• 2012
• 2011
• 2010
• 2009
• 2008
• 2007
• 2006
• 2005

Singida project progress

25 January 2011

Shanta Gold Limited (“Shanta Gold” or “Company”) is pleased to announce further progress at Singida, one of the Company’s advanced gold projects in Tanzania.

Highlights of the developments include:

• The geotechnical drilling programme, commissioned in late 2010 achieved positive intersections;
• the Environmental and Social Impact Assessment (ESIA) Terms of Reference and Scoping Study have been approved by the National Environmental Management Council of Tanzania (NEMC);
• the completion of an airborne LIDAR digital terrain model survey at Singida.

This news adds further momentum to the Singida project, and follows on the preliminary feasibility study results in December 2010, and the application for three mining licences over the project area.

Commenting on the developments, Shanta chairman Walton Imrie noted that this progress represents significant steps towards the completion of a definitive feasibility study and granting of the mining licences.

MTL Consulting, the party contracted to perform the ESIA and to develop the environmental management plan has already started the detailed studies and the ESIA is scheduled for submission within the next three months, and environmental certificate is expected by the end of June 2011.

The LIDAR survey will provide an accurate digital terrain model for detailed mine design purposes. Final detailed design of the tailings storage facility, process plant site and initial open pit will utilise the model.

The whole core emanating from our geotechnical diamond drilling programme will assist in our studies to determine the rock grinding parameters and aid the crushing and milling design for Singida.

A total of 500m of drilling was completed with holes designed to intersect the orebody at 50m and 100m vertical depths. The four holes targeted the mineralised shoots and they all intersected robust mineralisation with widths exceeding 10m in some cases. The successful intersection of strong mineralisation, exactly where targeted, provides enhanced confidence in the ore resource block model. Shanta Gold used internationally known consultants SRK to provide on-site management of the core orientation process, and they will also be conducting the geotechnical analysis to assist pit design. Significantly, coarse visible gold was common and corresponds well with the high grades and visible gold intersected in the earlier resource definition drilling.

In conclusion, Walton Imrie, noted:

"We are very pleased with the progress that is being made on the Singida project. Assuming a positive outcome for the feasibility study, our expectation is that this momentum will be sustained and that we will be in a comfortable position to start mine construction in early 2012 in line with our planning.

For further information, please contact:

Shanta Gold Limited
Gareth Taylor
Mobile: +255(0)757732484

David Scott
Mobile: +255(0)78 4366146

Walton Imrie
Moblie: +27(0)82 4442851

Fairfax I.S. PLC
Ewan Leggat / Laura Littley
Tel: +44 (0) 207 598 5368

GLOSSARY

Bond work index:

The measure of grindability of rock in evaluating grinding circuits performance to help maximize the use of the power delivered to grinding circuits in minerals processing plants.

Detailed feasibility study:

Detailed Feasibility Studies are normally the highest order and are the basis for capital appropriation and provide the budget figures for the project, completed with a financial accuracy of +-10% with a significant portion of the formal engineering completed.

Digital Terrain Model:

A digital terrain model is a topographic model of the bare earth – terrain relief - that can be manipulated by computer programs.

Feasibility study:

An evaluation of a proposed project to determine whether and how it can be mined economically.

Preliminary feasibility study:

Preliminary Studies are accurate to +- 25-30% and are typically obtained by factoring known unit costs and estimated gross dimensions or quantities once conceptual or preliminary engineering has been completed.