Shanta Gold pleased with latest exploration results at New Luika

East Africa-focussed Shanta Gold updated the market on its exploration at the Luika Deposit and the Porcupine South Target at New Luika Gold Mine in south western Tanzania on Wednesday, based on activity conducted between September and November.

The AIM-traded firm described Porcupine South as a new open pit target, with drilling results expected to be converted into a JORC-compliant resource in due course.

It drilled nine diamond core holes at Luika totalling 4,042 metres, with further drilling ongoing, while 28 reverse circulation holes were drilled at Porcupine South totalling 2,466 metres.

The newly-reported drilling intersections were outside existing mineral reserves, and would be incorporated into the next update of the mine plan.

Reported results were over a strike length of 200 metres for Luika, and 500 metres for Porcupine South.

Luika is one of the mine’s three actively-mined underground deposits, and Porcupine South is a new target located about 22 kilometres east of the New Luika Gold Mine, which was expected to be within economically-viable trucking distance from the processing plant.

Shanta said mineralisation at both Luika and Porcupine South remained open at depth.

“These encouraging results are the latest demonstration by the company that depleted ounces can be replaced with low cost exploration,” said chief executive officer Eric Zurrin.

“Porcupine South is a newly discovered orebody, taking the known deposits at New Luika Gold Mine to 12, each of which has the potential to increase in size.

“An anticipated net increase in JORC reserves is expected to be announced in early 2021.”

At 1146 GMT, shares in Shanta Gold were up 5.11% at 14.32p.