GBG Joint Venture Update

RNS Number : 4968L
Shanta Gold Limited
05 September 2012
 



5 September 2012

 

 

Shanta Gold Limited

 

("Shanta Gold" or the "Company")

 

Encouraging Exploration Results from Shanta Gold-GBG Joint Venture

 

 

Shanta Gold, the East African focused gold mining company, is pleased to announce encouraging early stage exploration results achieved from tenements in the Shanta Gold-Great Basin Gold Joint Venture ("JV") portfolio of properties.

 

The Company entered into a JV agreement with Great Basin Gold (TSX/NYSE/JSE: GBG) in 2011, thus enabling Shanta Gold exploration crews to conduct reconnaissance and exploration activities over a large consolidated permit holding in the Lupa Goldfields, the second largest goldfields in Tanzania. Great Basin Gold, through subsidiary Tanzanian registered companies, holds the majority of exploration tenements in the Lupa Goldfields in south western Tanzania.

 

The JV agreement provides for Shanta Gold earning up to 80% of discovered resources, subject to conditions set out in the agreement which are outlined in the Shanta Gold announcements dated 1 June 2011 and 13 October 2011. Under the agreement, Shanta Gold is committed to expenditure of no less than $12 million on exploration activities in the Joint Venture portfolio of properties before 31 December 2014.

 

 

Highlights

·      Nine new mineralised prospect areas identified by means of grab sampling and trenching

·      Encouraging gold values achieved with both grab and trench channel sampling

·      Three of the newly identified prospect areas have been targeted with first-pass Reverse Circulation ("RC") drilling, and encouraging mineralised intersections have been achieved at depth

 

 

Exploration Statistics to 30 June 2012

·      1,075 Grab samples collected and analysed

·      Grab sampling assays suggest that a total mineralised strike length of 3.59km has thus far been identified

·      61 Exploration trenches totalling 1,270m of linear trenching have been completed

·      A total of 64 RC drillholes totalling 4,476m of drilling have been completed at three mineralised prospects

 

 

Results

 

Reconnaissance grab samples collected at numerous mineralised prospects located to the north, northeast and northwest of Shanta Gold's New Luika Gold Mine yielded very encouraging results, with gold values of up to 50 g/t achieved. The grab sampling information enabled Company field crews to prioritise the exploration at certain mineralised prospects.

 

Exploration trenches excavated at several of the mineralised prospects confirm the presence of in-situ mineralised structural deformational features identified by means of grab sampling. Table 1 contains some of the trench channel sampling values achieved.

 

Table 1: Significant trench channel sampling - Shanta Gold-GBG JV

 

Big Vein 1 Prospect

 

Trench ID

From

To

Width

Sample Nr.

Au/ppm

Total Width

Au g/t









BV1T001

7.3

7.6

0.3

261005

20.2

2.55

4.74

BV1T001

7.6

8

0.4

261006

1.9

BV1T001

8

8.6

0.6

261007

1.48

BV1T001

8.6

9.2

0.6

261008

7.13

BV1T001

9.2

9.85

0.65

261009

0.16









BV1T005

4.6

5.05

0.45

261153

35.2

0.45

35.3

 

 

 

Big Vein 2 Prospect

 

Trench ID

From

To

Width

Sample Nr.

Au/ppm

Total Width

Au g/t









BV2T005

14.3

14.85

0.55

260413

1.04

0.55

1.04









BV2T006

3.45

4

0.55

260542

2.15

0.55

2.15

 

 

 

Tanganyika Prospect

 

 

Trench ID

From

To

Width

Sample Nr.

Au/ppm

Total Width

Au g/t









TT002

1.6

2.6

1

260331

2.96

1.7

2.36

TT002

2.6

3.3

0.7

260332

1.5

 

 

 

Tanganyika South Prospect

 

Trench ID

From

To

Width

Sample Nr.

Au/ppm

Total Width

Au g/t









TST003

7.95

8.25

0.3

260049

2.94

0.3

2.94

 

 

 

 

 

 

Mbuga Prospect

 

Trench ID

From

To

Width

Sample Nr.

Au/ppm

Total Width

Au g/t









MT002

0

1

1

260598

2.11

1

2.11

MT002

4

5

1

260602

4.75

1

4.75









MT004

11.6

12.3

0.7

260616

7.89

1.3

4.52

MT004

12.3

12.9

0.6

260617

0.59

MT004

13.6

14.3

0.7

260619

1.06

0.7

1.06

 

 

 

 

Reverse circulation drilling commissioned at three prospects located in the direct vicinity of the New Luika Gold Mine site intersected encouraging gold mineralisation at depth. This bodes well for the delineation and development of near surface ore resources, pending more drilling.  A summary of significant intersections attained is provided in Table 2:

 

 

Table 2: Significant Mineralised Intersections - RC Drilling - Shanta Gold-GBG JV

 

Big Vein 2 Prospect

 

BH I.D.

From

To

Width

Sample Nr.

