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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Shanta Gold Limited | LSE:SHG | London | Ordinary Share | GB00B0CGR828 | ORD 0.01P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.01 | -0.07% | 14.74 | 14.70 | 14.80 | 14.75 | 14.70 | 14.70 | 4,628,268 | 16:35:20 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 114.06M | -2.3M | -0.0022 | -67.05 | 155.09M |
From Apr 2019 to Apr 2024
TIDMSHG
RNS Number : 9049W
Shanta Gold Limited
20 November 2017
20 November 2017
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
Singida JORC Resource Estimate and NLGM Operations Update
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, announces a JORC compliant Mineral Resource Estimate ("MRE" or "Resource") on the Singida Gold Mining Project ("Singida" or "the Project") in Central Tanzania and provides an operational update for its New Luika Gold Mine ("NLGM"), in Southwest Tanzania.
Highlights
Singida
-- JORC compliant Resource at Singida totaling 12.3 Mt, grading 1.84 g/t and containing 728koz of gold using a cut-off grade of 1.0 g/t consisting of:
o Measured and Indicated Mineral Resource totaling 5.11 Mt, grading 2.09 g/t gold and containing 345 koz of gold, and;
o Inferred Resource of 7.17 Mt, grading 1.66 g/t gold and containing 383 koz of gold.
-- The MRE incorporates three mining licenses and seven mineralised zones with a combined strike length of 4.9 km, with widths ranging from 5-15m and mineralisation extending approximately 500m below the topographical surface;
-- Gold Tree 1, which is at the centre of the three mining licenses, contains measured and indicated resources of 1.1 Mt, grading 3.14 g/t gold and containing 111 koz of gold at a cut-off grade of 1.0 g/t is located near to surface (<120m depth);
-- Independent minerology testing has been previously completed with average recoveries of 91%; and,
-- Mineralisation is open at depth and along strike with numerous parallel structures identified. Shanta will shortly be commencing an exploration program to delineate further resources and upgrade the inferred resources near to surface in the Jem, Gold Tree and Corn Patch deposits into measured and indicated resource categories.
NLGM
-- On 5(th) September 2017 the Company announced a plan to reduce costs by US$5m on an annualised basis;
-- This has now been achieved with cost reductions of US$5.1m executed, the full benefit which will be achieved by the end of Q1 2018. Savings do not include the replacement of the mining contractor which was a result of the decline in open pit production and constitutes a large standalone saving;
-- The US$5.1m of cost reductions is mostly comprised of renegotiated contracts with suppliers, lower headcount and eliminating non-essential G&A spending;
-- Further cost reduction initiatives remain ongoing with 45% of Shanta's supplier contracts (in terms of value) so far having been reviewed or replaced;
-- The Company is also pleased to announce initial results of its operational improvement program which includes:
o Targeting higher recoveries of over 93%, an improvement of 1.5-2% by H2 2018. This follows laboratory scale extended leach test work on increasing residency time through the installation of an additional pre-leach tank. The project will cost around US$0.5m and is expected to have a payback period of 4 months. Assembly and installation is expected in April 2018 with commissioning by the end of June 2018;
o Revised its mining method for the Luika underground from Cut and Fill to Long Hole Open Stoping. This does not require backfilling with cement, lowering the cost by an estimated US$3.6m in 2018;
-- The Company continues to progress a number of operational improvement initiatives and will update the market in due course.
Eric Zurrin, Chief Executive Officer, commented:
"We have made good progress at Singida by declaring a compliant resource and in doing so, increasing Shanta's total group compliant resources to over 2 million ounces. We have identified a number of targets at the project, which we will continue to explore over the coming months, with a view to expanding the potential size of the Singida project and increasing the Measured & Indicated resource ounces."
"I am also pleased to announce that we have already surpassed our targeted spending reductions of US$5 million of annualised savings whilst identifying operational changes which will continue to create further value for Shanta and its Shareholders. This approach is in line with our previously announced strategy of aligning the senior management team with that of Shanta's owners and optimising the financial performance of our operations."
Enquiries:
Shanta Gold Limited Eric Zurrin (CEO) Luke Leslie (CFO) +255 (0) 22 292 5148 Nominated Adviser and Broker Peel Hunt LLP Ross Allister / Richard Crichton / Chris Burrows + 44 (0)20 7418 8900 Financial Public Relations Tavistock Jos Simson / Charles Vivian / Barnaby Hayward +44 (0)20 7920 3150
About Shanta Gold
Shanta Gold is an East Africa-focused gold producer. It currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licenses covering approximately 1,500km(2) in the country. Shanta's flagship New Luika Gold Mine commenced production in 2012 and produced 87,714 ounces in 2016. The Company has been admitted to trading on London's AIM and has approximately 769 m shares in issue. For further information please visit: www.shantagold.com.
