Resource Announcement
(Thomson Reuters ONE) - SHANTA GOLD LIMITED RESOURCE ANNOUNCEMENT SHANTA EXPANDS THE SINGIDA LICENCE PORTFOLIO 23 July 2009Shanta Gold Limited ("Shanta" or the "Company") is pleased toannounce that the Company has signed an exploration and purchaseoption agreement on Mining Licence (ML309/2008) located approximately400m south-southeast of the Gold Tree and Jem prospects. There is astrong likelihood that the ML will contain the extensions to thesehost structures as well as similar structures in an en-echelonconfiguration.ML309/2008 comprises 14 amalgamated PML's (primary mining licences)with a total area of 1.28km2. In terms of the exploration developmentand purchasing option agreement, Shanta has the sole right to exploreand purchase the ML within 36 months. The Company has paid an initialoption fee of US$25,000, and will pay further annual option fees ofUS$15,000 until the option to purchase has been exercised. Onexercising the option to purchase the licence, the Company will pay apurchase price based on 0.5% of the value of the gold contained in anindependently calculated measured resource (at a 1 g/t cut offgrade), determined using the spot gold price on the day of exercisingthe option, and with a minimum initial purchase payment ofUS$100,000.On completion of a bankable feasibility study in which the ML'sresources have been included, a similarly valued further payment willbe made based on additional measured resources defined since theacquisition. Once production has commenced, should the resource befurther increased, further payments will be made on a similar basis.Shanta has the option to convert the latter payments to a 0.55% grossroyalty payable on sales of gold and paid quarterly in arrears.ML309/2008 is located to the south and southeast of the Gold Tree andJem prospects. The Company has conducted drilling close to thenorthern boundary of the ML, within Shanta's PL2792/2004. Resultsindicate that structurally hosted gold mineralisation persists in thedirection of the ML. The results returned are tabulated below.BHID FROM TO Au g/t 18 19 1.54SC598 23 24 1.78 24 25 1.12 25 26 2.21 37 38 10.70 46 47 2.13SC599 48 50 0.91 50 51 1.55 53 54 2.58 64 65 3.13SC600 70 71 1.18 74 75 1.71 80 82 1.22Note: These three boreholes were drilled 65 m along the strike of themineralised zone from the ML boundary.Field crews have been deployed to implement a trenching program alongthe >800m of projected strike present in the ML. An initial programof 8 trenches will test the first 400m and results are expectedwithin this quarter. Should the results justify it, a preliminarydrilling program will be conducted later in 2009.The ML status of this licence allows Shanta the opportunity tocommence mine development at any stage once ore resource definitionand mining, processing and financial studies have been completed andshow this to be economic.For further information:Shanta Gold Limited http://www.shantagold.comWalton ImrieMobile: +27 (0) 82 444 2851David ScottMobile: + 255 (0) 784 366146Walter VorwerkMoblie: +27 (0)83 308 0080FairfaxEwan Leggat/Laura Littley+44 (0) 20 7598 5368GLOSSARYAlong strike. Horizontal direction along the plane of the body.En echelon. Parallel or sub-parallel, closely-spaced, overlapping orstep-like structural features in rock, such as faults and tensionfractures that are oblique to the overall structural trend.ML. Mining Licence awarded in terms of Tanzania mining laws andregulations.PL. Prospecting Licence awarded in terms of Tanzania mining laws andregulations.QA/QC. Quality assurance / quality control.Shear zone. A zone in which shearing has occurred on a large scale sothat the rock is crushed or such that the rock is deformed.---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 23.07.2009 - 08:01 Uhr
Sprache: Deutsch
News-ID 3880
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