REG - Shanta Gold Limited - West Kenya Project Resource Update
22/02/2023 07:00
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RNS Number : 6128Q Shanta Gold Limited 22 February 2023
22 February 2023
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
West Kenya Project Indicated Resource Increases
by 58% to 1.14 Million Ounces Gold
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and
explorer, is pleased to announce an updated mineral resource estimate for the
Ramula deposit at the West Kenya Project ("West Kenya") in Kenya. This updated
resource estimate follows the successful completion of the Company's 2022
drilling programme at West Kenya and adds to the updated mineral resource
estimate for the Bushiangala and Isulu deposits announced on 26 January 2023.
Summary West Kenya NI 43-101 Resources
· Total West Kenya resources of 1.76 million ounces ("Moz"), an
increase from 1.18 Moz since Shanta commenced drilling at the start of 2021
· Indicated resources of 1.14 Moz, an increase from NIL since the
start of 2021
Summary (1) Indicated Inferred Total
Deposit Mining Approach Grade Ounces (k) Grade Ounces (k) Grade Ounces (k)
(Au g/t) (Au g/t) (Au g/t)
Bushiangala OP/UG 8.12 123 5.88 100 6.93 223
Isulu OP/UG 12.49 599 11.25 463 11.92 1,062
Kakamega Camp 11.45 722 9.68 564 10.6 1,285
Ramula (2,3,4) OP 2.43 417 2.27 53 2.41 470
West Kenya Project 4.86 1,139 7.56 617 5.55 1,755
1. Tonnages reported in the detailed Mineral Resource Estimate table below.
2. Mineral resource estimate of Ramula is constrained (Estimation and
modelling techniques detailed in Appendix).
3. 3x3x3 m regularised block model was used for the MRE, allowing for a
dilution for the open-pit mining method.
4. Capping of the high-grade selected at 42 g/t Au, based on the statistical
analysis.
2022 Highlights (Ramula deposit):
· Total resources of 469,800 ounces ("oz") grading 2.41 g/t Au;
· 89% of resources upgraded to Indicated category (Nil in March
2022);
· Average resource grade increased by 16% following infill drilling;
· Preliminary indications of attractive open pit mining potential;
· Ramula currently has an Indicated, pit constrained resource
estimate of 416,700 ounces grading 2.43 g/t, using a cut-off grade of 0.7g/t
Au;
· Management reviewing permitting, plant location, mining sequencing
and accelerated timeline to full economic assessment;
· Further work being planned including expansion drilling across the
4 high priority targets in Ramula Region, metallurgical testing, scoping
study, and infill drilling for conversion to mineable resources;
· 2023-24 planned drilling on the targets adjacent to Ramula aims to
deliver substantial resource additions and new discoveries.
Eric Zurrin, Chief Executive Officer, commented:
"We are delighted that the excellent drilling results from Q4 2022 at Ramula
have resulted in a significant increase in Indicated Resources across the
whole of West Kenya, further decreasing the risk of this project and
confirming its quality nature.
The initial indications that Ramula has open pit mining potential is
particularly attractive from a cost and timing perspective when considering
how to ultimately develop the asset.
As we diversify our production portfolio in Tanzania with Singida's first gold
pour in March 2023, our continued exploration success in West Kenya remains
very exciting for the team and for everyone involved in Shanta. We believe
Shanta delivers a unique investment case when compared with our peers, with
our clear growth story and ever-increasing production profile allowing us to
be confident about the near to mid-term prospects of the Company."
West Kenya Project ‒ Ramula Resource Update - 2022
The West Kenya Project covers 580 km² of the highly prospective and
underexplored greenstone Archaean Busia-Kakamega Gold Belt in western Kenya.
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 4 high priority
targets located less than 5km from Ramula. 2023-24 planned drilling on the
targets adjacent to Ramula is aiming for a substantial resource additions and
new discoveries. In addition seven early stage high-prospective targets are
situated between 5 km to 30 km from Ramula.
