REG - Shanta Gold Limited - West Kenya Drilling Update

Shanta GoldAnnouncement

16/02/2022 07:00

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RNS Number : 7563B  Shanta Gold Limited  16 February 2022

16 February 2022

Shanta Gold Limited

("Shanta Gold" or the "Company")

 

West Kenya Delivers Consistent High-Grade Regional 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.

Highlights:

·    Phase 2 drilling programme aimed at converting resources to Indicated
at Isulu-Bushiangala; in addition, drilling has also now expanded to district
targets at Ramula and adjacent anomalies;

·    The first part of this update relates to 3,673 metres ("m") of
drilling across 9 holes conducted in Q4 at the Isulu and Bushiangala deposits;

·    Drilling intersection highlights include:

 Hole No.        Interval (m)  Au (g/t)  From (m)  To (m)
 Isulu deposit
 322             1.4           150.0     189.8     191.2
    Including    0.8           260.0     189.8     190.6
 321             7.4           20.7      598.6     606
    Including    0.7           184.0     599.3     600
 316             2.8           17.4      573.4     576.2
    Including    0.6           66.9      575.0     575.6
 320             2.0           14.4      355.5     357.5
    Including    0.5           55.7      357       357.5
 Bushiangala deposit
 314             4.3           5.46      278       282.3
    Including    0.6           11.10     278       278.6
    Including    1.7           8.88      280       281.7
 313             0.9           4.42      170.6     171.5
 314             2.5           2.36      226.5     229
    Including    0.5           7.36      226.5     227

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

·    The second part of this update relates to regional exploration
drilling which continued during Q4 at a third drilling site - the historical
Ramula target - while a fourth drilling site was added - the virgin
neighbouring 'Anomaly 22' target - totalling 1,792 m and 395 meters,
respectively, with highly encouraging results;

o  23 separate occurrences of visible gold in 10 holes drilled at Ramula

o  Ramula results include:

§ 4.8 m @ 23.40 g/t from 48.0 to 52.8 m

§ 9 m @ 18.90 g/t from 55.0 to 64.0 m

§ 9.3 m @ 6.35 g/t from 163.0 to 172.3 m

§ 8 m @ 4.12 g/t from 131.0 to 139.0 m

§ 4 m @ 13.90 g/t from 41.0 to 45.0 m

§ 10.7 m @ 3.44 g/t from 164.3 to 175.0 m

·    At the Isulu and Bushiangala deposits:

o  Visible gold was identified in 5 intersections across 9 holes drilled.
Visible gold, including spectacular occurrences, have been identified in 35
intersections across 102 holes drilled to date;

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

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

 

Eric Zurrin, Chief Executive Officer, commented:

"The latest phase of drilling at West Kenya has continued to deliver
outstanding results, ensuring that this remains the most consistently
high-grade drilling programme we've ever conducted at any asset in Shanta's
history.

The primary focus during the 2021 drilling campaign was to upgrade the
high-grade resource at Isulu and Bushiangala, and I am pleased to report that
we succeeded in this, converting 117,000 oz grading 7.04 g/t Indicated at a
conversion rate of over 100%. Following this success, we have added a third
drill rig to upgrade the mineral resource estimate. The program is at the
second phase that targets all the zones to approximately 450-500m below
surface.

Looking forward to the next few weeks, we will announce the upgraded mineral
resource estimate at Isulu and Bushiangala, and we are pleased to report that
we will announce new maiden resources at Ramula and a remodelled compliant
resource at Bumbo following some very encouraging results in the district
targets. This is a hugely exciting time for the Company and our stakeholders
as the West Kenyan resource expands toward a multi-million ounce gold district
comparable with other prolific greenstone belts in the world."

 