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Singida
The Singida Mineral Resource is based on seven-shear zone related gold deposits with a combined strike length of 4.9km. All situated within three, 100% Shanta owned, mining licenses. The deposits trend east-west to north-west-south-east.
The westernmost deposits consisting of Cornpatch and Cornpatch West are moderate to steep dipping, SE/NW striking brittle-ductile structures. The central set of brittle-ductile shears host three deposits: Gold Tree, Gem, and Vivian. These deposits occur in a succession of basaltic host rock and meta-sediment units. The mineralised structures trend from 295(0) to 310(0) , dipping steeply to the southwest.
To the east of the Property are two east-west trending, steep dipping mineralised shear zones comprising the Kaizer Chief and Gustav deposits. The Kaizer Chief deposit is a sub-vertical structure with gold mineralisation localised along a distinct brittle ductile shear zone within mafic metavolcanic host rock. Gold mineralisation in the Gustav mineralised prospect is located within a distinct brittle-ductile shear zone characterized by significant percentages of pyrite, chalcopyrite, pyrrhotite and arsenopyrite mineralisation.
The MRE has been delineated by diamond core drilling ("DD"), reverse circulation ("RC") and rotary air blast ("RAB"). The initial drilling campaigns were completed between 2006 and 2009 and consisted of 322 (37,827m) RC holes, 86 (1,496m) RAB holes and 42 (6,562m) DD holes, the last drilling phase stated late in 2016 and continued into 2017 on the Gold Tree deposit. This phase comprised of 179 RC holes totaling 5,527m.
Drilling Summary
Hot Features
Premium
Drilling Gold Jem Vivian Cornpatch Cornpatch Kaizer Gustav
Tree West Chief
---------- --------------- --------------- --------------- --------------- --------------- --------------- -----------------
Holes Meters Holes Meters Holes Meters Holes Meters Holes Meters Holes Meters Holes Meters
---------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ -------
RAB
(Phase
1) 71 1,052 15 445
---------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ -------
RC (Phase
1) 122 13,307 43 5,767 20 2,605 27 3,628 57 6,454 28 2,969
---------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ -------
DD (Phase
1) 10 1,106 14 1,408 1 67 2 340 5 814 4 610
---------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ -------
RC (Phase
2) 25 3,097
---------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ -------
DD (Phase
2) 3 1,108 3 1,109
---------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ -------
2016/17
RC 179 5,527
---------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ -------
Total 314 21,048 131 9,335 21 2,672 44 4,413 25 3,097 62 7,268 32 3,579
---------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ------ -------
All samples are submitted to the SGS Laboratories in Mwanza, Tanzania, which is accredited to conform to ISO/IEC standards. All QA/QC results have been reviewed by Sphynx Consulting CC.
It should also be noted that DRA Mineral Projects (PTY) LTD, completed an advanced metallurgical study in February 2014, based on mineralogy reports by SGS ltd, gravity/leach test work completed by Mintek (SA) and Peacock and Simpson (Zimbabwe). The overall estimated recovery was discounted for plant inefficiencies and calculated to be 91%, from a head grade of 2.6 g/t Au, utilising discounted gravity and leach recovery values of 50% and 82.45% respectively.
As part of a number of studies completed at Singida, SRK Consulting (SA) (Pty) Ltd (SRK) conducted a mining geotechnical study. The scope of the study was to provide recommendations for pit slope designs on a feasibility level in order to facilitate the safe and economical mining of the Singida Open Pits. The results from the study recommended overall slope angles from 49-51 degrees, berms widths of 15m and bench widths ranging from 2.84m to 8.83m dependent on the degree of weathering.
The Company is completing the final phase of the resettlement at Singida and continues its Corporate Social Responsibility program in the district.
Mineral Resources
Singida's Measured and Indicated Resource at 14 November 2017 is an estimated 5.11 Mt, grading 2.09 g/t and containing 0.345 Moz of gold at a cut-off grade of 1.0 g/t. The majority of the measured and indicated resources are close to surface and less than 120m from the surface.
Estimated Inferred Resources total over 7.17 Mt, grading 1.66 g/t and containing 0.383 Moz of gold at a cut-off grade of 1.0 g/t.
