SHG.L Regulatory News (SHG)

5 May 2006 09:12

Shanta Gold Limited05 May 2006 SHANTA GOLD LIMITED ("Shanta" or the "Company") Shanta Gold Ltd Intersects High Grade Mineralization at its Singida Project inTanzania Shanta Gold Ltd (AIM SHG.L) is pleased to announce the results of its recentlycompleted initial drilling program on its 100% owned Singida project in centralTanzania. The program consisted of 236 RAB holes totaling 3632 metres and 56reverse circulation drill holes totaling 2773 metres. The boreholes were drilledalong fence lines to investigate broad soil gold geochemical anomalies at fourzones along a total 4.8 km strike length. Highlights of the drill program include reverse circulation drill holes SC12that intersected 16 metres grading 5.54 g/t Au, SC25 that intersected 9 metresat 4.68 g/t Au, SC 43 which intersected 5 metres at 23.90 g/t (including 1 metreat 79.38 g/t), and SC33 that intersected 11 metres at 4.67 g/t Au. All of thesemineralized intersections occur from surface to 30 metres depth. The boreholes intersected a sequence of mainly fresh, altered and highly shearedArchaean metamorphic rocks including amphibolite, diorite, gabbro, meta-volcanicand meta-sedimentary rocks. The gold mineralization is shear-hosted associatedwith quartz veining and disseminated sulphide mineralization. Significant results from the first phase drill program are provided in thetables below: Reverse Circulation Holes Borehole From (m) Intersection (m) Au (g/t) Including SC8 32 10 1.80 2 metres @ 3.94 g/t SC12 34 16 5.69 2 metres @ 14.00 g/t SC13 8 6 2.64 2 metres @ 6.67 g/t SC16 30 6 5.82 2 metres @ 14.75 g/t SC21 28 2 9.81 SC21 32 2 4.60 SC22 0 6 2.11 SC25 32 8 6.66 2 metres @ 8.77 g/t SC26 2 8 2.49 SC33 16 12 3.97 SC36 36 18 1.93 4 metres @ 4.80 g/t SC38 6 2 1.90 SC38 38 4 1.67 SC39 2 6 1.67 SC40 24 2 1.32 SC40 34 4 3.01 SC43 16 6 17.87 4 metres @ 24.27 g/t SC46 42 4 1.94 SC47 8 6 1.30 SC51 8 2 2.94 SC53 42 4 1.36 SC55 16 2 1.87 Samples are 2 metre samples combining separate 1 metre (1kg) splits from dry RCintervals using a standard riffle splitter. The samples were assayed by SGSMwanza using 50g Fire Assay with AAS finish. Duplicates, blanks and standardswere used throughout the drill program. Reverse Circulation Holes (Check Samples) Borehole From (m) Intersection (m) Au (g/t) Including SC8 32 9 1.57 SC12 34 16 5.24 1 metre at 19.59 g/t Au & 1 m @ 23.00 g/t Au SC13 8 5 4.83 2 metres @ 10.85 g/t Au SC21 28 2 10.60 1 metre at 19.38 g/t Au SC25 32 9 4.68 3 metres @ 6.26 g/t Au SC26 2 8 5.17 1 metre @ 11.98 g/t Au SC33 16 11 4.67 1 metre at 11.07 g/t Au & 1 m @ 10.52 g/t Au SC43 17 5 23.90 1 metre @ 79.38 g/t Au SC46 42 3 4.39 1 metre @ 7.23 g/t Au Samples are repeat samples from the original 1 metre sample using the samesample methodology. The samples were assayed by Humac Labs in Mwanza using 50gFire Assay. Rotary Air Blast Holes Borehole From (m) Intersection (m) Au (g/t) Including SB11 8 4 1.51 SB24 2 8 13.35 2 metres @ 35.80 g/t SB29 12 2 8.11 SB53 8 2 5.57 SB54 2 6 4.81 2 metres @ 11.45 g/t SB98 4 4 3.43 2 metres @ 6.12 g/t SB111 16 9 1.70 SB140 12 12 1.89 SB191 0 9 4.66 2 metres @ 11.75 g/t In addition to the laboratory's quality control program a check assay program isongoing. Metallic screen fire assays on selected samples have confirmed the highgrade mineralization reported in routine 50g fire assays. Chris Picken, the Chief Operating Officer stated. "This is a highly encouragingstart to the drilling program at Singida. In the opinion of the board directorsof Shanta Gold Limited these are significant mineralized gold intersectionsclose to surface which remain open along strike and down dip. A second phasedrilling program of deeper infill and step out drilling has recently commenced.This drilling programme is being reviewed by The Mineral Corporation Consultancy(Pty) Ltd an independent South African geological consultancy company Shanta Gold Ltd is a gold exploration company actively exploring in Tanzania andits shares are traded on AIM, a market operated by the London Stock Exchange(AIM:SHG.L) Further information can be obtained from: Walton Imrie (Chairman Shanta Gold Limited) Tel: +27 82 444 2851 Chris Picken - Bsc (Hons) Geology Tel: +255 74 878 6926 (COO Shanta Mining Company Limited) David Youngman, W.H. Ireland Ltd Tel: +44 (0) 161 832 6644 This information is provided by RNS The company news service from the London Stock Exchange