SHANTA GOLD LIMITED
("Shanta" or the "Company")
28 May 2009
RESOURCE ANNOUNCEMENT
SHANTA'S SINGIDA RESOURCE INCREASES TO 1.0 MILLION OUNCES
TOTAL RESOURCE EXCEEDS 2.5 MILLION OUNCES
Shanta Gold is pleased to announce that the latest Phase 2 drilling
program at Singida in Tanzania has almost doubled the total in situ
gold resource on this project to 1,031,926 ounces. This increases
Shanta's total in situ resource to 2.6 million ounces.
A JORC compliant resource assessment has been completed and signed
off by Geologix MRC (Pty) Ltd, the company's resource consultants.
The consultants conducted an independent review of the exploration
protocols, QA/QC procedures and the data integrity, which were found
to be compliant.
The resources have been defined systematically, with reverse
circulation (RC) drilling at Corn Patch West and diamond drilling for
testing the down-dip and along-strike extensions to the Gold Tree and
Jem prospects where the company announced and initial JORC compliant
resource of 543,000 ounces in December 2007.
Importantly the excellent intersections returned by Corn Patch West
and the step-back drilling that intersected similar parallel
mineralised structures in the hanging wall of the main Gold Tree and
Jem ore zones have increased the potential to delineate additional
resources in future drilling programmes. The ten structures hosting
the mineralization are contained in seven identified prospects that
lie within a 6km radius.
Notwithstanding current financial constraints, these additional
resources and good results strongly support the company's strategy to
commence selected pre-feasibility study activities and to consider
the potential to generate medium term cash flow from a small to
medium-sized mining operation at Singida. Shanta continues to
evaluate alternative routes to the effective monetisation of the ore
body which may include partnerships, joint ventures and farm-in
proposals.
Singida Project Resource
The Gold Tree mineralised zones persist at depth and along strike in
a westerly direction for an additional 400m to 500m through the area
that separates Gold Tree and Jem. Two of the zones are developed in
the immediate hanging wall of the Jem prospect. The gap between the
two zones was previously thought to represent a structural truncation
of the mineralised shear zones. These new zones are likely to persist
to surface where their nature and extent is being tested by
systematic trenching. In addition to tracing the existing and known
Gold Tree and Jem mineralisation to depth and extending the
resources, the deep diamond drilling has now confirmed that there are
at least three robust parallel mineralised shear zones at the Gold
Tree prospect that persist to a depth of 350m - 450m from surface.
The consistency noted in the development of the mineralised shear
zones suggest that these may well continue at much greater depths
than those quoted above. This will have to be confirmed by a further
Phase of step-back drilling.
The Phase 2 diamond drill results are tabulated below (Table 1). The
best results were 2.3m at 2.61g/t, 3.95m at 1.84g/t, 5.08m at
1.83g/t, 6.58m at 3.23g/t and 2.03m at 2.70g/t.
Table 1. Selected Singida Phase 2 Diamond drilling results.
Gold Tree and Jem Prospects
BHID FROM Intersection Width Weighted Grade - g/t
SD636 277.33 0.47 1.8
SD636 280.21 0.89 2.20
SD648 276.47 2.3 2.61
incl 276.47 0.73 4.48
incl 277.63 0.70 3.31
SD648 386.66 3.95 1.84
incl 388.96 1.65 3.65
SD649 259.15 5.08 1.83
incl 259.15 0.35 13.9
incl 262.21 0.36 5.46
SD649 330.76 1.79 1.33
SD650 302.69 6.58 3.23
incl 305.34 1.75 5.73
incl 307.31 1.47 4.68
SD650 370.97 2.03 2.70
incl 371.4 0.45 7.23
SD650 448.85 2.2 0.88
SD651 106.35 1.07 1.30
The RC drilling at Corn Patch West comprised wide-spaced (50m-100m)
2-hole fences. The zone consists of a meta-sedimentary package
similar to that at Corn Patch containing semi-massive-sulphide
horizons of mostly pyrrhotite. Superimposed later brittle-ductile
shearing, quartz veining, biotite alteration plus/minus arsenopyrite
hosts the gold, as was the case at Corn Patch. The zone which is
largely covered by thick transported cover and not detectable by
conventional soil geochemical sampling, has a potential strike extent
(Corn Patch to Corn Patch West) in excess of 3.5km. Limited step-back
drilling conducted at Corn Patch West confirms that the intersected
mineralisation is open at depth.
The best RC results at Corn Patch (see Table 2) include 7.0m at
6.52g/t, 10.0m at 5.05g/t, 3.0m at 3.77g/t, 10.0m at 2.65g/t and
15.0m at 2.16g/t.
Table 2. Selected Singida Phase 2 RC drilling results.
