REG - Shanta Gold Limited - West Kenya Phase 2 and Regional Drilling Results

Shanta GoldAnnouncement

29/11/2021 07:00

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RNS Number : 8025T  Shanta Gold Limited  29 November 2021

29 November 2021

Shanta Gold Limited

("Shanta Gold" or the "Company")

 

West Kenya High Grade Phase 2

and 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:

·    Consistently strong results from the Phase 2 drilling programme
reinforces Shanta's confidence in the asset and further builds on the
business' exploration success across its entire portfolio throughout 2021;

·    This update relates to 6,803 metres ("m") of drilling across 25 holes
conducted in Q3 and Q4 2021 at the Isulu and Bushiangala deposits ("the
Deposits");

·    Drilling intersection highlights include:

 Hole No.        Interval (m)  Au (g/t)  From (m)  To (m)
 Bushiangala deposit
 312             6.4           47.3      224.4     230.8
    Including    0.5           114.0     224.4     224.9
 286             9.4           3.66      167.0     176.4
    Including    4.0           6.48      172.4     176.4
 297             5.0           3.88      228.0     233.0
    Including    0.5           20.0      228.9     229.4
 288             5.8           6.88      182.6     188.4
 290             0.9           9.11      108.2     109.1
 Isulu deposit
 307             2.4           31.4      192.6     195.0
 307             0.6           27.6      222.2     222.8
 301             4.0           6.74      366.0     370.0
    Including    0.5           24.4      368.7     369.2
 287             1.2           7.66      363.0     364.2
 291             0.8           22.6      367.4     367.2

                   Note: true width estimated at 60-70% of
the intercept core length

·    Regional exploration drilling commenced during Q4 at a third drilling
site - the historical Ramula target - where assays have been received from the
first of 12 holes drilled, as part of the resource drill-out programme,
totalling 451 m with highly encouraging results;

o  5 separate occurrences of visible gold in drill hole RMD0010

o  Potential bulk zone of 60.8 m @ 3.75 g/t from 155.8 m, including the below
distinctly identifiable results:

§ 7.2 m @ 8.31 g/t from 155.8 to 163.0 m

§ 1.2 m @ 41.5 g/t from 157.0 to 158.2m

§ 0.5 m @ 19.2 g/t from 175.2 to 175.7 m

§ 15.6 m @ 9.37 g/t from 187.9 to 203.5 m

·    At the Isulu and Bushiangala deposits:

o  Visible gold was identified in 7 intersections across 25 holes drilled.
Year to date, visible gold has been identified in 30 intersections across 93
holes drilled;

o  Intersections reported today include the second set of results received
from Phase 2 of the ongoing drilling campaign, which is targeting up to 450
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 mid Q1 2022.

 

Eric Zurrin, Chief Executive Officer, commented:

"This is the most consistently high-grade drilling programme we've ever
conducted at any asset in Shanta's history. This announcement, which confirms
another set of high-grade drilling results at our West Kenya Project across
the Bushiangala and Isulu deposits, gives us significant confidence in the
wider prospectivity in our vast licence area. Both of these deposits have
proven to be high-grade ore bodies and today's results - with a hit of 6.4 m
grading 47.3 g/t at Bushiangala - reaffirm our excitement at the potential of
West Kenya to transform Shanta to a mid-tier gold producer.

Regional exploration drilling also commenced at the third target area, Ramula,
with visible gold identified in 5 occurrences in the first hole, and further
encouraging results reported including the potential for a bulk zone following
an intersection of 60.8 m grading 3.75 g/t - signalling the potential for even
more high quality discoveries across the broader licence area.

As we continue to progress our exploration drilling programme at West Kenya,
our ambition is to increase the resource conversion rate and ultimately the
total resource estimates, further strengthening our future development
portfolio.

We will complete 35-40% of total planned drilling of 84,000m at West Kenya by
the end of this year and look forward to providing a resource update in early
2022."

 

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 is on
track to complete approximately 35-40% of total planned drilling at West Kenya
by the end of 2021. 65% of total planned drilling for 2021 and 25% of total
planned drilling over three phases has now been reported. Three drill rigs are
currently active at the Isulu and Bushiangala deposits in West Kenya.

