Completion of Drilling Programme at New Luika Mine

RNS Number : 1163D
Shanta Gold Limited
11 May 2012
 



 

 11 May 2012

 

Shanta Gold Limited

 

("Shanta Gold" or the "Company")

 

Completion of Drilling Programme at New Luika Gold Mine

 

Shanta Gold (AIM: SHG), the near-term gold producer with operations in Tanzania, is pleased to announce final assay results following the completion of the upgrade drilling campaign at its flagship project, the New Luika Gold Mine ("New Luika"), located in the Lupa gold region. The previous New Luika resource of 9.7 million tonnes with an average grade of 3.12g/t containing 974,153 ounces (1.0g/t cut-off) was announced in May 2011. Today's assay results follow on from the highly prospective initial drilling results announced 30 January 2012, which will be incorporated into an enlarged resource for New Luika during Q2 2012. The drilling campaign focussed on the optimisation of New Luika's main ore deposits, Bauhinia Creek and Luika, which form the first two of the 13 open pits which, subject to drilling results, will feed the central processing plant.

 

Highlights:

·      Bauhinia Creek latest assay results from its upgrade drilling programme include:

CSR340 - 10m at 18.26g/t, 130-140m below surface

CSR341 - 10m at 3.8g/t, 160-170m below surface

CSR342 - 5m at 3.21g/t, 200-210m below surface

·        Additional strike expression of mineralisation at depth has been proved. The strike extent of the Bauhinia Creek mineralised body has increased to approximately 500m

·        The increase in both depth and strike expression will be incorporated into a forthcoming resource update due during Q2 2012, which is expected to result in a new pit design that will exploit high grade ore to a depth substantially deeper than the current planned 120m vertical depth

·        Luika latest assay results from its upgrade drilling programme include:

CSR348 - 11m at 5.24g/t, 120-130m below surface

CSR349 - 6m at 9.02g/t, 160-165m below surface

CSR350 - 9m at 9.94g/t, 130-140m below surface

CSR356 - 10m at 4.04g/t, 145-155m below surface

·       The New Luika construction project remains on target for first gold production in Q3 2012

 

Gareth Taylor, Chief Executive Officer, commented;

 

"These significant results are very encouraging and further support the expectations that the current conceptual pit shells at Bauhinia Creek and Luika will be enlarged. We look forward to the completion of an updated resource statement during Q2 2012 which should be positively influenced by these results as the mineable resources increase and are re-categorised. The results will also provide further clarity on the depths at which mining can take place at both the Bauhinia Creek and Luika open pits."

 

Bauhinia Creek Deposit

 

The drilling programme was commissioned to clearly identify the down-dip extensions of the ore bodies delineated during earlier phases of drilling. Today's results complete the raw data from the completed Bauhinia Creek upgrade drilling programme, and supplement the results indicated below, which were previously released to the shareholders on 30 January 2012.

 

·           Borehole CSR332 - 10m at 26.9g/t, 80-100m below surface *

·           Borehole CSR324 - 11m at 21.71g/t, 100-120m below surface *

·           Borehole CSR325 - 31m at 12.97g/t in total, including 14m at 18.49g/t, 100-20m below surface*

·           Borehole CSR338 - 14m at 11.6g/t, 120-150m below surface*

·           Borehole CSR330 - 13m at 8.19g/t in total, 150 - 200m below surface*

·           Borehole CSR331 - 6m at 11.93g/t  and 8m at 13.24g/t in total, 150 - 200m below surface*.

 

*as announced on 30 January 2012

 

The latest results from Bauhinia Creek are summarised in Table 1.

 

Luika Deposit

 

The upgrade drilling campaign at the Luika deposit, located approximately 400m northwest of Bauhinia Creek, was undertaken to investigate the continuity of mineralisation at depth.  Current provisional pit designs at the Luika deposit do not include any inferred resources, and are limited to a vertical depth of approximately 130m. The mineralisation at Luika is known to occur in a laterally continuous structurally deformed horizon characterised by alternating low grade and high grade zones. The "payshoots" were identified and mapped by early colonial miners when the Luika deposit was exploited as an underground mine pre-1960.

 

Despite intersecting moderate gold grades in some of the latest drill holes the Company is satisfied that the continuity of payshoots at depth has been delineated during the latest drilling campaign. A comprehensive summary of drilled intersections achieved appears in Table 2.

 

Strike expression of the Luika mineralised body is currently approaching 700m, with continuity of mineralisation proven down to approximately 175m vertical depth. It is envisaged that optimisation of newly received data may result in the enlarging of the conceptual Luika pit shell, such that ore located below 130m vertical may be exploited.

