Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to announce a group-wide reserves and resources update for its portfolio of gold projects in Tanzania and Kenya as at 31 December 2020.
Highlights:
? Total group-wide reserves of 625,000 ounces (“oz”) grading 3.00 g/t across the Company’s two projects in Tanzania;
? Total resources of 3.2 million oz grading 3.53 g/t across all three projects in Tanzania
(JORC compliant) and Kenya (NI 43-101 compliant) (US$1,350 /oz);
? Exploration drilling at NLGM during 2020 added 173,000 oz to reserves;
? Net reserves increase of 37,000 oz in 2020, after depletion from production during the year and resource optimization;
? Reserves assume a life of mine (“LOM”) gold price of US$1,350 /oz;
? Maiden resource of 64,000 oz grading 2.08 g/t declared at open-pit Porcupine South deposit near NLGM with additional drilling planned for H1 2021;
? Two rigs have been mobilized at the West Kenya Project with first assay results expected in February; and,
? Significant upside potential through the conversion of resources across the portfolio.

Eric Zurrin, Chief Executive Officer, commented:
“During 2020 Shanta replaced all mined ounces and added an additional 37,000 oz to the mine plan at New Luika Gold Mine. Regionally, Shanta has now declared a maiden open pit resource of 64,000 oz at Porcupine South with plans to build on that foundation in 2021. On the back of these successes, the exploration budget in Tanzania has been increased by approximately 50% to US$8.0 million which will include a combined total of 41,250 metres of drilling at NLGM and Singida.
Drilling is currently ongoing at all three of Shanta’s assets, including at our West Kenya Project where a second rig is now operational. We look forward to sharing interim drilling results from West Kenya in March.”

Breakdown of New Reserves Increase in 2020
New reserves by deposit added during 20201 are given below:
Deposit Reserves Dec 2019 (koz) Ounces Added (koz) Ounce Depletion (koz) Resource Optimisation (koz) Reserves Dec 2020 (koz)
Luika 50 92 (4) - 138
Bauhinia Creek 121 28 (86) - 63
Ilunga 56 24 (18) (19) 43
BC North 32 - (1) - 31
Shamba 10 - (4) - 6

see & read more on
https://www.shantagold.com/_resources/Shanta_Group-wide_Reserves_and_Resources_Update_Jan_2021.pdf