East Africa-focused gold producer Shanta Gold (AIM: SHG), recently published an update for its New Luika Gold Mine in South Western Tanzania, indicating a considerable increase in estimated reserves and resources.
New resources and reserves estimated following drilling program for the 6 months from 1 April 2019 to 30 September 2019, added new probable gold reserves totaling 135,438 ounces grading 4.07g/t Au at these Newly Drilled Targets.
This results in indicated resources of 219,408 ounces grading 3.19 g/t (inclusive of the abovementioned reserves and the 83,543 ounces already announced on 15 July 2019) up 219% from 57,916 ounces grading 1.77 g/t at end-December 2017.
In addition, new inferred resources of 94,007 ounces grading 2.75 g/t up 26% from 74,427 ounces grading 1.71 g/t have been estimated at the Newly Drilled Targets, with further drilling planned to prove this up.
Eric Zurrin, Chief Executive Officer, commented: “The Company is pleased to announce a significant increase in reserves and resources at the Newly Drilled Targets that was completed in September. We have high expectations that the targets will continue to grow both in size and number as we look to add to our mine life at New Luika.”
Since 30 September 2019, drilling has been ongoing on the Mining Licences and across other regional targets in the Lupa Goldfield and approximately 4,000 meters of exploration drilling is planned for Q4 2019.
The nex exploration update is expected before year-end 2019 with a consolidated reserves and resources statement expected in Q1 2020.
Tanzania gold reserves are estimated at about 45m ounces (oz). Gold exploration has been centered mostly on the greenstone belts around Lake Victoria, where several large deposits have already been discovered and are being developed.
Gold production in Tanzania stands at around 50t per year which makes it the 4th largest gold producer in Africa after South Africa, Ghana and Mali.