REG - Shanta Gold Limited - West Kenya Resource Announcement
26/01/2023 07:01
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RNS Number : 8795N Shanta Gold Limited 26 January 2023
26 January 2023
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
West Kenya Project Resource Increases to 1.7 Moz Gold including
a 91% Increase in High Grade Indicated Ounces
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and
explorer, is pleased to announce an updated mineral resource estimate for the
West Kenya Project ("West Kenya") in Kenya to 1.72 Moz gold, including a 91%
increase in Indicated Resource to 722 Koz gold grading 11.45 g/t.
Highlights in 2022 (Isulu and Bushiangala):
· Resources of 1.29 million ounces ("Moz") grading 10.60 g/t Au at
Isulu and Bushiangala, of which 56% have been upgraded to Indicated category
up from 34% in March 2022;
· 91% increase in Indicated ounces to 721,900 grading 11.45 g/t Au;
· Current oxides for Bushiangala and Isulu in the Indicated category
contain 100,600 oz grading 10.44 g/t Au, providing potential high margin cash
flow during future construction ramp-up; and
· Mineral Resource Estimate update, including the conversion of the
significant part of the Ramula deposit into Indicated category, is expected in
February.
Summary (1) Indicated Inferred Total
Deposit Grade (Au g/t) Ounces (k) Grade (Au g/t) Ounces (k) Grade (Au g/t) Ounces (k)
Bushiangala 8.12 123 5.88 100 6.93 223
Isulu 12.49 599 11.25 463 11.92 1,062
Kakamega Camp 11.45 722 9.68 564 10.6 1,285
Ramula (2) - - 2.08 434 2.08 434
West Kenya Project 3.74 998 5.21 1,719
1. Tonnages reported in the detailed Mineral Resource Estimate table below.
Mineral resource estimate is unconstrained (Estimation and modelling
techniques detailed in Appendix 1)
2. The Ramula Camp, located 35 km from Bushiangala and Isulu, currently hosts
7 targets including the Ramula deposit
Numbers may not add due to rounding
Eric Zurrin, Chief Executive Officer, commented:
"The West Kenya project continues to deliver material growth and quality
results, with the latest Mineral Resource Estimate demonstrating a substantial
91% increase in the Indicated ounces category and an overall increase to 1.72
Moz. Not only was there a significant conversion of the deposit into Indicated
ounces, but these ounces yet again demonstrated high-grades, averaging 11.45
g/t Au.
The drilling results that have been delivered at the West Kenya project over
the past year have been some of the best we have ever delivered, and it is
clear to the team here at Shanta that we possess a potentially very high
quality high-grade African gold mine. The high-grade Indicated category from
today's results points towards a high margin cash flow during future
operations.
As we diversify our portfolio in Tanzania with Singida's first gold pour in
March 2023, West Kenya demonstrates the Group's clear growth potential to
shareholders. With a further updated Mineral Resource Estimate due in
February, which will include the conversion of a significant part of the
Ramula deposit, there is plenty of positive news to come."
West Kenya Project 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.
Ongoing drilling at the Isulu and Bushiangala deposits is aimed at upgrading
ounces from the Inferred Mineral Resource Estimate into the Indicated Resource
category down to a depth of 800 metres by means of three drilling campaigns.
All work carried out and reporting of the resource has been completed in
accordance with Canadian NI 43-101 standards, unless otherwise noted.
This infill drilling is aimed at verifying the extent and geometry of the
known mineralised zones developed for the current resource model.
Gold mineralisation at the Isulu and Bushiangala deposits 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 center by granitoids and diorites, termed the Kakamega Dome.
Mineralisation is associated with quartz and quartz-carbonate veinlets, which
lie 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
range from 100 m to 300 m. Average drill intersection spacing is 40 m at Isulu
and 30 m at Bushiangala.
Resources have been stated using a 1.0 g/t Au cut-off grade value for the
oxidised rock and 3.0 g/t Au for fresh rock. The effective date of this
resource is 31 December 2022.
