Aim-listed Shanta Gold has achieved its objective of the 1 600 m reverse circulation drilling programme, which targeted two of the seven key targets at its Singida project, in Tanzania, to upgrade resources from the inferred to the measured and indicated (M&I) categories.

The M&I resources have now increased to nearly 400 000 oz of gold at 2.08 g/t, said Shanta CEO Eric Zurrin, who added that a geophysics programme is planned for the third quarter of this year to test upside at the Cornpatch and Cornpatch West targets as the company targets ongoing expansion and upgrading of the resource.

The East Africa-focused gold producer’s Joint Ore Reserves Committee- (Jorc-) compliant project resources totaled 12.3-million tonnes, grading 1.84 g/t gold and containing 725 000 oz of gold using a cut off grade of 1 g/t gold consisting of an M&I mineral resource totaling 5.71-million tonnes, grading 2.08 g/t gold and containing 381 000 oz of gold.

An inferred resource of 6.57-million tonnes, grading 1.63 g/t gold and containing 344 000 oz of gold was also included.

The mineral resource estimate incorporates three mining licences and seven mineralised zones with a combined strike length of 4.9 km, with widths ranging from 5 m to 15 m and mineralisation extending to about 500 m below the topographical surface.

Additionally, Gold Tree 1, which is at the centre of the three mining licences, contains M&I resources of 1.61-million tonnes, grading 2.80 g/t gold and containing 145 000 oz of gold at a cut off grade of 1.0 g/t gold which is located near to surface, while independent minerology testing has been completed previously with average recoveries of 91%.

Mineralisation is open at depth and along strike with numerous parallel structures identified.

Shanta will shortly be starting an exploration programme to delineate further resources and upgrade the inferred resources near to surface in the Cornpatch and Cornpatch West targets into M&I resource categories.

PROJECT UPDATE

The Singida project is a direct beneficiary of a Tanzanian Rural Energy Authority (REA) programme and will be connected to the central government’s power grid, which is expected to pass within 500 m of the proposed location of the project site.

Construction of the REA power supply line is expected to be completed by the end of this year, funded by the government and external donors.

Further, project capital funding is being targeted from external third parties at the Singida asset level.