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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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 14.75 | 14.70 | 14.80 | 14.75 | 14.70 | 14.70 | 1,251,800 | 08:00:04 |
| 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 : 6573D
Shanta Gold Limited
11 October 2018
11 October 2018
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
New Luika Gold Mine Exploration Update
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to provide an exploration update at the New Luika Gold Mine ("NLGM") in South Western Tanzania and the Company's licences in the surrounding Lupa Goldfields.
Highlights
-- Drilling at Bauhinia Creek ("BC") East has converted 27,240 ounces into Indicated Resources from 33,746 ounces of Inferred Resources;
-- A total of 21,081 ounces of Indicated Resources at 3.43g/t have been added to the life of mine plan;
-- Implies a conversion cost of US$8 per ounce with an 81% conversion rate of Inferred ounces to Indicated ounces;
-- Phase 1 drilling commenced in late September 2018 at BC West, targeting a small conversion of Inferred resources, which has intersected mineralisation with assay results expected in November 2018;
-- Trenching results at the new high-grade Lambo target, 6.6 km north west of the NLGM plant, includes two separate trenches of 2.1 metres at 47.12g/t Au and 3.15 metres at 32.73g/t Au; and,
-- Return of high-grade rock chip samples at Quartzberg including 27.22g/t Au, 19.28g/t Au, 17.82g/t Au, 16.98g/t Au, 15.28g/t Au and 14.68g/t Au.
Eric Zurrin, Chief Executive Officer, commented:
"Shanta's preliminary exploration activities at BC East has allowed us to quickly replace the Company's mined reserves over the past quarter, at a compelling conversion cost of US$8/oz. Once the Inferred resources have been converted to Indicated resources across the portfolio, we look forward to exploring for potentially transformational downdip extensions across all three underground orebodies (Bauhinia Creek, Ilunga and Luika), the development of which is not capital intensive for the Company."
"Separately, we are encouraged by the strong results from our regional exploration programme, including Lambo which is located close to our existing plant and Quartzberg. I look forward to receiving the next phase of results from these programmes and updating the market in due course."
BC underground mine
Shanta's exploration strategy at NLGM is focused on its three high grade underground mines and exploration targets within 20 km of the plant. In June 2018, the Company began a small exploration programme at Bauhinia Creek East, with five exploration holes close to the existing underground decline. At a cost of US$8/oz, the Company has added an additional 21,081 ounces of gold to Indicated resources which have be added to the mine plan, replacing mined reserves during the quarter.
Table 1*: JORC Compliant Comparative Bauhinia Creek Resource Summary - 2017 vs 2018 (at a cut-off grade of 1g/t Au)(1,2)
Hot Features
Premium
2017 2018
------------------------ ------------------------
Tonnes Au Au Tonnes Au Au
------- ------ ------- ------- ------ -------
(Mt) (g/t) (Koz) (Mt) (g/t) (Koz)
------- ------ ------- ------- ------ -------
Indicated 1.53 5.38 264.36 1.77 5.14 291.60
------- ------ ------- ------- ------ -------
Inferred 1.25 3.15 126.79 1.02 3.04 99.54
------- ------ ------- ------- ------ -------
TOTAL 2.78 4.37 391.15 2.78 4.37 391.15
------- ------ ------- ------- ------ -------
*2017 figures depleted to end of year 2017; No depletion applied for January to September 2018.
