7th May 2019 11:45
LONDON (Alliance News) - "Highly encouraging" drilling results mean Shanta Gold Ltd could extend the life of its New Luika gold mine, it said Tuesday.
Shanta has been drilling at the Bauhinia Creek deposit on New Luika, located in south-western Tanzania.
The aim of drilling was to upgrade the mine's mineral resource, and positive intersections below existing reserves show the current underground decline may continue, extending the life-of-mine.
Results include 7.3 metres at 6.2 grams of gold per tonne of ore, 2.0 metres of 4.8 grams, and 3.7 metres at 6.6 grams.
Chief Executive Eric Zurrin said: "A very modest and low-cost drilling program has returned highly encouraging results that point to life-of-mine extension at depth at Bauhinia Creek. A mine life extension would require only minimal capex, limited predominantly to underground development to access new ore.
"Positive indications point to the existing underground decline being pushed down by at least three levels and new ounces added to our mine plan. I look forward to confirming our expectation after the results of the phase two drilling."
Shanta shares were flat on Tuesday morning at a price of 6.60 pence each.
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