SHG.L Regulatory News (SHG)

21 Dec 2005 09:27

Shanta Gold Limited21 December 2005 Shanta Gold Limited ('Shanta Gold') Katario Project Drill Results, Tanzania Shanta Gold is pleased to announce the results of an eighteen hole, 2061 metrereverse circulation drilling programme, which has been completed at its KatarioProject in north-eastern Tanzania. As part of the drill programme, 6 holes weredesigned to test the continuity of gold mineralisation at the Tembo Mine downdip and 12 holes were to test continuity along strike. The Tembo Mine produced40.9 kg of gold averaging 6.9 g/t between the years of 1934 and 1940. Borehole Intersections using 0.30 g/t cut off. Borehole From Intersection Gold (g/t) Including (m) (m) KA1 8 6 2.11 KA2 20 16 4.32 2 m at 11.55 g/t & 2 m at 14.20 g/t KA3 22 26 2.05 2 metres at 10.50 g/t KA10 108 2 0.43 KA13 0 14 2.47 2 metres at 6.35 g/t KA13 30 10 2.19 2 metres at 4.01 g/t KA4 12 2 0.41 KA4 34 2 0.53 Boreholes KA1, KA2, KA3 and KA13 drilled within the existing 100 metre strike ofmine workings intersected comparable widths and grades to the broad mineralisedzones identified from underground sampling averaging 7.2 g/t Au over 9.4 metresand 6.7 g/t Au over 18.6 metres. Boreholes KA2 and KA3 intersected wide mineralised zones near the surface,averaging 16 metres at 4.32 g/t and 26 metres at 2.05 g/t. Chris Picken, thecompanies Chief Operating Officer who, as exploration geologist supervised thelogging and sampling, noted that 'both boreholes intersected several narrowhigher grade zones between 10.50 g/t Au and 14.20 g/t Au, with goldmineralisation associated with pyrite, arsenopyrite and quartz veining developedalong sheared contacts between graphitic schists and quartzitic metasediments. Borehole KA13 situated 35 metres from holes KA2 and KA3 intersected twomineralised zones; the first in quartzitic metasediments directly in contactwith basaltic volcanics, the second in a sericite schist between basalt gabbro. The 12 boreholes collared within a 350 section along the strike extensions tothe Tembo Mine failed to intersect mineralisation. Chris Picken advises, "Shanta's exploration team is currently reviewing theborehole geology and integrating this information with geochemical andgeophysical data to determine if continued drilling is warranted. The drillinghas shown the previous geological interpretations of a shallow plunging foldedore body with exhalative characteristics to be incorrect. The mineralisationappears to be shear related, possibly associated with a quartz porphyryintrusion east of Tembo Mine" The samples were analysed by SGS Laboratories in Mwanza by 50 g fire assay withflame AAS finish. Standards, duplicates and blank samples were submitted toindependently verify the quality of these results. For further information: Shanta Gold George Bennett Walter VorwerkMobile: +27 (0)82 652 8526 Mobile: +27 (0)83 308 0080 WH Ireland David YoungmanTel: 0161 832 2174 This information is provided by RNS The company news service from the London Stock Exchange