This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
Withdrawal Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR
3 April 2024
Shanta Gold
Limited
("Shanta
Gold", "Shanta" or the "Company")
Group Reserves &
Resources Statement
Shanta Gold (AIM: SHG), the East
Africa-focused gold producer, developer and explorer, is pleased to
announce updated Group reserves and resources as at 31 December
2023 for its New Luika Gold Mine ("New Luika") and Singida Gold
Mine ("Singida") in Tanzania and our key deposits in Kenya ("West
Kenya").
Group Reserves & Resources 1
Summary
|
Proved &
Probable
Reserves
|
Measured &
Indicated
|
Inferred
|
Total
|
Deposit
|
Grade
(Au g/t)
|
Ounces
(koz)
|
Grade
(Au g/t)
|
Ounces
(koz)
|
Grade
(Au g/t)
|
Ounces
(koz)
|
Grade
(Au g/t)
|
Ounces
(koz)
|
TANZANIA 2
|
|
|
|
|
|
|
|
|
New Luika
|
2.71
|
297
|
2.74
|
672
|
1.78
|
259
|
2.38
|
931
|
Singida
|
2.88
|
203
|
2.55
|
413
|
2.12
|
408
|
2.32
|
823
|
Sub-total
|
2.78
|
500
|
2.66
|
1,085
|
1.98
|
667
|
2.35
|
1,754
|
KENYA 3
|
|
|
|
|
|
|
|
|
Kakamega 4
|
-
|
-
|
11.45
|
722
|
9.68
|
564
|
10.6
|
1,285
|
Ramula
|
-
|
-
|
2.43
|
417
|
2.27
|
53
|
2.41
|
470
|
Sub-total
|
-
|
-
|
4.86
|
1,139
|
7.56
|
617
|
5.55
|
1,755
|
GROUP 5
|
2.78
|
500
|
3.47
|
2,224
|
3.06
|
1,284
|
3.31
|
3,509
|
1. Resources
are inclusive of Reserves.
2. JORC 2012
compliant resources, as of 31st December 2023
3. NI 43-101
compliant resources, as of 31st December 2023
4. Includes
Isulu and Bushiangala deposits.
5. Weighted
average by tonnes of ore
Eric Zurrin, Chief Executive Officer,
commented:
"A
key focus for Shanta in Tanzania in 2023 was the
completion of construction at Singida, our second producing mine.
Having achieved commercial production at Singida in June 2023, the
Company was once again able to direct financial resources towards
targeted drilling at both New Luika and Singida in the second half
of 2023. The reserve-based mine life at both mines remains
unchanged from the end of 2022 and work remains ongoing in adding
new reserves to the mine plan.
At
West Kenya, exploration continued across multiple deposits during
the second half of 2023. The main aim of the drilling
programme which is still ongoing is to convert Inferred resources
to the Indicated category for the Ramula deposit and test the
mineralisation potential for the other regional
targets.
We
will keep you updated on the progress of these exploration
programmes as results become available."
Highlights:
Group
·
Total Group-wide resources of 3.51 Moz ("oz")
grading 3.31 g/t Au, comprising:
o New
Luika JORC resource of 931 Koz grading 2.38 g/t Au.
o Singida JORC resource of 823 Koz grading 2.32 g/t
Au.
o Kakamega Camp NI 43-101 resource of 1,285 Koz grading 10.60
g/t Au.
o Ramula NI 43-101 resource of 470 Koz grading 2.41 g/t Au.
Tanzania
·
Total JORC 2012 compliant gold reserves of 500 Koz
grading 2.78 g/t Au (625 Koz grading 2.91 g/t Au as at end of 2022)
across the Company's two projects in Tanzania,
comprising:
o New
Luika JORC reserves of 297 Koz grading 2.71 g/t Au.
o Singida JORC reserves of 203 Koz grading 2.88 g/t
Au.
·
Reduction in reserves & resources due to
limited drilling in 2023 and reserve depletion from mining
operations.
o 2023
Tanzanian exploration spend limited to US$2.3 million including
17,363 metres of drilling.
·
Newly defined reserves of 5 Koz added at New Luika
in 2023, before depletion and optimisation, predominantly from
Luika and Bauhinia Creek North Underground deposits.
·
Reduction in Singida reserves & resources
reflective of mining depletion following commencement of commercial
scale production.
·
Reserve-based mine life remains unchanged to the
end of Q1 2028 at New Luika and end of 2029 at Singida.
·
Tailings Retreatment Project at New Luika
contributes an additional 48 Koz of recoverable gold and extends
the operating life to at least February 2031.
·
Total resources of 1.75 Moz grading 2.35 g/t Au
across both projects in Tanzania (JORC 2012 compliant).