Shanta Gold Ltd - Singida Gold
Project Tanzania
Mineral Resource Estimate (MRE)
- 14 November 2017
JORC 2012 Classification Tonnes Gold Gold
Grade
-------------------------- ------- ------- ------
Mt g/t Moz
-------------------------- ------- ------- ------
Measured 1.50 2.47 0.120
-------------------------- ------- ------- ------
Indicated 3.61 1.94 0.225
-------------------------- ------- ------- ------
Sub - Total
M+I 5.11 2.09 0.345
-------------------------- ------- ------- ------
Inferred 7.17 1.66 0.383
-------------------------- ------- ------- ------
Total 12.28 1.84 0.727
-------------------------- ------- ------- ------
The Singida Mineral Resource is based on seven-shear zone related gold deposits with a combined strike length of 4.9km. Historical drilling has identified mineralisation extending down to 500m from the surface in the Gold Tree One deposit.
MEASURED INDICATED INFERRED TOTAL RESOURCES
----------- ------------------------- ------------------------- ------------------------- -------------------------
TONNES GRADES OUNCES TONNES GRADES OUNCES TONNES GRADES OUNCES TONNES GRADES OUNCES
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
('000) g't ('000 ('000) g't ('000 ('000) g't ('000 ('000) g't ('000
oz) oz) oz) oz)
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
CORNPATCH
WEST - - - 722 1.67 39 995 1.4 45 1,716 1.51 84
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
CORNPATCH - - - 415 1.73 23 474 2.07 31 889 1.91 54
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
VIVIAN - - - 259 2.27 19 153 2.25 11 412 2.26 30
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
JEM
ZONE
1&2 387 2.68 33 541 2.28 40 741 1.95 46 1,668 2.23 119
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
GOLD
TREE
ZONE
1 522 3.43 58 575 2.88 53 2,003 1.77 114 3,099 2.26 225
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
GOLD
TREE
ZONE
2 172 1.51 8 130 1.31 5 250 1.2 10 552 1.32 23
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
GOLD
TREE
ZONE
3 295 1.67 16 303 1.71 17 1,867 1.61 96 2,464 1.63 129
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
KAIZER
CHIEF - - - 234 1.27 10 398 1.36 17 632 1.33 27
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
GUSTAV 128 1.12 5 435 1.41 20 295 1.29 12 858 1.33 37
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
TOTAL 1,504 2.47 120 3,614 1.94 226 7,176 1.65 382 12,290 1.84 728
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Estimation Methodology
The top and bottom contacts of the orebodies were defined along section lines using geological, structural and alteration data as well as gold assay grades. The orebodies were defined by 3D wireframe interpretation with sub cell block modelling.
Statistical analysis of the data was undertaken for each prospect in order to inform decisions on treatment of extreme grade values, compositing length, variography and orientation of the resource model.
In order to determine the optimum model block size, the Kriging Efficiency and Regression slope was studied for the Gold Tree 3 orebody and the block size obtained was applied to the other deposits.
Ordinary Kriging was used as the estimator and a three-pass search strategy was utilised with either an octant search method or a limit placed on the amount of data per hole that informed the estimate so the informing data was not clustered.
The resultant block models were validated against the raw input data to ensure the block model grades are both realistic and representative.
The resource was classified into Measured, Indicated and Inferred mineral resources according to guidelines compliant with the Australasian Code for Reporting (2012) as published by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy (JORC).
Recommendations to get to PFS and Mine Reserve
The Company will now focus on reviewing and upgrading the inferred resources near to surface in the Jem, Gold Tree and Corn Patch deposits into measured and indicated resource categories, with the objective of establishing and completing a Singida Mineral Resource and Ore Reserve statement.
The MRE was completed by independent consultants - Sphynx Consulting CC from South Africa. The technical information contained within this announcement has been reviewed and approved by Mr. Awie Pretorius MSc.Pri.Sci.Nat. Mr. Pretorius is a consultant to Shanta and a member of the South African Council for Natural Scientific Professionals (SACNASP Membership Number 400060/91).
He has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and for the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.
Glossary of Terms
cut-off the lowest grade, or quality, of mineralised
grade material that qualifies as economically
mineable and available in a given deposit.
May be defined on the basis of economic
evaluation, or on physical or chemical
attributes that define an acceptable
product specification.
--------------- --------------------------------------------------
g/t Grams per metric tonne. The unit of
measurement of metal content or grade,
equivalent to parts per million.