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. 92%
of total drilling for 2021 and 35% 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 vary between 350 m and 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 drilling 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 9 diamond drill holes, received since
the Company's most recent exploration update in November 2021. To date this
takes the total number of holes with assays returned to 102, 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  Interval (m)  Au (g/t)  From (m)  To (m)  Prospect
 LCD0313     0.9           4.42      170.6     171.5   Bushiangala
             0.8           1.56      269.9     270.7
 LCD0314     2.5           2.36      226.5     229.0   Bushiangala
             including:
             0.5           7.36      226.5     227.0
             4.3           5.46      278.0     282.3
             including:
             0.6           11.10     278.0     278.6
             including:
             1.7           8.88      280.0     281.7
             0.7           3.34      297.5     298.2
 LCD0315     10.9          1.45      223.3     234.2   Bushiangala
             including:
             1.4           4.82      232.8     234.2
 LCD0316     1.0           16.80     386.0     387.0   Isulu
             0.7           8.75      396.9     397.6
             0.5           14.60     402.3     402.8
             0.5           2.49      440.2     440.7
             2.8           17.40     573.4     576.2
             including:
             0.6           66.90     575.0     575.6
 LCD0317     0.7           2.53      245.9     246.6   Bushiangala
             4.7           1.74      260.3     265.0
             including:
             1.0           6.60      260.3     261.3
             0.5           1.11      273.0     273.5
             0.8           1.47      332.0     332.8
 LCD0318                   Results pending             Isulu
 LCD0319     1.9           3.60      190.0     191.9   Isulu
             0.5           25.40     222.1     222.6
             0.7           5.18      226.5     227.2
             1.0           1.10      232.0     233.0
             0.5           2.31      235.0     235.5
 LCD0320     0.7           41.90     249.6     250.3   Isulu
             2.0           14.40     355.5     357.5
             including:
             0.5           55.70     357.0     357.5
 LCD0321     7.4           20.70     598.6     606.0   Isulu
             including:
             0.7           184.00    599.3     600.0
 LCD0322     1.4           150.00    189.8     191.2   Isulu
             including:
             0.8           260.00    189.8     190.6
             3.5           8.41      287.1     290.6
             including:
             0.7           20.20     288.8     289.5

 

 

 

Ramula Regional Exploration Target

The Ramula target is located about 40km northwest of Kisumu City and 40km WSW
from the Isulu-Bushiangala deposit. It is the most advanced prospect in the
Barkalare camp. The prospect can be accessed by means of a tarmac road
connected to the Siaya-Luanda road.

 

The Ramula prospect lies primarily within a small dioritoid stock and its
contact zones. The stock has intruded a sequence of intermediate volcanic
rocks comprised of intermediate volcaniclastic (breccias and tuffs) and
volcanic rocks. Minor quartz feldspar porphyries are present. The elongate
dioritoid body is approximately 200 m by 400 m with a northwest-southeast
trending long axis. Mineralization at Ramula is hosted within a series of
stacked, shallow-dipping, thin quartz tension veins primarily hosted in the
strongly altered diorite and extending into the surrounding intermediate
volcanic units. Gold-bearing quartz veins are clustered in well-identifiable
zones, which have been modelled and now verified by the present infill
drilling. Based on the present results the contact area between the dioritoid
intrusion and intermediate volcanics contains bulk mining potential. The style
of mineralisation of the Ramula prospect closely resembles Sigma-Lamaque style
at the Val'd-Or Camp of the Abitibi Gold Belt, Canada.

 

Several drill programs have been completed in the prospect predominantly
between 2006 and 2012.

 

Ramula is open for extension to the southeast and downdip. The greater upside
is in viewing the prospect as part of the larger Ramula-Ochiegue-Miruka
mineralised system which has potential for new discoveries.

 

The ongoing diamond drilling campaign at Ramula is seeking to infill eight
modelled zones (RZ0, RZ1, RZ2, RZ3, RZ4, RZ5, RZ6 and RZ7). This drilling
program amounting to 2,243 m was completed in Q4 2021 and generated an average
spacing of approximately 40 m - 80 m to allow for estimation of the maiden
Inferred Resource.

 