Table 1 - Updated Isulu and Bushiangala Resource by Oxide vs Fresh Rock(1, 2)
Indicated Inferred Total
Tonnes Grade (Au g/t) Ounces Tonnes Grade (Au g/t) Ounces Tonnes Grade (Au g/t) Ounces
Oxide 299,550 10.44 100,560 167,130 5.38 28,930 466,680 8.63 129,480
Fresh Rock 1,662,310 11.63 621,410 1,643,860 10.11 534,580 3,306,160 10.88 1,155,990
Total 1,961,860 11.45 721,970 1,810,990 9.68 563,510 3,772,840 10.60 1,285,470
(1) Figures may not total exactly due to rounding
(2) Oxidised rock cut-off grade (COG) at 1.0 Au g/t. Fresh Rock cut-off grade
at 3.0 Au g/t
Table 2 - Updated Resource by Deposit (1)
Mineral Resource Category Prospect Tonnes Grade (Au g/t) Ounces
Indicated Isulu 1,492,300 12.49 599,360
Bushiangala 469,550 8.12 122,610
Total 1,961,850 11.45 721,970
Inferred Isulu 1,280,000 11.25 463,050
Bushiangala 531,000 5.88 100,460
Total 1,811,000 9.68 563,510
Total Isulu 2,772,300 11.92 1,062,410
Bushiangala 1,000,540 6.93 223,060
Total 3,772,840 10.60 1,285,470
(1) Oxidised rock cut-off grade (COG) at 1.0 Au g/t. Fresh Rock cut-off grade
at 3.0 Au g/t
In total, Isulu and Bushiangala contain 721,970 ounces grading 11.45 g/t Au
Indicated category with cut-off grades applied of 1.0 Au g/t for oxidised rock
and 3.0 Au g/t for fresh rock. The total Isulu and Bushiangala resource
currently stands at 1,285,470 ounces grading an average of 10.60 g/t Au.
Table 3 - Isulu and Bushiangala deposits: mineral resource sensitivity to
cut-off grades
FRESH ROCK
Cut-off Grade Tonnes Mean Grade Au g/t Ounces
0 4,852,580 7.86 1,226,610
1 4,334,530 8.76 1,220,610
2 3,762,630 9.86 1,192,640
3 3,306,160 10.88 1,155,990
4 2,822,250 12.14 1,101,220
5 2,474,120 13.21 1,051,130
6 2,159,760 14.34 995,630
7 1,899,340 15.42 941,410
OXIDE
Cut-off Grade Tonnes Mean Grade Au g/t Ounces
0 519,250 7.81 130,360
1 466,680 8.63 129,480
2 390,720 10.01 125,720
3 324,180 11.54 120,320
4 279,120 12.85 115,310
5 233,670 14.48 108,820
6 181,300 17.08 99,580
7 162,100 18.34 95,600
Source: Cath Pitman, P. Geo - Adiuvare Geology & Engineering (January
2023)
Resource classifications have been assigned according to the continuity of
mineralisation, known geological controls and drill spacing. Each zone is
divided 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 withing the mineralised shears (as seen in
Table 3), resulting in potentially increasing the number of resource ounces by
lowering the cut-off while not significantly reducing the average gold grade.
Table 4 - Consolidated West Kenya Mineral Resource Estimate(1)
Indicated Inferred Total
Deposit Tonnes (kt) Grade (Au g/t) Ounces (k) Tonnes (kt) Grade (Au g/t) Ounces (k) Tonnes (kt) Grade (Au g/t) Ounces (k)
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
Liranda Region 1,961.9 11.40 722 1,811.0 9.68 564 3,772.8 10.56 1,285
Ramula (1) - - - 6,490.1 2.08 434 6,490.1 2.08 434
West Kenya Project 1,961.9 11.40 722 8,301.1 3.74 998 10,263.0 5.21 1,719
1. The Ramula Camp, located 35 km from the Liranda Region, currently hosts 7
targets including the Ramula deposit
Table above excludes the Bumbo polymetallic JORC compliant resource within the
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 Long Section, and Cross Section of the Bushiangala and Isulu 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 / 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
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 total mineral resources
of 1.75 million ounces including 727 Koz in the Indicated category grading
11.4 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.
