AMN - TANZANIA: Estimate for Singida Gold Project

Shanta Gold, the East Africa-focused gold producer, has announced a JORC-compliant mineral resource estimate for the Singida Gold Project in Central Tanzania. Singida contains 12.3 million tonnes at 1.84 g/t gold for 728,000 ounces.

Measured and indicated resources total 5.11 million tonnes @ 2.09 g/t for 345,000 ounces while inferred resources total 7.17 million tonnes @ 1.66 g/t for 383,000 ounces.

The estimate incorporates three mining licences and seven mineralised zones with a combined strike length of 4.9km, with widths ranging from 5-15 metres and mineralisation extending approximately 500 metres below the topographical surface.

Gold Tree 1, which is at the centre of the three licences, contains measured and indicated resources of 1.1 million tonnes at 3.14 g/t gold and containing 111,000 ounces, is located near to surface.

Mineralisation is open at depth and along strike with numerous parallel structures identified. Shanta will shortly be commencing an exploration program to delineate further resources and upgrade the inferred resources near to surface in the Jem, Gold Tree and Corn Patch deposits into measured and indicated resource categories.

Meantime, at the New Luika Gold Mine in Southwest Tanzania, Shanta has achieved its aim of cost reductions, which was announced on September 5. The company has cut costs by US$5.1 million, the full benefit of which will be achieved by the end of Q1 2018.

Savings do not include the replacement of the mining contractor which was a result of the decline in open pit production and constitutes a large standalone saving.

Shanta says the reductions mainly comprise renegotiated contracts with suppliers, lower headcount and eliminating non-essential G&A spending.

Further cost reduction initiatives remain ongoing with 45% of Shanta’s supplier contracts (in terms of value) so far having been reviewed or replaced.

Shanta’s CEO Eric Zurrin said, “We have made good progress at Singida by declaring a compliant resource and in doing so, increasing Shanta’s total group compliant resources to over 2 million ounces. We have identified a number of targets at the project, which we will continue to explore over the coming months, with a view to expanding the potential size of the Singida project and increasing the measured & indicated resource ounces.”

“I am also pleased to announce that we have already surpassed our targeted spending reductions of US$5 million of annual savings whilst identifying operational changes which will continue to create further value for Shanta and its shareholders. This approach is in line with our previously announced strategy of aligning the senior management team with that of Shanta’s owners and optimising the financial performance of our operations.”

www.shantagold.com