Shanta Gold targets mine life extension at Bauhinia Creek Central

Shanta Gold, an East Africa-focused gold producer, developer and explorer, has provided an update from the first phase of its Bauhinia Creek drilling campaign at the New Luika Gold Mine (NLGM) in South Western Tanzania, conducted during the second quarter of 2019.
Shanta Gold targets mine life extension at Bauhinia Creek Central Shanta Gold targets mine life extension at Bauhinia Creek Central Shanta Gold targets mine life extension at Bauhinia Creek Central Shanta Gold targets mine life extension at Bauhinia Creek Central Shanta Gold targets mine life extension at Bauhinia Creek Central

Shanta Gold has provided an update from the first phase of its Bauhinia Creek drilling campaign at the New Luika Gold Mine

Phase 1 of the company's 2019 drilling campaign at NLGM consisted of three diamond holes drilled at the Bauhinia Creek (BC) Central underground mine. Drilling targeted areas immediately below the existing reserves and mine plan. Holes were drilled from level 740 inclined at between minus 54.7 and 73.3 degrees and averaged 138.6m in depth with a maximum of 143.7m down the hole. These results are over a strike length of 95m with holes spaced between 30 to 40m sections. It is estimated that the true widths of the mineralised zones are > 90 per cent of the intersected widths in the holes. The mineralised zones are presented by moderately dipping quartz veins hosted by granodioritic rocks.

The Phase 1 drilling campaign will be followed by a Phase 2 drilling programme in Q2 2019, which will test the continuity of the high-grade shoots at BC to the west of the area that was tested by the Phase 1 drilling program.

The Phase 2 drilling programme will start shortly with three holes planned totalling approximately 400m. The results of Phases 1 and 2 will be combined and analysed, with an updated mineral resource estimate and life of mine extension expected in July 2019.

Eric Zurrin, CEO, commented: "A very modest and low-cost drilling program has returned highly encouraging results that point to life of mine extension at depth at BC. A mine life extension would require only minimal capex, limited predominantly to underground development to access new ore.

"Positive indications point to the existing underground decline being pushed down by at least three levels and new ounces added to our mine plan. I look forward to confirming our expectation after the results of the Phase 2 drilling."

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