REG - Shanta Gold Limited - West Kenya Drilling Update
16/04/2024 07:00
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RNS Number : 6999K Shanta Gold Limited 16 April 2024
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union Withdrawal Act 2018 ("MAR"), and is disclosed
in accordance with the Company's obligations under Article 17 of MAR
16 April 2024
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:
"Today we announce a series of encouraging drilling results at West Kenya
related to our exploration programme for the periods Q4 2023 and Q1 2024.
At Ramula, the 2,911 metres of assays reported today should allow us to
convert Inferred resources to Indicated category resources. Results from the
1,886 metres of assays at our early-mid-stage targets at both Miruka and
Anomaly 22 have demonstrated economic range mineralisation, confirming the
continuity of the mineralisation."
Highlights:
· The drilling programmes commenced in 2023 and continued through the
first quarter of 2024 with the primary aim of converting Inferred resources to
Indicated category resources at the Ramula deposit.
· A mineral resource estimate update for Ramula is scheduled by end of
Q2 2024.
· The programme also included the testing of the most prospective
early-mid-stage targets around the Ramula camp, including Miruka and Anomaly
22. These updates relate to 2,911 metres ("m") of drilling from 24 diamond
holes conducted in Q4 2023 and Q1 2024 at the Ramula deposit, 1,045 m of
drilling from 4 diamond holes at Miruka and 841 m of drilling from 2 diamond
holes at Anomaly 22.
· Results from these holes at Miruka returned intercepts with economic
range mineralisation, confirming continuity of the mineralisation to +120 m
depth and +150 m lateral extent. The mineralisation is open both at depth and
along strike.
· Results from these holes at Anomaly 22 returned intercepts with
economic range mineralisation, confirming the continuity of the mineralisation
that still is open both at depth and along strike.
· Sterilisation drilling around Ramula covering the area for the
potential infrastructure placement continued in the first quarter of 2024,
with a total of 1,443 m of drilling from 6 diamond holes having been
completed.
· Drilling intersection highlights include:
Hole No. Interval (m) Au (g/t) From (m) To (m)
Ramula deposit
RMD0062 2.1 9.26 0.0 2.1
RMD0068 1.0 202.45 188.6 189.6
incl. 0.5 404.10 188.6 189.1
RMD0074 4.5 4.44 21.6 26.1
incl. 1.5 9.77 23.1 24.6
RMD0081 3.0 5.04 24.7 27.7
RMD0101 1.5 5.89 26.1 27.6
1.8 6.66 101.9 103.7
Miruka
RMD0082 7.8 2.38 95.2 103.0
RMD0090 8.0 2.30 237.0 245.0
RMD0094 7.2 4.33 159.0 166.2
Anomaly 22
RMD23B 12.6 1.26 All intervals are between 30-125 meters in depth
RMD23B 17.3 1.43
incl. 5.5 2.69
RMD25B 24.6 2.18
incl. 6.2 4.60
incl. 5.6 2.50
Note: true width estimated at 70-95% (Ramula) and 70-80% (Miruka and Anomaly
22) of the intercept core length and gold values uncapped
Ramula Camp Drilling Campaign
The Ramula target is located about 40 km northwest of Kisumu City and 40 km
west-southwest from the Isulu-Bushiangala deposit. It is the most advanced
prospect in the Ramula region. Ramula Camp currently includes 3 high priority
targets including Ramula, Miruka and Anomaly 22, located less than 5 km from
Ramula.
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 drilling programme that commenced in 2023 and continued in the first
quarter of 2024 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 for the recently completed program is 30-40 m. A mineral
resource estimate update is scheduled for Q2 2024. 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 the potential for
underground mineable resources exists.
