SHANTA GOLD LIMITED
SCOPING STUDY ANNOUNCEMENT
SHANTA HAS AWARDED THE CONTRACTS TO CONDUCT A CONCEPTUAL MINING STUDY
AND AN ESIA FOR CHUNYA
17 June 2009
Shanta Gold Limited ("Shanta" or the "Company") is pleased to
announce that a conceptual mining study contract and an environmental
and social impact assessment ("ESIA") have been commissioned for the
Chunya project in southern Tanzania. TWP Projects (Pty) Ltd ("TWP")
in South Africa have been contracted to conduct the conceptual mining
study and PaulSam Geo-Engineering Co. Ltd of Tanzania will conduct
the ESIA.
In April 2009 Shanta announced a JORC compliant resource assessment
for the Chunya project of 845,000 ounces in the indicated and
inferred categories. This resource and the level of geological
knowledge of the ore bodies has justified the commencement or
preliminary techno-economic mining and ESIA studies with a view to
achieving a first pass determination of the economic viability of a
small to medium scale mine on the site. It is planned that the
outcomes of these studies will be used to justify the further work
needed to complete a pre-feasibility study.
Conceptual Mining Study
The scope of work will include:
- a review and evaluation of the ore body models to ensure a
realistic geological model is used for design work, including rock
strengths, ore body shape, estimate of gold content, future
exploration programmes to upgrade the resource;
- determination of conceptual mining methods, mine access, layouts,
schedules, geotechnical and support parameters;
- conceptual assessment of infrastructure requirements, surface and
underground services, logistical and systems requirements including
process flow diagrams, major equipment lists and order of magnitude
cost estimates;
- human resource complements, remuneration and organogram;
- order of magnitude capital expenditure estimates for all major
items, operating expenditure fixed and variable costs and a
discounted cash flow model; and
- a risk assessment.
A concept study report will be compiled by TWP that describes the
proposed techno-economic solution for the project. The study is
expected to be completed within 8-10 weeks of commencement and to be
tabled with Shanta by the middle to end of August 2009.
Environmental Impact Assessment
The objective of the ESIA study will be to conduct an Environmental
and Social Impact Assessment for a mining operation at Chunya. The
projects outputs will be a scoping report with Terms of Reference for
a detailed ESIA and an ESI Statement for the project which will
include:
- determination of the impacts of the proposed mine;
- the analysis of alternatives to the project;
- the development of a management plan to mitigate negative impacts;
and
- a monitoring plan.
The project is expected to be completed within six months and will
include reviews, and require approval, from the National
Environmental Management Committee and the Vice President's office in
Tanzania.
Shanta plans to utilise the reports from these two studies to form
the basis for further more in depth studies that should lead to
completion of a pre-feasibility study and to support the extension of
the prospecting licence term in accordance with the Mining Act (1998)
of Tanzania (Section 29 (I) (d) ) in order to complete a feasibility
study. In line with Shanta's strategy these studies will also
contribute significantly to the Company's understanding of the
economics of the deposit at Chunya and assist with the securing of
financial and operating partners to develop a mine at this site.
For further information:
Shanta Gold Limited
http://www.shantagold.com
Walton Imrie
Mobile: +27 (0) 82 444 2851
David Scott
Mobile: + 255 (0) 784 366146
Walter Vorwerk
Mobile: +27 (0) 83 308 0080
Fairfax I.S. PLC
Ewan Leggat/Laura Littley
+44 (0) 20 7598 5368
GLOSSARY
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.
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