20th Jun 2019 10:50
(Alliance News) - Shanta Gold Ltd on Thursday said it has intersected high-grade mineralisation at the New Luika gold mine located in Tanzania, providing further evidence of the continuity of the orebody.
Shares in the company were trading 8.1% higher at 7.35 pence each in morning trade.
The East Africa-focused exploration company said the second phase of Bauhinia Creek drilling campaign at New Luika intersected high-grade mineralisation over significant widths, providing evidence of continuity of the orebody to the west of Bauhinia Creek Central where high-grade results were intercepted in May.
"These are some of the best exploration results yet at New Luika and it is of great encouragement to see such exceptional grades and widths as we go deeper into the orebody," said Chief Executive Officer Eric Zurrin.
The Phase 2 drilling campaign at New Luika consisted of three diamond holes drilled at the BC Central-West underground mine. The drilling targeted areas on the western side of the ore body, below the existing reserves and mine plan.
The new high-grade intersections revealed in Phase 1, Phase 2 and the previous drill hole CSD055 are outside the existing mineral reserves and will be incorporated into the mine plan. The company expects to release an updated Mineral Resource Estimate and life-of-mine extension in July.
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