The composited assay results shown below are for 24 diamond drill holes
received since the Company's most recent exploration update on 2 November
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
RMD0062 2.1 9.26 0.0 2.1 Ramula
1.5 2.14 15.6 17.1
1.5 2.13 30.6 32.1
1.6 3.43 44.1 45.7
0.8 4.62 77.6 78.4
0.7 2.27 99.8 100.5
RMD0067 No Significant Intercepts Ramula
RMD0068 3.3 3.45 170.2 173.5 Ramula
including:
0.6 16.0 170.2 170.8
1.0 202.5 188.6 189.6
including:
0.5 404.1 188.6 189.1
RMD0069 1.0 0.5 96.0 97.0 Ramula
RMD0071 Assays Pending Ramula
RMD0072 5.9 2.7 80.3 86.2 Ramula
including:
1.2 9.38 80.3 81.5
RMD0073 0.5 1.04 74.0 74.5 Ramula
RMD0074 4.5 4.44 21.6 26.1 Ramula
including:
1.5 9.77 23.1 24.6
1.5 4.18 48.6 50.1
RMD0075 10.5 1.09 12.9 23.4 Ramula
including:
3.0 1.74 12.9 15.9
0.8 2.50 105.2 106.0
RMD0076 Assays Pending Ramula
RMD0077 No Significant Intercepts Ramula
RMD0079 1.5 3.19 12.8 14.3 Ramula
3.0 2.71 46.0 49.0
1.0 2.05 57.0 58.0
RMD0080 3.0 2.13 21.8 24.8 Ramula
RMD0081 3.0 5.04 24.7 27.7 Ramula
RMD0083 1.5 1.81 17.1 18.6 Ramula
4.5 1.37 23.1 27.6
RMD0084X 1.5 1.81 12.7 14.2 Ramula
1.5 2.46 24.7 26.2
RMD0084 1.5 2.23 24.8 26.3 Ramula
1.6 2.07 104.5 106.1
RMD0086 0.8 1.30 27.3 28.1 Ramula
1.0 1.08 59.0 60.0
RMD0088 1.5 1.20 6.6 8.1 Ramula
RMD0091 0.5 0.72 71.0 71.5 Ramula
RMD0093 0.8 2.20 0.0 0.8 Ramula
3.0 0.64 5.3 8.3
RMD0095 0.7 3.93 112.8 113.5 Ramula
RMD0097 0.5 1.40 258.7 259.2 Ramula
RMD0101 1.5 5.89 26.1 27.6 Ramula
1.0 1.19 86.8 87.8
1.8 6.66 101.9 103.7
RMD0105 No Significant Intercepts Ramula
RMD0107 No Significant Intercepts Ramula
RMD0108 1.2 1.97 45.8 47.0 Ramula
0.6 1.15 97.8 98.4
Note: true width estimated at 70-95% of the intercept core length and gold
values uncapped
Miruka
The Miruka target is located 2 km from the Ramula deposit. It is one of the
high priority targets in the Ramula region, that had previously been
delineated by geochemical, geophysical and geological data and this data was
recently reassessed. RC drill intercepts from a 2017 drill program confirmed
potential for economic mineralisation with better intercepts of 4m @ 5.43 g/t
Au and 6m @ 2.20 g/t Au, both at shallow depths returned from two holes. A
drilling program aimed at testing continuity and the grades of the mapped
mineralised structure, confirmed by the 2017 RC intercepts was completed in
2022 with better intercepts of 5.7m @ 4.23 g/t Au, 9m @ 4.65 g/t Au and 9.2m @
4.35 g/t Au.
Miruka's geology is comprised of volcanics of intermediate composition,
intruded by intermediate and felsic porphyries and diorite. The main target is
defined by an east-west trending gold in soil (>50ppb Au) anomaly,
extending over 600 m strike length, coincident with a shear structure mapped
on surface. The main mineralisation zone is hosted in a fractured
sericite-carbonate altered intermediate volcanic rock/porphyry with the gold
found in the fractured quartz-carbonate veinlets or associated with pyrite.
The Miruka system extends over 2 km and is situated less than 1 km from the
district-scale fault and shows unconformity with the polymictic
'Timiskaming-style' conglomerates.
The drilling program was aimed at testing continuity and infilling the
mineralised zone, confirmed by the 2022 DD intercepts to be able to report a
maiden classified mineral resource estimate. A total of 11 diamond holes were
drilled in Q4 2023 and Q1 2024. Results from these holes returned intercepts
with economic range mineralisation, confirming continuity of the
mineralisation to +120m depth and +150m lateral extent. The mineralisation is
open both at depth and along strike.
