Exportation drilling by Shanta Gold Limited (LON:SHG) close to its New Luika Gold Mine (NLGM) in Tanzania suggests the high-grade area has potential for underground mining.
The focus was on a prospect called Ilunga, 2.5 kilometres from the main processing facility with this, the second wave of drilling in the area, designed to test the strike extension.
The best intercepts from the 20-hole programme included 13 metres at 4.19 grams per tonne of the yellow metal, including 10 metres at 5.3 grams; 3.2 metres at a bonanza 40.64 grams and 2.06 metres at a 10.46 grams.
The mineralisation was found at depths between 158 and 277 metres.
Shanta said an additional 100 metres of potentially gold bearing ‘strike’ has been identified to the west of latest drilling, while the deposit remains open at depth.
The data will now be wrapped in with the results from the April programme to help compile a new resource statement for Ilunga, which currently stands at a modest 74,000 ounces of gold.
“Our exploration team has a good handle on mineralisation and structure, enabling efficient exploration to take place,” said Shanta chief executive Toby Bradbury.
“Today’s results from Ilunga confirm good tenor and thicknesses and we are looking forward to producing an updated resource estimate.
“Ilunga shows potential as a high grade underground deposit and we expect the Ilunga ounces to contribute to the ongoing reserve replacement at NLGM.
“It is also encouraging that mineralisation is still potentially open down-plunge to the west and this will be evaluated in due course.”