REG - Shanta Gold Limited - West Kenya Phase 2 High Grade Drilling Update
07/11/2022 07:00
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RNS Number : 5038F Shanta Gold Limited 07 November 2022
7 November 2022
Shanta Gold Limited
("Shanta Gold" or the "Company")
West Kenya Phase 2 High Grade 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") in Kenya.
Website link to the slides covering today's announcement:
https://www.shantagold.com/investors/presentations/
(https://www.shantagold.com/investors/presentations/)
Eric Zurrin, Chief Executive Officer, commented:
"The recent drilling results from West Kenya continue to confirm the
high-grade nature of this deposit, with visible gold identified across several
of the intersections.
We expect to provide a resource update before the year end at the Isulu and
Bushiangala deposits, whilst we should also provide a mineral resource update
for Ramula in January. With these announcements in the coming months,
shareholders can expect to see a significant conversion of the Inferred
resources to Indicated ounces, further de-risking the Mineral Resource
Estimate and demonstrating the intrinsic value of the West Kenya Project.
We remain extremely excited about the potential of the West Kenya Project,
with its exceptionally high-grade resource marking it out from other gold
global exploration projects. As the team finish 2022 by building out the
resource and further de-risking the Project, we are confident that the market
will start to realise the true value that West Kenya brings to the Shanta
portfolio."
Highlights:
· Phase 2 drilling programme aimed at conversion of the Inferred
resources to Indicated at Isulu-Bushiangala and at Ramula;
· Drilling has also now expanded to district targets at:
o Kimingini within the Liranda camp, and
o Proximal targets - Dhene and Miruka - within the Ramula camp where there a
total of 7 high priority targets exist;
· The first part of this update relates to 6,869 metres ("m") of
drilling from across 17 diamond holes conducted in Q2 and Q3 2022 at the Isulu
and Bushiangala deposits and Kimingini target;
· Drilling intersection highlights include:
Hole No. Interval (m) Au (g/t) From (m) To (m)
Isulu deposit
LCD0365W1 2.1 16.6 343.9 346.0
LCD0365W1 0.6 22.3 391.4 392.0
LCD0365W1 0.5 11.1 413.7 414.2
LCD0371 0.5 19.3 282.0 282.5
LCD0373 7.9 5.4 393.4 401.3
incl 2.0 12.8 393.4 395.4
incl 1.5 11.0 399.8 401.3
LCD0373 0.6 76.6 520.0 520.6
LCD0377 1.0 19.3 368.3 369.3
incl 0.5 33.5 368.3 368.8
LCD0379 0.5 14.2 436.7 437.2
LCD0380 2.0 8.5 438.0 440.0
incl 1.0 16.5 438.0 439.0
LCD0381 1.8 14.2 423.8 425.6
incl 0.5 34.2 424.0 425.0
Kimingini Target
LCD0370 12.7 2.5 194.8 207.5
incl 2.4 1.4 194.8 197.2
incl 4.0 6.6 203.5 207.5
Note:
true width estimated at 60-70% of the intercept core length and gold values
uncapped
o Visible gold was identified in 8 intersections from 17 holes drilled.
Visible gold, including spectacular occurrences, has been identified in 61
intersections across 159 diamond holes drilled at Isulu, Bushiangala and
Kimingini since January 2021.
o Intersections reported today include the sixth set of results received
from Phase 2 of the ongoing diamond drilling campaign, which is targeting up
to 550 vertical metres below surface; the assay results for 9 last holes at
Isulu are pending.
· The second part of this update relates to 1,091 m of drilling across
3 diamond holes (out of 22 total diamond holes drilled on the target)
conducted in Q3 2022 at the Ramula deposit;
· Current design planning for Ramula is for an open pit operation;
· Drilling intersection highlights include:
Hole No. Interval (m) Au (g/t) From (m) To (m)
Ramula deposit
RMD0021 2.3 16.0 129.0 131.3
incl 1.1 33.0 130.2 131.3
RMD0021 4.3 7.3 154.7 159.0
incl 0.8 32.7 154.7 155.5
RMD0021 0.7 14.6 208.0 208.7
RMD0021 2.0 14.4 289.0 291.0
incl 1.0 27.3 289.0 290.0
RMD0021 0.6 10.6 589.0 589.6
RMD0022 0.6 18.9 106.6 107.2
RMD0023 0.9 21.9 62.4 63.3
RMD0023 1.3 6.3 140.6 141.9
incl 0.7 11.3 141.0 141.0
RMD0023 17.7 2.4 148.6 166.3
incl 3.5 5.7 163.0 166.0
RMD0023 7.5 4.7 180.0 187.5
incl 2.1 15.6 182.0 184.0
Note: true width
estimated at 70-80% of the intercept core length and gold values uncapped
o Visible gold was identified in 8 intersections across 3 holes drilled.
