SHG.L Regulatory News (SHG)

5 Oct 2006 17:04

Shanta Gold Limited05 October 2006 5 October 2006 SHANTA GOLD LIMITED ("Shanta" or the "Company") Shanta Gold extends gold mineralisation at Singida and commences drilling at four new targets Shanta Gold Ltd (AIM SHG.L) is pleased to announce continuing explorationprogress at its Singida Project in central Tanzania. Highlights of the last quarter: • Latest assay work confirms high grade mineralisation at various exploration projects at Singida • Establishing reconnaissance drilling at four new targets • Consolidating the company's land position with the acquisition of access to 28 primary mining licences • Completing an airborne magnetic survey Commenting on Shanta's continuing successes in this newly discovered, unexploredgreenstone belt, Shanta chief executive Richard Shead said today, "The assayresults of the latest reverse circulation (RC) and diamond drilling add furthercredibility to Singida's advanced project status among Shanta's asset portfolioin Tanzania." To date, during 2006, a total of 35,500 metres of RC drilling and 2,246 metresof diamond drilling have been completed along a total 5.75 km strike length. Significant gold mineralisation varying between 1 and 14 metre intersections ata depth of up to 250 metres has been discovered at three separate zones alongthe strike of a regional shear zone. "These latest very promising resultsfollow on the encouraging signals from our initial drilling programme and theassay results we announced earlier in June this year. The boreholes drilled inthe last quarter have focused on investigating the down dip and along strikecontinuity to the high grade gold mineralisation intersected earlier in the year" Most of the drilling completed during this period is within a 1,400 metresection of the north-west south-east aligned shear zone in what Shanta refers toas the "Gold Tree" and "The Jem". Further drilling has also been completed atthe "Corn Patch" and along strike of the shear zone at "The Gap" and "The Rose"(see Shanta's website www.shantagold.com for detailed map.) Reconnaissance drilling has recently commenced at four new targets within thispoorly exposed greenstone belt. In one area, gold grades of up to 220 g/t Auwere discovered during routine rock chip sampling at surface along a 500 metrestrike. Although the assay results remain pending, a promising 3 to10 metrewide zone with quartz veining, sulphide mineralisation and alteration has beenintersected in the initial boreholes. "We have continued to consolidate our significant land position and haveacquired access to 28 primary mining licences in the district. A detailedairborne magnetic survey has been completed and we look forward to receivingthese results shortly; a specialist structural geologist will be completing adetailed investigation at Singida to assist in future drilling, all of whichwill assist us in determining the extent of the orebody. An independentassessment report by Johannesburg-based Mineral Corporation has provided furtherconfidence in the results from Singida," said Richard Shead. DETAILED DRILLING RESULTS At the Gold Tree, gold mineralisation has been intersected in a 350 strikesection down to 300 metres in depth and remains open down plunge. Themineralisation pinches and swells between 1 and 14 metres width with variablegrade. High grades occur along a sharp 1 to 2 metre wide hangingwall contactassociated with quartz veining, sulphide mineralization and hydrothermalalteration. The intersections of 2.55 metres at 5.30 g/t and 4.00 metres at 6.78g/t in diamond holes SD225 and SD257 have confirmed the shear and mineralizationis robust below 250 metres vertical depth. The cut off grade used is 1.0 g/t. RC Drilling "The Gold Tree" Borehole From (m) Intersection (m) Au (g/t) Including SC126 47 3 9.74 1 Metre 24.50 g/tSC177 31 2 10.40 1 Metre @ 17.65 g/tSC208 111 1 10.74SC208 123 5 9.48SC208 133 2 25.05 1 Metre @ 37.06 g/tSC209 150 13 4.37SC210 110 3 6.78 1 Metre @ 12.25 g/tSC211 129 1 18.50SC213 116 5 5.51 1 Metre @ 16.65 g/tSC214 26 2 8.87SC214 122 7 3.94 1 Metre @ 11.66 g/tSC215 44 5 4.39SC215 