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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 is sufficient to provide incremental feed source. Gold deposits outside of the 20 km radius are likely to be subject of a new stand-alone processing facility if proven economic.

Lupa Goldfield exploration [chart]

Project Potential and Prospects

Findings to date show encouraging early-stage drilling results within 8 km of the New Luika processing plant. Inferred mineralised strikes of approximately 400 meters each have been identified at a number of different targets. The Company believes this area has upside potential with over 57 known artisanal or colonial gold mining operations having existed in the past. An exploration programme including a 400 km2 aeromagnetic survey was completed in 2013 highlighting significant additional targets and additional ground truthing and drilling is being implemented on an ongoing basis. Off mine exploration continues in the prospective Lupa Goldfields and the Company is confident that with the knowledge gained to date, it will continue to discover new resources.