 

Data derived from the upgrade drilling campaign is being integrated into the superseding geological database with the view to publish an updated resource statement in the foreseeable future.

 

Luika Slope Scree Gravel Material

 

In addition to mining the Bauhinia Creek open pit, Shanta Gold is currently focussing on the stripping of slope scree gravels that fall within the footprint of a conceptual Luika pit. The Company is screening and stockpiling the +10mm gravel material at the New Luika plant site. Although this material does not form part of the Company's resources as currently stated, the +10mm gravel fraction has been sampled and found to be gold bearing. It is envisaged that this material will be used during the commissioning phase of the start-up operations.

 

Project Update

 

Construction of the New Luika plant is ongoing and first gold production remains on target for Q3 2012.  A detailed announcement on the project progress will be released to the market in due course.

 

Table 1: Bauhinia Creek drill intersections and assay results

 

BHID

FROM

TO

SAMPLE NO

AU GRADE

INTERSECTION WIDTH

COMPOSITE GRADE

CSR339

185

186

177684

32.80

1

32.80








CSR340

132

133

327059

2.20

10

18.26

133

134

327060

45.35

134

135

327062

3.35

135

136

327063

43.90

136

137

327064

9.93

137

138

327065

6.33

138

139

327066

24.3

139

140

327067

31.10

140

141

327068

15.70

141

142

327069

0.45








CSR341

161

162

327104

0.44

10

3.80

162

163

327105

0.97

163

164

327107

1.92

164

165

327108

3.97

165

166

327109

4.15

166

167

327110

3.38

167

168

327111

4.58

168

169

327112

1.02

169

170

327113

17.20

170

171

327114

0.41








CSR342

205

206

327212

2.53

5

3.21

206

207

327213

5.33

207

208

327214

3.07

208

209

327215

4.34

209

210

327216

0.80








CSR343

33

34

327253

0.90

4

1.00

34

35

327254

0.17

35

36

327255

1.18

36

37

327256

1.75

AND

CSR343

73

74

327297

1.81

3

0.99

74

75

327298

0.59

75

76

327299

0.57

AND

CSR343

195

196

327430

2.95

4

1.52

196

197

327431

1.74

197

198

327432

0.74

198

199

327433

0.66

 

 

Table 2: Luika upgrade drilling intersections

 

BHID

FROM

TO

SAMPLE NO

AU GRADE

INTERSECTION WIDTH

COMPOSITE GRADE

CSR344

92

93

327519

10.02

1

10.02








CSR345

148

149

327624

1.05

1

1.05








CSR346

133

134

327774

1.21

10

0.96

134

135

327775

0.46

135

136

327776

0.86

136

137

327777

1.21

137

138

327779

0.51

138

139

327780

0.51

139

140

327781

0.06

140

141

327782

0.68

141

142

327783

2.73

142

143

327785

1.33

 

 







CSR347

55

56

327862

1.19

1

1.19

AND

CSR347

121

122

327935

5.91

1

1.19

AND

 

