Shanta Gold Ltd (AIM:SHG, OTC:SAAGF) has detailed its drilling operations at the New Luika and Singida gold mines in Tanzania.
The company, which is the process of being sold, updated on the ongoing exploration efforts aimed at converting inferred resources to Indicated categories and testing new targets within the mining licenses.
At New Luika, where drilling started in July, the programme has yielded promising results across multiple deposits, with Elizabeth Hill, Bauhinia Creek North (BCN), and Jamhuri Main all showing encouraging outcomes.
The drilling is part of a broader strategy to extend the life of the mine by targeting resources outside of the existing reserve-based mining plan.
Similarly, at Singida, exploration drilling resumed in September, focusing on the Jem, Gold Tree, and Vivian deposits.
This is the first exploration activity in the area since 2018, with efforts concentrated on converting Inferred resources and assessing the lateral extents of mineralised zones.
In total, the New Luika drilling update encompasses 5,855 metres from 38 holes, while the Singida update covers 4,008 metres from 37 holes.
“Despite having to add a third contractor to catch up on drill plans, drilling of the deposits has so far demonstrated positive results,” chief executive Eric Zurrin said in a statement.
Earlier this month, Shanta’s takeover by Saturn Resources received unconditional approval from the Tanzanian Fair Competition Commission.
Prior to that, shareholders backed the deal and completion now requires receipt of regulatory approvals from the Tanzanian Mining Commission and the Cabinet Secretary for Mining, Blue Economy and Maritime Affairs in Kenya and the sanctioning of the Scheme at the Court Hearing.
The acquisition is expected to become effective in the first half of 2024.