The composited assay results shown below are for 4 out of the 11 diamond holes
drilled at the target in 2023 - 2024. The lengths shown are the down hole
metres and it is estimated that the true widths of the mineralised zones are
approximately 70-80% of the widths intersected in the drill holes. All assays
are reported without application of a top cut. Composited assay results for
these 4 drill holes are tabulated below. 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
RMD0078 2.1 1.08 222.0 224.1 Miruka
2.2 1.95 302.9 305.1
RMD0082 1.6 1.97 90.2 91.8 Miruka
7.8 2.38 95.2 103.0
RMD0090 8.0 2.30 237.0 245.0 Miruka
3.8 3.77 237.0 240.8
RMD0094 7.2 4.33 159.0 166.2 Miruka
Note: true width estimated at 70-80% of the intercept core length and gold
values uncapped
Anomaly 22
Anomaly 22 is located in the vicinity of Ramula. It is the most recently
identified prospect in the potential Ramula Mining Camp and was delineated
based on geological, geophysical and geochemical data.
Anomaly 22 is primarily hosted within intermediate volcanics, diorite, felsic
and intermediate porphyries and cherty sediments. An ultramafic unit has been
identified in a recently drilled diamond hole. The target is delineated by a
strong and continuous (>1.5 km) gold in soil anomaly coincident with
pathfinder elements Bi (Bismuth), Te (Tellurium) and Mo (Molybdenum). Anomaly
22 mineralisation is developed on or near the contact of the intermediate
porphyry and diorite based on interpretation of results for the holes drilled
at the target to date. The results also show that the porphyry and diorite
carry continuous anomalous gold values.
The first hole was completed in Q4 2021, and two more holes were completed in
Q3 2022. Results from these holes returned intercepts with economic range
mineralisation, confirming the presence of a large mineralised system as
outlined by the gold (and pathfinders) in soil anomaly footprint.
The 2023 - 2024 drilling program was aimed at testing continuity and infilling
the mineralised zones, confirmed by the 2021 - 2022 DD intercepts. A total of
5 diamond holes were drilled in Q4 2023 and Q1 2024. Results from these holes
returned intercepts with economic range mineralisation, confirming continuity
of the mineralisation that still is open, both at depth and along strike.
The composited assay results shown below are for 2 out of the 5 diamond holes
drilled at the target in 2023 - 2024. The lengths shown are the down hole
metres and it is estimated that the true widths of the mineralised 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 MSALABS in Canada, an independent third
party:
Drill Hole Interval (m) Au (g/t) From (m) To (m) Prospect
RMD23B 12.6 1.26 All intersections are between 30-125 meters in depth Anomaly 22
6.6 1.37
including:
2.8 2.19
17.3 1.43
including:
5.5 2.69
3 1.42
17 0.95
including:
1.5 2.37
including:
2 2.41
RMD25B 24.6 2.18 Anomaly 22
including:
6.2 4.6
including:
5.6 2.5
including:
3.5 2.91
4 2.85
including:
0.9 11.63
Note: true width estimated at 70-80% of the intercept core length and gold
values uncapped
Enquiries:
Shanta Gold Limited
Eric Zurrin (CEO) +44 (0) 14 8172 6034
Michal Devine (CFO)
Nominated Adviser and Broker
Liberum Capital Limited
Scott Mathieson / 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 500 koz grading 2.78 g/t Au, and exploration licences covering
approximately 600 km(2) 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 1.1 million ounces in the Indicated category
grading 4.86 g/t Au. With a strong balance sheet, a growing diversified
portfolio and dividends paid since 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
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
"DD" Diamond drilling, also known as core drilling, is a method used in mineral
exploration to extract cylindrical rock core samples from the earth. It
involves drilling a borehole into the ground using a diamond-tipped drill bit,
which has the ability to cut through hard rocks.
"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
"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
Reverse circulation (RC) drilling is a method used in mineral exploration and
mining to obtain samples from the subsurface.
"RC"
"t" tonne (= 1 million grammes)
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