Shanta Gold Limited (LON:SHG) has updated investors on ongoing exploration drilling at the New Luika gold mine (NLGM) in South Western Tanzania, which it said has unveiled “encouraging results”.
The AIM-listed Africa-focused gold explorer said nine diamond core holes have been drilled at the Luika deposit totalling 4,042 metres with further drilling ongoing, while 28 holes have been drilled at the new open pit Porcupine South target totalling 2,466 metres.
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Highlights of the Luika drilling included 3.58 metres grading at 14.71 grams per tonne (g/t) of gold while drilling at Porcupine South included an intersection of 7 metres grading at 7.26 g/t of gold.
The company said the newly reported intersections were outside existing mineral reserves and will be incorporated into the next update of the mine plan, with the results covering a strike length of 200 metres for Luika and 500 metres for Porcupine South.
Luika is one of NLGM's three actively mined underground deposits while Porcupine South is a new target located approximately 22 kilometres east of NLGM, which is expected to be within economically viable trucking distance from the project’s processing plant.
Shanta also said that mineralisation at both targets remained open at depth and drilling will continue into the first quarter of 2021.
"These encouraging results are the latest demonstration by the company that depleted ounces can be replaced with low-cost exploration”, Shanta chief executive Eric Zurrin said in a statement.
“Porcupine South is a newly discovered orebody, taking the known deposits at NLGM to twelve, each of which has the potential to increase in size. An anticipated net increase in JORC reserves is expected to be announced in early 2021", he added.