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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

Singida

Key facts

Location
Ikungi Administrative District, Singida Region, central Tanzania
Size
Three prospecting licences covering approx 92 km²
Three mining licences covering 30 km²
Ownership
One of the mining licences is wholly owned by Shanta Mining Company Ltd (SMCL); a portion of another is owned 100% by Shanta with the balance held in a Joint Venture with GL Jossue & JB Joel Limited which holds a 10% minority interes. The third licence is held by the Joint Venture in the same proportion.
Ownership of the prospecting licences is 100% with Shanta Mining.
Project status
Advanced stage project with a mining license. Interim Pilot Plant has currently been deferred whilst essential
capex is spent at the New Luika Gold Mine.

 

Project potential and prospects

Singida is an advanced stage project with a mining licence granted in 2012. Drilling results from a program to expand the understanding of the deposit in 2016 are expected to increase the Company’s confidence that, subject to an updated Feasibility Study, Shanta will be able to significantly add to its production of low cost ounces at a competitive capital cost.

The Project has had in excess of 80,000 metres of drilling and a feasibility study was completed in 2011. Singida has nine ore bodies named Gold Tree 1, 2, 3, Jem, Vivian, Corn Patch, Corn Patch West, Gustav and Kaiser Chief. The nine ore bodies have a combined resource of 858,000 ounces (at a 1 grammes per tonne (“g/t”) cut-off). There is potential for the scale of the Singida resource to extend on strike and at depth.

The plan for an interim Pilot Plant has currently been deferred whilst essential capex is focused on the development of the New Luika underground operation. Singida also has significant exploration potential which will be evaluated in advance of a full scale feasibility study and the company is exploring a number of attractive options in relation to the project development.

Work has been performed with extensive engagement of the local communities including employment of local people on short term contracts to assist in the development tasks. At a District and Regional level, the authorities have been involved in the mine development plans and TANROADS, the state roads authority, has already upgraded the 35 kilometre gravel road from the main road at Ikungi to the mine site. There are also plans to extend grid power to the area in the medium term.

Total in situ resources

A resource for Singida, determined by independent consultants in 2009, is summarised below:

The resource* comprises seven prospects.

  • Measured Resource (1.0 g/t lower cut-off grade) = 433koz at 4.05g/t
  • Indicated Resource (1.0 g/t lower cut-off grade) = 118koz at 1.96 g/t
  • Inferred Resource (1.0 g/t lower cut-off grade) = 309koz at 2.28 g/t
  • Total Resource (1.0 g/t lower cut-off grade) = 858koz at 2.84 g/t

View detailed summary

Regional geology

The geology of the Singida area is dominated by the Tanzanian granite-gneiss craton. Poorly exposed greenstone remnants were identified within the granite gneiss terrain during mapping by the Geological Survey of Tanzania (Haidutov 1976). These greenstones comprise an intercalated sedimentary and volcanic sequence with similarities to the Nyanzian Supergroup (System) of the Lake Victoria Goldfields.

The volcanic rocks encountered are predominantly basaltic lava and localised hypabyssal diorite/microdiorite intrusives. Meta-sedimentary rocks consist mainly of metaquartzitic lithologies, with subordinate siltstones, mudstones and banded ferruginous chert also encountered. The orientation of the layering is generally parallel to the basement foliation. Isoclinal folding is also evident.

The Nyanzian lithologies are generally metamorphosed to greenschist- and lower-amphibolite facies with localised occurrences of upper amphibolite grade. Post tectonic granite intrusives are common throughout the area.

Gold mineralisation is associated with penetrative brittle-ductile, steeply dipping, quartz veined shear zones that generally approximate the strike of lithological contacts.

The area south of Singida is exceptionally flat lying with little relief except for the granite intrusives that form prominent tors. Weathered overburden profiles are dominated by Neogene transported pedogenic gravels and related soils. Black Cotton soils (Mbuga) occurs locally.