SHG.L Regulatory News (SHG)

7 Feb 2006 07:00

Shanta Gold Limited07 February 2006 Shanta Gold Limited ("Shanta" or "the Company") Large Geochemical Anomaly Identified in New Greenstone Belt in Singida Region of Tanzania Shanta (AIM:SHG) is pleased to announce that it has identified a largegeochemical anomaly in a new greenstone belt at its Singida project in centralTanzania. This follows a 12 month first phase exploration programme across 24prospecting licences covering a 2,954 km2 area. Shanta targeted the Singida region in 2003 and subsequently obtained prospectingrights on the basis of alluvial and bedrock gold being exploited by artisanalminers south of Singida, and a poorly exposed, unexplored greenstone belt whichhad been identified in the 1970's, 65 km south east of Singida. The first phasework programme by Shanta has comprised an airborne radiometric and magneticsurvey along 1,450 km lines by Fugro Pty Ltd, regional geological mappingutilising Aster satellite and Landsat TM images, and the collection and analysisof 1,312 stream sediment and 4,309 soil samples. Chris Picken, the chief operating officer of Shanta Mining Company Ltd ("SMCL")(the wholly owned operating subsidiary of Shanta Gold) commented: "This is oneof the most exciting new discoveries in Tanzania. Anomalous gold concentrationshave been recorded at several locations along a 5 km NW-SE aligned shear zone,with a 1,500 metre section containing levels above 100 ppb. Gold concentrationsin the core of the anomaly, which is up to 400 metres wide, range between 200ppb and 1,225 ppb Au". "The geochemical anomaly is largely concealed by soil cover but is situatedwithin a typical greenstone sequence consisting of mylonite, sheared banded ironformation, ferruginous sediments, metavolcanics and diorite bounded by granite". Shanta has decided to use the drill rig intended for Mgusu to drill the anomalyat Singida, which the directors consider to be one of the most promising inTanzania. The rig has already been mobilised and will be on site early nextweek. An initial 10,000-12,000 metre RAB (rotary air blast) programme hascommenced to define targets for diamond drilling. Shanta intends to drill Mgusuas soon as another rig is available. In order to focus on this new discovery and its other key assets, the Companyhas discontinued exploration at the Suguti and Ikungu projects in the Musomaregion. Exploration has failed to identify a resource potential that couldsustain an economically viable mining operation. As part of these measures theCompany has notified Lakota Resources of its decision to withdraw from theIkungu joint venture agreement. For further information please contact: Shanta GoldChris Picken Walton ImrieExploration Geologist ChairmanMobile : +255748786926 Mobile +2782442851 WH Ireland LimitedDavid YoungmanTel: 0161 832 2174 This information is provided by RNS The company news service from the London Stock Exchange