Shanta Gold chief excited by rich orebody at New Luika Gold Mine

05Jul 2019
The Guardian Reporter
The Guardian
Shanta Gold chief excited by rich orebody at New Luika Gold Mine

PHASE two drilling at New Luika Gold Mine’s Bauhinia Creek has established that there is high grade orebody which has prompted Shanta Gold Limited to continue exploring the area during this second half of the year.

New Luika Gold Mine in Chunya, Songwe region.

In a statement, Shanta Gold CEO, Eric Zurrin said the drilling targeted areas on the western side of the ore body, below the existing reserves and mine plan. These results are over a strike length of 120 meters with holes spaced between 30 to 40 meter sections.

It is estimated that the true widths of the mineralized zones are over 90 percent of the intersected widths in the holes.

“These are some of the best exploration results yet at New Luika and it is of great encouragement to see such exceptional grades and widths as we go deeper into the orebody,” said Zurrin who pointed out that the vertical level of the current mine plan is only 250m below the portal hence expect to further explore the high grade extensions in the second half of 2019.

“Mine life extension is the single biggest contributor to value for Shanta Gold shareholders given the quality of the orebody and we will be combining the phase one and two results into an updated resource estimate in July,” said the Shanta Gold CEO.

Other highlights of the drilling include: Bauhinia Creek is one of three active sources of ore currently being mined at NLGM; Phase two drilling has intersected high grade mineralisation over significant widths, providing further evidence of the continuity of the orebody to the west of the mine where high grade results were intercepted in May 2019.

Results from the drilling were: The new high grade intersections announced in Phase 1 (May 2019), Phase 2 (June 2019) and the previous drill hole CSD055 are outside the existing mineral reserves and will be incorporated into the mine plan; the new area is below the existing mineral reserves exhibiting higher grades and widths at depth; and strike length of high-grade mineralisation below the existing reserves is estimated at 280 meters and remains open at depth.

The results of the first and second phases of the NLGM drilling campaigns will be combined and analysed, with an updated mineral resource estimate and life of mine extension expected in July 2019.

 

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