SHANTAGOLD LIMITED
("Shanta" or the "Company")
CHUNYA PROJECT METALLURGICAL OPTIMISATION STUDY RESULTS SHOW
OPTIMUM RECOVERIES OF 90%
13 January 2010
Shanta is pleased to announce the completion of initial metallurgical
optimisation studies on ore samples from its Chunya project in southern
Tanzania. The test work, conducted by independent verification consultants SGS
South Africa (Pty) Ltd, was aimed at establishing whether a bulk combined sample
(ROM sample) would be amenable to gravity concentration and gold dissolution. In
addition a recently discovered surface rubble zone at the Luika site within the
Chuya orebody has been evaluated and the metallurgical characteristics tested
and found to be similar to that of the in situ ore at Chunya.
Highlights include:
* Gravity concentration recovery of 35% with gravity plus leaching of gravity
tails yielding a maximum recovery of 88%.
* ROM dissolution tests show maximum leach recovery of 90%.
* Optimum leach conditions identified.
* The range of recoveries has been more tightly defined providing a higher
level of confidence to the parameters used in the mining study.
* Results will be used in the Feasibility Study that is currently underway and
due to be completed in the 1st quarter 2010.
* The rubble zone at Luika is estimated to contain 17,000 ounces of gold with
a maximum leach recovery of 93%, a marginally improved recovery to that of
the ROM sample.
Gravity Test
Gravity concentration of the ROM composite derived from the RC drill chips
yielded a concentrate that contained 34.94% of the gold. Under excess leach
conditions the gravity tails dissolution was 87.44%. The calculated gravity
circuit recovery achieved a maximum total gold dissolution of 87.61%.
ROM Dissolution Test
The dissolution tests showed the optimum leach conditions on the ROM sample to
be an 80% passing -53µm grind, cyanide addition of 2kg/t, and 48 hour residence
time with oxygen sparging. These conditions returned a maximum gold dissolution
of 89.93% with a cyanide consumption of 0.84kg/t NaCN.
Improved Metallurgical Definition
Previous mineralogical and gold deportment studies with preliminary
concentration and dissolution tests on individual samples from the prospects
returned recoveries ranging between 81% and 88% and gravity test work on the
same yielded recoveries that varied between 17% and 44% (at an 80% -75µm grind).
These new results much more clearly define the metallurgical nature of the
deposit and will be very important in helping progress the Mining Feasibility
Study currently underway and which is expected to be completed during the first
quarter of 2010.1st quarter 2010
Free dig horizon identified and tested
During 2009 the exploration at Luika on the Chunya property delineated a surface
rubble horizon containing approximately 500,000 tonnes of material. Systematic
pitting and sampling was conducted. Screening of this sample material to +10mm
showed 38% of the material (an estimated 180,000 in situ tonnes) to be in this
size fraction. Analysis has defined an estimated 17,000 ounces of gold at
2.97g/t. A 20t bulk sample of the rubble material has been metallurgically
tested at the Mintek laboratory in South Africa.. The sample was screened and a
composite sample of crushed material from the +10mm size fractions milled to
80% -75 µm. Cyanide leaching returned a maximum dissolution of 93% and. this
free dig material is expected be an important component of early plant
operations and may be stockpiled during open pit preparation pre-stripping. It
should be available for immediate treatment with the start-up of plant
operations.
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
Fairfax I.S. PLC
Ewan Leggat / Laura Littley
+44 (0)20 7598 5368
[HUG#1376352]