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 thrust 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 2022 drilling programme at Ramula deposit was aimed at upgrading ounces
from the Inferred Mineral Resource Estimate into the Indicated Resource
category down to a depth of 220 m. Average drill intersection spacing is 40 m.
All work carried out and reporting of the resource has been completed in
accordance with Canadian NI 43-101 standards, unless otherwise noted.
The 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.
Resources at Ramula have been stated using a 0.7 g/t Au cut-off grade value
for both oxidised rock and fresh rock and constrained within US $2,000 pit
shell. The effective date of this resource is 17 February 2023.
Table 1 - Updated Resource 1
Mineral Resource Category Tonnes Grade (Au g/t) Ounces
Indicated 5,330,900 2.43 416,700
Inferred 727,400 2.27 53,100
Total 6,058,300 2.41 469,800
(1) Cut-off grade (COG) at 0.7 Au g/t for both Oxidised and Fresh Rock,
constrained by the US $2000 pitshell.
Table 2 - Ramula Resource by Oxide vs Fresh Rock1,2
Indicated Inferred Total
Tonnes Grade (Au g/t) Ounces Tonnes Grade (Au g/t) Ounces Tonnes Grade (Au g/t) Ounces
Oxide 241,400 1.52 11,800 68,100 1.19 2,600 309,600 1.45 14,400
Fresh Rock 5,089,500 2.47 404,900 659,300 2.38 50,500 5,748,800 2.46 455,400
Total 5,330,900 2.43 416,700 727,400 2.27 53,100 6,058,400 2.41 469,800
(1) Figures may not total exactly due to rounding
(2) Cut-off grade (COG) at 0.7 Au g/t for both Oxidised and Fresh Rock,
constrained by the US $2000 pitshell.
In total, Ramula contains 416,700 ounces grading 2.43 g/t Au Indicated
category with cut-off grades applied of 0.7 Au g/t for oxidised and fresh
rock. The total Ramula resource currently stands at 469,800 ounces grading an
average of 2.41 g/t Au constrained within US$2,000 per ounce pit shell.
Sensitivity of the Ramula deposit MRE to the cut-off grades and various
pitshell constrains (e.g US$1500, US$1700 and US$2000) are presented in the
Tables 3 and 4.
Table 3 - Ramula deposit: mineral resource (Indicated + Inferred) sensitivity
to cut-off grades (constrained by the US$2,000 pit shell):
FRESH ROCK
Cut-off Grade Tonnes Mean Grade Au g/t Ounces
0 27,176,000 0.65 566,200
0.3 9,259,800 1.71 507,800
0.5 7,043,000 2.12 480,100
0.7 5,748,800 2.46 455,400
1 4,350,100 2.99 417,600
1.5 2,921,700 3.85 361,400
2 2,093,200 4.69 315,300
3 1,273,000 6.13 250,900
4 857,800 7.42 204,700
5 588,600 8.78 166,100
OXIDE
Cut-off Grade Tonnes Mean Grade Au g/t Ounces
0 5,132,800 0.21 35,200
0.3 839,200 0.81 21,900
0.5 459,700 1.17 17,300
0.7 309,600 1.45 14,400
1 190,500 1.83 11,200
1.5 87,900 2.55 7,200
2 52,000 3.13 5,200
3 19,100 4.31 2,600
4 10,300 5.10 1,700
5 4,600 5.87 860
Source: Cath Pitman, P. Geo - Adiuvare Geology & Engineering (February
2023)
Table 4 - Ramula deposit: mineral resource (Inferred + Indicated) sensitivity
to constraining pit shells
Cut-off Grade of 0.7 g/t Au
Pit Shell Tonnes Mean Grade Au g/t Ounces
US$1500/oz 5,744,900 2.45 451,800
US$1700/oz 5,913,400 2.43 461,100
US$2000/oz 6,058,300 2.41 469,800
Source: Cath Pitman, P. Geo - Adiuvare Geology & Engineering (February
2023)
Resource classifications have been assigned according to the continuity of
mineralisation, known geological controls and drill spacing. Relevant zones
are appropriately classed into oxidised and fresh rock and a cut-off value
supplied by Shanta (and accepted by the Independent Competent Person) has been
applied. Mineralisation is well constrained within the mineralised veins,
though lower-grade gold mineralisation also occurs between the veins.
