Shanta Gold reports visible gold at West Kenya project, drilling continues

Guernsey-registered Shanta Gold (AIM: SHG) says drilling is generating “consistently” high-grade results, with assays up to 132 grams per tonne gold, at its Isulu and Bushiangala deposits, within its West Kenya project.

Isulu and Bushiangala are the main deposits within the West Kenya project (although Shanta has now added Ramula as a new priority target).

The project is located on the Lake Victoria greenstone gold belt, which extends through Uganda, Kenya and Tanzania.

The latest update from Shanta covers 10,082m of drilling across 35 holes conducted in the first half of 2022, which aims to update the resources at the deposits to indicated status.

Drilling returning ‘spectacular occurrences’

Shanta chief executive officer Eric Zurrin said the latest results are indicative of the “vast” potential that West Kenya offers in the company’s growth story.

“Visible gold, including spectacular occurrences, has been identified in 53 intersections across 142 holes.”

At Bushiangala latest highlight results include 1.6m at 47g/t, including 0.5m at 132g/t gold; and 3.1m at 26g/t gold, including 0.6m at 80.6g/t gold.

Top results from Isulu returned a raft of short, high-grade intercepts including 0.7m at 65.2g/t gold, 2.6m at 22.6g/t gold, including 0.6m at 68.6g/t gold and 2.9m at 18.8g/t gold.

The company says visible gold was identified in 15 intersections of the latest drilling.

“We expect to have a further update in the next few months with our priority being to expand the resources base at [other] targets including Kimingini and Ramula where drilling is active and delivering highly encouraging results,” Mr Zurrin said.

Intersections reported this week include the fifth set of results from phase two of the campaign, which is targeting depths at West Kenya to 550m below surface.

East Africa-focused explorer and gold producer

Shanta is an East Africa-focused gold producer, developer and explorer.

In Tanzania, Shanta owns the New Luika and Singida gold mines, which have combined reserves of 645,000oz grading 3g/t.

New Luika is operational and Singida is scheduled to come online in the first quarter of 2023, which is expected to transition Shanta into a 100,000oz plus per annum gold producer.

The company’s exploration licences in Tanzania cover about 800sq km.

In Kenya, including the West Kenya project, Shanta holds exploration licences with resources totalling 11.78Mt at 2.39g/t gold for 904,000oz.

The company paid a maiden dividend in 2021.