11th Oct 2018 13:32
LONDON (Alliance News) - Shanta Gold Ltd on Thursday said drilling at Bauhinia Creek East in the New Luika gold mine has converted a majority of its inferred resources into indicated resources.
Drilling at Bauhinia Creek East, which is located within the Tanzanian gold project, converted 27,240 ounces into indicated resources from 33,746 ounces of inferred resources.
In total, 21,081 ounces of indicated resources at 3.43 grams of gold per ton of ore have been added to the life of mine plan. This implies a conversion cost of USD8 per ounce with a conversion rate of 81%.
Results of the first phase of drilling, which commenced in late September at Bauhinia Creek West, are expected in November.
"Once the inferred resources have been converted to Indicated resources across the portfolio, we look forward to exploring for potentially transformational downdip extensions across all three underground orebodies...the development of which is not capital intensive for the company," said Shanta Chief Executive Eric Zurrin.
Shanta also reported results from its Lambo target, located in the Lupa goldfields in Tanzania, including two trenches of 2.1 metres at 47.1 grams of gold per ton of ore and 3.2 metres at 32.7 grams of gold per ton of ore.
"We are encouraged by the strong results from our regional exploration programme, including Lambo which is located close to our existing plant," said Zurrin.
Shares in Shanta were down 0.1% at 4.62 pence on Thursday.
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