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.
Mineral Resource Model in this report at Bumbo is based on information
compiled by Steve Rose, a Competent Person who is a Fellow of The Australasian
Institute of Mining and Metallurgy. Steve Rose is a full-time consultant with
Rose and Associates, Mining Geology Consultants and is compliant with the JORC
2021 reporting 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 - ISULU AND BUSHIANGALA
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 with max. 1.5m and
specific specialised industry standard measurement tools appropriate to the min. 0.5m intervals based on visually observed geology and mineralisation.
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · Reverse circulation (RC) samples of 1 m drill length taken at
meaning of sampling. cyclone and riffle split to achieve a representative sub-sample of
approximately 2-3kg analysis.
· Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems used. · Core and RC samples are processed using industry standard
practices of drying, crushing, splitting and
· Aspects of the determination of mineralisation that are Material to
the Public Report. Pulverization, then 50g fire assayed with AAS
finish for gold at the SGS Mwanza (Tanzania) and SGS Johannesburg (South
· In cases where 'industry standard' work has been done this would be Africa), and 30g fire assayed with AAS finish for gold at the MSA Labs
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m (Canada) for 2022 drill program.
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 by
Reflex core orientation tools.
· Reverse circulation (RC) using a 5.5 inch face sampling hammer
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 97%.
· Whether a relationship exists between sample recovery and grade and · RC drill chip samples of 1m were weighted and weight recorded to
whether sample bias may have occurred due to preferential loss/gain of determine weight was within a satisfactory range.
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.
· RC drill chips were logged for lithology, alteration and
· The total length and percentage of the relevant intersections mineralization type and a small sample kept from each metre in plastic chip
logged. trays as a logging record.
· All of diamond drill and RC holes are geologically logged in
entirety.
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 in consistent
taken. orientation with respect to orientation marks.
· If non-core, whether riffled, tube sampled, rotary split, etc and · Dry RC samples are riffled and sub-sampled, while wet are tube
whether sampled wet or dry. sampled.
· For all sample types, the nature, quality and appropriateness of · Sample preparation (drying, crushing, splitting, and pulverizing)
the sample preparation technique. is carried out by SGS Mwanza, SGS Jo'burg and MSA Labs (Canada) using
industry-standard protocols:
· Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples. o Kiln dried at 95 deg C.
· Measures taken to ensure that the sampling is representative of the o Entire sample crushed to sub 2mm to minimize bias.
in situ material collected, including for instance results for field
duplicate/second-half sampling. o Riffle split 800g to 1kg sub-sample.
· Whether sample sizes are appropriate to the grain size of the o Sub-sample pulverised to 90% passing 75um, monitored by sieving.
material being sampled.
o Industry-standard from pulp packet.
· 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 (CRM) of low and high-grade and
blank samples are inserted at least one sample in every ten samples
interchangeably to monitor sample preparation and laboratory accuracy. All
standards used are Certified Reference Materials (CRM). The insertion of QC
(CRM, blanks and duplicates) is under the control of the Project geologist
after logging.
· The sampling protocols are adequate to ensure the
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 and RC samples are assayed for gold by 30g Fire
laboratory procedures used and whether the technique is considered partial or Assay with AAS finish for 2022 drilling onwards.
total.
· 2022 drilled Core samples were sent to on-site lab-prep for
· For geophysical tools, spectrometers, handheld XRF instruments, preparation and shipped for analysis at MSA labs (Canada) and 2011/2012
etc, the parameters used in determining the analysis including instrument make drilled Core samples shipped for preparation and analysis at ALS Johannesburg
and model, reading times, calibrations factors applied and their derivation, SA. The documentation regarding sample analyses is well documented.
etc.
