3rd Oct 2016 08:25
LONDON (Alliance News) - Shanta Gold Ltd on Friday said recent drill results from the Singida site in Tanzania have indicated the company will be able to significantly up production of low cost ounces of gold at an "extremely competitive" capital cost.
East-Africa-focused gold producer Shanta said a recent exploration programme, completed in September, was carried out to increase the drill density in the hanging wall shears at the Singida site.
The drilling of 39 holes at the site confirmed mineralisation along 400 metres of strike and down to a vertical depth of around 100 metres. High grade intersections indicated some potential pay-shoots within the plane of the shears GT2 and GT3 within zones of weaker mineralisation,.
Shanta said the upper, shallow pointed of the resource at GT1 is the focus of the pilot plant project, and future work at this area will include water supply hole drilling as well as further resource drilling.
Shanta is also planning induced polarisation surveys to track a 'Volcanogenic Semi Massive Sulphide horizon', which is believed to be a preferred locality for brittle-ductile deformation and mineralisation.
"The recent Singida drill results increase our confidence that, subject to an updated feasibility study, Shanta will be able to significantly increase its production of low cost ounces at an extremely competitive capital cost," said Chief Executive Toby Bradbury.
"The results from this latest drilling campaign further reinforce the value that our exploration emphasis is creating and the exciting prospectivity of Shanta's portfolio both at Singida and in the Lupa Goldfield," Bradbury added.
Shares in Shanta were up 5.2% at 11.84 pence on Monday morning.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
SHG.L