66.00 6.00 0.95
Incl
udin
g:
61.00 62.00 1.00 1.32
64.00 66.00 2.00 1.57
68.00 69.00 1.00 0.60
89.00 90.00 1.00 0.54
93.00 96.00 3.00 0.87
Assay results are from onsite laboratory at NLGM operated by independent third
party.
*Assay results are from the accredited independent commercial laboratory (SGS
Mwanza).
The drilling confirmed a presence of the mineralisation within the previously
poorly-tested 'gap' at the Porcupine South structure and the results will be
included into the resource update before the end of 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 +44 (0) 20 3727 1426
Nick Hennis
The technical information contained in this announcement was reviewed by
Evance Rwiza (the Company's Senior Resource Geologist) who is a Member of the
Australasian Institute of Mining and Metallurgy (AusIMM) and 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).
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, 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 at the New Luika and Singida projects in Tanzania, with
reserves of 645 K ounces grading 3.0 g/t Au, and exploration licences covering
approximately 800 km2 in the country. Alongside New Luika and Singida, Shanta
also owns the rights to the high-grade West Kenya Project in Kenya and
exploration licences covering 580 km2 with resources of 1.6 million ounces
including 378 K ounces in the Indicated category grading 11.70 g/t Au. 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.
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: SAMPLING TECHNIQUES AND DATA
Criteria JORC Code explanation Commentary
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or · Sub surface samples have been collected by a variety of different
specific specialised industry standard measurement tools appropriate to the drilling techniques. Samples either comprise chips from reverse circulation
minerals under investigation, such as down hole gamma sondes, or handheld XRF (RC) or core from diamond.
instruments, etc). These examples should not be taken as limiting the broad
meaning of sampling. · RC samples are homogenised by riffle splitting prior to sampling
and then assayed as 1m intervals with 2-3kg submitted for assay.
· Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems used. · Diamond core is split by a core saw with half the core submitted
for assay and the other half stored in trays on site. Samples are typically
· Aspects of the determination of mineralisation that are Material to submitted as 1m intervals although within the mineralised zones irregular
the Public Report. lengths are collected to reflect rock type and alteration intensity.
· In cases where 'industry standard' work has been done this would be · Drill holes are oriented perpendicular to the interpreted strike
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m of the Mineralised trend.
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 · Samples are submitted to the on-site lab (Minopex ) or to the SGS
is coarse gold that has inherent sampling problems. Unusual commodities or Laboratory in Mwanza for analysis. CRMs, blanks and duplicates are inserted
mineralisation types (eg submarine nodules) may warrant disclosure of detailed into the sample stream prior to dispatching to laboratory.
information.
· At least 3kg sample pulverized and a 50g charge fire assayed with
AAS finish for gold.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary Drilling techniques used at New Luika Gold Mine:
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, · Reverse Circulation (RC).
whether core is oriented and if so, by what method, etc).
· Diamond Core/NQ diameter, standard tube with all core oriented when
feasible.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries · Core sample recoveries routinely measured and recorded in
and results assessed. spreadsheet database.
· Measures taken to maximise sample recovery and ensure · Samples split half core perpendicular to strike of structures.
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.
Logging · Whether core and chip samples have been geologically and · Logging of geology, alteration, and geotechnical aspects recorded
geotechnically logged to a level of detail to support appropriate Mineral in drill logs for diamond core drilling.
Resource estimation, mining studies and metallurgical studies.
· Logging is qualitative; All drill core photographed.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography. · Entire intervals that drilled were logged.
· The total length and percentage of the relevant intersections
logged.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · Half core taken; sawn.
taken.
· For trench samples, the entire sample for the respective interval
· If non-core, whether riffled, tube sampled, rotary split, etc and aggregated, not riffled, or split. Samples are typically dry.
whether sampled wet or dry.
· Aggregated half core; Entire 3kg sample pulverized at laboratory
· For all sample types, the nature, quality, and appropriateness of prior to fire assay in order to minimize bias.
the sample preparation technique.
· Drilling and channels planed orthogonal to the strike of
· Quality control procedures adopted for all sub-sampling stages to structures/lithologies in order to maximize representativeness.
maximise representivity of samples.
· Field duplicates sampled at appropriate intervals.
· 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.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · Fire assay is appropriate for the nature of gold mineralisation
laboratory procedures used and whether the technique is considered partial or being assayed.
total.
· No geophysical tools used to generate exploration results.
· For geophysical tools, spectrometers, handheld XRF instruments,
etc, the parameters used in determining the analysis including instrument make · Registered reference material inserted at the interval of 20
and model, reading times, calibrations factors applied and their derivation, samples.
etc.