· Given the occurrence of coarse gold, Gravimetric checks are
· Nature of quality control procedures adopted (eg standards, blanks, routinely undertaken.
duplicates, external laboratory checks) and whether acceptable levels of
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.
· Umpire analyses were undertaken at ALS Johannesburg
Laboratories for approximately 10% of samples selected from the total. Results
show a reasonable correlation with the original samples.
· The QAQC procedures and results show acceptable levels of
accuracy and precision, hence the sample data was used for the Mineral
Resource Estimate.
Verification of sampling and assaying · The verification of significant intersections by either independent · There are strong visual indicators at West Kenya Project for high
or alternative company personnel. grade mineralisation observed in drill core and significant intersections are
visually validated against drill core, check calculated by alternative company
· The use of twinned holes. 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 as
· Discuss any adjustment to assay data. received basis 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.
· Downhole surveys are recorded at 12m intervals by
· Specification of the grid system used. using a Reflex digital downhole survey camera tool, holes drilled between 2016
and 2017 were gyroscope surveyed and MS shot for holes drilled in 2022.
· Quality and adequacy of topographic control.
· Drillholes surveyed in UTM Coordinates System Arc
1960 and converted to UTM36N WGS84.
· 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 at 20-30m at Bushiangala and 30
to 50m at Isulu deposits.
· 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. On completion of cutting the core, the samples are
dispatched by hired truck to the SGS Laboratory in Mwanza, Tanzania or by
courier to SGS in South Africa, or the MSA labs Canada. Sample dispatches are
reconciled against Laboratory samples received and discrepancies are
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 County of
agreements or material issues with third parties such as joint ventures, Kakamega in western Kenya. The Isulu and Bushiangala prospects lie within the
partnerships, overriding royalties, native title interests, historical sites, Liranda Corridor approximately 48 km north northwest of Kisumu City (Kenya's
wilderness or national park and environmental settings. third largest City) and 30 km southwest of Kakamega town.
· The security of the tenure held at the time of reporting along with · Isulu and Bushiangala deposits are situated within PL/2019/0225,
any known impediments to obtaining a licence to operate in the area. granted 1(st) Aug 2022 and covering 156.37 sq km. is wholly owned by Shanta
Gold Kenya Ltd.
· 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 Liranda
Corridor. 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 in areas outside the Liranda Corridor area. 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 and declared a maiden resource
at Isulu and Bushiangala in 2017.
Shanta Gold took over the project in August 2020.
Geology · Deposit type, geological setting and style of mineralisation. The Liranda Corridor is located on the eastern most margin of the
Busia-Kakamega Belt. Here rocks form a broad synclinal structure intruded in
the centre by granitoids and dioritoids, informally termed the Kakamega Dome.
The Liranda Corridor is situated on the eastern limb of this synclinal
structure within a 12 km structural zone known informally as the Liranda
Corridor. Lithologies of the Isulu and Bushiangala prospects include
sediments, iron-rich basalts, ultramafic volcanic rocks, gabbros, dolerites
and small felsic intrusions. The mafic volcanic unit also includes thin layers
of sulphidic carbonaceous interflow mudstone.
The Isulu and Bushiangala prospects mineralisation are classified as orogenic,
shear-zone-hosted quartz-carbonate vein subtype. Mineralisation of this
sub-type consists of quartz-carbonate veins and veinlet arrays associated with
Mg-Fe carbonate alteration and sulphidation, which are developed within shear
zones and their splays, within competent rock units. Mineralisation is
concentrated in zones of enhanced fluid flow, such as jogs or changes in
strike along the larger-scale fault zones.
