Shanta Gold Limited (AIM:SHG, OTC:SAAGF) said Yintai Gold Co. Ltd has told it that it does not intend to make an offer for the company.
On 18 October, the East Africa-focused gold miner announced three separate takeover approaches from Chinese firms Shandong Gold and Yintai Gold, plus London-listed Chaarat Gold Holdings Ltd.
READ: Shanta Gold mulls three takeover approaches
In a separate statement today, Shanta also provided a positive exploration drilling update at its New Luika gold mine (NLGM) in Tanzania.
The drilling results covered 47 holes at the BC North, Ilunga, Luika Deep, Black Tree Hill and Elizabeth Hill targets.
"I am pleased to announce that we continue to deliver encouraging drilling results at New Luika, adding to the exploration success that we have had around the wider portfolio this year,” said chief executive Eric Zurrin.
“These results give us confidence that the reserve-based mine life at New Luika will continue to be extended beyond its current timeline of H1 2027.”
Mineralisation at Luika, Black Tree Hill, and Porcupine South remains open at depth, Shanta said.
Highlights from the drilling results include 9 metres (m) at 17.33 grammes a tonne (g/t) gold at Black Tree Hill; 4.15m at 17.30 g/t gold, including 1.46m at 46.53 g/t, at Ilunga; and 16m at 3.51 g/t gold at Elizabeth Hill.
Results from all the targets will be incorporated into Shanta’s annual mineral reserve and resource update set for release in January 2023.
“In 2023, we are scheduled to continue drilling, testing the Elizabeth Hill, Porcupine South and Black Tree Hill targets following the encouraging results from the recent drilling, modelling and technical studies, as well exploring several outlined targets situated in proximity to the known orebodies, e.g. Luika South, BC North West and Black Tree Hill western conceptual high-grade shoot and Porcupine South Central,” said Zurrin.
“This is an exciting time for Shanta Gold as we transition towards becoming a 100,000 oz per year gold producer in March 2023 as Singida comes onstream,” he added.