The resource at Aim-listed Shanta Gold’s New Luika gold mine (NLGM), in Tanzania, has increased, extending the mine’s life to 2025.

Drilling at Bauhinia Creek (BC) Central, conducted in April and May, resulted in the conversion of 126 787 oz of inferred resources, grading 3.15 g/t, into 83 543 oz of indicated resources, grading 7.85 g/t, a suitable level of confidence for these ounces to be incorporated into the mine plan.

A further 58 553 oz of new inferred resources, grading 4.79 g/t, have been added to the mineral resource.

These new high-grade, underground indicated resources are expected to be supplemented with medium- or low-grade ounces to match the historically blended feed grade of 4.3 g/t.

“Following the drilling of six holes, costing the company $164 000, we have replaced all of the depletion expected from 2019 gold production,” commented Shanta CEO Eric Zurrin in a statement issued on Monday.

“This highlights the exceptional nature of the BC orebody and the long-life potential of the high-margin NLGM.

“It is worth remembering that, in 2012, NLGM’s overall reserve based mine life was just 2.5 years and has grown incrementally since then despite production of about 80 000 oz/y and limited exploration.”

Shanta’s strategy is to maintain a rolling five- to eight-year life of mineable ounces which balances the cost of exploration with visibility of future production.

The next phase of drilling on the mining licences over the next 12 months will target conversion of a further 220 300 oz of inferred resources into indicated resources at BC, as well as at other deposits, namely the Ilunga, Luika and Elizabeth Hill orebodies.

New exploration targets outside of the mining licences continue to be generated and prioritised.

Over 5 000 m of exploration drilling is planned for the second half of this year across Shanta’s regional targets in the Lupa goldfield.