Shanta Gold Limited (LON:SHG) New Luika Gold Mine Reserve and Resource Upgrade

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to provide a reserve and resource update as at 30 September 2019 at the New Luika Gold Mine (“NLGM”) in South Western Tanzania.

Highlights

· New resources and reserves estimated following drilling programme for the 6-month period from 1 April 2019 to 30 September 2019, which totalled c.8.5 km and consisted of 81 holes all located within 4 km of the plant, at a cost of c.US$1m;

· This drilling has added new probable gold reserves totalling 135,438 ounces grading 4.07g/t Au at Bauhinia Creek Deep West, Elizabeth Hill North, Bauhinia Creek North and Black Tree Hill (the “Newly Drilled Targets”);

· At these Newly Drilled Targets, drilling has resulted in Indicated resources of 219,408 ounces grading 3.19 g/t (inclusive of the abovementioned reserves and the 83,543 ounces already announced on 15 July 2019) up 219% from 57,916 ounces grading 1.77 g/t at end-December 2017;

· In addition, new Inferred resources of 94,007 ounces grading 2.75 g/t up 26% from 74,427 ounces grading 1.71 g/t have been estimated at the Newly Drilled Targets, with further drilling planned to prove this up;

· At one of the Company’s existing mining areas, Ilunga underground reserves have decreased 44,000 oz since the reserves declared in March 2017 following grade control drilling and a revised resource model design;

· Since 30 September 2019, drilling has been ongoing on the Mining Licences and across other regional targets in the Lupa Goldfield;

· Approximately 4,000 meters of exploration drilling is planned for Q4 2019; and,

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· Exploration update is expected prior to year-end 2019 with a consolidated reserves and resources statement expected in Q1 2020.

Eric Zurrin, Chief Executive Officer, commented:

“The Company is pleased to announce a significant increase in reserves and resources at the Newly Drilled Targets, following a short and low-cost campaign that was completed in September. We have high expectations that the targets will continue to grow both in size and number as we look to add to our mine life at New Luika.

“We have restated the Reserve at Ilunga, which was insufficiently drilled ahead of declaration in 2017. Grade control undertaken during the period provides for a more accurate representation and increases confidence in Ilunga’s contribution to the plant over the coming years.”

On-mine reserve and resource upgrade

Shanta’s exploration strategy at NLGM is focused on the existing Mining Licences totaling 30 sq km and across regional targets in the Lupa Goldfield within 20 km of the processing plant. New reserves and updated resources at the Bauhinia Creek Deep West and East, Elizabeth Hill North, Bauhinia Creek North and Black Tree Hill deposits are all on the existing Mining Licences and are within 4 km of the central processing plant.

All of the deposits remain open at depth and along strike. Additional drilling in Q4 2019 and into 2020 is aimed to test the extension of each deposit. Encouraging drilling results have been achieved since 30 September 2019.

Minimal capital expenditure is required to bring these deposits into production, which have now been scheduled in the Company’s life of mine plan, based on probable JORC reserves, which has been extended through to 2024.

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