Table 5 - Consolidated West Kenya Mineral Resource Estimate1
Indicated Inferred Total
Deposit Tonnes (kt) Grade (Au g/t) Ounces (k) Tonnes (kt) Grade Ounces (k) Tonnes (kt) Grade (Au g/t) Ounces (k)
(Au g/t)
Bushiangala 469.6 8.12 123 531.0 5.88 100 1,000.5 6.93 223
Isulu 1,492.3 12.49 599 1,280.0 11.25 463 2,772.3 11.92 1,062
Kakamega Camp 1,961.9 11.40 722 1,811.0 9.68 564 3,772.8 10.56 1,285
Ramula (1) 5,330.9 2.43 417 727.4 2.27 53 6,058.3 2.41 470
West Kenya Project 7,292.8 4.86 1,139 2,538.4 7.56 617 9,831.2 5.55 1,755
1. The Ramula Camp, located 35 km from the Isulu and Bushiangala deposits.
Table above excludes the Bumbo polymetallic JORC compliant resource within the
Liranda (Kakamega) Camp
For a map showing the West Kenya Project Licence Area including Isulu and
Bushiangala deposits in Kakamega Camp and Ramula deposit in the Ramula Camp,
and a Cross Section of Ramula deposit please see the following link updated
presentation on www.shantagold.com (http://www.shantagold.com/)
Enquiries:
Shanta Gold Limited
Eric Zurrin (CEO) +44 (0) 14 8173 2153
Luke Leslie (CFO)
Nominated Adviser and Joint Broker
Liberum Capital Limited
Scott Mathieson / Kane Collings / 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
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 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 with total mineral resources
of 1.76 million ounces including 1.14 million ounces Au in the Indicated
category grading 4.86 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.
Competent Person Statement
The Mineral Resource Model in this report for Isulu, Bushiangala and Ramula
was independently verified and the resource was estimated by Adiuvare GE (Cath
Pitman P. Geo, ON and NL) Reporting of the resource has been completed in
accordance with Canadian NI 43-101 standards.
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 Canadian 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.
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
"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
"JORC" The Australasian Joint Ore Reserves Committee Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves 2012 (the "JORC Code"
or "the Code"). The Code sets out minimum standards, recommendations and
guidelines for Public Reporting in Australasia of Exploration Results, Mineral
Resources and Ore Reserves
"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
"t" tonne (= 1 million grammes)
APPENDIX 1 - RAMULA
Section 1: Sampling Techniques and Data
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or · Drill core (half) sampled and assayed at 1m interval with max.
specific specialised industry standard measurement tools appropriate to the 1.5m and min. 0.5m intervals based on visually observed geology and
minerals under investigation, such as down hole gamma sondes, or handheld XRF mineralisation.
instruments, etc). These examples should not be taken as limiting the broad
meaning of sampling. · Core samples are processed using industry standard practices of
drying, crushing, splitting and pulverization, then 50g fire assayed
· Include reference to measures taken to ensure sample representivity with AAS finish for gold at the SGS Mwanza
and the appropriate calibration of any measurement tools or systems used. (Tanzania) and ALS Johannesburg (South Africa), and 30g fire assayed with AAS
finish for gold at the MSA Labs (Canada) for 2022 drill program..
· Aspects of the determination of mineralisation that are Material to
the Public Report.
· In cases where 'industry standard' work has been done this would be
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may warrant disclosure of detailed
information.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary · Diamond core drilling; All holes are collared using
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or
standard tube, depth of diamond tails, face-sampling bit or other type, HQ and lately triple tube is used to maximise core recovery in the weathered
whether core is oriented and if so, by what method, etc). zone; drill hole diameter is usually
reduced to NQ when the hole enters fresh rock. NQ core routinely oriented
using Reflex core orientation tools.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries · Core recovery is recorded as a measure of the drill run against
and results assessed. the actual core in tray, and stored in an acQuire
· Measures taken to maximise sample recovery and ensure software database. Triple tube is used to maximise core recovery in the
representative nature of the samples. weathered zone. The average core recovery equates to approximately 95%.
· Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
Logging · Whether core and chip samples have been geologically and · The geologist logs the diamond drill core for lithology,
geotechnically logged to a level of detail to support appropriate Mineral alteration, structure, mineralisation and geotechnical parameters. All core is
Resource estimation, mining studies and metallurgical studies. logged and photographed after marking up metre intervals and prior to cutting
and sampling. Logging data are entered into the acQuire database via a
· Whether logging is qualitative or quantitative in nature. Core (or Panasonic Toughbook laptop computer on site.
costean, channel, etc) photography.
· All of diamond drill holes are geologically logged in entirety.
· The total length and percentage of the relevant intersections
logged.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · Core samples are half core and sawn. Split line is consistent
taken. orientation with respect to orientation marks.
· If non-core, whether riffled, tube sampled, rotary split, etc and · Sample preparation (drying, crushing, splitting and pulverising)
whether sampled wet or dry. is carried out by SGS Mwanza, ALS Jo'burg and MSA Labs (Canada)using industry
standard protocols:
· For all sample types, the nature, quality and appropriateness of
the sample preparation technique. o Kiln dried at 95 deg C.
· Quality control procedures adopted for all sub-sampling stages to o Entire sample crushed to sub 2mm to minimize bias.
maximise representivity of samples.
o Riffle split 800g to 1kg sub-sample.
· Measures taken to ensure that the sampling is representative of the
in situ material collected, including for instance results for field o Sub-sample pulverised to 90% passing 75um, monitored by sieving.
duplicate/second-half sampling.
o Aliquot selection from pulp packet.
· Whether sample sizes are appropriate to the grain size of the
material being sampled. · Aggregated half core; Entire 2-3kg sample pulverized at
laboratory, prior to fire assay, in order to minimize bias.
· Drilling planned orthogonal to the strike of structures /
lithologies in order to maximize representativity.
· Quality Control (QC) samples are inserted at a rate of 1 in 20.
All standards used are Certified Reference Materials (CRM). The insertion of
QC (CRM, blanks and duplicates) is under the control of the geologist after
logging.
· The sampling protocols are adequate to ensure representativity of
orogenic, shear-zone-hosted quartz-carbonate vein subtype mineralisation.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · All diamond core samples are assayed for gold by 50g Fire Assay
laboratory procedures used and whether the technique is considered partial or with AAS finish for drilling to 2021 and 30g for 2022 drilling onwards..
total.
· Core samples were shipped for preparation and analysis at SGS
· For geophysical tools, spectrometers, handheld XRF instruments, Mwanza (2018 to 2021) and ALS Johannesburg SA (2012 to 2018). 2022 drilled
etc, the parameters used in determining the analysis including instrument make Core samples were sent to on-site lab-prep for preparation and shipped for
and model, reading times, calibrations factors applied and their derivation, analysis at MSA labs (Canada). The documentation regarding sample analyses is
etc. well documented.
· Nature of quality control procedures adopted (eg standards, blanks, · Given the occurrence of coarse gold, Screen Fire Assays (SFA) or
duplicates, external laboratory checks) and whether acceptable levels of Gravimetric checks are routinely undertaken.
accuracy (ie lack of bias) and precision have been established.
· The QA/QC with CRMs, blanks, quartz flush checks and grind checks
routinely monitored. The coarse duplicates from crush residue, and pulp
duplicates from pulp residues were regularly monitored to test the quality
of sub sampling stages. Blank and CRM results are reviewed on receiving assays
and any failure triggers investigations. Regular communication was had with
analytical Laboratories.
· The QAQC procedures and results show acceptable levels of
accuracy and precision, allowing the sample data to be used for the Mineral
Resource Estimate.
