Shanta Gold reports 'encouraging' findings at New Luika

East Africa-focused gold producer, developer and explorer Shanta Gold provided an update on its ongoing exploration programme, within and surrounding the New Luika Gold Mine in the Lupa Goldfields, southwest Tanzania, on Wednesday.

The AIM-traded company said reverse circulation drilling at the Nkuluwisi mineralised target, located 12 kilometers northwest of the NLGM's central processing hub, had intersected encouraging mineralisation which was open along strike and at depth.

A total of 44 reverse circulation drill holes comprising 5,833 meters of drilling had been completed at Nkuluwisi, identifying mineralisation down to vertical depths of around 120 metres below the surface.

Exploration to date had covered a strike length of about 900 metres, Shanta’s board reported, and significant portions of the regionally-prominent Nkuluwisi shear zone remained untested and exploration work was ongoing.

The drilling results were currently being modelled and would be submitted to the company's independent resource consultants for resource estimation purposes “in the near future”, with a maiden resource for Nkuluwisi anticipated to be delivered in the second quarter..

“The excellent exploration results from Nkuluwisi once again showcases the geological potential of the Lupa Goldfields,” said chief executive officer Toby Bradbury.

“Furthermore, after resource upgrades at Elizabeth Hill in 2015 and Ilunga in 2016, Shanta's exploration team continues to demonstrate its ability to convert its knowledge and experience into value-creation through the drill bit.”

Bradbury said the grades and thicknesses of the mineralisation at Nkuluwisi were “very” encouraging.

“The deposit remains open at depth, and strike, and we are confident that further exploration will add to the forthcoming expected maiden resource at Nkuluwisi due in Q2 2017.”