Shanta Gold (AIM: SHG), East Africa-focused gold producer, in an update said that its New Luika Gold Mine in South Western Tanzania, has considerably increased estimated reserves and resources. Based on the drilling program for the six months period from 1 April 2019 to 30 September 2019, the company revealed that the newly drilled targets has ‘probable’ gold reserves totaling 135,438 ounces in the grade of 4.07g/t Au (a measurement to describe the quality and purity of gold). Including the already declared reserves of the company in July 2019, the total reserves are up 219% from 57,916 ounces grading 1.77 g/t at the end-December 2017.
The company sports high expectations that the targets will continue to grow both in size and number. Since 30 September 2019, drilling has been ongoing in the Lupa Goldfield. Approximately 4,000 meters of exploration drilling is planned for Q4 2019. The company will give the next exploration update before year-end 2019 with a consolidated reserves and resources statement for Q1 2020. Tanzania’s gold reserves are pegged at 45m ounces (oz). Exploration is mostly centered on greenstone belts around Lake Victoria. Several large deposits have already been discovered and are being developed.
