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9 April 2024

Shanta Gold Limited

("Shanta Gold", "Group" or the "Company")

Tanzania Exploration Drilling Update

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to announce an exploration drilling update for its New Luika Gold Mine ("New Luika") for the period December 2023 to end February 2024 and Singida Gold Mine ("Singida") being for the period September 2023 to early March 2024.

Eric Zurrin, Chief Executive Officer, commented:

"At New Luika, we continued the exploration drilling program that commenced in July 2023, which is aiming to convert Inferred resources to the Indicated category at various deposits, in addition to the initial testing of a maiden target at Jamhuri West. Drilling of the deposits at Elizabeth Hill, Bauhinia Creek North ("BCN"), and Jamhuri Main demonstrated encouraging results while work remains ongoing at Luika Deep underground to identify the down plunge continuity.

"At Singida, commencement of drilling in September 2023 marked the resumption of exploration drilling at the Jem, Gold Tree, and Vivian deposits since 2018. The drilling is also aimed at converting Inferred resources into the Indicated category and testing lateral extents of mineralised zones at the Jem, Gold Tree, and Vivian deposits. Despite having to add a third contractor to catch up on drill plans, drilling of the deposits has so far demonstrated positive results."

New Luika Drilling Highlights:

·    This update relates exclusively to drilling within existing mining licences and comprises 5,855 metres ("m") of drilling from 38 holes.

·    The primary objective of the drilling programme was targeting resources outside of the existing reserve based mine plan, converting Inferred resources to Indicated resources at the deposits and extending the life of mine. Jamhuri West is a maiden exploration target within the mining license.

·    Mineralisation at Elizabeth Hill, Black Tree Hill, BCN, Jamhuri West and Jamhuri Main remains open at depth. Intersections include:

Note: true width estimated at 70 - 90%

·    The drilling programme is ongoing.

Singida Drilling Highlights:

·    The drilling program commenced in September 2023.

·    This update relates exclusively to drilling within existing mining licenses and comprises 4,008 m of drilling from 37 holes.

·    The primary objective of the drilling program was targeting resources outside of the existing reserve based mine plan, converting Inferred resources to Indicated resources at the deposits, testing lateral extent of mineralised zones and extending the life of mine.

·    Mineralisation at Jem, Gold Tree and Vivian remains open at depth. Mineralisation at Gold Tree and Vivian remains open to the west and east respectively. Best intersections include:

Note: true width estimated at 60 - 80%

New Luika - Exploration Drilling Details

Elizabeth Hill

The WNW trending Elizabeth Hill Main ("EH Main") and EW trending Elizabeth Hill North ("EH North") splay structures are located about 4 km to the east of the New Luika processing plant. Elizabeth Hill is a brittle-ductile 5 km long shear zone hosting robust quartz veins (locally up to 10 metres wide) within tonalite and diorite. The intersection zone between EH Main and EH North (splay) displays potential for a discovery of a higher-grade shoot. Quartz veins occurring within the shear zone display a high degree of variability in appearance, from smoky vein quartz to massive, largely undeformed white to milky white quartz veins occurring in close association with highly brecciated and foliated quartz veins that display evidence of intense structural deformation. The variability of quartz veins suggests that the shear zone might have been the focus of multiple phases of hydrothermal fluid emplacement.

Elizabeth Hill is currently in production by open pit mining and contains a total resource of 207 koz Au grading 1.82 g/t Au as of 31^st December 2023.

The exploration drilling involved completion of 8 drill holes totaling 1,688 m at Elizabeth Hill. The drilling program was designed to test the orebody continuity at levels below the currently defined Indicated resources envelope between levels 890 mRL and 800 mRL.

Holes were drilled at an inclination of between minus 45° and 73° and averaged 211 m in depth with a maximum of 305 m down the hole. These results are over a strike length of 120 m with holes spaced using 30 - 40 m drill fences. It is estimated that the true widths of the mineralised zones are 70 - 90% of the intersected widths in the holes.

Intersections from available assay results for Elizabeth Hill are tabulated below^1,2:

1. *Assay results are from an onsite laboratory at New Luika operated by an independent third party.

