(Alliance News) - Shanta Gold Ltd on Monday said it has upgraded a reserve and resource estimates for New Luika gold mine in south western Tanzania.
The new resources and reserves estimates follow drilling programme for the six-month period from April to the end of September, which totalled 8.5 kilometres and consisted of 81 holes, Shanta said.
Shanta's exploration strategy at New Luika is focused on the existing mining licences totalling 30 square kilometres, with additional drilling in the final quarter of 2019 and into 2020 aimed to test the extension of the Bauhinia Creek Deep West and East, Elizabeth Hill North, Bauhinia Creek North and Black Tree Hill deposits.
Minimal capital expenditure is required to bring these deposits into production, Shanta noted.
"We have high expectations that the targets will continue to grow both in size and number as we look to add to our mine life at New Luika," said Chief Executive Eric Zurrin.
Shanta shares were trading 0.8% higher in London on Monday morning at 8.47 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Shanta Gold (SHG)