Verification of sampling and assaying · The verification of significant intersections by either independent · There are strong visual indicators for high grade mineralisation
or alternative company personnel. observed in drill core at the West Kenya Project and significant intersections
are visually validated against drill core, check calculated by alternative
· The use of twinned holes. company personnel.
· Documentation of primary data, data entry procedures, data · To date no holes have been twinned.
verification, data storage (physical and electronic) protocols.
· All assay data is stored in the acQuire database in an
· Discuss any adjustment to assay data. as-received basis from the laboratory, with no adjustment made to the returned
data.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · Drill collars have been surveyed in by
and down-hole surveys), trenches, mine workings and other locations used in differential GPS (Leica GNSS receivers) by a registered survey contractor.
Mineral Resource estimation.
· Down hole surveys are recorded at 12m intervals by
· Specification of the grid system used. using a Reflex digital downhole survey camera tool, holes drilled in 2018 were
gyroscope surveyed.
· Quality and adequacy of topographic control.
· Drillholes surveyed in UTM Coordinates System Arc
1960.
· Surface topography in the West Kenya Project is based on a
combination of DGPS surveyed ground pick-ups and DEM data from air surveys.
DEM data is levelled by ground surveyed points.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Drillhole spacing was generally between 30-50m at the Ramula
deposit.
· Whether the data spacing and distribution is sufficient to
establish the degree of geological and grade continuity appropriate for the · The data spacing is sufficient to establish the degree of
Mineral Resource and Ore Reserve estimation procedure(s) and classifications geological and grade continuity appropriate for Indicated Mineral Resource
applied. classification.
· Whether sample compositing has been applied. · All samples were composited to 1m length, with a minimum
allowable length of 0.5m.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · Drill holes are designed to intersect known mineralised features
possible structures and the extent to which this is known, considering the in a nominally perpendicular orientation as much as is practicable given the
deposit type. availability of drilling platforms. All drill core is oriented to assist with
interpretation of mineralisation and structure.
· If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have introduced a · There does not appear to be any bias between drilling orientation
sampling bias, this should be assessed and reported if material. and assay results.
Sample security · The measures taken to ensure sample security. · Samples are transported from drill site to the core shed by
company personnel, using covered core boxes. On completion of cutting the
core, the samples are sealed into bags with cable-tie fastenings and
dispatched by hired truck to the SGS Laboratory in Mwanza, Tanzania or by
courier to ALS in South Africa, or the MSA labs Canada. Sample dispatches are
reconciled against Laboratory samples received and discrepancies reconciled by
geology staff.
Audits or reviews · The results of any audits or reviews of sampling techniques and · No audits or reviews of sampling techniques and data have been
data. performed.
Section 2: Reporting of Exploration Results
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · The Western Kenya Project area is located in the Counties of
agreements or material issues with third parties such as joint ventures, Kakamega, Vihiga and Siaya in western Kenya. The Ramula prospect is
partnerships, overriding royalties, native title interests, historical sites, approximately 40 km northwest of Kisumu City (Kenya's third largest City).
wilderness or national park and environmental settings.
· Ramula deposit is situated within PL/2019/0222, granted 1(st) Aug
· The security of the tenure held at the time of reporting along with 2022 and covering 12094 sq km. is wholly owned by Shanta Gold Kenya Ltd.
any known impediments to obtaining a licence to operate in the area.
· There are no material issues affecting the tenements.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · Gold prospecting and small-scale mining commenced in the area by
1920s, as part of the Kakamega Gold Rush. The focus was on eluvial and
alluvial gold and narrow high-grade veins. Most of this activity ceased in the
1950s. Between 1982-2000, the Bureau de Recherches Géologiques et Minières
(BRGM) carried out gold and base metals exploration.
In 2003, AfriOre Ltd took up exploration licences, which included the Ramula
prospect. Their exploration focused on investigating known gold occurrences
rather than following a grassroots approach.