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, · At Isulu the assay high grades used for this estimate were cut to
maximum and/or minimum grade truncations (eg cutting of high grades) and between 70 g/t and 100g/t for the mineralised veins and 5 g/t for the
cut-off grades are usually Material and should be stated. background mineralization. Aat Bushiangala variable capping between 6 g/t and
100 g/t for the mineralised veins and 3 g/t for the background
· Where aggregate intercepts incorporate short lengths of high grade mineralizationwere used.
results and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations · Capping grades were applied after compositing of the raw assay
should be shown in detail. data into 1m lengths.
· The assumptions used for any reporting of metal equivalent values · Blank intervals contained within the mineralisation were treated
should be clearly stated. 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.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · The holes drilled varied between -44 and -80 degrees from
Exploration Results. surface, with the mineralisation being sub-vertical. It is estimated that the
true widths of the mineralized zones are approximately 60-70% of the widths
· If the geometry of the mineralisation with respect to the drill intersected in the drill holes.
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.
intercepts should be included for any significant discovery being reported
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.
practicable, representative reporting of both low and high grades and/or
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.
reported including (but not limited to): geological observations; geophysical
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 95 holes for 40,000m planned infill drilling for
extensions or depth extensions or large-scale step-out drilling). conversion to mineable resources and expansion drilling across the Liranda
Region has been budgeted for in 2022.
· 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 · Site visits to the West Kenya Project were undertaken by the
the outcome of those visits. independent consultant Catherine Pitman of Adiuvare GE (Competent Person for
the Mineral Resource estimate) in 2016, 2018 and 2019.
· If no site visits have been undertaken indicate why this is the
case.
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 and RC 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 were completed along
estimation. sections typically at spacings of 20m at Bushiangala
· The factors affecting continuity both of grade and geology. and 40m at Isulu. The interpretations were triangulated to form 3D solids
(mineralised zones) using Leapfrog software.
· There are no alternative detailed interpretations of geology
using the current data.
· 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 Isulu, especially in
relation to structural effects, while at Bushiangala, part of the deposit
requires more data to be better understood.
Dimensions · The extent and variability of the Mineral Resource expressed as · The main zones of mineralisation at Isulu extend up to 240m along
length (along strike or otherwise), plan width, and depth below surface to the strike. The resource estimate (Phase 1) generally includes mineralisation down
upper and lower limits of the Mineral Resource. to 500m depth.
· At Bushiangala the mineralisation extends over 310m along strike
in the NNW-SSE trend and 150m along strike in the E-W trend. The resource
estimate extends to a maximum depth of 450m.
· Both deposits remain open along strike and at depth.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) Grade estimation for each of the two prospects carried out using Datamine
applied and key assumptions, including treatment of extreme grade values, software to generate a block model; with the individual zones separated out
domaining, interpolation parameters and maximum distance of extrapolation from for grade interpolation within each area. For each prospect, the following
data points. If a computer assisted estimation method was chosen include a process was followed.
description of computer software and parameters used.
· All the individual mineralisation zone wireframe solids were
· The availability of check estimates, previous estimates and/or mine verified using Datamine® software
production records and whether the Mineral Resource estimate takes appropriate
account of such data. · Drill data was de-surveyed and assessed for overlaps and outlier
values
· The assumptions made regarding recovery of by-products.
· Individual assay samples were selected from within each zone
· Estimation of deleterious elements or other non-grade variables of
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 · Statistical analysis was carried out to define capping levels
relation to the average sample spacing and the search employed.
· Gold values were adjusted for true absent or zero values
· Any assumptions behind modelling of selective mining units.
· The block model used dimensions of:
· Any assumptions about correlation between variables.
· X = 9 m
· Description of how the geological interpretation was used to
control the resource estimates. · Y =30 m
· Discussion of basis for using or not using grade cutting or · Z = 9 m
capping.
· Each individual zone was filled with blocks using sub-cells down
· The process of validation, the checking process used, the to 1.5 m in the east and vertical directions and 0.5 m in the north direction
comparison of model data to drill hole data, and use of reconciliation data if
available. · Block grades and density values were estimated into each parent
block within individual zones
· Blocks falling within the modelled intrusives at Isulu had their
grades set to zero
· A default specific gravity using the mean value of 2.75 for Isulu
and Bushiangala was used for fresh rock blocks that may not have been
estimated.