Corn Patch West
+--------------------------------------------------+
| BHID | FROM | Intersection Width | Grade - g/t |
|-------+-------+--------------------+-------------|
| SC621 | 73.0 | 3.0 | 1.78 |
|-------+-------+--------------------+-------------|
| SC622 | 57.0 | 7.0 | 6.52 |
|-------+-------+--------------------+-------------|
| incl | 60.0 | 5.0 | 8.81 |
|-------+-------+--------------------+-------------|
| SC623 | 50.0 | 10.0 | 5.05 |
|-------+-------+--------------------+-------------|
| incl | 50.0 | 3.0 | 9.28 |
|-------+-------+--------------------+-------------|
| incl | 55.0 | 4.0 | 4.85 |
|-------+-------+--------------------+-------------|
| SC635 | 124.0 | 3.0 | 3.77 |
|-------+-------+--------------------+-------------|
| incl | 124.0 | 2.0 | 5.28 |
|-------+-------+--------------------+-------------|
| SC637 | 105.0 | 10.0 | 2.65 |
|-------+-------+--------------------+-------------|
| incl | 105.0 | 3.0 | 5.30 |
|-------+-------+--------------------+-------------|
| incl | 112.0 | 3.0 | 2.95 |
|-------+-------+--------------------+-------------|
| SC638 | 98.0 | 1.0 | 2.98 |
|-------+-------+--------------------+-------------|
| SC631 | 56.0 | 15.0 | 2.16 |
|-------+-------+--------------------+-------------|
| incl | 56.0 | 1.0 | 18.05 |
+--------------------------------------------------+
The total in situ gold resource at a 0g/t cut-off grade at the
Singida project is now 1,031,926 ounces at 1.46 g/t, and comprises a
measured resource of 480,546 ounces at 2.13 g/t, an indicated
resource of 149,292 ounces at 1.03g/t and an inferred resource of
402,088 ounces at 1.19g/t. The total Singida resources are tabled
below (Table 3).
Table 3. Singida Total in situ Resources
+--------------------------------------------+
| MEASURED | | | |
|-----------+------------+-------+-----------|
| CUT-OFF | TONNES | GRADE | OUNCES |
|-----------+------------+-------+-----------|
| 0 | 7,023,624 | 2.13 | 480,546 |
|-----------+------------+-------+-----------|
| 1 | 3,317,439 | 4.05 | 432,283 |
|-----------+------------+-------+-----------|
| 2 | 1,796,685 | 6.23 | 359,719 |
|-----------+------------+-------+-----------|
| 3 | 1,035,872 | 9.04 | 300,955 |
|-----------+------------+-------+-----------|
| | | | |
|-----------+------------+-------+-----------|
| INDICATED | | | |
|-----------+------------+-------+-----------|
| CUT-OFF | TONNES | GRADE | OUNCES |
|-----------+------------+-------+-----------|
| 0 | 4,499,151 | 1.03 | 149,292 |
|-----------+------------+-------+-----------|
| 1 | 1,866,845 | 1.96 | 117,694 |
|-----------+------------+-------+-----------|
| 2 | 717,902 | 2.79 | 64,350 |
|-----------+------------+-------+-----------|
| 3 | 188,026 | 3.78 | 22,858 |
|-----------+------------+-------+-----------|
| | | | |
|-----------+------------+-------+-----------|
| INFERRED | | | |
|-----------+------------+-------+-----------|
| CUT-OFF | TONNES | GRADE | OUNCES |
|-----------+------------+-------+-----------|
| 0 | 10,500,201 | 1.19 | 402,088 |
|-----------+------------+-------+-----------|
| 1 | 4,212,927 | 2.28 | 308,508 |
|-----------+------------+-------+-----------|
| 2 | 1,782,311 | 3.47 | 198,604 |
|-----------+------------+-------+-----------|
| 3 | 511,427 | 6.06 | 99,649 |
|-----------+------------+-------+-----------|
| | | | |
|-----------+------------+-------+-----------|
| TOTAL | | | |
|-----------+------------+-------+-----------|
| CUT-OFF | TONNES | GRADE | OUNCES |
|-----------+------------+-------+-----------|
| 0 | 22,022,976 | 1.46 | 1,031,926 |
|-----------+------------+-------+-----------|
| 1 | 9,397,211 | 2.84 | 858,485 |
|-----------+------------+-------+-----------|
| 2 | 4,296,898 | 4.51 | 622,674 |
|-----------+------------+-------+-----------|
| 3 | 1,735,325 | 7.59 | 423,462 |
+--------------------------------------------+
The 2009 work program at Singida is aimed at increasing the near
surface resource potential and advancing the project towards
production. Metallurgical samples have been submitted for preliminary
gold deportment and recovery test work. Trenches are being excavated
to test the near surface strike extension to Jem, Gold Tree and the
newly discovered structures adjacent to these, and new ground is
being negotiated which, if obtained, should complement the current
Shanta Singida licence portfolio.