In 2007 Lonmin Plc took over AfriOre Ltd, but exploration work was restricted
to regional soil surveys. Aviva Mining Ltd (Aviva) entered into a Joint
Venture agreement with AfriOre in 2010. Aviva collected and collated all
existing data into a single data set. They acquired regional airborne
magnetics and radiometrics and combined them with existing BRGM data to create
a seamless geophysical dataset. Regional mapping and prospect scale mapping
was done and used together with historical data to reinterpret the geology.
Extension and infill of existing soil grids was completed followed up by
shallow diamond and RC drilling.
In late 2012 African Barrick Gold (now Acacia Mining Ltd) purchased Aviva
Mining Ltd and commenced exploration activities.
Shanta Gold took over the project in August 2020.
Geology · Deposit type, geological setting and style of mineralisation. The Ramula prospect is located within the Busia-Kakamega Greenstone Belt. The
prospect lies primarily within a small diorite stock and it's contact zones
with adjacent volcanics. The stock has intruded a sequence of intermediate
volcanic rocks (breccias, tuffs and lavas). Minor quartz feldspar porphyry
intrusives are present. The elongated diorite body is approximately 300 m x
500 m with a northwest-southeast trending long axis.
Mineralisation mostly occurs within shallow north-west dipping, stacked quartz
veins, hosted in the diorite. However narrow zones of steep mineralised quartz
veins also occur within the intermediate volcanics close to the diorite body.
The Ramula prospect mineralisation is classified as orogenic,
shear-zone-hosted quartz-carbonate vein subtype.
Drill hole Information · A summary of all information material to the understanding of the · No exploration results are reported in this release.
exploration results including a tabulation of the following information for
all Material drill holes: · The treatment of drill data has been articulated in Section 1.
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of
the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
· If the exclusion of this information is justified on the basis that
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · The assay high grades used for this estimate were cut to 42 g/t
maximum and/or minimum grade truncations (eg cutting of high grades) and for the mineralised veins and 1 g/t for the background mineralisation.
cut-off grades are usually Material and should be stated.
· Cut-off grades were applied after compositing of the raw assay
· Where aggregate intercepts incorporate short lengths of high grade data into 1m lengths.
results and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations · Blank intervals contained within the mineralisation were treated
should be shown in detail. as zero. Due to selective sampling of the core, blank intervals lying outside
of the veins had a grade of 0.005 g/t Au applied to them..
· The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · The holes drilled varied between -38 and -85 degrees from
Exploration Results. surface, with the mineralisation being sub-horizontal. Intercepts vary between
65% and 97% of their true width, with the average being 80%.
· If the geometry of the mineralisation with respect to the drill
hole angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported,
there should be a clear statement to this effect (eg 'down hole length, true
width not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · No exploration results are reported in this release; therefore,
intercepts should be included for any significant discovery being reported this section is not relevant.
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · No exploration results are reported in this release; therefore,
practicable, representative reporting of both low and high grades and/or this section is not relevant.
widths should be practiced to avoid misleading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · No exploration results are reported in this release; therefore,
reported including (but not limited to): geological observations; geophysical this section is not relevant.
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
Further work · The nature and scale of planned further work (eg tests for lateral · Approximately 32 holes for +12,000m planned infill drilling for
extensions or depth extensions or large-scale step-out drilling). conversion to mineable resources and expansion drilling across the Ramula
Region has been budgeted for in 2023.
· Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
Section 3: Estimation and Reporting of Mineral Resources
Database integrity · Measures taken to ensure that data has not been corrupted by, for · Data are stored in an SQL acQuire database. Assay and geological
example, transcription or keying errors, between its initial collection and data are electronically loaded into acQuire and a validation process run.
its use for Mineral Resource estimation purposes. Regular reviews of data quality are conducted by site and management teams
prior to resource estimation.
· Data validation procedures used.
Site visits · Comment on any site visits undertaken by the Competent Person and · Although site visits to the West Kenya Project have been
the outcome of those visits. completed three times between 2016 and 2019, a site visit specifically for the
Ramula Region has not been recently completed.
· If no site visits have been undertaken indicate why this is the
case. · As a substitute for the site visit a series of video reports on
the project area were created at the request of C. Pitman and interactive
video conference calls completed via social media.