· At Bushiangala a default specific gravity value of 1.9 was
applied to oxide rock due to a lack of SG data, with the same applied as a
default for Isulu
All samples were composited to 1m length, with a minimum allowable length of
0.5m. Capping of the composites was carried out by zone for both Isulu and
Bushiangala. The capping levels were assigned using log probability plots for
the grade. The Table below shows the value applied to each zone.
Prospect Number of samples Capping value (Au g/t)
Isulu Zone 1 341 100
Isulu Zone 2 78 70
Isulu Zone 3 350 70
Isulu Zone 4 146 80
Isulu Zone 5 185 90
Isulu Background 142,246 5
Bushiangala V1 20 10
Bushiangala V2 167 14
Bushiangala V3 152 25
Bushiangala V4 315 100
Bushiangala V5 100 30
Bushiangala V6 205 11
Bushiangala V7 104 20
Bushiangala V8 300 20
Bushiangala V9 195 50
Bushiangala V10 13 6
Bushiangala V11 53 15
Bushiangala V12 64
Bushiangala V13 72 20
Bushiangala V14 14
Bushiangala V15 89 6
Bushiangala Background 41,342 3
Estimation at Isulu and Bushiangala was carried out using Inverse Distance to
the power of 2.
For Isulu the search ellipses were orientated with the primary axis along an
azimuth of 065 with a plunge of 65 degrees from horizontal for the
mineralisation. The search ellipse radii were X=100 m; Y=40 m and Z=80 m. The
search range factors were 1.5 for the second pass and 3 for the third pass.
Each vein was estimated independently.
For Bushiangala the primary search axis was orientated along an azimuth of
090, with a plunge of 70 degrees from horizontal for the mineralisation. The
search ellipse radii were X=34 m; Y=26 m and Z=60 m. The search range factors
were 1.5 for the second pass and 3 for the third pass. Each vein was estimated
independently.
Resource classification was assigned according to the continuity of the
mineralization, known geological controls and drill spacing.
In order to categorise the blocks into Indicated, Inferred and unclassified
the following steps were completed:
· All blocks outside of the modelled wireframes for both deposits
were coded as unclassified;
· Blocks that were estimated with an average distance of less than
40 m to the samples were coded as Indicated;
· The models were visually inspected and both outlier and inlier
values were adjusted so that the Indicated blocks were large continuous areas;
Each zone was divided into Oxide and Fresh rock using the Top of Fresh Rock
surface..
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 reported cut-off grades of 1 g/t Au for the
applied. oxidised rock and 3 g/t Au for the fresh rock 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 mineralization, probable
dimensions and internal (or, if applicable, external) mining dilution. It is extraction is by various underground mining.
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 Isulu and Bushiangala deposits are at an early stage of
disposal options. It is always necessary as part of the process of determining evaluation and 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 Isulu and Bushiangala Mineral Resources is
varying confidence categories. based upon the continuity of geology, mineralisation and grade, using
drillhole data spacing and 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 (Inferred Category) 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 Indicated and Inferred reflects
confidence level in the Mineral Resource estimate using an approach or the Competent Person's assessment of the accuracy and confidence levels in the
procedure deemed appropriate by the Competent Person. For example, the global Mineral Resource estimate.
application of statistical or geostatistical procedures to quantify the
relative accuracy of the resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative discussion of the factors
that could affect the relative accuracy and confidence of the estimate.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used.
· These statements of relative accuracy and confidence of the
estimate should be compared with production data, where available.
Estimation at Isulu and Bushiangala was carried out using Inverse Distance to
the power of 2.
For Isulu the search ellipses were orientated with the primary axis along an
azimuth of 065 with a plunge of 65 degrees from horizontal for the
mineralisation. The search ellipse radii were X=100 m; Y=40 m and Z=80 m. The
search range factors were 1.5 for the second pass and 3 for the third pass.
