AMN - TANZANIA: Shanta boosts Singida gold resource

Shanta Gold has increased measured and indicated resources to almost 400,000 ounces at its Singida Gold Project in central Tanzania. The measured resource increased 56% and the total measured and indicated resource was up 12% to 381,000 ounces at 2.08 g/t gold.

This was made possible by a recently completed drilling program that tested two of the seven targets within the project's mining licences.

Drilling returned results of 10 metres @ 20.82 g/t gold from 138 metres, including 3 metres @ 57.13 g/t, and 5 metres at 10.35 g/t from 120 metres.

The JORC-compliant Singida project resource now totals 12.3 million tonnes grading 1.84 g/t and containing 725,000 ounces of gold using a cut-off grade of 1.0 g/t.

This consists of a measured and indicated resource totalling 5.71 million tonnes at 2.08 g/t gold and an inferred resource of 6.57 million tonnes @ 1.63 g/t gold and containing 344,000 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 about 500 metres below the topographical surface.

Mineralisation is open at depth and along strike with numerous parallel structures identified.

Shanta will shortly commence an exploration program to delineate further resources and upgrade the inferred resources near to surface in the Cornpatch and Cornpatch West targets into measured and indicated resource categories.

Ground geophysical IP work will begin early in the September quarter to test the potential of the 2km strike between Cornpatch and Cornpatch West.

Construction of a high voltage power line by Tanzania’s Rural Energy Agency (REA) has commenced.

The internally estimated project net present value (NPV) has been enhanced following re-optimisation of the mine plan and improvement in forecasted energy costs.

Shanta's chief executive officer Eric Zurrin said: "The objective of the modest 1600 metre RC drilling program in the March quarter of 2018, which targeted two of the seven key targets at Singida, was to upgrade resources from the inferred to the measured and indicated categories.

"This objective has been achieved – M&I resources have now increased to nearly 400,000 ounces of gold at 2.08 g/t."

www.shantagold.com