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological · The level of confidence in the interpretations of the mineralised
interpretation of the mineral deposit. zones is reflected by the Mineral Resource classification.
· Nature of the data used and of any assumptions made. · Geological data from core drilling provides the information for
the deposits. The main mineralisation
· The effect, if any, of alternative interpretations on Mineral
Resource estimation. zones were defined by the presence of gold values at cut-off of 0.5 g/t Au, as
well as the presence of other indicators such as shear intensity, brecciation,
· The use of geology in guiding and controlling Mineral Resource sulphide content and alteration. The interpretations relied on the structural
estimation. information collected from orientated core and were completed along sections
typically at spacings of 20m. The interpretations were triangulated to form 3D
· The factors affecting continuity both of grade and geology. solids (mineralised zones) using Leapfrog software and verified in Datamine
software.
· The geology has guided the resource estimation, particularly the
lithological and structural control.
· Grade and geological continuity have been established by the
existing 3D data. The continuity is well understood at Ramula especially in
relation to structural effects.
Dimensions · The extent and variability of the Mineral Resource expressed as · The main zones of mineralisation at Ramula extend up to 480m
length (along strike or otherwise), plan width, and depth below surface to the along strike. The resource estimate includes mineralisation down to 225m
upper and lower limits of the Mineral Resource. depth.
· The deposit remains open along strike and at depth.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) Grade estimation for Ramula was carried out using Datamin software to generate
applied and key assumptions, including treatment of extreme grade values, a block model; with the indievidual zones separated out for grade
domaining, interpolation parameters and maximum distance of extrapolation from interpolation.. The following process was followed.
data points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used.
· The availability of check estimates, previous estimates and/or mine · All the individual mineralisation zone wireframe solids were
production records and whether the Mineral Resource estimate takes appropriate verified using Datamine® software.
account of such data.
· Drill data was de-surveyed and assessed for overlaps and outlier
· The assumptions made regarding recovery of by-products. values.
· Estimation of deleterious elements or other non-grade variables of · Individual assay samples were selected from within each zone.
economic significance (eg sulphur for acid mine drainage characterisation).
· The selected samples were composited to 1m intervals.
· In the case of block model interpolation, the block size in
relation to the average sample spacing and the search employed. · Statistical analysis was carried out to define capping levels.
· Any assumptions behind modelling of selective mining units. · Gold values were adjusted for true absent or zero values.
· Any assumptions about correlation between variables. · The block model used dimensions of:
· Description of how the geological interpretation was used to o X = 19 m
control the resource estimates.
o Y = 9 m
· Discussion of basis for using or not using grade cutting or
capping. o Z = 3 m.
· The process of validation, the checking process used, the · Each individual zone was filled with blocks using sub-cells down
comparison of model data to drill hole data, and use of reconciliation data if to 1.5 m in the north and east directions and 0.5 m in the vertical
available. direction..
· Blocks were estimated for dip and dip direction data based on the
geometry of the wireframes constraining the mineralisation.
· Block grades and density values were estimated into each parent
block within individual zones.
· A default specific gravity using a value of 2.75 was used for
fresh rock blocks that may not have been estimated.
· A default specific gravity value of 1.9 was applied to
oxide.rock.
The model was regularized to 3 x 3 x 3 m blocks. All samples were composited
to 1m length, with a minimum allowable length of 0.25m. Capping of the
composites was carried out. The capping levels were assigned using log
probability plots for the grade and were assigned at 42 g/t for the veins and
11 g/t for the background mineralisation.
Interpolation of the grade was carried out using Ordinary Kriging with dynamic
anisotropy. The search ellipses were orientated along the dip and plunge of
the mineralisation and aligned for each of the zones.
Resource classification was assigned according to the continuity of the
mineralization, known geological controls and drill spacing. Each zone was
divided into Oxide and Fresh rock and a cut-off value applied.