 

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 25 diamond drill holes, received since
the Company's most recent exploration update in September 2021. To date this
takes the total number of holes with assays returned to ninety-three, 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. Assay results for these 25 drill holes are
tabulated below. Assays 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
 LCD0285     11.9          1.10      186.0     197.9   Bushiangala
             including:
             1.9           4.02      192.1     194.0
 LCD0286     9.4           3.66      167.0     176.4   Bushiangala
             including:
             4             6.48      172.4     176.4
 LCD0287     1.2           7.66      363.0     364.2   Isulu
             1             1.38      367.0     368.0
 LCD0288     1             3.68      140.7     141.7   Bushiangala
             5.8           6.88      182.6     188.4
 LCD0289     5             3.90      211.4     216.4   Bushiangala
 LCD0290     0.9           9.11      108.2     109.1   Bushiangala
             1             3.27      291.6     292.6
 LCD0291     1.9           3.02      275.1     277.0   Isulu
             0.8           22.60     367.4     367.4
 LCD0293     1.5           2.16      117.7     119.2   Isulu
             1             1.36      130.0     131.0
             1             2.52      323.0     324.0
             1             3.55      327.8     328.8
 LCD0294     1             0.58      99.0      100.0   Bushiangala
 LCD0295     2.1           2.53      71.0      73.1    Bushiangala
             1             1.53      82.7      83.7
 LCD0296     1.5           3.78      65.2      66.7    Bushiangala
             4             1.74      71.0      75.0
             including:
             2             2.92      72.0      74.0
 LCD0297     5             3.38      228.0     233.0   Bushiangala
             including:
             0.5           20.00     228.9     229.4
             0.7           3.72      238.0     238.7
             0.5           2.02      242.0     242.5
             0.5           1.43      244.6     245.1
 LCD0298     2.7           1.41      353.8     356.5   Isulu
 LCD0299     1             1.88      240.0     241.0   Bushiangala
             6.6           3.14      245.4     252.0
             including:
             4             4.90      248.0     252.0
             0.5           1.77      336.0     336.5
 LCD0300     1.5           4.02      29.3      30.8    Bushiangala
             7             1.01      277.0     284.0
             including:
             1             4.32      277.0     278.0
 LCD0301     1             1.09      257.0     258.0   Isulu
             4             6.74      366.0     370.0
             including:
             0.5           24.40     368.7     369.2
 LCD0302     5             1.43      276.0     281.0   Bushiangala
 LCD0304     1             2.30      260.0     261.0   Isulu
             3             2.39      378.0     381.0
             1             3.92      388.2     389.2
 LCD0306     2.7           4.78      267.7     270.4   Bushiangala
 LCD0307     2.4           31.40     192.6     195.0   Isulu
             including:
             0.6           122.00    193.1     193.7
             0.6           27.60     222.2     222.8
             3.1           1.70      327.6     330.7
             including:
             0.5           9.23      330.2     330.7
 LCD0308     1             0.82      280.0     281.0   Bushiangala
 LCD0309     2.7           0.94      99.3      102.0   Bushiangala
 LCD0310     1.5           5.49      12.8      14.3    Bushiangala
             1.5           3.97      53.3      54.8
 LCD0311     1             1.77      105.5     106.5   Bushiangala
 LCD0312     1             7.22      183.0     184.0   Bushiangala
             6.4           47.30     224.4     230.8
             including:
             0.5           114.00    224.4     224.9
             3.1           0.68      288.2     291.3

 

 

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, thin, northwest dipping 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-Dhene
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 amounts to 2,450 m of planned drilling and is due to be completed in
Q4 2022. This drilling program is expected to generate an average spacing of
approximately 40 m - 80 m to allow for estimation of the maiden Inferred
Resource.

 

Assay results tabulated below is for first drill hole, 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. Assays
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
 RMD0010     9             1.37      8.0       17.0    Ramula
             1.5           4.74      28.5      30.0
             1             3.23      54.0      55.0
             2.1           1.57      108.6     110.7
             2.9           1.37      133.7     136.6
             2             1.13      150.0     152.0
             60.8          3.75      155.8     216.6
             including:
             7.2           8.31      155.8     163.0
             including:
             15.6          9.37      187.9     203.5
             including:
             7.6           1.04      209.0     216.6
             1.2           2.07      235.7     236.9
             1             1.33      253.0     254.0
             2             1.33      257.0     259.0
             7             1.08      297.0     304.0
             3             1.89      320.0     323.0
             12.7          1.46      329.9     342.6
             including:
             1.5           5.12      341.1     342.6
             1             5.44      352.7     353.7
             6             1.99      411.0     417.0
             including:
             1             10.20     413.0     414.0
             0.7           3.04      420.4     421.1
             7.8           2.86      431.0     438.8
             including:
             0.8           13.90     438.0     438.8
             0.8           2.36      449.8     450.6

 

 

Results reported today represents new information received since the Company's
previous exploration update released 6 September 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                                    +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 3.0 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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