Modern Mining September 2015

MINING News

Drill programme at New Luika prospect completed

the New Luika processing plant. During previous drilling campaigns, Elizabeth Hill was tested by means of wide- spaced drilling at depth, resulting in a limited understanding of near-surface ore development and gold grade. The latest drilling campaign was designed to provide close-spaced (25 m x 25 m) ore intersec- tions at shallow depths and has yielded encouraging assay results over portions of the strike extent tested. Elizabeth Hill is a linear south-east trending topographic high which suggests that possible future opencast exploitation could be characterised by low stripping ratios. A substantial portion of the 750 m strike expression tested (approximately 400 m) is characterised by encouraging gold miner- alisation. Areas displaying elevated gold grades are located within two distinct zones. With progressive process plant upgrades at NLGM enabling the company

AIM-listed Shanta Gold has provided an exploration update on its resource devel- opment programne at the New Luika Gold Mine (NLGM) in Tanzania. A reverse circulation drilling pro- gramme comprising 3 784 m has been completed, targeting the Elizabeth Hill mineralised prospect. Intersections received include 14 m at 6,23 g/t from 66 m in hole CSR427; 4 m at 14,52 g/t from 61 m in hole CSR434; and 6 m at 6,75 g/t from 29 m in hole CSR415. All reverse circulation holes drilled intersected the mineralised structure at Elizabeth Hill, in close proximity to initial ore wireframe positions, supporting the accuracy of their interpretations. The drilling programme was commis- sioned in June and July 2015 with a view to obtaining improved definition of the nature and extent of near-surface ore development at this prospect. Elizabeth Hill sits within the existing mining licence at NLGM, approximately 4 km east of

to increase monthly ore tonnage through- put, the required head grade at NLGM has decreased. Shanta is therefore in a position to exploit lower grade satellite deposits within the NLGM tenement, identified dur- ing earlier drilling phases. Low-to-medium grade gold ore from satellite deposits can be blended with high grade ore from Shanta’s Bauhinia Creek pit to ensure steady plant feed grades and optimise gold recoveries. It is envisaged that this may have a positive effect on the longer term sustainability of NLGM operations. The company intends to integrate drill findings into an updated resource assessment for Elizabeth Hill, after which pit optimisation studies will be commissioned. Shanta is considering expanding the resource development programme to other satellite deposits within and in the direct vicinity of the NLGM Licence. Target areas include the Black Tree Hill, Ilunga and Luika South mineralised prospects. 

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8/20/15 1:58 PM

September 2015  MODERN MINING  11