--------------- --------------------------------------------------
Measured A 'Measured Mineral Resource' is that
Mineral part of a Mineral Resource for which
Resource quantity, grade (or quality), densities,
shape, and physical characteristics
are estimated with confidence sufficient
to allow the application of Modifying
Factors to support detailed mine planning
and final evaluation of the economic
viability of the deposit.
Geological evidence is derived from
detailed and reliable exploration,
sampling and testing gathered through
appropriate techniques from locations
such as outcrops, trenches, pits, workings
and drill holes, and is sufficient
to confirm geological and grade (or
quality) continuity between points
of observation where data and samples
are gathered.
A Measured Mineral Resource has a higher
level of confidence than that applying
to either an Indicated Mineral Resource
or an Inferred Mineral Resource. It
may be converted to a Proved Ore Reserve
or under certain circumstances to a
Probable Ore Reserve.
--------------- --------------------------------------------------
Mineralisation the process or processes by which a
mineral is introduced into a rock,
resulting in a valuable or potentially
valuable deposit. It is a general term,
incorporating various types; e.g.,
fissure filling, impregnation, and
replacement.
--------------- --------------------------------------------------
Mineral A 'Mineral Resource' is a concentration
Resource or occurrence of solid material of
economic interest in or on the Earth's
crust in such form, grade (or quality),
and quantity that there are reasonable
prospects for eventual economic extraction.
The location, quantity, grade (or quality),
continuity and other geological characteristics
of a Mineral Resource are known, estimated
or interpreted from specific geological
evidence and knowledge, including sampling.
Mineral Resources are sub-divided,
in order of increasing geological confidence,
into Inferred, Indicated and Measured
categories.
--------------- --------------------------------------------------
Indicated An 'Indicated Mineral Resource' is
Mineral that part of a Mineral Resource for
Resource which quantity, grade (or quality),
densities, shape and physical characteristics
are estimated with sufficient confidence
to allow the application of Modifying
Factors in sufficient detail to support
mine planning and evaluation of the
economic viability of the deposit.
Geological evidence is derived from
adequately detailed and reliable exploration,
sampling and testing gathered through
appropriate techniques from locations
such as outcrops, trenches, pits, workings
and drill holes, and is sufficient
to assume geological and grade (or
quality) continuity between points
of observation where data and samples
are gathered.
An Indicated Mineral Resource has a
lower level of confidence than that
applying to a Measured Mineral Resource
and may only be converted to a Probable
Ore Reserve.
--------------- --------------------------------------------------
Inferred An 'Inferred Mineral Resource' is that
Mineral part of a Mineral Resource for which
Resource quantity and grade (or quality) are
estimated on the basis of limited geological
evidence and sampling. Geological evidence
is sufficient to imply but not verify
geological and grade (or quality) continuity.
It is based on exploration, sampling
and testing information gathered through
appropriate techniques from locations
such as outcrops, trenches, pits, workings
and drill holes. An Inferred Mineral
Resource has a lower level of confidence
than that applying to an Indicated
Mineral Resource and must not be converted
to an Ore Reserve. It is reasonably
expected that the majority of Inferred
Mineral Resources could be upgraded
to Indicated Mineral Resources with
continued exploration.
--------------- --------------------------------------------------
In-Situ In its natural position or place.
--------------- --------------------------------------------------
JORC Code The Australasian Code for Reporting
of Exploration Results, Mineral Resources
and Ore Reserves (the 'JORC Code' or
'the Code') sets out minimum standards,
recommendations and guidelines for
Public Reporting in Australasia of
Exploration Results, Mineral Resources
and Ore Reserves. The Joint Ore Reserves
Committee ('JORC') was established
in 1971 and published several reports
containing recommendations on the classification
and Public Reporting of Ore Reserves
prior to the release of the first edition
of the JORC Code in 1989.
Revised and updated editions of the
Code were issued in 1992, 1996, 1999,
and 2004. The 2012 edition supersedes
all previous editions.
--------------- --------------------------------------------------
Koz One thousand Troy ounces. All references
to ounces are Troy ounces with the
conversion factor being 31.1034768
metric grams per Troy ounce
--------------- --------------------------------------------------
Mt One million metric tonnes
--------------- --------------------------------------------------
Recoverable That portion of the metal contained
Ounces within the ore that can be recovered
through metallurgical processing
--------------- --------------------------------------------------
ROM Mined ore that can be processed by
the recovery plant
--------------- --------------------------------------------------
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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November 20, 2017 02:00 ET (07:00 GMT)
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