Shanta Gold PLC (LON:SHG) has published a substantial maiden resource estimate for Nkuluwisi, one of the satellite deposits that surrounds its New Luika gold mine in Tanzania.
At a 0.5g/t cut-off, Nkuluwisi holds total resources of 3.97mln ore tonnes, which at a grade of 1.1 grammes per tonne (g/t) equates to 140,894 ounces of gold.
At just shy of 84,000 oz, most of the resource is also in the higher certainty indicated category with a further 9,200oc in the highest or measured classification.
WATCH: Shanta Gold boss 'very pleased' with Nkuluwisi maiden resource estimate
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Toby Bradbury, Shanta’s chief executive, said Nkuluwisi’s significant scale will allow it to target lower grade orebodies, which could increase production levels and add to New Luika’s (NLGM) mine life.
Nkuluwisi is 12km northwest of the mine’s central processing hub.
“NLGM already has resources of 9.47 million tonnes at 2.24 g/t for 683,000 oz that sit outside the recently updated Revised Mine Plan and the Nkuluwisi maiden resource adds significantly to that,” he said.
“Further upside remains along strike at Nkuluwisi and also at a series of highly prospective and proximate targets in the Lupa Goldfield.”
In a note to clients, Shore Capital analyst Yuen Low said: “New Luika currently has resources that sit outside the current Revised Mine Plan of 9.47Mt @ 2.24g/t for 683koz, to which Nkuluwisi adds significantly.
“According to Shanta, this “opens the door to possible expansion options” at New Luika to target lower-grade orebodies to increase volumes and extend minelife.”
Shanta shares held steady at 7.88p.
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