Table 2: JORC Compliant Comparative Bauhinia Creek Resource Summary - 2017 vs 2018 (cut-off grades 1 - 3 g/t Au)
COG Indicated Resources COG Indicated Resources
(g/t) - 2017 (g/t) - 2018
Tonnes Grade Ounces Tonnes Grade Ounces
(Mt) (g/t) (Koz) (Mt) (g/t) (Koz)
------- ------- ------- ------- ------- -------
1.0 1.5 5.4 264 1.0 1.8 5.1 292
------- ------- ------- ------- ------- -------
2.0 1.2 6.3 250 2.0 1.4 6.1 274
------- ------- ------- ------- ------- -------
3.0 0.9 7.4 227 3.0 1.1 7.2 248
------- ------- ------- ------- ------- -------
COG Inferred Resources COG Inferred Resources
(g/t) - 2017 (g/t) - 2018
Tonnes Grade Ounces Tonnes Grade Ounces
(Mt) (g/t) (Koz) (Mt) (g/t) (Koz)
------- ------- ------- ------- ------- -------
1.0 1.3 3.1 127 1.0 1.0 3.0 100
------- ------- ------- ------- ------- -------
2.0 0.8 4.1 102 2.0 0.6 4.0 77
------- ------- ------- ------- ------- -------
3.0 0.6 4.8 86 3.0 0.4 4.6 64
------- ------- ------- ------- ------- -------
In September 2018, Shanta commenced underground exploration drilling at BC West, targeting an area to the immediate west of the planned development limit, for the purpose of converting Inferred resources to Indicated resources. The Phase 1 programme was completed in early October and involved the drilling of four holes totaling 259 metres. Phase 2 underground drilling will be conducted during October 2018 and will involve the completion of two drill holes totaling 160 metres.
Exploration drilling at BC Central is scheduled for H1 2019 for the purpose of converting further Inferred resources to Indicated resources. BC Central includes an historic drill hole CSD055 intersecting 8 metres averaging 8.52g/t Au which is not included in the current mine plan.
Lambo Target
Following encouraging results from the 2017 regional rock grab sampling programme which included assays of 37.34 g/t Au, 25.48 g/t Au and 18.94 g/t Au, the Company excavated a series of NW-SE trending trenches on the Lambo target which lies 6.6 km to the northwest of NLGM.
The trenching program excavated and sampled relatively short trenches (8 - 36 metres) to test the strike continuity of the mineralisation. 17 trenches totaling 249.70 metres have been excavated and sampled at Lambo. 9 of the 17 trenches returned significant gold mineralisation with two trenches returning very high-grade gold including 2.1m at 47.12g/t Au and 3.15m at 32.73g/t Au. Additional trenching on Lambo target and interpretation of airborne magnetic images will be completed in Q4 2018 to delineate the widths of mineralised zones and grade continuity along strike to help define drill targets.
Quartzberg targets
In July 2018, Shanta undertook a campaign to evaluate the Company's regional license potential across the Lupa Goldfields. The programme involved reconnaissance geological mapping and rock chip grab sampling on the licenses. Exposures were mapped and sampled from surface and from artisanal workings where access was safe to do so. Historical data was reviewed and incorporated in the evaluation programme.
Some of the encouraging rock chip grab samples results include 27.22g/t Au, 19.28g/t Au, 17.82g/t Au, 16.98g/t Au, 15.28g/t Au and 14.68g/t Au from quartz veins and country rocks. The potential presence of favorable litho-structural setting for gold mineralisation was interpreted but unfortunately the disturbed ground by artisanal mining activities make the conventional exploration methods of soil sampling and trenching not suitable for these areas. Further exploration has been planned in Q4 2018 to test the depth continuity of the interpreted zones of mineralisation as well as the approximate widths of the zones.
Enquiries:
Shanta Gold Limited Eric Zurrin (CEO) +255 (0) 22 292 5148 Luke Leslie (CFO) Nominated Adviser and Broker Numis Securities Limited Paul Gillam / John Prior / James Black + 44 (0) 20 7260 1000 Financial Public Relations Tavistock Charles Vivian / Barnaby Hayward / Gareth Tredway +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 79,585 ounces in 2017. The Company has been admitted to trading on London's AIM and has approximately 779 million shares in issue.
For further information please visit: www.shantagold.com.