184 4 3.36SC216 24 1 16.00SC216 122 11 5.01 2 Metre @ 20.47 g/tSC217 48 6 1.87SC219 111 3 5.36SC220 155 6 4.42 2 Metre @ 11.04 g/tSC222 89 2 4.37SC224 181 4 2.69SC225 108 4 2.21SC226 180 12 2.04SC227 94 1 4.27SC228 174 1 1.55SC231 27 3 9.55SC232 68 5 3.37SC234 92 1 2.44SC235 104 11 2.51SC237 106 2 2.32SC260 20 12 4.53SC357 40 1 1.11SC361 8 9 3.88SC362 53 3 6.16SC520 11 11 16.49 9 Metres @ 18.91 g/tSC371 44 7 5.07 Diamond Drilling "The Gold Tree" Borehole From (m) Intersection (m) Au (g/t) Including SD403 36.04 7.36 4.18SD219 210.32 1.93 4.12SD405 60.25 0.90 2.62SD222 177.00 4.50 3.28SD221 186.50 1.50 2.92SD240 205.80 3.20 1.22SD238 156.00 3.50 1.49SD225 335.71 2.55 5.30SD257 274.00 4.00 6.78SD259 215.00 5.32 4.22 The latest drilling at "The Jem" has extended the strike of mineralization to420 metres with vertical continuity down to 250 metres depth. Diamond hole SD252intersected a 2.41 metre zone averaging 7.51 g/t. The diamond twin of RC holesSC112 (5 metres at 21.09 g/t) and SC115 (7 metres at 21.19 g/t) intersectedbonanza grades of 2 metres at 512 g/t which included a 20 cm zone with abundantcoarse visible gold which assayed 4829 g/t. RC Drilling "The Jem" Borehole From (m) Intersection (m) Au (g/t) Including SC118 84 4 3.28SC119 34 2 13.19 1 Metre @ 23.25 g/tSC120 58 2 1.73SC122 64 5 2.83SC124 50 2 1.58SC204 136 2 2.58SC205 56 9 2.48SC206 82 3 65.35SC206 92 3 4.52SC245 116 8 1.31SC249 28 4 2.62SC252 125 3 7.79SC254 111 5 3.86 1 Metre @ 9.25 g/tSC255 71 1 1.27SC255 172 2 7.83 1 Metre @ 11.75 g/tSC256 28 1 1.87SC262 78 4 1.02SC265 151 4 4.52SC270 93 5 2.79SC306 43 1 8.06SC534 10 2 1.48SC534 20 1 1.19SC535 39 2 1.77SC536 46 5 11.75 2 Metre @ 21.55 g/tSC537 12 4 2.21SC538 23 1 1.21SC538 62 4 5.36 1 Metre @ 14.40 g/tSC538 70 4 4.26SC559 41 1 2.53 Diamond Drilling "The Jem" Borehole From (m) Intersection (m) Au (g/t) Including SD207 141.00 4.05 10.18 0.42 Metres @ 20.47 g/tSD207 159.00 1.00 70.45SD401 87.00 8.34 130.47 2.00 Metres @ 512.69 (uncut)SD402 71.57 4.94 25.75 1.50 Metres @ 59.22SD404 87.30 2.12 2.22SD406 33.35 0.71 2.33SD406 64.24 2.76 11.85 0.50 Metres @ 42.25 g/tSD242 100.40 3.65 4.28SD243 134.45 1.37 6.41SD243 144.54 1.62 8.64SD244 162.77 1.99 5.22SD251 213.62 1.89 2.68SD252 276.29 2.41 7.51 A further three holes were sited at the Corn Patch to investigate the broadmineralisation reported previously. Significant mineralisation of 16 metres at7.61 g/t was intersected in SC253 associated with semi-massive sulphidemineralisation. The results from diamond hole SD269 down dip of SC253 remainpending. RC Drilling "The Corn Patch" Borehole From (m) Intersection (m) Au (g/t) Including SC201 118 1 6.02SC201 129 5 1.93SC201 138 2 2.05SC253 156 16 7.61 2 Metre @ 25.42 g/t Reconnaissance drilling at "The Gap" and "The Rose" located along strike from "The Jem" and "The Corn Patch" returned the following intersections. RC Drilling "The Gap" & "The Rose" Borehole From (m) Intersection (m) Au (g/t) Including SC133 38 2 1.10SC135 42 2 2.02SC155 11 1 3.39SC170 22 3 4.96 1 Metre @ 8.32 g/t Chris Picken, Chief Operating Officer and John Stockley, Consultant Geologistdirectly supervised the logging and sampling of the drilling programme. Chrishas a BSc (Hons) degree in geology from the University of Manchester and has 18years international experience in greenstone gold exploration. John is aChartered Professional Geologist and member of the Australian Institute ofMining and Metallurgy. Assays were completed on individual 1 metre samples by SGS in Mwanza using 50gFire Assay with AAS finish. Duplicates, blanks and standards were usedthroughout the sampling program to ensure quality assurance. An internal qualitycontrol process and check sampling programme at a second internationallaboratory is ongoing. Enquires and contact details Shanta GoldRichard SheadMobile: +27 (0) 82 654 1821 Chris PickenMobile: +27 82 372 1188 / +255 784 786 926 WH Ireland LimitedDavid YoungmanTel: +44 161 8322174 Distributed by: Russell & AssociatesJohannesburgMarion Brower/Charmane RussellTel: +27 11 880 3924 This information is provided by RNS The company news service from the London Stock Exchange