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
  -0.325 -2.92% 10.80 10.60 11.00 11.125 10.80 11.125 796,591 09:03:23
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 81.4 10.3 0.8 13.7 85

Shanta Gold Limited New Luika Gold Mine Reserve and Resource Upgrade

18/11/2019 7:00am

UK Regulatory (RNS & others)


Shanta Gold (LSE:SHG)
Historical Stock Chart

3 Months : From Oct 2019 to Jan 2020

Click Here for more Shanta Gold Charts.

TIDMSHG

RNS Number : 6594T

Shanta Gold Limited

18 November 2019

18 November 2019

Shanta Gold Limited

("Shanta Gold", "Shanta" or the "Company")

New Luika Gold Mine Reserve and Resource Upgrade

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to provide a reserve and resource update as at 30 September 2019 at the New Luika Gold Mine ("NLGM") in South Western Tanzania.

Highlights

-- New resources and reserves estimated following drilling programme for the 6-month period from 1 April 2019 to 30 September 2019, which totalled c.8.5 km and consisted of 81 holes all located within 4 km of the plant, at a cost of c.US$1m;

-- This drilling has added new probable gold reserves totalling 135,438 ounces grading 4.07g/t Au at Bauhinia Creek Deep West, Elizabeth Hill North, Bauhinia Creek North and Black Tree Hill (the "Newly Drilled Targets");

-- At these Newly Drilled Targets, drilling has resulted in Indicated resources of 219,408 ounces grading 3.19 g/t (inclusive of the abovementioned reserves and the 83,543 ounces already announced on 15 July 2019) up 219% from 57,916 ounces grading 1.77 g/t at end-December 2017;

-- In addition, new Inferred resources of 94,007 ounces grading 2.75 g/t up 26% from 74,427 ounces grading 1.71 g/t have been estimated at the Newly Drilled Targets, with further drilling planned to prove this up;

-- At one of the Company's existing mining areas, Ilunga underground reserves have decreased 44,000 oz since the reserves declared in March 2017 following grade control drilling and a revised resource model design;

-- Since 30 September 2019, drilling has been ongoing on the Mining Licences and across other regional targets in the Lupa Goldfield;

   --    Approximately 4,000 meters of exploration drilling is planned for Q4 2019; and, 

-- Exploration update is expected prior to year-end 2019 with a consolidated reserves and resources statement expected in Q1 2020.

Eric Zurrin, Chief Executive Officer, commented:

"The Company is pleased to announce a significant increase in reserves and resources at the Newly Drilled Targets, following a short and low-cost campaign that was completed in September. We have high expectations that the targets will continue to grow both in size and number as we look to add to our mine life at New Luika.

"We have restated the Reserve at Ilunga, which was insufficiently drilled ahead of declaration in 2017. Grade control undertaken during the period provides for a more accurate representation and increases confidence in Ilunga's contribution to the plant over the coming years."

On-mine reserve and resource upgrade

Shanta's exploration strategy at NLGM is focused on the existing Mining Licences totaling 30 sq km and across regional targets in the Lupa Goldfield within 20 km of the processing plant. New reserves and updated resources at the Bauhinia Creek Deep West and East, Elizabeth Hill North, Bauhinia Creek North and Black Tree Hill deposits are all on the existing Mining Licences and are within 4 km of the central processing plant.

All of the deposits remain open at depth and along strike. Additional drilling in Q4 2019 and into 2020 is aimed to test the extension of each deposit. Encouraging drilling results have been achieved since 30 September 2019.

Minimal capital expenditure is required to bring these deposits into production, which have now been scheduled in the Company's life of mine plan, based on probable JORC reserves, which has been extended through to 2024.

Table 1*: JORC Compliant Additional Mine Resource Summary - 30(th) September 2019 vs 31(st) December 2017 (at a cut-off grade of 1.0g/t Au)