2. *Assay results are from the accredited independent commercial laboratory (SGS Mwanza).                             

The drilling program is ongoing and will continue throughout Q2 2024.

Bauhinia Creek North (BCN)

The BCN target is located about 1.6 km to the north of the New Luika processing plant and represents a down-dip/down plunge, structurally disturbed extension of the partially mined-out part of the BCN orebody.

The target inferably represents a displaced offset of the Luika orebody by the late displacement fault (Nose Fault). The mineralised zones are presented by moderately dipping quartz veins hosted by tonalite and diorite.

BCN is currently in production by underground mining and contains a total resource of 22 koz Au grading 3.14 g/t Au as of 31^st December 2023.

Four exploration diamond drill holes totaling 232 m were completed at BCN by the end of February 2024. The holes were collared at an underground platform on level 840 mRL and 805 mRL (180 m and 205 m respectively below surface). The drilling programme was designed to test the continuity of the BCN south-westerly plunging mineralised structure between "Nose Fault" and "Fault 4" that have been mapped underground. Holes were inclined at between minus 31° and plus 3° and averaged 58 m in depth with a maximum of 99 m down the hole.

The most significant intersections from BCN from available assay results are tabulated below^1,2:

  1. *Assay results are from an onsite laboratory at New Luika operated by an independent third party.

2. *Assay results are from the accredited independent commercial laboratory (SGS Mwanza).

Luika Underground

Luika Underground is located 1.8 km to the northwest of the New Luika processing plant. The orebody strikes approximately NNE - SSW and dips ~50° to NW. Gold mineralisation at Luika Underground is closely associated with quartz veining (silicification and albitization) and low sulphides mineralisation (predominantly disseminated pyrite ~1-3%).

The mineralised zones are presented by moderately to sub-vertical dipping quartz veins hosted predominantly by tonalite and locally by diorite. The deposit depicts relatively higher- grade westerly plunging shoots which have potential to host significant economic mineralisation below the presently explored area and continue to be the target of future exploration drilling programs.

Luika Underground is currently in production by underground mining and contains a total resource of 212 koz Au grading 3.51 g/t Au as of 31^st December 2023.

The exploration drill holes at Luika Underground were designed with centre spacing of 30 - 50 m aimed to upgrade a portion of inferred resources to the indicated resources category up to a level 460 mRL. In total 6 exploration diamond drill holes for a total of 1,807 m were completed at Luika Underground by end of February 2024. The holes were collared at an underground platform on level 745 mRL (275 m below surface), inclined between minus 78° and 2° with depths ranging from 186 m to 357 m. It is estimated that the true widths of the mineralised zones are about 65% - 75% of the intersected widths in the drillholes.

The reported results are over a strike length of 140 m, out of the current Indicated resource boundary, between levels 460 mRL and 550 mRL (470 m to 540 m below surface). The drillholes that were drilled on the western part of the projected mineralised structure did not intercept the expected structure. Based on the current grade control available results, the eastern orebody extension has better mineralisation potential. Analysis and interpretation of the lithological and structural data is in progress aiming to determine a possible structural complexity (common in other areas of New Luka deposits) to verify and adjust the interpretation following drilling of the target.

Intersections from Luika Underground from available assay results are tabulated below^1,2:

  1. *Assay results are from an onsite laboratory at New Luika operated by an independent third party.

2. *Assay results are from the accredited independent commercial laboratory (SGS Mwanza).

Jamhuri West

Jamhuri West target is located about 0.7 km to the west of the New Luika processing plant. It is a new target that has been discovered through ground-truthing by trenching of the weak to moderate Au-in-soil anomaly and encouraging surface mapping results.

Jamhuri West mineralisation is hosted in a moderately northerly dipping shear zone that trends NE-SW to ENE-WSW. Mineralisation at Jamhuri West is associated with quartz veinlet zones and individual veins up to 1m wide with associated disseminated pyrite (1 - 3%). The structure is predominantly hosted within a diorite rock unit.

