SHG.L Regulatory News (SHG)

2 Nov 2005 07:00

Shanta Gold Limited02 November 2005 2 November 2005 Shanta Gold Limited ("Shanta Gold") DRILLING PROGRAMME ON TRACK IN TANZANIA Shanta Gold, the gold exploration and development company, which was admitted toAIM in July 2005, is pleased to announce the start of a drilling programme atits Katario project in Tanzania. George Bennett, CEO of Shanta Gold, said today: "The 2,070 metre reversecirculation drilling programme is designed to determine the extent of goldmineralisation within the Tembo Mine area, and along projected strikeextensions. The drilling programme is expected to be completed by the end ofNovember with results due in mid December this year." Tembo Mine is situated 35 kilometres south of the town of Musoma and 9kilometres along strike from the 800,000 oz deposit at Kiabakari. Priorworkings at the Tembo Mine have produced some 41 kilograms of gold, with anaverage grade of 6.9 g/t. In 2004 and 2005 Shanta completed a detailedexploration programme comprising geological mapping, soil geochemical sampling,magnetic, radiometric and IP (induced polarisation) surveys. Broad zones ofmineralisation have been delineated in underground mine workings averaging 7.2 g/t of gold over 9.4 metres and 6.7 g/t of gold over 18.6 metres. "In pursuit of further expansion of Shanta Gold's resource base, furtherdrilling is planned at Mgusu once the Katario drilling programme is completed,"Bennet said. Note to editors: Shanta Gold currently holds prospecting rights over a resource base of justunder 1Moz, comprising 741,000 oz at Mgusu (of which 127,000 oz are Indicatedand 614,000 oz are Inferred) and approximately 185,000 oz Inferred at Ikungu inwhat the Board of Shanta Gold consider to be some of the most highly prospectiveareas of Tanzania. Ends For further information:Shanta GoldGeorge Bennett:Tel: +27 (0) 82 652 8526 Conduit PRAmanda HarrisTel: +44 (0) 207 618 8760Mobile: +44 (0) 7900 322 022 This information is provided by RNS The company news service from the London Stock Exchange