REG - Shanta Gold Limited - West Kenya Drilling Update

Shanta GoldAnnouncement

02/11/2023 07:00

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RNS Number : 1100S  Shanta Gold Limited  02 November 2023

2 November 2023

Shanta Gold Limited

("Shanta Gold", "Group" or the "Company")

 

West Kenya Drilling Update
 

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" or the "Project") in Kenya.

 

Eric Zurrin, Chief Executive Officer, commented:

"I am delighted to announce an update on drilling at our West Kenya project,
the first update since drilling recommenced in May this year.

"This update follows on from the success announced last year at West Kenya,
where we upgraded resources at Isulu and Bushiangala to 1.29 Moz grading 10.60
g/t Au, of which 721,900 ounces grading 11.45 g/t Au was upgraded to Indicated
category. Meanwhile at Ramula, we upgraded resources of 469,800 ounces ("oz")
grading 2.41 g/t Au, including 416,700 ounces grading 2.43 g/t.

"The 4,421 meters of assays reported today following our recent exploration
campaign have so far identified visible gold in five intersections from nine
holes drilled at Isulu and Bushiangala, as well as at the six holes drilled at
Ramula, as the team aims to convert Inferred resources to Indicated.

"We continue to believe that the drilling results delivered at West Kenya
demonstrate that this project has the potential to become one of Africa's next
quality, high-grade gold mines, and we look forward to updating shareholders
on this exciting project in due course."

 

Highlights:

·    2023 drilling programmes re-commenced in May 2023 with the primary
aim of converting Inferred resources to Indicated resources at the
Isulu-Bushiangala and Ramula deposits. In addition, sterilization drilling was
conducted around Ramula as well as testing of the most prospective
early-mid-stage targets around Ramula potential mining centre;

·    This update relates to 4,421 metres ("m") of drilling from 12 diamond
holes conducted in Q2 2023 at the Isulu and Bushiangala deposit, and 717
metres ("m") of drilling from 6 diamond holes at Ramula.

·    Drilling intersection highlights include:

 

 Hole No.  Interval (m)  Au (g/t)  From (m)  To (m)
 Isulu deposit
 LCD0393   3.7           27.93     412.0     415.7
 incl.     0.8           107.00    413.2     414.0
 LCD0395   0.5           89.68     365.3     365.8
 LCD0398   0.5           20.95     244.5     245.0
 Bushiangala deposit
 LCD0403   0.6           13.17     159.3     159.9
 Ramula deposit
 RMD0058   8.9           5.62      35.1      44.0
 incl.     0.6           71.07     35.7      36.3
           2.6           9.81      94.4      97.0
 incl.     1.0           24.33     96.0      97.0
 RMD0060   0.6           20.27     140.9     141.5
 RMD0061   2.2           10.72     0.0       2.2
 RMD0065   1.5           9.41      23.3      24.8

Note: true width estimated at 60-70% (Isulu-Bushiangala) and 70-95% (Ramula)
of the intercept core length and gold values uncapped

 

o  Sterilization drilling around Ramula successfully sterilized the area for
the potential infrastructure placement, a total of 3,717 metres ("m") of
drilling from 12 diamond holes was completed.

 

Isulu and Bushiangala Drilling Campaign

 

This infill drilling is aimed at converting the Inferred resources to
Indicated. Shanta has now completed 45% of total planned 2023 drilling at
Isulu and Bushiangala.

 

Gold mineralisation at the Isulu and Bushiangala deposit 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, and 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
mineralised zones vary between 100 m and 600 m.

 

Infill drilling at Isulu and Bushiangala, commenced in 2021 and sought to
infill the existing modelled zones. 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
550 m from surface, and targeted both oxides and sulphides within these zones.
As at the end of 2022 a total of 50,876 m had been completed, the Isulu and
Bushiangala modelled zones updated, and an updated mineral resource estimate
(of 1.29 Moz grading 10.60 g/t Au at Isulu and Bushiangala, of which 721,900
ounces grading 11.45 g/t Au was upgraded to Indicated category) was announced
in January 2023.

 

Assay results shown below are for 12 diamond drill holes, received since the
Company's most recent exploration update on 22 May 2023. 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. Samples
were analysed at an accredited laboratory operated by MSALABS (Vancouver,
Canada), an independent third party:

 

 Drill Hole  Interval (m)  Au (g/t)  From (m)  To (m)   Prospect
 LCD0392     2.0           2.03      405.4     407.4    Isulu
 LCD0393     0.5           3.42      355.6     356.1    Isulu
             9.1           0.99      379.6     388.7
             including:
             1.0           4.67      380.8     381.8
             3.7           27.9      412       415.7
             including:
             0.8           107       413.2     414
             0.8           0.66      420.2     421
 LCD0394     0.7           3.7       387.3     388      Isulu
             0.9           1.14      445.7     446.6
 LCD0395     0.5           89.7      365.3     365.8    Isulu
 LCD0396     No significant intercepts                  Isulu
 LCD0397     1.0           1.23      167.1     168.1    Isulu
             3.0           1.54      374.4     377.4
             0.6           2.95      500.6     501.2
 LCD0398     1.0           2.01      238       239      Isulu
             0.5           21.0      244.5     245
 LCD0399     No significant intercepts                  Isulu
 LCD0400     0.8           4.07      323.7     324.5    Isulu
             0.6           5.01      515.6     516.2
 LCD0401     Pending from lab                           Bushiangala
 LCD0402     0.8           2.77      149.7     150.5    Bushiangala
 LCD0403     1.2           4.65      128.3     129.5    Bushiangala
             0.6           2.23      139.8     140.4
 LCD0404     5.9           3.56      123.6     129.5    Bushiangala
             6.8           1.83      155.8     162.6
             0.6           13.2      159.3     159.9