Visible gold, including spectacular occurrences, has been identified in 31
intersections across 13 holes drilled since Q4 2021;
o Intersections reported today are the first set of results received from
the resource conversion drilling campaign, which is targeting up to 240
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 76% of total planned drilling at West Kenya as at the middle of
October 2022. 65% of total assays over the three phases of planned drilling
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 100 m and 600 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 of which 63,738 m has
been completed to date. 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 17 diamond drill holes, received since
the Company's most recent exploration update in August 2022. To date this
takes the total number of holes with assays returned to 159, 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 17 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
LCD0365W1 2.1 16.6 343.9 346 Isulu
0.6 22.3 391.4 392
0.5 11.1 413.7 414.2
LCD0366 1.7 2.71 247.1 248.8 Isulu South
1.4 1.12 277.6 279.0
1.2 1.82 301.0 302.2
1.0 1.17 305.5 306.5
LCD0369 0.8 1.44 311.0 311.8 Isulu
0.9 1.27 319.4 320.3
0.7 2.36 326.3 327.0
LCD0371 0.5 19.30 282.0 282.5 Isulu
LCD0372W1 0.7 7.82 358.1 358.8 Isulu
3.3 0.96 368.7 372.0
0.5 2.03 460.2 460.7
LCD0373 7.9 5.40 393.4 401.3 Isulu
including:
2.0 12.80 393.4 395.4
including:
1.5 10.99 399.8 401.3
0.7 1.86 412.3 413.0
0.8 5.42 515.7 516.5
0.6 76.59 520.0 520.6
LCD0375 0.5 1.78 420.9 421.4 Isulu
1.4 6.47 424.7 426.1
LCD0377 0.7 1.53 260.8 261.5 Isulu
1.0 19.26 368.3 369.3
including:
0.5 33.47 368.3 368.8
LCD0379 0.5 6.76 336.8 337.3 Isulu
0.5 14.24 436.7 437.2
LCD0380 2.0 8.50 438.0 440.0 Isulu
including:
1.0 16.47 438.0 439.0
1.9 3.00 504.7 506.6
LCD0381 1.8 14.21 423.8 425.6 Isulu
including:
0.5 34.19 424.3 424.8
LCD0383 0.6 5.05 248.4 249.0 Isulu
1.9 2.50 285.0 286.9
Results reported today represents new information received since the Company's
previous exploration update released 3 August 2022.
Kimingini Regional Exploration Target
Kimingini is the easternmost target within the Liranda Corridor, located
approximately 8km southeast of the Isulu - Bushiangala Resource and connected
by a tarmac road. It is the location of a historical underground mining
operation that produced approximately 30Koz in the 1930s.
The geology comprises an ultramafic sequence to the north, uncomfortably
overlying a thin basalt layer and sedimentary package of mudstone and
sandstone to the south. There is structural deformation along the unconformity
presented by a strong and wide shear zone (20 m - 40 m), which is developed in
both contacts of the unconformity. Mineralisation is hosted within a narrow
(20m - 40 m) basalt unit (basalt wedge) between the ultramafic and
mudstone/siltstone units. There is an analogous appearance to the Isulu
mineralised zones and Shanta's Singida deposit in Tanzania, including the
silica-albite alteration, chlorite, sericite and green vanadium mica
alteration and elevated arsenopyrite within the zones.
Several drill programs have been completed at the prospect predominantly
between 2011 and 2012. Kimingini known mineralisation is open for downdip/down
plunge extension and recent 2022 mapping revealed that the Kimingini
gold-bearing system is large (2.5km x 1.5km) and encompasses several
prospective zones, traced by the mapping, soils geochemistry and intense
artisanal activity.
The diamond drilling campaign at Kimingini is seeking to infill two modelled
zones (KZ1 and KZ2). This drilling program amounting to 1,277 m was completed
in Q2 - Q3 2022 and generated an average spacing of approximately 30 m - 80 m
to allow for estimation of the maiden Inferred Resource, which is open along
strike and downdip.