Qualified Person
The technical information contained within this announcement has been reviewed by Juma Kisunda (the Company's Chief Mine Geologist) and Paul W. Mbuya (the Company's Exploration Manager), who are Members of The Australasian Institute of Mining and Metallurgy (Aus.I.M.M). They have 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 Persons 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
Glossary of Technical Terms
"Au" chemical symbol for gold
"artisanal A subsistence miner who works independently,
mining" mining using their own resources
"cut off the lowest grade value that is included in a
grade" (COG) resource statement. It must comply with JORC
requirement 19: "reasonable prospects for eventual
economic extraction" the lowest grade, or quality,
of mineralised material that qualifies as economically
mineable and available in a given deposit. It
may be defined on the basis of economic evaluation,
or on physical or chemical attributes that define
an acceptable product specification
"g/t" grammes per tonne, equivalent to parts per million
"Inferred that part of a Mineral Resource for which tonnage,
Resource" grade and mineral content can be estimated with
a low level of confidence. It is inferred from
geological evidence and assumed but not verified
geological and/or grade continuity. It is based
on information gathered through appropriate
techniques from locations such as outcrops,
trenches, pits, workings and drill holes which
may be limited or of uncertain quality and reliability
"Indicated that part of a Mineral Resource for which tonnage,
Resource" densities, shape, physical characteristics,
grade and mineral content can be estimated with
a reasonable level of confidence. It is based
on exploration, sampling and testing information
gathered through appropriate techniques from
locations such as outcrops, trenches, pits,
workings and drill holes. The locations are
too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced
closely enough for continuity to be assumed
"JORC" The Australasian Joint Ore Reserves Committee
Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves 2012 (the "JORC Code"
or "the Code"). The Code sets out minimum standards,
recommendations and guidelines for Public Reporting
in Australasia of Exploration Results, Mineral
Resources and Ore Reserves
"koz" thousand troy ounces of gold
"Measured that part of a Mineral Resource for which tonnage,
Resource" densities, shape, physical characteristics,
grade and mineral content can be estimated with
a high level of confidence. It is based on detailed
and reliable exploration, sampling and testing
information gathered through appropriate techniques
from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are
spaced closely enough to confirm geological
and grade continuity
"Mineral a concentration or occurrence of material of
Resource" intrinsic economic interest in or on the Earth's
crust in such form, quality and quantity that
there are reasonable prospects for eventual
economic extraction. The location, quantity,
grade, geological characteristics and continuity
of a Mineral Resource are known, estimated or
interpreted from specific geological evidence
and knowledge. Mineral Resources are sub-divided,
in order of increasing geological confidence,
into Inferred, Indicated and Measured categories
when reporting under JORC
"Mt" million tonnes
"oz" troy ounce (= 31.103477 grammes)
"Reserve" the economically mineable part of a Measured
and/or Indicated Mineral Resource
"t" tonne (= 1 million grammes)
APPIX 1: SAMPLING TECHNIQUES AND DATA
Sampling
techniques * Nature and quality of sampling (eg cut channels, * Trenches were excavated to bedrock and sampled at the
random chips, or specific specialised industry base by cutting a continuous channel (10 cm wide and
standard measurement tools appropriate to the 5 cm deep)
minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad * Trenching samples were obtained from cut channels
meaning of sampling. using geological and alteration contacts as a guide
but limiting the sampling interval to between 30 -
100 cm to obtain about 3 kg per sample and submitted
* Include reference to measures taken to ensure sample to the on-site lab (Quality Laboratory Services) or
representivity and the appropriate calibration of any to the SGS Laboratory in Mwanza for analysis.
measurement tools or systems used.
* At least 3kg sample pulverized and a 50g charge fire
* Aspects of the determination of mineralisation that assayed with AAS finish for gold.
are Material to the Public Report.
* In cases where 'industry standard' work has been done
this would be relatively simple (eg 'reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay'). In other cases more
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of detailed
information.
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * Diamond core drilling; NQ core size
hammer, rotary air blast, auger, Bangka, sonic, etc)
and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by
what method, etc).
Drill
sample * Method of recording and assessing core and chip * Core sample recoveries routinely measured and
recovery sample recoveries and results assessed. recorded in spreadsheet database
* Measures taken to maximise sample recovery and ensure * Samples split half core perpendicular to strike of
representative nature of the samples. structures
* Whether a relationship exists between sample recovery
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material.
Logging
* Whether core and chip samples have been geologically * Logging of geology, alteration, and geotechnical
and geotechnically logged to a level of detail to aspects recorded in drill logs for diamond core
support appropriate Mineral Resource estimation, drilling
mining studies and metallurgical studies.
