Shanta Gold Limited (LON:SHG) has unveiled a “significant increase” in reserves and resources at its New Luika gold mine in Tanzania.
The AIM-listed miner said newly drilled targets have increased indicated resources at the project to 219,408 ounces, up from 83,543 announced in mid-July and 219% higher than the 57,916 ounces announced at the end of 2017.
WATCH: Shanta Gold 'rapidly paying down its debt' as New Luika continues to impress
Inferred resources, meanwhile, have increased to 94,007 ounces from 74,427, with further drilling planned to prove this up.
Eric Zurrin, Shanta’s chief executive, added that the company has “high expectations that the targets will continue to grow both in size and number” as it looks to add to the mine life of New Luika.
Another 4,000 metres of drilling is planned for the fourth quarter of 2019, with an exploration update due before the end of the year followed by a resources statement in the first quarter of 2020.
Meanwhile, the company has restated reserves at one of its existing mining areas, Ilunga, down by 44,000 ounces following grade control drilling and a revised resource model design.
Zurrin said the restatement “provides for a more accurate representation and increases confidence in Ilunga's contribution to the plant over the coming years".
In early trading on Monday, the shares were 2.4% higher at 8.6p.
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