Shanta Gold Ltd reported the second-best exploration result this year when it announced further high-grade drilling results from its West Kenya gold project, said analysts at Liberum Capital.
“In the West Kenya drill results update yesterday was a truly remarkable hit of 4 metres at 706 g/t [grammes a tonne], including 0.5m at 5,643g/t,” Liberum said. “This implied gold equivalent interval of 2,825 AuEq m/t would place it amongst the best drill results across any commodity in recent years.”
“To compare this hit with other exploration results across all key commodities, we multiply its gold-equivalent grade by the drill interval length. Using this method, Shanta has reported the second-best drill result this year, second to Pretium Resources’ drill results at its Brucejack mine in Canada. On its announcement of Filo Mining result in May, the stock’s price doubled.”
READ: Shanta Gold reports further high-grade drilling results from its West Kenya gold project
The company chose not to disclose details of the exceptionally high-grade intersections.
“From this, we assume the company is concerned about flagging the hit to artisanal miners operating in the area,” said Liberum. “While we do not know the depth at which the intersection occurred, most of the other results occurred at around 200m depth.”