(Alliance News) - Shanta Gold Ltd said Monday the ongoing results from the surface and underground exploration drilling from its exploration programmes at the New Luika gold mine in south western Tanzania are "highly encouraging".
The east Africa-focused gold producer said that 66 reverse circulation and diamond core holes totalling 7,410 meters were drilled between October and December at a cost of about USD700,000.
The drilling was focused on the Bauhinia Creek North and BC East deposits, Elizabeth Hill Open Pits and BC Deep West targets, all located within the company's mining licenses.
Exploration drilling has included the intersection of high grade mineralisation at encouraging widths, the company said.
Eric Zurrin, chief executive officer of the company, said: "Exploration at New Luika remains a high priority focus for Shanta, given the impact that increasing ounces has on shareholder value."
"The ongoing results are highly encouraging as we can see that they show high grades, at good widths that suggest ongoing life of mine extension," Zurrin said.
Shanta Gold shares were up 2.6% in London at 9.49 pence each on Monday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Shanta Gold (SHG)