Additional 10 RC holes representing a total of 890 m have been drilled at Jamhuri West since mid-January 2024. The holes were collared on surface (approximately 1,034 mRL) and inclined at between minus 50° and 64° with depth ranging from 48 m to a maximum of 150 m down the hole. It is estimated that the true widths of the mineralised zones are about 80% - 90% of the intersected widths in the drillholes.

The Jamhuri West structure has been defined over a 720 m strike length. The reported results are over a strike length of 240 m at the centre. The mineralised structure has been tested to levels 930 mRL to 1,005 mRL (30 m to 95 m from surface) with holes spaced using 20m to 50 m drill fences.

Intersections from Jamhuri West from available assay results are tabulated below^1,2:

1. *Assay results are from an onsite laboratory at New Luika operated by an independent third party.

2. *Assay results are from the accredited independent commercial laboratory (SGS Mwanza).

The exploration drilling at Jamhuri West suggests the potential for the extension of the mineralised structures to the east towards Jamhuri pit. Presence of the north-south trending faults might be terminating and/or displacing the mineralised structure in places. The potential for relatively higher-grade plunging shoots will also be investigated along the main shear zone.

Jamhuri Main  

Jamhuri Main orebody was partially mined by open pit and produced 8.2koz Au grading at 1.63 g/t Au. It is located about 2 km to the east of New Luika processing plant. The Jamhuri Main mineralised structure strikes WNW - ESE and dips sub vertically to the SSW. Mineralisation is hosted by a well-developed shear zone characterised by brittle-ductile deformation with diorite lithology in the hanging wall and footwall.

Gold mineralisation is closely associated with milky/smoky quartz veins and veinlets hosted by tonalite and diorite. The quartz veins pinch and swell both along strike and down dip. Sulphides (mainly pyrite 2 - 5%) occurs dominantly in the mineralised structures and locally in the wall rock.

The Jamhuri Main mineralised structure had been drill tested over a strike length of 700 m and there is evidence of potential continuity of the mineralised structure both along strike and down-dip.

The drilling program aimed to test the continuity of the Jamhuri Main mineralised structure along strike (to the northwest) and down-dip. Some drill holes were planned to drill test the geometries that host the inferred resources at optimum spacing that will facilitate the conversion of the reported inferred resources to the indicated resources category.

Nine RC holes representing a total of 828 m have so far been drilled to test the westerly strike continuity of the Jamhuri Main mineralised structure. The holes were collared on surface (approximately 1,035 mRL) and inclined at between minus 50° and 53° with depth ranging from 48 m to a maximum of 144 m down the hole. It is estimated that the true widths of the mineralised zones are about 80% - 90% of the intersected widths in the drillholes.

Intersections from available assay results for Jamhuri Main are tabulated below^1,2:

1. *Assay results are from an onsite laboratory at New Luika operated by an independent third party.

2. *Assay results are from the accredited independent commercial laboratory (SGS Mwanza).

Black Tree Hill Conjunction

Black Tree Hill target is located about 1 km to the west of the New Luika processing plant. The mineralisation is hosted in a brittle-ductile shear zone that trends WNW - ESE, and dips vertically - sub-vertically to the NNE.

To the west, the mineralised structure appears to splay resulting in two mineralised shear zones. The mineralisation is open to the west and at depth. The Black Tree Hill shear zone is located within tonalite and diorite lithological units although the mineralised structure does not appear to be controlled partially by the tonalite - diorite contact. The mineralised shear zone is associated with quartz veining of variable intensity. The vein quartz is of variable appearance suggesting a multi-phase emplacement of the quartz vein. The target contains a total resource of 105 koz Au grading 1.95 g/t Au as of 31^st December 2023.

The Black Tree Hill and Black Tree Hill North structures have been defined over strike lengths of 700 m and 350 m respectively. One of the five planned holes to test the potential inferred conjunction of the Black Tree Hill and Black Tree Hill North mineralised structures at level 705 mRL (305 m below surface) was completed in Q1 2024.  

The hole was collared on surface (approximately 1,011 mRL) and inclined at between minus 53° with depth a total depth of 411 m. It is estimated that the true width of the mineralised zone is about 80% of the intersected width in the drillhole.

Intersections from available assay results for Black Tree Hill are tabulated below^1,2: