SHG.L Regulatory News (SHG)

26 Jan 2007 09:44

Shanta Gold Limited26 January 2007 For immediate release 26January 2007 SHANTA GOLD LIMITED ("Shanta Gold" or the "Company") Drilling Results Overview Shanta Gold discovers significant new, shear hosted gold mineralisation at fournew targets within the Singida greenstone belt. The Company has also recentlydiscovered high grade gold mineralisation in rock samples at the 100% ownedproperty near Saza in its Chunya project area in the Lupa Gold Field. Information Shanta Gold (AIM SHG.L) is pleased to announce exploration progress at itsSingida and Saza Projects in Central and SW Tanzania. Highlights of the last quarter: • Drilling at new targets in the Singida belt has intersected highlyencouraging shear hosted gold mineralisation in shallow reverse circulation ("RC") drill holes. • Continued RC and diamond drilling of the previously announced Singidadiscoveries has confirmed grade and depth continuity of well-mineralised shearstructures at Gold Tree, Jem, and Corn Patch. • A detailed aeromagnetic and radiometric geophysical survey has beencompleted over the Singida greenstone belt revealing numerous new drill targets.Strong gold in soil anomalism has been identified at one location. • Positive results from first phase exploration at Saza. In the Company'sChunya project area in South Western Tanzania along a 6,500 metre shear zone. At Singida, a total of 66,000 metres of RC drilling and 3,028 metre of diamonddrilling was completed during 2006 with some 40,000 drill samples assayed for Auand As. Three of the new targets referred to as Kaiser Chiefs, Gustav and Tembo, arelocated in separate geological and structural setting to the results reportedlast year at Gold Tree, Jem and Corn Patch(Londoni 2 target area). They aresituated approximately 5km east of the Gold Tree. The fourth target, "Maria" islocated 11 km south east of Gold Tree along the regional structural trend(Londoni 3 target area). At "Kaiser Chiefs" Shanta Gold has intersected a mineralised subvertical,east-west trending shear zone with best intersections averaging 3 metres at10.43 g/t in KR011 and 7 metres at 7.21 g/t in KR031 and 2 metres at 24.40 g/tin KR059. Broad zones of mineralisation up to 14 metres wide averaging 1.66 g/thave also been intersected in KR030. The drilling, so far, has confirmedcontinuity along an initial 500 metre zone which remains open along strike andat depth. The mineralisation occurs in sheared meta-basalt along a gabbro intrusivecontact and consists of quartz-sulphide veins similar to the mineralisation atthe Gold Tree. Drilling to date has only tested the top 70 metres of thispromising structure. There is a strong geochemical signature east of thisdiscovery which will be drill tested shortly. Lateritic cover is interpreted tobe masking the geochemical response along the western extension. The results reported in this press release have been analysed by SGSLaboratories in Mwanza using 50g fire assay with AAS finish. The cut off gradeused in the average grade calculation is 1.0 g/t. Shanta Gold maintains aninternal Quality Assurance/Quality Control programme with the insertion of goldstandards, blanks and duplicates, as well as check sampling at a secondlaboratory. Chris Picken, Chief Operating Officer and John Stockley directly supervised thesampling and drilling programme. They have also reviewed, approved and signedoff this drilling update announcement. Chris has a BSc (Hons) degree in geologyfrom the University of Manchester and has 18 years international experience ingreenstone gold exploration. John is a Chartered Professional Geologist andmember of the Australian Institute of Mining and Metallurgy. Kaiser Chiefs Drill Results Borehole From (m) Intersection (m) Au (g/t) Including KR002 43 6 2.00 KR003 67 1 1.71 KR003 98 1 1.27 KR004 36 1 1.68 KR004 106 11 1.40 KR005 40 1 3.56 KR005 43 3 4.81 2 metres @ 6.55 g/t KR006 86 7 2.91 2 metres @ 5.04 g/t KR007 57 1 2.87 KR008 86 8 2.28 4 metres @ 3.65 g/t KR009 52 2 1.35 KR010 109 3 3.15 1 metre @ 6.63 g/t KR011 58 3 10.43 1 metre @ 20.70 g/t KR012 101 1 1.68 KR013 68 1 2.96 KR014 116 9 1.91 1 metre @ 4.06 g/t KR015 73 5 3.54 2 metres @ 5.52 g/t KR016 56 2 4.80 KR016 143 1 1.07 KR018 76 2 13.30 KR018 110 2 2.26 KR018 120 1 1.27 KR019 34 4 2.05 KR020 84 1 1.08 KR021 36 1 10.90 KR021 44 1 4.54 KR022 55 8 0.97 1 metre @ 2.87 g/t KR025 82 4 2.34 KR027 100 1 1.66 KR029 79 2 2.47 KR030 44 14 1.66 1 metre @ 8.05 g/t KR031 72 7 7.21 2 metres @ 11.44 g/t KR032 73 2 2.54 KR032 84 4 1.62 KR033 112 2 1.33 KR035 104 6 2.77 KR036 144 7 1.48 KR037 63 3 6.55 KR038 93 2 5.36 KR040 7 2 1.64 KR041 81 2 2.09 KR052 65 1 1.03 KR056 111 2 2.47 KR057 72 1 3.63 KR057 103 2 3.99 KR058 54 1 2.61 KR059 49 2 24.40 KR061 18 2 3.15 KR061 53 2 2.10 KR062 91 2 1.35 KR075 41 1 1.07 KR077 59 1 2.19 KR083 104 1 2.45 KR084 15 5 1.76 KR084 66 1 1.17 KR093 101 1 1.89 KR093 124 1 7.45 KR093 136 1 11.65 The Gustav zone is located 400 metres south of Kaiser Chiefs in a parallelsubvertical shear zone within a sequence of metavolcanics and metasediments. Thehighlights of the drilling at Gustav are 3 metres at 9.59 g/t in KR095 and 10metres at 3.15 g/t in KR074. The soil geochemical anomaly at Gustav extends over a 1000 metre zone. To datethis favourable structure has only been drill tested along a 250 metre strike.The company is currently drill testing both the east and west strike extensions. Gustav Drill Results Borehole From (m) Intersection (m) Au (g/t) Including KR065 44 3 1.90 KR066 66 3 1.76 KR068 66 6 4.24 KR069 66 1 3.19 KR070 105 1 1.77 KR071 119 1 1.91 KR072 104 1 1.81 KR072 110 2 1.95 KR073 63 3 2.54 KR074 111 10 3.15 2 metres @ 10.81 g/t KR094 39 5 2.19 KR095 78 3 9.59 KR096 39 3 3.03 KR097 71 2 1.14 The results from RC drilling at Tembo, located 500 metres north of Kaizer Chiefson the contact of the greenstone belt with younger intrusive granodiorite hasshown limited gold mineralisation in hole KR048 with no strike continuity. Nofurther drilling is planned in this area. Tembo Drill Results Borehole From (m) Intersection (m) Au (g/t) Including KR047 20 1 1.24 KR048 118 2 8.20 KR085 51 2 1.57 RC drilling at Maria, located 11 km south east of Gold Tree has shownsignificant gold mineralization located within a steeply dipping shoot confinedto a 100 metre strike section. The gold mineralization with best intersectionaveraging 4 metres at 9.43 g/t in LR032 and 3 metres at 8.08 g/t in LR052 ishosted within altered quartz diorite and sheared meta-basalt. Maria Drill Results Borehole From (m) Intersection (m) Au (g/t) Including LR003 106 5 0.92 LR009 26 1 2.72 LR018 59 1 1.34 LR019 12 2 1.28 LR019 88 1 1.26 LR023 55 1 1.70 LR023 82 1 1.60 LR025 76 1 9.66 LR032 88 1 2.22 LR032 96 4 9.43 LR035 48 2 4.08 LR038 64 3 3.90 LR038 71 1 2.14 LR040 33 2 1.26 LR041 130 2 3.71 LR042 88 4 2.42 LR043 88 1 1.93 LR043 107 1 7.34 LR046 24 4 2.20 LR050 41 1 2.58 LR051 95 3 1.52 LR052 26 2 2.76 LR052 48 3 8.08 LR052 59 1 2.33 LR055 118 1 1.86 LR057 94 4 1.13 LR057 104 1 1.05 LR057 107 1 1.14 LR060 56 2 1.63 LR061 12 4 1.41 LR061 23 1 1.77 LR064 41 3 3.06 LR064 116 1 4.28 LR065 57 2 2.80 LR065 90 1 1.56 LR066 11 1 3.15 LR066 50 1 5.04 LR067 39 1 1.20 LR068 37 1 2.14 LR068 43 1 4.25 LR069 16 3 