West Kenya
·
Total West Kenya resources of 1.76 Moz grading
5.55 g/t Au.
·
West Kenya Indicated resources of 1.14 Moz grading
4.86 g/t Au.
·
The 2023 drilling exploration results will be
incorporated into the next resource update which is expected to be
completed in Qtr 2, 2024
Tanzania ‒ Breakdown of New Reserves reconciliation in
2023
New reserves at the New Luika, by
deposit, added during 2023 are summarised below:
Deposit
|
Reserves Dec 2022
(koz)
|
Ounces Added
(koz)
|
Ounce Depletion
(koz)
|
Resource Optimisation
(koz)
|
Reserves Dec 2023
(koz)
|
Luika
|
189
|
5
|
(66)
|
(6)
|
121
|
Bauhinia Creek
|
14
|
-
|
(6)
|
(1)
|
7
|
Ilunga
|
25
|
-
|
-
|
-
|
25
|
BC North
|
14
|
0
|
(2)
|
-
|
12
|
Elizabeth Hill
|
70
|
-
|
(14)
|
(2)
|
55
|
Black Tree Hill
|
54
|
-
|
-
|
-
|
54
|
Porcupine South
|
29
|
-
|
-
|
(6)
|
23
|
Total
|
394
|
5
|
(88)
|
(14)
|
297
|
New
Luika Reserves
The total reserves position for New
Luika as of 31st December 20231 is summarised
below:
Deposit and
classification
|
PROVED AND PROBABLE
RESERVES
|
Ore tonnes
(kt)
|
Ore grade (g/t
Au)
|
Contained Ounces
(koz)
|
|
|
|
|
|
|
|
|
Ore Reserves -
Underground
|
1,336
|
3.74
|
161
|
Ore Reserves - Open Pit
|
2,074
|
2.05
|
137
|
Total Ore Reserve 1
|
3,410
|
2.71
|
297
|
1. Reserves are
reported in accordance with the JORC Code 2012.
New
Luika Underground Reserves1,2,3,4
The underground proved and probable
reserve statement is shown below:
Deposit
|
PROVED & PROBABLE
RESERVES
|
Cut-off grade
("COG")
(g/t)
|
Ore tonnes
(kt)
|
Ore grade
(g/t Au)
|
Contained ounces
(koz)
|
Luika
|
1.6
|
1,056
|
3.58
|
121
|
Ilunga
|
2.0
|
150
|
5.09
|
25
|
BC North
|
1.9
|
73
|
3.14
|
7
|
BC
|
1.9
|
57
|
4.06
|
7
|
Total Ore Reserve - Underground
|
|
1,336
|
3.74
|
161
|
1. Proved Reserve is 112.0 kt @ 3.29 g/t Au equivalent to 12
Koz.
2. Reserves are reported in accordance with the JORC Code
2012.
3. Reserve estimates
assume application of long-hole open-stoping. Economic evaluations
are at a gold price of
US$1,550 /oz. A gold recovery
of 90% has been applied.
4. JORC Code 2012
disclosures for these reserves are appended to this
statement.
New
Luika Open Pit Ore Reserves1,2,3,4
The open pit proved, and probable
reserve statement is shown below:
Deposit
|
PROVED AND PROBABLE
RESERVES
|
COG
(g/t)
|
Ore tonnes
(kt)
|
Ore grade (g/t
Au)
|
Contained Ounces
(koz)
|
Black Tree Hill
|
0.6
|
798
|
2.09
|
54
|
Elizabeth Hill
|
0.6
|
845
|
2.02
|
55
|
Bauhinia Creek North
|
0.6
|
73
|
1.96
|
5
|
Porcupine South
|
0.6
|
358
|
2.02
|
23
|
Total Ore Reserve - Open Pit
|
|
2,074
|
2.05
|
137
|
1. Proved Reserve is 227.0 kt @ 2.14
g/t Au equivalent to 16.0 koz.
2. Reserves are reported in
accordance with the JORC Code 2012.
3. Economic evaluations are at a gold price of US$1,350 /oz. A gold
recovery of 90% has been applied.
4. JORC Code 2012 disclosures for
these reserves are appended to this statement.
Singida Reserves and Resources
The total proved and probable
reserves position for Singida as of 31st December 2023
is given below:
Singida Gold Mine -
Tanzania
JORC 2012
Reserve 1,2
(31st Dec
2023)
JORC 2012
Classification
Deposit
|
COG
(g/t)
|
PROVED AND PROBABLE
RESERVES
|
Ore tonnes
(kt)
|
Ore grade (g/t
Au)
|
Contained Ounces
(koz)
|
Cornpatch
|
0.79
|
134
|
1.88
|
8
|
Cornpatch West
|
0.78
|
294
|
3.46
|
33
|
Gold Tree
|
0.74
|
1,096
|
3.17
|
112
|
Gustav
|
0.78
|
129
|
1.70
|
7
|
Jem
|
0.74
|
324
|
2.86
|
30
|
Kaizer Chief
|
0.78
|
142
|
1.65
|
8
|
Vivian
|
0.74
|
74
|
2.26
|
5
|
Grand Total
|
|
2,193
|
2.88
|
203
|
1. Proved Reserve is 1,115kt @
3.15g/t equivalent to 113koz.