If it is found that any of these ore zones can be brought into
production with low levels of capital investment the board will
consider developing a small to medium size mining operation which
will require a mining licence. Shareholders will be informed of
estimated financing requirements, which will only be available post
the completion of the preliminary feasibilities.
Shanta has recently advised the market that its Chunya property has a
potential resource of 845,000 ounces at a cut off grade of 0 g/t at
an average grade of 1.12 g/t. Together with the resource determined
by SRK for the Mgusu prospect of 740,000 ounces at a grade of 3.7
g/t, determined by SRK for the Mgusu prospect, Shanta now has a total
declared resource of 2.61M ounces all of which is JORC or SAMREC
compliant (Table 4):
Table 4. Shanta Total Combined Resource
+----------------------------------------------------------+
| PROJECT | TONNES | GRADE (g/t) | Kg's | OUNCES |
|---------+------------+--------------+--------+-----------|
| Mgusu | 6,169,000 | 3.70 | 23,047 | 741,000 |
|---------+------------+--------------+--------+-----------|
| Singida | 22,022,976 | 1.46 | 32,096 | 1,031,926 |
|---------+------------+--------------+--------+-----------|
| Chunya | 23,531,472 | 1.12 | 26,299 | 845,519 |
|---------+------------+--------------+--------+-----------|
| Total | 51,723,448 | 1.57 | 81,442 | 2,618,445 |
+----------------------------------------------------------+
Qualified Person:
Deon van der Heever has more than 18 years experience in the mining
and exploration industry. He is the Executive Director of GeoLogix
MRC (Pty) Ltd. He is the founding member of GeoLogix and has provided
consulting services to the minerals industry for eight years. His
field of expertise is gold and platinum and he has completed and
signed off many resource estimates in South Africa, Africa, North
America and Tajikistan. He is registered by the South African Council
for Natural Scientific Professions as a Professional Natural
Scientist in the field of practice of Geological Science,
Registration Number 400115/00, and as such is considered to be a
Competent Person. Deon van der Heever consents to the inclusion in
the report of the matters based on his (or her) information in the
form and context in which it appears.
Awie Pretorius has more than 20 years experience in the mining and
exploration industry. He is registered by the South African Council
for Natural Scientific Professions as a Professional Natural
Scientist in the field of practice of Geological Science,
Registration Number 400060/91, and as such is considered to be a
Competent Person. Awie Pretorius consents to the inclusion in the
report of the matters based on his information in the form and
context in which it appears.
For further information:
Shanta Gold Limited
http://www.shantagold.com
Walton Imrie
Mobile: +27 (0) 82 444 2851
David Scott
Mobile: +255 784 366 146
Fairfax
Ewan Leggat/Laura Littley
+44 (0) 20 7598 5368
GLOSSARY
3D Block Modelling. A computer-based representation of a geological
body, or mine excavation, created from a series of interconnected
outlines of the body being modelled.
0.0 g/t Cut-off implies all values are taken into account.
Along strike. Horizontal direction along the plane of the body.
Cut-off. The value of an ore variable below which material is
classified as waste.
Deportment. The study of a gold bearing ore using mineralogical,
x-ray and diagnostic leach procedures to determine the distribution,
grain size and chemistry of gold in the sample.
Down dip. Direction perpendicular to the strike of a body.
JORC - The Joint Ore Reserves Committee. The Australasian Code for
Reporting of Mineral Resources and Ore Reserves (the 'JORC Code' or
'the Code'), which sets out minimum standards, recommendations and
guidelines for Public Reporting of exploration results, mineral
resources and ore reserves in Australasia.
- Measured Resource. An in-situ mineral resource calculated with a
high confidence level to which economic parameters have not been
applied. Also that part of a mineral resource where the data used
for inspection, sampling and measurement is of sufficient quality and
density such that the geological character, continuity, grade and
nature are sufficiently well understood to define the location and
characteristics of mineralisation with a high degree of confidence
- Indicated Resource. An in-situ mineral resource calculated with a
moderate confidence level to which economic parameters have not been
applied.
- Inferred Resource. An in-situ mineral resource calculated with a
low confidence level to which economic parameters cannot be applied.
PL. Prospecting Licence awarded in terms of Tanzania mining laws and
regulations.
QA/QC. Quality assurance / quality control.
Shear zone. A zone in which shearing has occurred on a large scale so
that the rock is crushed or such that the rock is deformed.
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