Composited assay results shown below are those for 5 diamond drill holes
completed, 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, an independent third party:
Drill Hole Interval (m) Au (g/t) From (m) To (m) Prospect
LCD0368 0.7 2.20 128.2 128.9 Kimingini
LCD0370 12.7 2.45 194.8 207.5 Kimingini
including:
2.4 1.37 194.8 197.2
including:
4.0 6.64 203.5 207.5
LCD0374 1.7 0.69 218.0 219.7 Kimingini
LCD0376 No significant intercept Kimingini
LCD0378 1.0 1.27 199.0 200.0 Kimingini
Ramula Drilling Campaign
The Ramula target is located about 40km northwest of Kisumu City and 40km
west-southwest from the Isulu-Bushiangala deposit. It is the most advanced
prospect in the Ramula region. Ramula Camp currently includes 4 high priority
targets including Ramula, Miruka, Dhene and Ochiegue, located in less than 5km
from Ramula. Several targets e.g., Ramba-Lumba, Aila, Nairobi Hill,
Barding-Masumbi, Rera and the former colonial mine Kiboko, are all within 20
km of the 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 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. The style of mineralisation of the Ramula deposit 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. This infill drilling is aimed at verifying the extent
and geometry of the known mineralised zones developed for the current resource
model.
Ramula is open for extension to the southeast and Shanta drilling to 600
metres depth confirms mineralisation is open at depth. 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 diamond drilling campaign at Ramula is seeking to infill 19 modelled zones
(RZ0 to RZ19) to 240 metres depth. This drilling program amounts to
approximately 6,000 m of planned drilling and is due to be completed in Q4
2022. It is expected to generate an average spacing of 20 m to 40 m for
conversion of the inferred resource to indicated category. Following the
completion of 2021 drilling, the Ramula modelled zones were updated, and the
maiden mineral resource estimate (of 433,900 ounces grading 2.08 g/t, using a
cut-off grade of 0.7g/t Au) was announced in March 2022.
Assay results shown below are those for 3 diamond drill holes received since
the Company's most recent exploration update on Ramula in March 2022. 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. Composited assay results for these 3 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
RMD0021 1.0 3.27 42.0 43.0 Ramula
6.4 1.83 48.2 54.6
including:
0.6 10.70 53.2 53.8
5.3 0.96 63.7 69.0
0.9 13.20 107.4 108.3
2.3 16.03 129.0 131.3
including:
1.1 33.00 130.2 131.3
2.0 2.11 136.0 138.0
4.3 7.27 154.7 159.0
including:
0.8 32.65 154.7 155.5
7.4 1.03 161.6 169.0
including:
1.3 3.05 164.7 166.0
2.0 3.55 187.0 189.0
2.7 0.80 201.3 204.0
0.7 14.56 208.0 208.7
2.0 14.36 289.0 291.0
including:
1.0 27.31 289.0 290.0
1.2 3.43 314.0 315.2
2.3 2.78 321.0 323.3
1.3 2.99 351.1 352.4
5.0 0.84 400.0 405.0
0.6 2.43 426.0 426.6
8.2 0.96 432.6 440.8
including:
0.5 5.18 432.6 433.1
including:
1.5 2.46 439.3 440.8
0.7 1.73 478.6 479.3
0.7 6.45 541.0 541.7
0.6 10.56 589.0 589.6
2.4 3.52 598.0 600.4
RMD0022 1.0 2.61 34.0 35.0 Ramula
3.3 2.29 45.0 48.3
including:
0.9 6.33 47.4 48.3
4.1 3.06 57.9 62.0
including:
2.1 4.79 57.9 60.0
4.4 2.41 67.0 71.4
0.6 18.87 106.6 107.2
3.0 1.16 129.0 132.0
1.0 2.42 138.0 139.0
11.0 1.11 144.0 155.0
including:
2.0 2.62 153.0 155.0
2.6 2.04 163.0 165.6
including:
0.6 6.37 165.0 166.6
2.0 1.02 243.0 245.0
RMD0023 1.0 1.01 51.0 52.0 Ramula
0.9 21.89 62.4 63.3
2.7 2.70 72.0 74.7
1.1 2.01 81.9 83.0
1.7 2.50 107.0 108.7
3.2 1.48 115.3 118.5
3.3 1.21 127.7 131.0
1.3 6.34 140.6 141.9
including:
0.7 11.34 140.6 141.3
17.7 2.37 148.6 166.3
including:
3.5 5.70 163.0 166.0
7.5 4.73 180.0 187.5
including:
2.1 15.56 182.0 184.1
1.2 1.79 192.0 193.2
Recent diamond drilling at Miruka and Dhene targets situated in 2 and 5km
respectively from Ramula deposit returned very visually-encouraging 3 to 5m
wide mineralized sections hosted in the intermediate porphyries and dacites
with numerous visible gold specs. Logging and sampling in progress.
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 / Lucas Bamber +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 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 645 Koz grading 3.0 g/t, and exploration licences covering
approximately 800 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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