2. Reserves are reported in
accordance with the JORC Code 2012.
Singida Gold Mine -
Tanzania
Mineral Resource Estimate
(MRE) inclusive Reserve
(31st December
2023)
JORC 2012
Classification
Deposit
|
Measured
|
Indicated
|
Inferred
|
Total
Resources
|
Tonnes (kt)
|
Grade g/t
|
Ounces
(koz)
|
Tonnes (kt)
|
Grade
g/t
|
Ounces
(koz)
|
Tonnes (kt)
|
Grade
g/t
|
Ounces
(koz)
|
Tonnes (kt)
|
Grade
g/t
|
Ounces
(koz)
|
Cornpatch
|
117
|
2
|
8
|
336
|
1.98
|
22
|
517
|
2.36
|
39
|
970
|
2.18
|
69
|
Cornpatch West
|
-
|
-
|
-
|
824
|
2.52
|
67
|
565
|
1.87
|
34
|
1,389
|
2.26
|
101
|
Gold Tree
|
747
|
3.48
|
84
|
1,215
|
2.41
|
94
|
3,102
|
2.03
|
203
|
5,064
|
2.34
|
380
|
Gustav
|
-
|
-
|
-
|
148
|
1.49
|
7
|
783
|
1.85
|
47
|
932
|
1.79
|
54
|
Jem
|
376
|
2.99
|
36
|
542
|
2.67
|
46
|
532
|
2.92
|
50
|
1,451
|
2.84
|
133
|
Kaizer Chief
|
-
|
-
|
-
|
475
|
1.67
|
25
|
354
|
1.98
|
22
|
828
|
1.8
|
48
|
Vivian
|
-
|
-
|
-
|
259
|
2.93
|
24
|
119
|
3.41
|
13
|
378
|
3.08
|
37
|
Grand Total
|
1,240
|
3.20
|
128
|
3,799
|
2.34
|
286
|
5,972
|
2.12
|
408
|
11,012
|
2.32
|
823
|
Enquiries:
Shanta Gold Limited
|
|
Eric Zurrin (CEO)
|
+44 (0) 14 8172 6034
|
Michal Devine (CFO)
|
|
Nominated Adviser and Broker
|
|
Liberum Capital Limited
|
|
Scott Mathieson / Nikhil
Varghese
|
+44 (0) 20 3100 2000
|
Public Relations
|
|
FTI Consulting
|
|
Sara Powell / Nick Hennis /
Lucy Wigney
|
+44 (0) 20 3727 1426
|
About Shanta Gold
Shanta Gold is an East
Africa-focused responsible gold producer, developer and explorer.
The company has an established operational track record, with
defined ore resources on the New Luika and Singida projects in
Tanzania, with reserves of 500 koz grading 2.78 g/t Au, and
exploration licences covering approximately 600 km2 in
the country. Alongside New Luika and Singida, Shanta also owns the
West Kenya Project in Kenya and licences with resources of 1.7
million ounces including 1.1 million ounces in the Indicated
category grading 4.86 g/t Au. With a strong balance sheet, a
growing diversified portfolio and dividends paid since 2021, Shanta
offers a resilient investment opportunity for the near and
long-term. Shanta is quoted on London's AIM market (AIM: SHG) and
has approximately 1,051 million shares in issue.
Competent Person Statement
The Mineral Resource Model in
this report for Isulu, Bushiangala and Ramula was independently
verified, and the resource was estimated by Adiuvare GE (Cath
Pitman P. Geo, ON and NL). Reporting of the resource has been
completed in accordance with Canadian NI 43-101
standards.
The technical information
contained within this announcement has been reviewed by Juma
Kisunda (the Company's Technical Services Manager), Evance Rwiza
(the Company's Senior Resource Exploration Manager) and Jackson
Kikota (the Company's Chief Mining Engineer), 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
|
"cut-off grade" (COG)
|
the lowest grade value that is
included in a 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 Resource"
|
that part of a Mineral Resource for
which tonnage, 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 Resource"
|
that part of a Mineral Resource for
which tonnage, 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 Resource"
|
that part of a Mineral Resource for
which tonnage, 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 Resource"
|
a concentration or occurrence of
material of 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)
|