Shanta Gold Ltd - Guernsey-based east Africa-focused gold producer, developer and explorer - Wins maiden mining licence at Porcupine South resource area of the Lupa gold fields, which is about 22 kilometres from New Luika. The licence is for an initial 10 years.
Chief Executive Eric Zurrin says: "With the award of this maiden mining licence plus extendable periods all-in totalling 30 years, Porcupine South will become the central piece to a district play covering highly prospective surrounding prospecting licences also owned by Shanta."
Notes current JORC resources at Porcupine of 1.2 million tonnes grading 1.94 grams per tonne containing 114,000 ounces gold. Says current strike length at 500 meters.
"The award of this mining licence is a major catalyst towards consolidating this district in what would otherwise be an area of stranded uneconomic ounces with no access to a processing plant. Forecasts are now being updated to convert resource ounces into mineral reserves leading to an extension of the life of mine at New Luika gold mine," Zurrin adds.
Points out New Luika remains "linchpin" to firm's growth.
Current stock price: 9.21 pence, up 1.8% on Thursday
12-month change: down 40%
By Paul McGowan; paulmcgowan@alliancenews.com
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