CSR347

173

174

327990

5.83

10

1.90





174

175

327992

3.91

175

176

327993

1.35

176

177

327994

0.35

177

178

327995

0.15

178

179

327996

0.45

179

180

327998

1.38

180

181

327999

1.24

181

182

328000

1.24

182

183

328001

3.07








CSR348

91

92

328121

2.42

1

2.42

AND

CSR348

130

131

328163

0.76

11

5.24

131

132

328164

1.99

132

133

328165

0.05

133

134

328166

0.03

134

135

328167

19.7

135

136

328168

3.00

136

137

328169

1.23

137

138

328171

5.80

138

139

328172

13.50

139

140

328173

11.25

140

141

328174

0.32

BHID

FROM

TO

SAMPLE NO

AU GRADE

INTERSECTION WIDTH

COMPOSITE GRADE

CSR349

20

21

328217

1.59

2

1.50

21

22

328218

1.41

AND

CSR349

180

181

328392

32.50

6

9.02

181

182

328393

10.71

182

183

328394

5.25

183

184

328395

3.60

184

185

328396

1.13

185

186

328397

0.95








CSR350

147

148

328575

0.69

9

9.94

148

149

328576

76.95

149

150

328577

4.98

150

151

328578

0.79

151

152

328579

0.96

152

153

328580

2.04

153

154

328581

1.63

154

155

328582

0.75

155

156

328583

0.72








CSR351

127

128

328718

1.3

1

1.30

AND

CSR351

141

142

328733

5.09

2

2.82

142

143

328734

0.55








CSR352

157

158

328789

0.57

3

1.34

158

159

328791

2.47

159

160

328792

0.97

AND

CSR352

171

172

328805

0.79

2

1.34

172

173

328806

1.89








CSR353

83

84

328895

0.82

3

0.80

84

85

328896

0.85

85

86

328897

0.74

AND

CSR353

108

109

328923

2.49

1

2.49








CSR354

188

189

329031

0.92

2

1.26

189

190

329032

1.605








CSR355

147

148

329115

0.81

2

2.50

148

149

329116

4.18

AND

CSR355

196

197

329169

5.74

2

4.47

197

198

329170

3.19

BHID

FROM

TO

SAMPLE NO

AU GRADE

INTERSECTION WIDTH

COMPOSITE GRADE

CSR356

168

169

329235

0.85

10

4.04

169

170

329236

3.48

170

171

329237

0.78

171

172

329238

10.81

172

173

329239

5.55

173

174

329241

1.89

174

175

329242

3.64

175

176

329243

7.04

176

177

329244

4.59

177

178

329245

1.80








CSR357

112

113

329346

2.08

9

3.87

113

114

329347

1.22

114

115

329348

0.59

115

116

329349

2.57

116

117

329350

1.80

117

118

329351

16.00

118

119

329352

1.25

119

120

329353

7.80

120

121

329354

1.50


CSR358

168

169

329411

0.62

5

3.44

169

170

329412

8.01

170

171

329413

5.04

171

172

329414

2.85

172

173

329415

0.67








CSR359

50

51

329467

1.59

1

1.59

AND

CSR359

159

160

329586

1.71

4

5.17

160

161

329587

13.00

161

162

329588

5.68

162

163

329589

0.30








CSR361

115

116

329799

0.86

2

1.13

116

117

329800

1.40

AND

CSR361

120

121

329804

1.62

1

1.62

AND

CSR361

205

206

329897

1.27

4

1.49

206

207

329898

3.08

207

208

329899

1.02

208

209

329901

0.6








CSR362

69

70

329937

2.265

1

2.27








BHID

FROM

TO

SAMPLE NO

AU GRADE

INTERSECTION WIDTH

COMPOSITE GRADE

CSR3631

 

100

101

330189

0.31

30

0.47

101

102

330190

0.99

102

103

330192

0.73

103

104

330193

0.46

104

105

330194

1.7

105

106

330195

0.83

106

107

330196

0.4

107

108

330198

0.745

108

109

330199

0.05

109

110

330200

0.04

110

111

330201

0.21

111

112

330202

0.57

112

113

330203

0.15

113

114

330204

0.48

114

115

330205

0.29

115

116

330206

0.27

116

117

330207

0.36

117

118

330208

0.15

118

119

330209

0.16

119

120

330210

0.56

120

121

330211

0.48

121

122

330212

0.295

122

123

330213

0.08

123

124

330214

0.45

124

125

330215

0.21

125

126

330216

0.21

126

127

330217

1.14

127

128

330218

0.48

128

129

330219

0.37

129

130

330220

0.78

 

1CSR363 - Interpreted to represent drilling sub-parallel to localised faulted zone responsible for slight displacement of the Luika mineralised ore zone.

 

Qualified Person

 

Braam (J.A.C.) Jankowitz, M.Sc., Pr.Nat.Sci. (400127/93), Shanta's Technical Services Manager is a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, and has reviewed and approved the technical information contained in this announcement.

 

Enquiries:

 

Shanta Gold Limited             

Tel: +255 (0) 22 2601 829

Walton Imrie / Gareth Taylor




Nominated Adviser and Broker


Liberum Capital Limited

Tel: + 44 (0)20 3100 2000

Michael Rawlinson / Clayton Bush / Christopher Kololian




Public Relations UK


Tavistock Communications

Tel: +44 (0)20 7920 3150

Emily Fenton / Ed Portman




Public Relations SA

Tel: + 27 11 880 3924

Russell & Associates


Charmane Russell / Marion Brower / Pam Wolstenholme


 

About Shanta Gold Limited

 

Shanta Gold is a Tanzania focussed gold explorer and mine developer. It currently has defined ore resources on the New Luika, Singida and Mgusu projects and holds exploration licences over a number of additional properties. The New Luika Gold Mine is currently under construction and is expecting first production in 2012. The Company is admitted to trading on AIM and has approximately 319 million shares in issue.

 

For further information visit the Company's website: www.shantagold.com.

 

 

 


This information is provided by RNS
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