1.96 LR071 49 1 2.93 LR071 58 1 1.76 LR071 61 1 1.40 LR071 97 1 6.51 Limited RC and diamond drilling was also completed at Gold Tree, Jem and theCorn Patch during the fourth quarter to define the depth extent and continuityof the mineralised shears reported on 3rd October 2006. Gold Tree Drill Results Borehole From (m) Intersection (m) Au (g/t) Including SC588 21 1 1.37 SC588 144 5 3.65 SC589 98 17 8.33 5 Metre @ 22.78 g/t SC589 184 1 2.38 SC592 149 2 1.68 SC601 68 2 7.68 The latest drilling at The Jem has confirmed vertical continuity to 200 metresdepth and extended the strike extension from 420 metres to 600 metres. The Jem Drill Results Borehole From (m) Intersection (m) Au (g/t) Including SD263 192.75 6.74 7.56 SD584 247.42 3.24 3.74 SD277 166.37 2.97 2.33 SD279 154.53 6.83 2.73 SD264 268.84 1.55 10.08 SC578 14 6 7.60 2 Metre @ 17.14 g/t SC578 87 3 2.91 SC579 107 5 5.89 2 Metre @ 10.25 g/t SC580 36 1 1.11 SC580 129 7 6.25 SC581 72 3 2.08 SC581 199 1 15.15 SC582 36 2 5.95 SC582 47 6 4.82 SC583 113 1 1.27 SC585 32 3 1.32 SC586 99 1 1.68 SC587 27 1 1.42 SC587 96 4 5.58 SC587 120 1 2.14 SC590 68 1 2.60 Deep diamond drilling at Corn Patch in difficult ground conditions hasintersected very high gold grades in SD596 averaging 4.11 metres at 45.26 g/tand has confirmed vertical continuity to 250 metre depth. Geophysical surveysare being planned at this locality to assist in future drill targeting. Corn Patch Drill Results Borehole From (m) Intersection (m) Au (g/t) Including SD269 263.00 2.49 7.11 SD596 186.80 3.16 2.92 SD596 200.26 4.11 45.26 SC572 137 1 1.25 The results of reconnaissance drilling at Rose on a coincidentmagnetic-geochemical anomaly situated 1000 metre along strike from The CornPatch has shown narrow high grade gold mineralization averaging 1 metre at 13.55g/t in SC574. Further reconnaissance drilling is planned along the projectedstrike extensions in this area. Rose Drill Results Borehole From (m) Intersection (m) Au (g/t) Including SC574 53 1 13.55 SC576 56 1 1.12 BLEG (bulk leach extractable gold) sampling across one of the magnetic anomalyidentified from the airborne geophysical survey has shown highly anomalous goldconcentrations in soils up to 400ppb Au. The company intends to drill-test thisnew target, located in a sub-parallel belt 1 km south west of Corn Patchshortly. Further geochemical sampling programmes are underway. Saza Gold Target, Chunya Project. Shanta Gold has identified gold mineralization on its 100% owned Saza target inthe Chunya project area Chunya in south-western Tanzania. This lies with in theLupa Gold Field. Soil geochemical sampling carried out during December last yearhas shown a strong gold geochemical anomaly in excess of 50 ppb Au along a 6,500metre strike. Geological mapping and rock chip sampling have shown the presenceof gold mineralisation grading between 1.63 g/t and 49.05 g/t Au at theElizabeth Hill, Blacktree Hill, and the Luika River zones. Geological mapping on the property indicates the gold mineralisation isassociated with altered felsic porphyry and schist, occurring on two primarystructures along a 6,500 metre strike. Reconnaissance work on the propertyindicates that there is no evidence of previous drilling in this area.Exploration teams are currently being mobilised for a second phase explorationprogramme in preparation for initial RC drilling. Enquiries and Contact Details Shanta GoldRichard SheadMobile: +27 82 654 1821 Chris PickenMobile: +27 82 372 1188 / +255 784 786 926 WH IrelandDavid Youngman+44 161 832 2174 This information is provided by RNS The company news service from the London Stock Exchange