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Shanta Gold is a low cost gold producer with significant resource upside, within and surrounding its New Luika Gold Mine, with additional development opportunities in Tanzania

Exploration

Background

The Lupa Goldfield is the second largest goldfield in Tanzania outside of the Lake Victoria Goldfield. From 1935 to 1959 an estimated 650,000 ounces of gold were extracted from the area. The Lupa Goldfields, located with the Ubendian model belt, is a triangular shaped block of approximately 2600 km2 including the Rukwa rift fault to the southwest, the Ufipa fault to the southeast and a near east–west trending fault to the north form the respective boundaries.

Size

Shanta Gold, through its Tanzanian subsidiaries, holds over 1300 km2 of prospective exploration ground with further 1200 km2 under application in the Lupa Goldfield. These licences are in an area spanning approximately 100 km by 65 km. It is estimated that a 20 km radius from the New Luika Gold Mine processing plant could be economic in the first instance to provide incremental feed source for the mill.

lupa-goldfields

Project Potential and Prospects

The Company believes this area has upside potential with over 57 known artisanal or colonial gold mining operations having existed in the past.

Shanta has successfully produced strong results from its ongoing exploration programme within its mining licence at New Luika. Since September 2015 the Company has more than replaced its mined ounces with new resources and in March 2017, it announced its Revised Mine Plan, which incorporated the strong results previously reported from Elizabeth Hill and Ilunga, which increased New Luika's reserves significantly.

Beyond the mine boundary, drilling programs have been conducted at the Askari target and, in 2016, at Nkuluwisi from which a maiden resource was announced in April 2017 with a total resource of 3,973,000 tonnes at 1.1 g/t for a total of 140,894 ounces of gold.