Each vein was estimated independently.
For Bushiangala the primary search axis was orientated along an azimuth of
090, with a plunge of 70 degrees from horizontal for the mineralisation. The
search ellipse radii were X=34 m; Y=26 m and Z=60 m. The search range factors
were 1.5 for the second pass and 3 for the third pass. Each vein was estimated
independently.
Resource classification was assigned according to the continuity of the
mineralization, known geological controls and drill spacing.
In order to categorise the blocks into Indicated, Inferred and unclassified
the following steps were completed:
· All blocks outside of the modelled wireframes for both deposits
were coded as unclassified;
· Blocks that were estimated with an average distance of less than
40 m to the samples were coded as Indicated;
· The models were visually inspected and both outlier and inlier
values were adjusted so that the Indicated blocks were large continuous areas;
Each zone was divided into Oxide and Fresh rock using the Top of Fresh Rock
surface..
Moisture
· Whether the tonnages are estimated on a dry basis or with natural
moisture, and the method of determination of the moisture content.
· Tonnages are reported on a dry basis.
Cut-off parameters
· The basis of the adopted cut-off grade(s) or quality parameters
applied.
· The Mineral Resource reported cut-off grades of 1 g/t Au for the
oxidised rock and 3 g/t Au for the fresh rock 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
dimensions and internal (or, if applicable, external) mining dilution. It is
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating
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.
· Based on the currently identified mineralization, probable
extraction is by various underground mining.
· Mining factors such as dilution and ore loss have not been
applied.
Metallurgical factors or assumptions
· The basis for assumptions or predictions regarding metallurgical
amenability. It is always necessary as part of the process of determining
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.
· No metallurgical assumptions have been built into the resource
models.
Environmental factors or assumptions
· Assumptions made regarding possible waste and process residue
disposal options. It is always necessary as part of the process of determining
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.
· The Isulu and Bushiangala deposits are at an early stage of
evaluation and environmental studies have not yet been undertaken.
Bulk density
· Whether assumed or determined. If assumed, the basis for the
assumptions. If determined, the method used, whether wet or dry, the frequency
of the measurements, the nature, size and representativeness of the samples.
· The bulk density for bulk material must have been measured by
methods that adequately account for void spaces (vugs, porosity, etc),
moisture and differences between rock and alteration zones within the deposit.
· Discuss assumptions for bulk density estimates used in the
evaluation process of the different materials.
· Specific gravity sampling has continued through the life of the
project, the measurements are carried out in accordance with site standard
procedures for Specific Gravity. Intervals for bulk density determination are
selected according to lithology/ alteration/mineralization type to best
represent certain intervals as defined by the geologist. The measurements are
performed on site by geologists or geological assistants as part of the
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.
Classification
· The basis for the classification of the Mineral Resources into
varying confidence categories.
· 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).
· Whether the result appropriately reflects the Competent Person's
view of the deposit.
· Classification for the Isulu and Bushiangala Mineral Resources is
based upon the continuity of geology, mineralisation and grade, using
drillhole data spacing and quality and estimation statistics.
· The Mineral Resources are classified as Indicated and Inferred.
· 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 (Inferred Category) has been reviewed by
the Shanta staff Tanzanian Operations.
Discussion of relative accuracy/ confidence
· Where appropriate a statement of the relative accuracy and
confidence level in the Mineral Resource estimate using an approach or
procedure deemed appropriate by the Competent Person. For example, the
application of statistical or geostatistical procedures to quantify the
relative accuracy of the resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative discussion of the factors
that could affect the relative accuracy and confidence of the estimate.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used.
· These statements of relative accuracy and confidence of the
estimate should be compared with production data, where available.
· The assigned classification of Indicated and Inferred reflects
the Competent Person's assessment of the accuracy and confidence levels in the
global Mineral Resource estimate.
ENDS
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