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Shanta Gold pleased with phase 2 drilling results at New Luika

The results of the first and second phases of the New Luika drilling campaigns will be combined and analysed.

Gold mine
An updated mineral resource estimate and life of mine extension for New Luika is expected next month

Shanta Gold Limited (LON:SHG), the East Africa-focused gold producer, has found exceptional grades in its latest drilling campaign at New Luika in south-western Tanzania.

The company has been drilling at Bauhinia Creek on the New Luika gold mine and has intersected high-grade mineralisation over significant widths, including 16.02 metres grading 9.36 grams of gold (Au) per tonne (g/t); 7.07 metres grading 16.10 g/t Au; and 2.43 metres grading 5.26 g/t Au.

READ Shanta Gold eyes New Luika life extension as high-grades continue at depth

The group said the new area of mineralisation found in the phase 2 drilling is below the existing mineral reserves found at the BC Central ore body announced last month.

It added that the strike length of high-grade mineralisation below the existing reserves is estimated at 280 metres and remains open at depth.

"These are some of the best exploration results yet at New Luika and it is of great encouragement to see such exceptional grades and widths as we go deeper into the orebody,” said Eric Zurrin, Shanta's chief executive officer.

“The vertical level of the current mine plan is only 250 metres below the portal and we look forward to further exploring these high-grade extensions in the second half of 2019. Mine life extension is the single biggest contributor to value for Shanta Gold shareholders given the quality of the orebody and we will be combining the phase 1 & 2 results into an updated resource estimate in July," he added.

In afternoon trading, shares in Shanta Gold were 8.8% higher at 7.40p.

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Quick facts: Shanta Gold Limited

Price: 14 GBX

Market: AIM
Market Cap: £111.15 m

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