* Logging is qualitative; All drill core photographed
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc) photography.
* Entire intervals that were drilled and/or trenched
were logged
* The total length and percentage of the relevant
intersections logged.
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Half core taken; sawn
and half or all core taken.
sample
preparation * For trench samples, the entire sample for the
* If non-core, whether riffled, tube sampled, rotary respective interval aggregated, not riffled or split
split, etc and whether sampled wet or dry.
* Aggregated half core; Entire 3kg sample pulverized at
* For all sample types, the nature, quality and laboratory prior to fire assay in order to minimize
appropriateness of the sample preparation technique. bias.
* Quality control procedures adopted for all * Drilling and channels planed orthogonal to the strike
sub-sampling stages to maximise representivity of of structures/lithologies in order to maximize
samples. representivity
* Measures taken to ensure that the sampling is * Field duplicates sampled at appropriate intervals
representative of the in situ material collected,
including for instance results for field
duplicate/second-half sampling.
* Whether sample sizes are appropriate to the grain
size of the material being sampled.
Quality
of * The nature, quality and appropriateness of the * Fire assay is appropriate for the nature of gold
assay assaying and laboratory procedures used and whether mineralization being assayed
data the technique is considered partial or total.
and
laboratory * No geophysical tools used to generate exploration
tests * For geophysical tools, spectrometers, handheld XRF results
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their * Registered reference material inserted at the
derivation, etc. interval of 20 samples
* Nature of quality control procedures adopted (eg * Levels of accuracy and precision (detection limit)
standards, blanks, duplicates, external laboratory for gold is 0.01 ppm which is suitable for the level
checks) and whether acceptable levels of accuracy (ie of assays reported
lack of bias) and precision have been established.
Verification
of * The verification of significant intersections by * Significant intersections that were reported by field
sampling either independent or alternative company personnel. personnel are yet to be verified by an independent CP
and
assaying
* The use of twinned holes. * No twinning of drill holes
* Documentation of primary data, data entry procedures, * Primary data was logged onto paper and later
data verification, data storage (physical and transferred into database, verified by a Senior
electronic) protocols. Geologist and stored in electronic database, which is
regularly backed up. Database is verified and
compared with standard assays stored in using
* Discuss any adjustment to assay data. established company protocols
* No adjustments have been made to assay data
Location
of * Accuracy and quality of surveys used to locate drill * Drill holes and trenches were accurately surveyed
data holes (collar and down-hole surveys), trenches, mine using Trimble DGPS survey equipment
points workings and other locations used in Mineral Resource
estimation.
* Drill holes and trenches surveyed in UTM Coordinates
System Arc 1960
* Specification of the grid system used.
* Topographical surveys were done using Aerial Lidar
* Quality and adequacy of topographic control. Survey
Data
spacing * Data spacing for reporting of Exploration Results. * Drilling assayed on a maximum of 1 m downhole.
and
distribution
* Whether the data spacing and distribution is * The data spacing was enough to establish the degree
sufficient to establish the degree of geological and of geological and grade continuity appropriate for
grade continuity appropriate for the Mineral Resource the mineral resource estimation procedures
and Ore Reserve estimation procedure(s) and
classifications applied.
* Samples were not composited
* Whether sample compositing has been applied.
Orientation
of * Whether the orientation of sampling achieves unbiased * Drilling and trenching planned perpendicular to the
data sampling of possible structures and the extent to interpreted strike of lithological units and
in which this is known, considering the deposit type. geological structures
relation
to
geological * If the relationship between the drilling orientation * No sampling bias was interpreted
structure and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material.
Sample
security * The measures taken to ensure sample security. * Samples secured by senior personnel on site and
transported directly by company vehicle to the
laboratories (Quality Labs in NLGM and SGS in Mwanza)
Audits
or * The results of any audits or reviews of sampling * Internal reviews are regularly completed but no
reviews techniques and data. external audits were carried out for the currently
reported results
============= ============================================================ ============================================================
APPIX 2: REPORTING OF EXPLORATION RESULTS
Mineral
tenement * Type, reference name/number, location and ownership * ML408/2010
and including agreements or material issues with third
land parties such as joint ventures, partnerships,
tenure overriding royalties, native title interests, * Valid to 20/09/2020
status historical sites, wilderness or national park and
environmental settings.
