TIDMSHG
RNS Number : 8397N
Shanta Gold Limited
26 May 2020
26 May 2020
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
Singida JORC Reserve Estimate and Resource Update
Shanta Gold (AIM: SHG), the East Africa-focused gold producer,
announces a JORC compliant Reserve and an updated and independently
verified JORC compliant Mineral Resource Estimate ("MRE" or
"Resource") on the Singida Gold Mining Project ("Singida" or "the
Project") in Central Tanzania.
Highlights
-- JORC 2012 compliant gold reserve of 243koz at 3.00g/t;
-- Over 90% of contained gold within the reserve is between
0-120 metres from surface, highlighting the potential for reserve
expansion at depth;
-- Updated life of mine plan to be released shortly;
-- Updated JORC compliant Mineral Resource at Singida totaling
11.8Mt, grading 2.38g/t and containing 904koz of gold, using a
cut-off grade of 1.0g/t, including;
o 17% increase in Measured and Indicated ("M&I") Mineral
Resource, totaling 5.7Mt, grading 2.66g/t and containing
484koz;
-- MRE has been independently estimated and verified by a third-party Competent Person; and,
-- Financing discussions for the development of Singida are
advanced and an announcement will follow, as appropriate.
Singida JORC Reserve
A JORC Reserve for the Singida Project has been declared,
amounting to 243,000 oz at 3.00 g/t. This Reserve represents a 50%
conversion of the Project's independently verified Measured and
Indicated Resource. An updated mine plan for the Project will
incorporate this Reserve and is expected to be released
shortly.
Singida JORC compliant MRE
The Project's MRE has been re-estimated and independently
verified by a third party Competent Person. This has resulted in a
total MRE of 904,000 oz at 2.38 g/t, including a 17% increase in
M&I Resources to 484,000 oz at 2.66g/t . This externally
verified MRE supports Shanta's previously announced internal
estimate and has formed the foundation of a JORC Reserve for the
Project.
Eric Zurrin, Chief Executive Officer, commented:
"The Singida reserve allows the Company to move forwards towards
construction and first production at Singida, confident in the fact
that we have a number of high-grade open pits. Importantly, it is
expected that this foundation will allow Singida to generate
significant cashflow to, amongst other things, pay for regional
exploration which will, over time, illuminate the Project's full
potential.
The Singida reserve sits within a substantial resource and is
located on a 4.9 km strike in a highly prospective greenstone belt.
The reserve represents just 26% of the existing total contained
resources and is nearly all within only 120 meters from surface,
highlighting the potential for reserve expansion. The Project is
fully permitted, and financing discussions are well advanced with
an announcement expected soon."
Enquiries:
Shanta Gold Limited
+ 255 (0) 22 292
Eric Zurrin (CEO) 5148
Luke Leslie (CFO)
Nominated Adviser and Broker
Numis Securities Limited
+ 44 (0) 20 7260
Paul Gillam / Alamgir Ahmed 1000
Financial Public Relations
Tavistock
Charles Vivian / Barnaby Hayward / Gareth + 44 (0) 20 7920
Tredway 3150
About Shanta Gold
Shanta Gold is an East Africa-focused gold producer. It
currently has defined ore resources on the New Luika and Singida
projects in Tanzania and holds exploration licenses covering
approximately 1,500km(2) in the country. In February 2020, Shanta
Gold entered into an agreement to acquire the West Kenya Project in
Kenya from subsidiaries of Barrick Gold Corporation. Shanta's
flagship New Luika Gold Mine commenced production in 2012 and
produced 84,506 ounces in 2019. The Company has been admitted to
trading on London's AIM and has approximately 794 m shares in
issue. For further information please visit:
www.shantagold.com.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
Competent Person
The Mineral Resource Estimate detailed which within this
announcement was completed by independent consultants - Pivot
Mining Consultants from South Africa. The technical information
contained within this announcement in respect of the updated
Mineral Resource Estimate has been reviewed and approved by Mr. Ken
Lomberg B.Sc. (Honours) Geology; B.Com (Economics and Statistics);
Meng (Mining Engineering), Pri.Sci.Nat. Mr. Lomberg is a consultant
to Shanta and a member of South African Council for Natural
Scientific Professionals (SACNASP) (Membership Number 400038/01).
He has sufficient experience that is relevant to the style of
mineralization and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves' and for
the purposes of the AIM Guidance Note on Mining and Oil & Gas
Companies dated June 2009.
The technical information contained within this announcement in
respect of the updated Reserve estimate has been reviewed by Mr.
Jackson Kikota (the Company's Senior Mining Engineer), who is a
Member of The Australasian Institute of Mining and Metallurgy
(Aus.I.M.M). Mr. Kikota has sufficient experience that is relevant
to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves' and for the purposes of the AIM
Guidance Note on Mining and Oil & Gas Companies dated June
2009.