Composited assay results shown below are those for 9 diamond drill holes,
received since the Company's most recent exploration update in November 2021,
The lengths shown are the down hole metres and it is estimated that the true
widths of the mineralized zones are approximately 70-80% of the widths
intersected in the drill holes. All assays are reported without application of
a top cut. Samples 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
 Undisclosed  8.1           1.17      0.0       8.1     Ramula
              including:
              0.6           7.96      0.0       0.6
              1.5           2.62      27.6      29.1
              4.4           1.27      42.6      47.0
              3.1           3.22      70.5      73.6
              0.5           9.83      78.7      79.2
              2.0           1.27      99.0      101.0
              8.3           3.08      103.6     111.9
              including:
              2.5           3.84      103.6     106.1
              including:
              3.5           4.40      108.4     111.9
              0.5           5.82      121.2     121.7
              0.7           1.56      139.9     140.6
 Undisclosed  1.5           2.17      6.7       8.2     Ramula
              0.5           6.31      89.0      89.5
              1.0           1.59      113.0     114.0
              1.0           1.81      120.0     121.0
 RMD0013      1.5           14.90     14.2      15.7    Ramula
              3.7           4.48      43.5      47.2
              including:
              1.1           11.40     44.6      45.7
              2.0           1.17      50.0      52.0
              2.0           2.14      69.0      71.0
              8.2           1.00      82.8      91.0
              0.5           5.29      109.5     110.0
              4.3           1.05      139.7     144.0
              10.7          3.44      164.3     175.0
              including:
              0.8           27.40     173.2     174.0
              4.0           2.03      181.0     185.0
              4.0           1.83      194.0     198.0
              0.5           2.24      214.5     215.0
              0.8           1.04      222.3     223.1
 Undisclosed  9.0           2.37      29.4      38.4    Ramula
              including:
              1.5           12.50     35.4      36.9
              4.8           23.40     48.0      52.8
              including:
              0.5           220.00    48.5      49.0
              1.0           2.65      57.3      58.3
              7.0           0.70      76.0      83.0
              including:
              0.5           2.24      82.5      83.0
              2.5           9.86      123.0     125.5
              8.0           4.12      131.0     139.0
              including:
              2.5           11.78     136.5     139.0
              0.5           7.69      153.8     154.3
              0.5           1.26      156.8     157.3
              9.3           6.35      163.0     172.3
              including:
              1.0           44.50     171.3     172.3
              1.0           2.39      188.0     189.0
              2.3           1.46      240.0     242.3
 RMD0015      3.0           1.24      87.0      90.0    Ramula
              1.7           2.21      93.0      94.7
              6.5           1.10      136.5     143.0
              including:
              0.5           5.30      140.0     140.5
 RMD0016      1.5           3.29      6.7       8.2     Ramula
              9.0           18.90     55.0      64.0
              including:
              0.6           240.00    62.8      63.4
              0.6           19.30     73.0      73.6
              1.0           1.42      91.0      92.0
              1.0           1.00      129.0     130.0
              8.0           3.35      144.0     152.0
              including:
              3.6           6.08      144.0     147.6
              0.5           1.78      167.8     168.3
              2.3           5.42      173.0     175.3
              0.6           1.79      180.7     181.3
              6.2           5.86      184.0     190.2
              including:
              1.6           15.10     187.0     188.6
 RMD0017      7.0           2.07      87.0      94.0    Ramula
              including:
              0.8           14.00     93.2      94.0
              1.0           1.23      101.0     102.0
              1.5           2.22      108.0     109.5
              0.5           1.40      126.0     126.5
              1.0           1.18      137.0     138.0
              3.4           1.74      140.6     144.0
              1.0           1.36      152.0     153.0
              1.0           3.66      158.0     159.0
              0.7           1.25      175.8     176.5
              7.0           0.67      201.0     208.0
              including:
              0.5           3.50      203.9     204.4
 RMD0018      4.0           13.90     41.0      45.0    Ramula
              including:
              0.9           56.20     43.6      44.5
              1.0           1.55      48.0      49.0
              0.5           1.66      74.0      74.5
              0.5           3.28      104.0     104.5
              1.2           3.16      112.0     113.2
              0.6           7.15      141.1     141.7
              1.0           3.14      161.0     162.0
              1.3           1.06      178.0     179.3
 Undisclosed  10.1          1.71      30.9      41.0    Ramula
              including:
              3.0           2.55      30.9      33.9
              1.0           4.01      84.7      85.7
              1.1           6.95      100.5     101.6
              3.0           4.17      174.0     177.0
              2.3           3.49      187.7     190.0

 

 

 

Regional Exploration Target (Anomaly 22)

Anomaly 22 is located in the vicinity of Ramula. It is the newest prospect in
the potential Ramula Mining Centre, that has recently been delineated based on
the geological, geophysical and geochemical data.

 

Anomaly 22 is primarily hosted within mafic volcanics, diorite, mafic and
intermediate porphyries. The target is delineated by a strong and continuous
(>1.5Km) NW-SE trending gold in soil anomaly coincident with pathfinder
elements Bi, Te, Mo. Anomaly 22 mineralization is on or near the contact of
the intermediate porphyry and diorite based on preliminary interpretation of
results for the first hole drilled at the target. The results also show that
the porphyry and diorite carry continuous anomalous gold values.

 

One hole was completed in Q4 2021 to a depth of 395 m and returned intercepts
with potential economic range mineralization. The drill hole results confirm
the presence of a large mineralized system as outlined by the gold (and
pathfinders) in soil anomaly footprint.

 

Assay results shown below are for the first and only hole drilled at the
target, the lengths shown are the down hole metres and it is estimated that
the true widths of the mineralized zones are approximately >80% of the
widths intersected in the drill holes. All assays are reported without
application of a top cut. Samples 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
 Undisclosed  4.5           0.73      96.6      101.1   Anomaly 22
              1.0           1.11      125.0     126.0
              1.0           2.09      134.0     135.0
              1.0           1.19      153.0     154.0
              4.0           0.66      180.0     184.0
              0.8           2.47      191.2     192.0
              1.0           2.13      211.9     212.9
              including:
              0.5           3.50      212.4     212.9
              7.9           2.45      216.0     223.9
              including:
              0.6           20.60     223.3     223.9
              1.0           2.92      267.0     268.0
              0.6           3.79      312.0     312.6

 

 

Results reported today represents new information received since the Company's
previous exploration update released 29 November 2021.

 

 

 

 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 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 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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