(Alliance News) - Shanta Gold Ltd on Thursday updated shareholders on exploration at the New Luika Gold Mine in Southwestern Tanzania.
The East Africa-focused gold producer, developer and explorer said its drilling programme began in July.
It noted that Thursday's update relates to drilling within existing mining licenses and comprises 13,325 metres of drilling from 106 holes at New Luika.
"The primary objective of the drilling programme was targeting resources outside of the existing reserve based mine plan, converting Inferred resources to Indicated resources at the deposits and extending the life of mine. Jamhuri West is a maiden exploration target within the mining licenses," Shanta Gold said.
Mineralisation at Elizabeth Hill, Luika, Jamhuri West, and Black Tree Hill remains open at depth, it said.
"We restarted drilling at New Luika in July 2023 as the team looked to convert Inferred resources to the Indicated category at various deposits, in addition to the testing of a maiden target at Jamhuri West close to the NLGM Processing Plant. Drilling of the deposits at Elizabeth Hill and BC North both demonstrated encouraging results while work remains ongoing at Luika Deep underground to identify the down plunge continuity and extension of mine life," said Chief Executive Officer Eric Zurrin.
"Commencement of drilling at the Jem deposit at Singida in September 2023 marked the resumption of exploration drilling at the mine after a few years. A drilling update will be provided in due course."
In December, Shanta Gold said its board has agreed to an all-cash takeover offer from industrial conglomerate ETG that values the company at just above GBP140 million.
ETC Holdings is an investing company that is the controlling shareholder of ETC Group. The industrial conglomerate, which trades as ETG, operates in agricultural commodities, metal and energy. It also encompasses agricultural inputs and logistics, as well as other businesses.
Shares in Shanta Gold closed up 0.8% to 13.10 pence each in London on Thursday.
By Sophie Rose, Alliance News senior reporter
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