REG - Shanta Gold Limited - West Kenya Drilling Update

Shanta GoldAnnouncement

23/05/2022 07:00

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RNS Number : 3976M  Shanta Gold Limited  23 May 2022

23 May 2022

Shanta Gold Limited

("Shanta Gold" or the "Company")

 

West Kenya Drilling Programme Identifies Exceptional High-Grade Areas

 

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:

"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. With visible gold at three of the five holes reported today, and one
showcasing grades of 46.7 g/t across a width of 14 metres at less than 150
metres vertical depth, these results are indicative of the vast potential with
spectacular grades that West Kenya offers in the Shanta Gold growth story.

The primary focus during the 2021 drilling campaign was to upgrade the
high-grade Mineral Resource at Isulu and Bushiangala, and I am pleased to
report that we succeeded in achieving this, converting 348,000 oz grading 11.7
g/t to Indicated Resources earlier this year. The programme is at the second
phase that targets all the zones to approximately 550 metres below surface and
we expect to further increase the Indicated Resources in 2022 across the West
Kenya project while expanding the total Mineral Resource size.

Having just started work on the feasibility study workstream earlier this
month, 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."

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;

·    This update relates to 2,286 metres ("m") of drilling across 5 holes
conducted in Q1 2022 at the Isulu and Bushiangala deposits;

·    Drilling intersection highlights include:

 Hole No.   Interval (m)  Au (g/t)  From (m)  To (m)
 Bushiangala deposit
 336        13.8          46.7      143.0     156.8
    Incl    0.5           1,015.3   149.2     149.7
    Incl    4.0           19.2      151.3     155.3
 334        6.0           8.6       39.6      45.6
 334        4.5           10.3      99.6      104.1
 334        4.5           6.6       112.0     116.5

 Isulu deposit
 327        1.6           11.7      624.9     626.5
    incl    0.5           35.9      625.4     625.9
 328        3.9           7.1       545.2     549.1
 329        10.8          4.8       590.2     601.0
    incl    1.0           24.3      600.0     601.0

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

·    Visible gold was identified in 3 intersections across 5 holes
drilled. Visible gold, including spectacular occurrences, has been identified
in 38 intersections across 107 holes drilled to date;

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

Isulu and Bushiangala Drilling Campaign

This infill drilling is aimed at verifying the extent and geometry of the
known mineralised zones developed for the current resource model. Shanta has
now completed 51% of total planned drilling at West Kenya as at the end of
April 2022. 40% 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 20 modelled zones at Isulu and 23 modelled zones at Bushiangala. 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 450-550 m
from surface. Following the completion of 2021 drilling the Isulu and
Bushiangala modelled zones were updated, and an updated mineral resource
estimate was announced in March 2022.

 

Assay results shown below are those for 5 diamond drill holes, received since
the Company's most recent exploration update in March 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 5 drill
holes are tabulated below. Samples were analysed at an accredited laboratory
operated by MSALABS, an independent third party:

 

 Drill Hole  Interval (m)  Au (g/t)  From (m)  To (m)  Prospect
 LCD0327     1.6           11.71     624.9     626.5   Isulu
             including:
             0.5           35.91     625.4     625.9
             2.3           1.15      631.7     634.0
 LCD0328     1.0           1.47      364.3     365.3   Isulu
             4.1           0.47      479.7     483.8
             including:
             0.9           1.17      482.9     483.8
             1.7           2.50      493.7     495.4
             3.9           7.06      545.2     549.1
             including:
             1.0           14.21     545.2     546.2
             0.6           2.19      566.0     566.6
 LCD0329     0.5           1.10      178.9     179.4   Isulu
             0.5           8.00      385.7     386.2
             0.5           16.36     391.0     391.5
             1.7           5.59      449.2     450.9
             10.8          4.76      590.2     601.0
             including:
             1.1           10.20     598.0     599.1
             including:
             1.0           24.30     600.0     601.0
 LCD0334     6.0           8.56      39.6      45.6    Bushiangala
             including:
             1.5           25.69     44.1      45.6
             4.5           0.87      89.1      93.6
             4.5           10.28     99.6      104.1
             including:
             1.5           26.16     102.6     104.1
             4.5           6.63      112.0     116.5
             including:
             1.5           11.30     113.0     114.5
             1.0           1.05      120.0     121.0
 LCD0336     1.5           1.54      0.7       2.2     Bushiangala
             1.5           5.29      51.7      53.2
             1.5           1.92      62.2      63.7
             13.8          46.69     143.0     156.8
             including:
             0.5           1015.30   149.2     149.7
             including:
             4.0           19.21     151.3     155.3

 

 

Results reported today represents new information received since the Company's
previous exploration update released 28 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 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").

 

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 645 koz grading 3.0 g/t, and exploration licences covering
approximately 1,100 km2 in the country. Alongside New Luika and Singida,
Shanta also owns the high-grade West Kenya Project in Kenya and licences with
resources of 1.6 million ounces including 378 koz in the Indicated category
grading 11.70 g/t. 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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