Au/ppm

Total Width

Au g/t

SGR002

32

33

1

287886

12.2

4

35.44

SGR002

33

34

1

287887

49.6

SGR002

34

35

1

287888

79.3

SGR002

35

36

1

287889

0.67









SGR002

44

45

1

287898

0.64

1

0.64









SGR003

53

54

1

287977

1.13

5

4.53

SGR003

54

55

1

287978

10.2

SGR003

55

56

1

287979

0.32

SGR003

56

57

1

287980

10

SGR003

57

58

1

287981

1.01









SGR003

78

79

1

288005

3.01

4

1.45

SGR003

79

80

1

288006

0.7

SGR003

80

81

1

288007

0.15

SGR003

81

82

1

288008

1.93









SGR003

83

84

1

288010

0.81

4

16.16

SGR003

84

85

1

288011

46

SGR003

85

86

1

288012

17.2

SGR003

86

87

1

288013

0.62









SGR003

94

95

1

288021

2.31

1

2.31









SGR007

17

18

1

288240

1.19

3

0.94

SGR007

18

19

1

288241

0.03

SGR007

19

20

1

288242

1.6









SGR007

25

26

1

288248

7.55

1

7.55

 

 

 

Dave's Mile Prospect

 

BHID

From

To

Width

Sample Nr.

Au/ppm

Total Width

Au g/t

SGR015

28

29

1

288813

0.74

2

1.04

SGR015

29

30

1

288814

1.33









SGR015

31

32

1

288817

0.59

2

0.52

SGR015

32

33

1

288818

0.45









SGR016

26

27

1

288880

3.08

1

3.08









SGR024

44

45

1

289476

1.45

1

1.45









SGR024

46

47

1

289478

1.29

4

2.994

SGR024

47

48

1

289479

1.4

SGR024

48

49

1

289480

1.23

SGR024

49

50

1

289482

8.05









SGR030

57

58

1

289864

1.04

1

1.04









SGR030

64

65

1

289871

4.36

1

4.36









SGR032

57

58

1

290040

0.81

5

2.634

SGR032

58

59

1

290042

6.53

SGR032

59

60

1

290043

1.01

SGR032

60

61

1

290044

3.83

SGR032

61

62

1

290045

0.98









SGR032

71

72

1

290055

5.1

1

5.1









SGR063

43

44

1

292607

9.08

2

5.25

SGR063

44

45

1

292608

1.41

 

 

 

Mgomba Prospect

 

Trench BHID

From

To

Width

Sample Nr.

Au/ppm

Total Width

Au g/t

SGR041

41

42

1

290976

0.79

7

12.10

SGR041

42

43

1

290977

1.32

SGR041

43

44

1

290978

39.6

SGR041

44

45

1

290979

34.4

SGR041

45

46

1

290980

6.24

SGR041

46

47

1

290981

0.43

SGR041

47

48

1

290982

1.97


SGR046

13

14

1

291308

3.24

2

2.35

SGR046

14

15

1

291309

1.46









SGR046

18

19

1

291313

0.66

4

1.21

SGR046

19

20

1

291314

1.77

SGR046

20

21

1

291315

1.05

SGR046

21

22

1

291316

1.35









SGR046

42

43

1

291340

4.55

2

4.25

SGR046

43

44

1

291341

3.95


SGR047

12

13

1

291414

2.85

1

2.85









SGR047

26

27

1

291430

0.53

3

6.31

SGR047

27

28

1

291431

4.49

SGR047

28

29

1

291432

13.9


SGR049

31

32

1

291580

10.1

2

7.85

SGR049

32

33

1

291581

5.59


SGR053

31

32

1

291854

0.92

2

1.76

SGR053

32

33

1

291855

2.6









SGR053

37

38

1

291861

3.58

3

1.66

SGR053

38

39

1

291862

0.54

SGR053

39

40

1

291863

0.87

 

 

  

Exploration Strategy

 

Shanta Gold and Great Basin Gold have agreed to implement a phased approach to the exploration of the >2500km2 Lupa Goldfields. It is envisaged that the area falling into a 20km radius around the New Luika Gold Mine will initially be prioritised for exploration, while low-key reconnaissance activities will be commissioned in areas further afield.

 

With the above in mind, Shanta Gold-GBG have commissioned and completed a detailed LiDAR survey of a block comprising approximately 400km2. Data from this survey has been received and is being processed. In addition to the above, the Company is currently considering the commissioning of a Heli-borne magnetic and radiometric survey covering the same area - approximately 400km2.

 

Exploration trenching at known gold occurrences is ongoing with the view to commission a new drilling programme during the course of Q4 2012.  

 

 

Walton Imrie, Executive Chairman of Shanta Gold, commented:

 

"We are encouraged by the early stage exploration results achieved from tenements in the Shanta Gold-Great Basin Gold JV.  The JV has agreed to implement a phased approach to the exploration of the over 2,500km2 of tenement area within the historic Lupa Goldfields, which hosted numerous shallow, high-grade gold mines during the colonial era.  The JV represents significant exploration upside potential for Shanta Gold as the tenements are in very close proximity to the Company's existing operations at New Luika."

 

 

Competent Persons Statement

 

Braam (J.A.C.) Jankowitz, M.Sc., Pr.Nat.Sci. (400127/93), Shanta's General  Manager at New Luika Gold Mine 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




Financial Public Relations


FTI Consulting

Tel: +44 (0)20 7269 7100

Billy Clegg / Oliver Winters


 

About Shanta Gold Limited

 

Shanta Gold is an East African focused gold mining company. 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 Company's flagship New Luika Gold Mine commenced production and achieved first gold pour in August 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
The company news service from the London Stock Exchange
 
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