Shanta Gold Limited (AIM:SHG, OTC:SAAGF) reported a 31% increase in total resources for its West Kenya project.
Total resources at the Isulu, Bushiangala, and Ramula deposits rose to 1.55 million ounces, under the upgraded mineral resource estimate (MRE), including a 221% jump in indicated resources to 378,000 ounces at 11.70 grammes a tonne (g/t).
The company said the indicated resources estimate exceeded internal expectations.
“The increase in the MRE is further confirmation that the West Kenya project is itself hugely exciting, with our geologists confident that up to an additional 700,000oz of inferred resources can be converted to indicated in 2022,” said chief executive Eric Zurrin.
“In addition, new early-stage targets will be explored this year with the aim of converting them to the inferred resource stages.
“We now have compliant resources at four separate deposits -- Isulu, Bushiangala, Ramula, and the re-introduction of the historic Bumbo deposit -- confirming the widespread geological prospectivity of the West Kenya project. Future exploration of many additional highly prospective targets has the potential to lead to a multi-million-ounce gold region,” said Zurrin.
The AIM-traded company said three drill rigs are operational and that work on a feasibility study will begin in May.
“Excellent visual intersections have been observed in drilling results since the start of 2022 with multiple occurrences of visible gold. Assay results from these holes are due in April/May," said Zurrin.
The West Kenya project, which Shanta acquired in late 2020, covers about 1,162 km2 of the highly prospective Lake Victoria greenstone gold field.