* The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.
Exploration
done * Acknowledgment and appraisal of exploration by other * Historical colonial exploration and mining works
by parties.
other
parties
Geology
* Deposit type, geological setting and style of * Underlain by a complex association of high grade
mineralisation. metamorphic- and intrusive lithologies, commonly
intruded by dykes of variable composition. Modally,
granodioritic and granitic lithologies are most
commonly encountered.
* These granodiorites and granites have been
interpreted as late-orogenic intrusive phases
associated with gold mineralisation in the area.
Subordinate diorite, porphyroblastic hornblende
gabbro, quartzo-feldspathic felsite and migmatite are
also regularly observed.
* Dyke intrusives include dolerite, pegmatite and
common aplite and alaskite, seemingly randomly
crosscutting major lithologies, and therefore
regarded as younger than the country rock.
Drill
hole * A summary of all information material to the * Relevant tables included summarizing drill holes and
Information understanding of the exploration results including a trenches locations, RL, azimuth, length/depth, and
tabulation of the following information for all significant intersection intervals
Material drill holes:
o
easting
and
northing
of
the
drill
hole
collar
o
elevation
or
RL
(Reduced
Level
-
elevation
above
sea
level
in
metres)
of
the
drill
hole
collar
o
dip
and
azimuth
of
the
hole
o
down
hole
length
and
interception
depth
o
hole
length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
Data
aggregation * In reporting Exploration Results, weighting averaging * Exploration results from drilling and trench sampling
methods techniques, maximum and/or minimum grade truncations have been weighted by interval
(eg cutting of high grades) and cut-off grades are
usually Material and should be stated.
* No high-grade caps have been applied
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade * Lower cut-off grade of 0.5 g/t Au has generally been
results, the procedure used for such aggregation applied to significant intersections
should be stated and some typical examples of such
aggregations should be shown in detail.
* Aggregate drilling and trenching intervals do not
incorporate longer lengths of low-grade results
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
* No metal equivalent reported
Relationship
between * These relationships are particularly important in the * Drill holes and trenches have been drilled/excavated
mineralisation reporting of Exploration Results. as perpendicular as possible to the general strike of
widths the mineralized zones and structures so that the
and intersected lengths are close to true widths
intercept * If the geometry of the mineralisation with respect to
lengths the drill hole angle is known, its nature should be
reported.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (eg 'down hole length, true width not known').
Diagrams
* Appropriate maps and sections (with scales) and * Maps and sections are being generated
tabulations of intercepts should be included for any
significant discovery being reported These should
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
Balanced
reporting * Where comprehensive reporting of all Exploration * All significant drilling and trench results have been
Results is not practicable, representative reporting reported
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
Other
substantive * Other exploration data, if meaningful and material, * Metallurgical studies on mineralised material from
exploration should be reported including (but not limited to): the Bauhinia Creek deposit during 2010/2011 indicated
data geological observations; geophysical survey results; that the ore is amenable to direct cyanidation
geochemical survey results; bulk samples - size and leaching with an average of 85% gold liberated
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Further
work * The nature and scale of planned further work (eg * Drilling to be continued to test the down-dip
tests for lateral extensions or depth extensions or continuity of the delineated mineralization
large-scale step-out drilling).
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
=============== =============================================================== ============================================================
APPIX 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES
Database
integrity * Measures taken to ensure that data has not been * The data capturing access database is linked to a
corrupted by, for example, transcription or keying superseding access database on the geological server.
errors, between its initial collection and its use
for Mineral Resource estimation purposes.
* Queries allow specially selected information from the
captured data and create core data sheets which
* Data validation procedures used. include Collar, Survey, Lithology and Assay logs.
These logs are essentially used to display in the
mining software by an OBDC link.