· Levels of accuracy and precision (detection limit) for gold is 0.01
· Nature of quality control procedures adopted (eg standards, blanks, ppm which is suitable for the level of assays reported.
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie lack of bias) and precision have been established.
Verification of sampling and assaying · The verification of significant intersections by either independent · Significant intersections that were reported by field personnel are
or alternative company personnel. yet to be verified by an independent CP.
· The use of twinned holes. · No twinning of drill holes.
· Documentation of primary data, data entry procedures, data · Primary data was logged onto paper and later transferred into
verification, data storage (physical and electronic) protocols. database, verified by a Senior Geologist, and stored in electronic database,
which is regularly backed up. Database is verified and compared with standard
· Discuss any adjustment to assay data. assays stored in using established company protocols.
· No adjustments have been made to assay data.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · Drill holes were accurately located and surveyed using Trimble DGPS
and down-hole surveys), trenches, mine workings and other locations used in survey equipment.
Mineral Resource estimation.
· All RC and diamond holes have been surveyed by a down hole
· Specification of the grid system used. camera.
· Quality and adequacy of topographic control. · Drill holes are surveyed in UTM Coordinates System Arc 1960 zone
36S.
· Topographical surveys were done using Aerial Lidar Survey.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Drilling assayed on a maximum of 1 m downhole.
· Whether the data spacing and distribution is sufficient to · The data spacing was enough to establish the degree of geological
establish the degree of geological and grade continuity appropriate for the and grade continuity appropriate for the mineral resource estimation
Mineral Resource and Ore Reserve estimation procedure(s) and classifications procedures.
applied.
· Samples were not composited.
· Whether sample compositing has been applied.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · Drilling planned perpendicular to the interpreted strike of
possible structures and the extent to which this is known, considering the lithological units and geological structures.
deposit type.
· No sampling bias was interpreted.
· 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.
Sample security · The measures taken to ensure sample security. · Samples secured by senior personnel on site and transported
directly by company vehicle to the laboratories (Minopex Labs in NLGM and SGS
in Mwanza).
Audits or reviews · The results of any audits or reviews of sampling techniques and · Internal reviews are regularly completed but no external audits
data. were carried out for the currently reported results.
APPENDIX 2: REPORTING OF EXPLORATION RESULTS
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · ML408/2010
agreements or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests, historical sites, · Valid to 20/09/2030
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.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · Historical colonial exploration and mining works.
Geology · Deposit type, geological setting, and style of mineralisation. · Underlain by a complex association of high grade metamorphic and
intrusive lithologies, commonly intruded by dykes of variable composition.
Modally, granodioritic and granitic lithologies are most encountered.
· These granodiorites and granites have been interpreted as
late-orogenic intrusive phases associated with gold mineralisation in the
area. Subordinate diorite, porphyroblastic hornblende gabbro,
quartzo-feldspathic felsite and migmatite are also regularly observed.
· Dyke intrusive rocks include dolerite, pegmatite, and common aplite
and alaskite, seemingly randomly crosscutting major lithologies, and therefore
regarded as younger than the country rock.
Drill hole Information · A summary of all information material to the understanding of the · Relevant tables included summarizing drill holes locations, RL,
exploration results including a tabulation of the following information for azimuth, length/depth, and significant intersection intervals.
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.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · Exploration results from drilling sampling have been weighted by
maximum and/or minimum grade truncations (eg cutting of high grades) and interval.
cut-off grades are usually Material and should be stated.
· No high-grade caps have been applied.
· Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used for such · Lower cut-off grade of 0.5 g/t Au has generally been applied to
aggregation should be stated and some typical examples of such aggregations significant intersections.
should be shown in detail.
· Aggregate drilling and trenching intervals do not incorporate
· The assumptions used for any reporting of metal equivalent values longer lengths of low-grade results.
should be clearly stated.
· No metal equivalent reported.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · Drill holes have been drilled as perpendicular as possible to the
Exploration Results. general strike of the mineralised zones and structures so that the intersected
lengths are close to true widths.
· 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').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Maps and sections are being generated.
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.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · All significant drilling results have been reported.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Metallurgical studies on mineralised material from the Bauhinia
reported including (but not limited to): geological observations; geophysical Creek deposit during 2010/2011 indicated that the ore is amenable to direct
survey results; geochemical survey results; bulk samples - size and method of cyanidation leaching with an average of 85% gold liberated.
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
Further work · The nature and scale of planned further work (eg tests for lateral · Drilling to be continued to test the down-dip continuity of the
extensions or depth extensions or large-scale step-out drilling). delineated mineralisation.
· Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
ENDS
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