 

 

Ramula Deposit

 

The Ramula deposit 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
extrusive rocks. The deposit is situated less than 1 km from the
district-scale fault and unconformity with the polymictic 'Timiskaming-style'
conglomerates.  Minor quartz feldspar porphyries are present. The elongate
dioritoid body is approximately 300 m by 500 m with a northwest- southeast
trending long axis. Mineralisation at Ramula is hosted within a series of
stacked, shallow-dipping, thin quartz tension veins primarily hosted in the
strongly altered dioritoid 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 2022 infill drilling.
Lower-grade gold mineralisation also occurs between the veins.  The style of
mineralisation of the Ramula deposit resembles Sigma-Lamaque style at the
Val'd-Or Camp of the Abitibi Gold Belt, Canada, where recent systematic
exploration resulted in discovery of several proximal gold deposits within the
camp, which was previously considered as overmatured.

 

The 2023 drilling programme at the Ramula deposit was aimed at upgrading
ounces from the Inferred Mineral Resource Estimate into the Indicated Resource
category within the pit shell used to constrain the current resource. Average
drill intersection spacing is 40 m. Following the completion of 2022 drilling,
the Ramula modelled zones were updated, and the updated mineral resource
estimate (469,800 ounces grading 2.41 g/t, using a cut-off grade of 0.7g/t Au
and constrained within US $2,000 pit shell) was announced in February 2023.

 

Previous infill drilling verified the extent and geometry of the mineralised
zones developed for the current resource model. Ramula mineralisation is open
for extension to the northwest and southeast and Shanta's recent drilling to
600 m depth confirms mineralisation is open at depth, hence potential for
underground mineable resources exists.

 

Composited assay results shown below are for 6 diamond drill holes received
since the Company's most recent exploration update on 22 May 2023. The lengths
shown are the down hole metres and it is estimated that the true widths of the
mineralised zones are approximately 70-95% 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 MSALABS (Vancouver,
Canada) an independent third party:

 

 Drill Hole  Interval (m)  Au (g/t)  From (m)  To (m)  Prospect
 RMD0058     1.5           4.00      20.3      21.8    Ramula
             8.9           5.62      35.1      44.0
             including:
             0.6           71.1      35.7      36.3
             0.5           28.1      61.6      62.1
             0.6           2.96      66.8      67.4
             5.5           1.30      79.6      85.1
             2.6           9.81      94.4      97.0
             including:
             1.0           24.3      96.0      97.0
 RMD0060     1.5           3.18      3.8       5.3     Ramula
             1.5           1.87      12.8      14.3
             0.7           3.18      51.0      51.7
             0.6           20.3      140.9     141.5
             0.6           2.03      148.8     149.4
 RMD0061     2.2           10.7      0.0       2.2     Ramula
             1.5           1.34      11.2      12.7
             1.4           3.53      111.7     113.1
 RMD0062     Pending from lab                          Ramula
 RMD0064     1.5           4.75      15.8      17.3    Ramula
             1.5           4.02      23.3      24.8
             6.8           1.58      71.6      78.4
             including:
             0.5           18.5      77.9      78.4
             4.0           1.16      85.0      89.0
             0.8           4.53      96.0      96.8
             1.1           1.46      102.0     103.1
 RMD0065     1.5           2.48      3.8       5.3     Ramula
             4.5           1.13      9.8       14.3
             1.5           9.41      23.3      24.8
             1.0           1.99      69.0      70.0
             3.8           1.94      101.0     104.8
             including:
             0.5           8.41      104.3     104.8
 RMD0066     1.5           1.26      9.8       11.3    Ramula

 

Results reported today represent new information received since the Company's
previous exploration update released on 22 May 2023.

 

 

 Shanta Gold Limited
 Eric Zurrin (CEO)                                  +44 (0) 14 8172 6034
 Michal Devine (CFO)
 Nominated Adviser and Broker
 Liberum Capital Limited
 Scott Mathieson / Kane Collings / Nikhil Varghese  +44 (0) 20 3100 2000
 Public Relations
 FTI Consulting
 Sara Powell / Nick Hennis / Lucy Wigney            +44 (0) 20 3727 1426

 

 

Competent Person Statement

 

The technical information contained in this announcement was reviewed by 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 625 koz grading 2.91 g/t Au, and exploration licences covering
approximately 800 km2 in the country. Alongside New Luika and Singida, Shanta
also owns the West Kenya Project in Kenya and licences with resources of 1.7
million ounces including 722 koz in the Indicated category grading 11.45 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 1,051 million shares in issue.

 

END

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