An initial validation comparing the mean raw gold grades and tonnes contained
within the wireframe solids to the block model output was made. The model
was then validated visually by comparing the block model grades and their
distribution to the original drill data.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Tonnages are reported on a dry basis.
moisture, and the method of determination of the moisture content.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · The Mineral Resource has been reported at a minimum cut-off grade
applied. of 0.7 g/t Au for both the oxidised rock and fresh rock, which was assigned to
reflect current commodity prices, geometry of mineralised zones and comparison
with the analogous operations.
· Additional cut-off values have been included in order to assess
the sensitivity of output ounces to change in the cut-off value.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · Based on the currently identified mineralisation the probable
dimensions and internal (or, if applicable, external) mining dilution. It is mining method for the Ramula project would be open pit extraction.
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the · Mining factors such as dilution and ore loss have not been
assumptions made regarding mining methods and parameters when estimating applied.
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions
made.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · No metallurgical assumptions have been built into the resource
amenability. It is always necessary as part of the process of determining models.
reasonable prospects for eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral Resources may not always
be rigorous. Where this is the case, this should be reported with an
explanation of the basis of the metallurgical assumptions made.
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue · The Ramula deposit is at an early stage of evaluation and
disposal options. It is always necessary as part of the process of determining environmental studies have not yet been undertaken.
reasonable prospects for eventual economic extraction to consider the
potential environmental impacts of the mining and processing operation. While
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
Bulk density · Whether assumed or determined. If assumed, the basis for the · Specific gravity sampling has continued through the life of the
assumptions. If determined, the method used, whether wet or dry, the frequency project, the measurements are carried out in accordance with site standard
of the measurements, the nature, size and representativeness of the samples. procedures for Specific Gravity. Intervals for bulk density determination are
selected according to lithology/ alteration/mineralization type to best
· The bulk density for bulk material must have been measured by represent certain intervals as defined by the geologist. The measurements are
methods that adequately account for void spaces (vugs, porosity, etc), performed on site by geologists or geological assistants as part of the
moisture and differences between rock and alteration zones within the deposit. logging process. Measurements are generally after every 20 metres or a change
in lithology within the 20 metres and 1-metres interval for mineralized zones.
· Discuss assumptions for bulk density estimates used in the
evaluation process of the different materials.
Classification · The basis for the classification of the Mineral Resources into · Classification for the Ramula Mineral Resource is based upon the
varying confidence categories. continuity of geology, mineralisation and grade, using drill hole data
spacing, data quality and estimation statistics.
· Whether appropriate account has been taken of all relevant factors
(ie relative confidence in tonnage/grade estimations, reliability of input
data, confidence in continuity of geology and metal values, quality, quantity
and distribution of the data). · The Mineral Resources are classified as Indicated and Inferred.
· Whether the result appropriately reflects the Competent Person's
view of the deposit.
· The classification considers all available data and quality of
the estimate and reflects the Competent Person's view of the deposit.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · The resource estimate has been reviewed by the Shanta staff
Tanzanian Operations.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and · The assigned classification of Inferred reflects the Competent
confidence level in the Mineral Resource estimate using an approach or Person's assessment of the accuracy and confidence levels in the global
procedure deemed appropriate by the Competent Person. For example, the Mineral Resource estimate. The resource has been assigned as an Inferred
application of statistical or geostatistical procedures to quantify the Resource for all blocks contained within the modelled mineralised veins..
relative accuracy of the resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative discussion of the factors · In areas of the model where the drill spacing has been reduced to
that could affect the relative accuracy and confidence of the estimate. less that 40 m an envelope has been created to define an Indicated mineral
resource.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be · The tonnes and grade reported out of the Ramula model have been
relevant to technical and economic evaluation. Documentation should include constrained using a pit shell based on a US $2000 gold value and reported at a
assumptions made and the procedures used. cut-off value of 0.7 g/t Au. A comparison with a US $1500 gold value pit shows
less than a 0.05 % difference in contained ounces, which the CP considers to
· These statements of relative accuracy and confidence of the be insignificant as it is well within statistical error for an Indicated
estimate should be compared with production data, where available. resource.
ENDS
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