Shanta Gold Limited (AIM:SHG, OTC:SAAGF) said the latest drilling at Ramula has underlined the potential for its West Kenya project to become a huge asset for the company.
The results strengthen "our view that the region is a major new gold district and an area of massive future growth for the company,” Shanta added.
Eric Zurrin, chief executive, said: "We are delighted with the transformative drilling results announced at the Ramula target, adding 434k oz grading to 2.08 g/t and increasing total resources at our West Kenya project by a significant 37% to 1.6mln oz.
Further upgrades are possible when results from Isulu-Bushiangala and Bumbo are assessed in the coming weeks, he added.
"Situated in close proximity to the Liranda Region which holds the Isulu-Bushiangala resource, we are confident that in time, we will be able to expand Ramula into the second significant resource region in the wider West Kenyan project.
“In the near term, we are looking forward to updating shareholders on the updated mineral resource estimate at Isulu-Bushiangala as well as the re-estimated historical maiden resource at the Bumbo polymetallic target.
“The West Kenya project continues to produce exciting results the more we look, and we are confident that it has the potential to be a multi-million-ounce gold district comparable with other prolific greenstone belts in the world."
Ramula now has an inferred unconstrained in-situ resource estimate of 433,900 ounces grading 2.08 g/t, using a cut-off grade of 0.7g/t gold using the Canadian National Instrument 43-101 guidelines (NI 43-101);
·Preliminary indications are for a favourable low stripping ratio, Shanta added.