Shanta Gold (LON:SHG) is eyeing an increase in the resource around its New Luika gold mine in Tanzania after consistent grades were returned from close by.
The Elizabeth Hill prospect lies within the existing mining licence at New Luika, approximately four kilometres east of the processing plant.
Drilling was designed to provide close-spaced (25 metres x 25 metres) ore intersections at shallow depths.
Best grades from the 3,700 metres (m) programme ranged from 14m at 6.23 grams per tonne (g/t) from 66m down to 2.26 g/t over 15m at 25m.
“A substantial portion of the 750m strike expression tested (approximately 400m) is characterised by encouraging gold mineralisation. Areas displaying elevated gold grades are located within two distinct zones.
“Elizabeth Hill is a linear southeast trending topographic high, which suggests that possible future opencast exploitation could be characterised by low stripping ratios,” it added.
Shanta added that as output has increased at New Luika’s plant it can now handle lower grade ore from satellite deposits that can be blended with high grade ore from the Bauhinia Creek pit.
An updated resource assessment will now be prepared for Elizabeth Hill, after which pit optimisation studies will be commissioned. Other target areas around New Luika include the Black Tree Hill, Ilunga and Luika South prospects.