* An independent validation process is run for each log
sheet in Micromine. Should there be any queries, a
report file is created and exported to excel. The
report will be mailed to the personnel responsible
for data capturing to correct on the original data.
* Once confirmation is given of the updates, all
databases are refreshed and the validation process in
Micromine repeated with the use of form sets.
* Once all data validates, a number for the tear of
validation is indicated in the collar file of the
superseding database
Site
visits * Comment on any site visits undertaken by the * The site was visited on regular basis from April to
Competent Person and the outcome of those visits. August 2018 and the outcome was used in the resource
estimation
* If no site visits have been undertaken indicate why
this is the case.
Geological
interpretation * Confidence in (or conversely, the uncertainty of ) * Diamond drilling was done perpendicular to the strike
the geological interpretation of the mineral deposit. of the ore body at a dip designed to give a true
intersection width of the mineralized body at a
spacing less than 42m.
* Nature of the data used and of any assumptions made.
* The downhole survey was done at every 15m.
* The effect, if any, of alternative interpretations on
Mineral Resource estimation.
* Core meter marking, geological logging, structural
interpretation, core sampling, Data validation and
* The use of geology in guiding and controlling Mineral QAQC analysis was done by competent and experienced
Resource estimation. geologists
* The factors affecting continuity both of grade and * Only samples submitted to the accredited laboratory
geology. (SGS Mwanza) were used in the estimate
* The limits of the structural features hosting the
mineralized zone was interpreted by overlaying the
assays against geological logging section by section
using section strings.
Dimensions
* The extent and variability of the Mineral Resource * Drill hole spacing is generally between 25 to 42m
expressed as length (along strike or otherwise), plan along with a vertical spacing of approximately 20 to
width, and depth below surface to the upper and lower 38m in the upper to mid-level portions of the
limits of the Mineral Resource. mineralized zones. This drilling spacing combined
with the surface exposures and trench sampling, along
with the geophysical data, permits the assumption
that both the mineralized structures are continuous
and persistent, and the mineralization within the
structures has the continuity necessary to consider
these deposits as Mineral Resources
Estimation
and * The nature and appropriateness of the estimation * Compositing the data into regular composite intervals
modelling technique(s) applied and key assumptions, including was done to moderate the presence of extreme short
techniques treatment of extreme grade values, domaining, sample interval grade values in the data by combining
interpolation parameters and maximum distance of them with adjacent data to form the composite
extrapolation from data points. If a computer
assisted estimation method was chosen include a
description of computer software and parameters used. * A combination of several methods was used to decide
what constituted an appropriate capping value. The
spatial position of the outlier values as well as
* The availability of check estimates, previous coefficient of variation plots, lognormal probability
estimates and/or mine production records and whether plots and decile analysis were all used in the
the Mineral Resource estimate takes appropriate determination of capping values
account of such data.
* Scatter plots were generated of the gold grade
* The assumptions made regarding recovery of composites versus location to assess any potential
by-products. non-stationarity in the data.
* Estimation of deleterious elements or other non-grade * Block models were created to represent the
variables of economic significance (eg sulphur for mineralized body contained within the wireframe
acid mine drainage characterisation). solids for each target. Cell sizes were chosen based
on the average drill hole spacing
* In the case of block model interpolation, the block
size in relation to the average sample spacing and * Geostatistics was done using Micromine 2018 to
the search employed. determine the estimation parameters
* Any assumptions behind modelling of selective mining * The mineralized target of Bauhinia Creek was modelled
units. for gold grade using Ordinary Kriging with the shell
of the wireframe solid as a hard boundary. Only data
within the solid was used in the estimate. Where a
* Any assumptions about correlation between variables. target was bisected by faulting, only the data within
a fault block was used to estimate that block. The
Estimation process was done using Micromine software
* Description of how the geological interpretation was 2018 for all block grade estimates
used to control the resource estimates.
* Discussion of basis for using or not using grade
cutting or capping.
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and
use of reconciliation data if available.
Moisture
* Whether the tonnages are estimated on a dry basis or * Dry tonnages
with natural moisture, and the method of
determination of the moisture content.
