Shanta Gold’s resource update from West Kenya makes clear that it has excellent potential as a gold mining province, says house broker Liberum.
The style of mineralisation of the Ramula deposit at West Kenya resembles the Sigma-Lamaque style at the Val’d-Or Camp of the Abitibi Gold Belt, Canada, it adds, where systematic exploration resulted in the discovery of several proximal gold deposits within the camp.
Drilling planned by Shanta for 2023-24 adjacent to Ramula aims to deliver substantial resource additions and new discoveries, Liberum adds.
In total, Shanta increased the indicated resource at West Kenya by 58% with infill drilling lifting Ramula’s grade and ounces by 16% and 8% respectively.
“All eyes will now be on the first gold pour at Singida, due to occur in March, flipping the company into positive free cash flow generation.”
Liberum has a 'buy' rating and a 17p target price.
Shares were unchanged at 10.63p.