Shanta Gold Limited 2023 Group Exploration Update (1140A)
May 22 2023 - 2:00AM
UK Regulatory
TIDMSHG
RNS Number : 1140A
Shanta Gold Limited
22 May 2023
22 May 2023
Shanta Gold Limited
("Shanta Gold" or the "Company")
2023 Group Exploration Update
Shanta Gold (AIM: SHG), the East Africa-focused gold producer,
developer and explorer is pleased to announce an exploration update
at its assets in Tanzania and Kenya.
Summary
-- Following the successful ramp-up of the Singida Gold Mine
("Singida"), a total of 34,000 meters of drilling has now
recommenced at New Luika Gold Mine ("NLGM") and West Kenya Project
("West Kenya")
-- The Singida operation is successfully meeting targeted
production objectives including steady state throughput and gold
production; commercial production expected shortly
NLGM - Phase 1 Drilling
-- Total of 8,000 meters across 51 holes at surface and underground deposits
-- Programme spans 4 months, with potential for Phase 2
-- Planned exclusively for deposits already permitted within the existing mining licences
-- Expected cost of US$1 million targeting the replacement of mined ore reserves in 2023
West Kenya
-- Current resource of 1.76 Moz grading 5.55 g/t expected to
increase to approximately 3+ million ounces over time
-- Up to 26,000 meters drilling across 80 holes
-- Centered around the Isulu and Ramula deposits
-- Targeting both conversion to Indicated category plus resource extensions
-- Third party consultants are now being engaged to accelerate technical studies
-- Workstream toward mining licence application and permitting is now underway
-- Total 2023 budget of up to US$10 million, consistent with previous years
Singida
-- Only 26% of total resource included in the reserve-based mine plan
-- Exploration drilling of US$0.5 million planned for Q3 2023
-- Targeting reserve additions and resource conversion
Eric Zurrin, CEO, commented:
"With the successful ramp-up of Singida to full production, we
are confident in our ability to responsibly allocate capital to
high impact exploration programmes across our asset portfolio.
Although only 8 weeks in, Singida is performing ahead of
expectations and gold production is promising. We have now
completed two gold shipments from Singida and the mine is free cash
flow positive.
Reserve life addition and mine life extension at NLGM are core
to Shanta's equity case. Over the last 4 years, we have added
473,000 oz of new reserves at NLGM, illustrating the sustainability
of the mine.
West Kenya continues to impress and is the next clear leg in
Shanta's growth story now that we have two producing gold mines in
Tanzania.
We expect to announce drilling assay results beginning in July
and updates to our reserves and resource estimates throughout Q3
and Q4."
Investor Conference Call
Shanta Gold is hosting a live investor presentation via the
Investor Meet Company platform today, 24 May 2023, at 10:00 am BST.
The presentation is open to all existing and potential shareholders
and questions can be submitted any time during the live
presentation.
Shanta's Group Head of Exploration, Yuri Dobrotin, will attend
the call to present highlights of the 2023 exploration
programme.
Investors can sign up to Investor Meet Company for free and add
to meet Shanta Gold via:
https://www.investormeetcompany.com/shanta-gold-limited/register-investor
Investors who already follow Shanta Gold on the Investor Meet
Company platform will automatically be invited.
Enquiries:
Shanta Gold Limited
Eric Zurrin (CEO) +44 (0) 14 8173 2153
Michal Devine (CFO)
Nominated Adviser and Joint Broker
Liberum Capital Limited
Scott Mathieson / Ed Thomas / Nikhil Varghese +44 (0) 20 3100 2000
Joint Broker
Tamesis Partners LLP
Charlie Bendon / Richard Greenfield +44 (0) 20 3882 2868
Public Relations
FTI Consulting
Sara Powell / Nick Hennis +44 (0) 20 3727 1426
About Shanta Gold
Shanta Gold is an East Africa-focused responsible gold producer,
developer, and explorer. The company has an established operational
track record, with defined ore resources on the New Luika and
Singida projects in Tanzania, with reserves of 625 koz grading 2.91
g/t, and exploration licences covering approximately 800 km(2) in
the country. Alongside New Luika and Singida, Shanta also owns the
high-grade West Kenya Project in Kenya and licences with resources
of 1.7 million ounces including 722 Koz in the Indicated category
grading 11.45 g/t. With a healthy balance sheet, a growing
diversified portfolio and a maiden dividend paid in 2021, Shanta
offers a resilient investment opportunity for the near and
long-term. Shanta is quoted on London's AIM market (AIM: SHG) and
has approximately 1,051 million shares in issue.
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