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * The cutoff grade(s) was generated by Shanta's
parameters applied. experienced senior mining engineer based on current
operating cost and gold price.
Mining
factors * Assumptions made regarding possible mining methods, * An optimization study was conducted on the
or minimum mining dimensions and internal (or, if mineralization contained within the Bauhinia Creek
assumptions applicable, external) mining dilution. It is always target to ascertain whether they fulfil the criteria
necessary as part of the process of determining of "reasonable prospects for eventual economic
reasonable prospects for eventual economic extraction extraction" using current operating costs
to consider potential mining methods, but the
assumptions made regarding mining methods and
parameters when estimating Mineral Resources may not * The mineral resource was deemed amenable to
always be rigorous. Where this is the case, this extraction by underground mining methods and were
should be reported with an explanation of the basis declared at a cut-off of 2.0g/t
of the mining assumptions made.
Metallurgical
factors * The basis for assumptions or predictions regarding * Shanta Mining Company Ltd commissioned the first of a
or metallurgical amenability. It is always necessary as series of gold deportment and metallurgical studies
assumptions part of the process of determining reasonable on mineralised material from the Saza tenement in
prospects for eventual economic extraction to June 2009. Reverse circulation drill chips from five
consider potential metallurgical methods, but the mineralised targets were submitted for gold
assumptions regarding metallurgical treatment deportment testing
processes and parameters made when reporting Mineral
Resources may not always be rigorous. Where this is
the case, this should be reported with an explanation * Further metallurgical studies commissioned on
of the basis of the metallurgical assumptions made. mineralised material from the Bauhinia Creek deposit
during 2010/2011 have supported initial gold
deportment findings, with the following conclusion
being reached. "The diagnostic leach results showed
the samples to be amenable to direct cyanidation
leaching with an average of 85% gold liberated"
(Janse van Rensburg & Mashaba, 2011).
Environmen-tal
factors * Assumptions made regarding possible waste and process * NLGM (of which Bauhinia Creek is a part) is fully
or residue disposal options. It is always necessary as permitted mining operation under Tanzanian law with
assumptions part of the process of determining reasonable the prerequisite environmental impact assessments and
prospects for eventual economic extraction to dedicated tailings storage facility
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
Bulk
density * Whether assumed or determined. If assumed, the basis * Density determinations have been carried out on the
for the assumptions. If determined, the method used, diamond cores at the Saza exploration office. The
whether wet or dry, the frequency of the measurements results ranged from 2.330 g/cm(3) to 3.000 g/cm(3),
, with the mean being 2.711 g/cm(3).
the nature, size and representativeness of the
samples.
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
Classification
* The basis for the classification of the Mineral * The resources have been classified as Indicated and
Resources into varying confidence categories. Inferred based primarily on sample spacing as
determined by drilling density and proximity to
informing data as well as the grade distribution of
* Whether appropriate account has been taken of all the supporting data. For the resource classification,
relevant factors (ie relative confidence in a solid shape was constructed around the parts of the
tonnage/grade estimations, reliability of input data, mineralised body where most estimates were informed
confidence in continuity of geology and metal values, by data not more than 50m from the estimated block,
quality, quantity and distribution of the data). are estimated within the primary search volume, and
where the estimates have been interpolated rather
than extrapolated. All blocks located within these
* Whether the result appropriately reflects the areas were classified as Indicated resources. All
Competent Person's view of the deposit. blocks located outside of these areas, around the
periphery of the drilling were classified as Inferred
resources
Audits
or * The results of any audits or reviews of Mineral * Only internal audit completed
reviews Resource estimates.
Discussion
of * Where appropriate a statement of the relative * Refer Estimation and modelling techniques comments
relative accuracy and confidence level in the Mineral Resource above
accuracy/ estimate using an approach or procedure deemed
confidence appropriate by the Competent Person. For example, the
application of statistical or geostatistical
procedures to quantify the relative accuracy of the
resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative
discussion of the factors that could affect the
relative accuracy and confidence of the estimate.
* The statement should specify whether it relates to
global or local estimates, and, if local, state the
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures
used.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
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END
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