 
Deposit                         At 30 September 2019                                                           At 31 December 2017 
                     Indicated                       Inferred                              Indicated                                        Inferred 
            ----------------------------  ------------------------------  --------------------------------------------  ------------------------------------------------ 
             Tonnes    Grade    Ounces      Tonnes    Grade    Ounces          Tonnes          Grade        Ounces           Tonnes          Grade          Ounces 
               (t)     (g/t)     (Oz)         (t)     (g/t)      (Oz)            (t)           (g/t)          (Oz)             (t)           (g/t)            (Oz) 
            ---------  -----  ----------  ----------  -----  -----------  ----------------  -----------  -------------  ----------------  -----------  ----------------- 
Elizabeth 
 Hill       1,582,800   2.25     114,550     638,220   1.52       31,240         1,016,882         1.77         57,916         1,230,787         1.38             54,802 
            ---------  -----  ----------  ----------  -----  -----------  ----------------  -----------  -------------  ----------------  -----------  ----------------- 
BC North      228,542   2.90      21,315      43,058   3.04        4,214                 -            -              -                 -            -                  - 
            ---------  -----  ----------  ----------  -----  -----------  ----------------  -----------  -------------  ----------------  -----------  ----------------- 
BC Deep 
 West & 
 East         331,041   7.85      83,543     380,336   4.79       58,553                 -            -              -           125,342         4.87             19,625 
            ---------  -----  ----------  ----------  -----  -----------  ----------------  -----------  -------------  ----------------  -----------  ----------------- 
Total       2,142,383   3.19     219,408   1,061,614   2.75       94,007         1,016,882         1.77         57,916         1,356,129         1.71             74,427 
            ---------  -----  ----------  ----------  -----  -----------  ----------------  -----------  -------------  ----------------  -----------  ----------------- 
 

Table 2*: Conversion of Resources into new JORC Compliant Probable Reserves totaling 135,438 Ounces for the period of 1(st) January 2018 to 30(th) September 2019

 
 Deposit            Mine (1)    COG (Au_g/t)    Tonnes     Au_g/t   Ounces 
 Bauhinia Creek        UG           1.9         361,821     6.32    73,471 
                   ----------  -------------  ----------  -------  -------- 
 Bauhinia Creek 
  North               OP/UG       0.6/1.9       174,651     3.21    18,037 
                   ----------  -------------  ----------  -------  -------- 
 Black Tree Hill       OP           0.6         292,395     1.33    12,469 
                   ----------  -------------  ----------  -------  -------- 
 Elizabeth Hill        OP           0.6         205,054     4.77    31,460 
                   ----------  -------------  ----------  -------  -------- 
 Total                                         1,033,920    4.07    135,438 
                               -------------  ----------  -------  -------- 
 

* Reserve figures converted during a period of Jan to Sept 2019 by source

1. OP denotes Open pit; UG denotes underground

Ilunga Underground Mine revised reserve estimate

As noted in the Company's Q3 2019 Operations and Financial Report announced 17 October 2019, following prudent grade control drilling, the average orebody widths and gold grades at the Ilunga underground deposit in the first four sublevels have been found to be lower than estimated in the March 2017 ore reserves and Revised Mine Plan. As a result, probable gold reserves at Ilunga underground mine have decreased by 44k oz driven by a change of model and mine design including the introduction of sill pillars, in addition to depletion of 14k oz up to 30 September 2019.

Table 3*: JORC Compliant Ilunga Underground Reserve Summary comparison between 31(st) Oct 2018 against 30(th) Sep 2019

 
      Ilunga Underground - Probable Reserves Comparison 
                         31st Oct    30th Sept    Variances 
                            2018        2019 
                        ----------  -----------  ----------- 
   COG        Au_g/t        2.5         2.3 
           -----------  ----------  -----------  ----------- 
  Tonnes        Kt          688         442          246 
           -----------  ----------  -----------  ----------- 
  Grade      Au_ g/t       5.56         4.52         1.04 
           -----------  ----------  -----------  ----------- 
  Ounces      koz Au        122          64           58 
           -----------  ----------  -----------  ----------- 
 

* Figures as of 31(st) October 2018 with depletion of 14koz applied to September 2019

Regional Exploration Drilling

Regional exploration drilling across Shanta's holding of tenements in the Lupa Goldfield has commenced. A total of 2,030 meters of drilling is planned across prioritised exploration targets in Q4 2019, representing approximately half of all drilling planned for the Quarter. An additional drill rig has been procured and is now operational.

Enquiries:

 
 Shanta Gold Limited 
 Eric Zurrin (CEO)                            +255 (0) 22 292 5148 
 Luke Leslie (CFO) 
 Nominated Adviser and Broker 
 Numis Securities Limited 
 Paul Gillam / Alamgir Ahmed                  + 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 licences covering approximately 1,500km(2) in the country. Shanta's flagship New Luika Gold Mine commenced production in 2012 and produced 81,872 ounces in 2018. The Company has been admitted to trading on London's AIM and has approximately 787 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 George Kondela (the Company's Senior Resource Geologist), 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). 
 Environmental 
  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. 
===============  ============================================================  ============================================================ 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

MSCZMMMMRNFGLZM

(END) Dow Jones Newswires

November 18, 2019 02:00 ET (07:00 GMT)

1 Year Shanta Gold Chart

1 Year Shanta Gold Chart

1 Month Shanta Gold Chart

1 Month Shanta Gold Chart
Your Recent History
LSE
SHG
Shanta Gol..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20200128 10:52:43