Singida JORC Reserve
The Project's JORC 2012 Reserve at 26 May 2020 is 2.51 Mt,
grading 3.00 g/t and containing 243,000 oz of gold at a cut-off
grade of 1.0 g/t. This Reserve is being incorporated into an
updated mine plan for the Project and represents an estimated 50%
conversion of the Project's independently verified Measured and
Indicated Resource. Of the total Reserve estimate, 91% of the
contained gold is within 120 metres from surface.
Singida Gold Project Tanzania
JORC 2012 Reserve(1)
(26 May 2020)
JORC 2012 Classification
DEPOSIT COG PROBABLE RESERVES
Tonnes Au_g/t Ounces,
Au
CORNPATCH 0.79 134,353 1.88 8,112
CORNPATCH
WEST 0.78 294,362 3.46 32,713
GOLD TREE 0.74 1,365,738 3.37 147,863
GUSTAV 0.78 128,867 1.70 7,059
JEM 0.74 324,153 2.86 29,843
KAIZER CHIEF 0.78 142,294 1.65 7,543
VIVIAN 0.74 124,654 2.38 9,532
TOTAL 0.75 2,514,421 3.00 242,666
----- ---------- ------- --------
(1) All deposits to be mined by open-pit method.
Singida Mineral Resource Estimate
The Singida Mineral Resource is based on seven shear-zone
related gold deposits with a combined strike length of 4.9 km. All
of these deposits are situated within three mining licenses. The
deposits trend east-west to north-west-south-east.
Singida Gold Project Tanzania
Mineral Resource Estimate (MRE) comparison
(26 May 2020 vs 20 January 2020)
JORC 2012 Classification
26-May-20 20-Jan-20 Change
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
Mt g/t 000s Mt g/t 000s Mt % change 000s
oz oz oz
Measured 1.63 3.39 179 - - - 1.63 n/a 179
Indicated 4.02 2.36 306 4.88 2.63 412 (0.86) (10%) (106)
Subtotal
- M&I 5.65 2.66 484 4.88 2.63 412 0.77 1% 72
Inferred 6.15 2.12 418 7.84 2.01 507 (1.69) 5% (89)
Total 11.80 2.38 904 12.72 2.25 919 (0.92) 6% (15)
Mineral Resources
The Project's Mineral Resource is based on seven-shear zone
related gold deposits with a combined strike length of 4.9km.
Historical drilling has identified mineralisation extending down to
500m from the surface in the Gold Tree deposit.
The Measured and Indicated Resource at 26 May 2020 is an
estimated 5.65 Mt, grading 2.66 g/t and containing 484,000 oz of
gold at a cut-off grade of 1.0 g/t. The majority of these resources
are less than 120 metres from surface.
Estimated Inferred Resources total 6.15 Mt, grading 2.12 g/t and
containing 418,000 oz of gold at a cut-off grade of 1.0 g/t.
Singida Gold Project Tanzania
Mineral Resource Estimate (MRE)
(26 May 2020)
JORC 2012 Classification
MEASURED INDICATED INFERRED TOTAL RESOURCES
------------------------- ------------------------- -------------------------
TONNES GRADES OUNCES TONNES GRADES OUNCES TONNES GRADES OUNCES TONNES GRADES OUNCES
('000) g/t ('000 ('000) g/t ('000 ('000) g/t ('000 ('000) g/t ('000
oz) oz) oz) oz)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
CORNPATCH 117 2.00 8 336 1.98 22 517 2.36 39 970 2.18 69
CORNPATCH
WEST - - - 824 2.52 67 565 1.87 34 1,389 2.26 101
GOLD
TREE 1,139 3.66 135 1,294 2.39 100 3,274 2.02 213 5,707 2.43 447
GUSTAV - - - 148 1.49 7 783 1.85 47 932 1.79 54
JEM 376 2.99 36 542 2.67 46 532 2.92 50 1,451 2.84 133
KAIZER
CHIEF - - - 475 1.67 25 354 1.98 22 828 1.80 48
VIVIAN - - - 405 2.97 38 125 3.40 14 529 3.07 52
TOTAL 1,632 3.39 179 4,024 2.36 305 6,150 2.12 418 11,806 2.38 904
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Glossary
Glossary of Technical Terms
"Au" chemical symbol for gold
"cut off the lowest grade value that is included in a
grade" (COG) resource statement. It must comply with JORC
requirement 19: "reasonable prospects for eventual
economic extraction" the lowest grade, or quality,
of mineralised material that qualifies as economically
mineable and available in a given deposit. It
may be defined on the basis of economic evaluation,
or on physical or chemical attributes that define
an acceptable product specification
"g/t" grammes per tonne, equivalent to parts per million
"Inferred that part of a Mineral Resource for which tonnage,
Resource" grade and mineral content can be estimated with
a low level of confidence. It is inferred from
geological evidence and assumed but not verified
geological and/or grade continuity. It is based
on information gathered through appropriate
techniques from locations such as outcrops,
trenches, pits, workings and drill holes which
may be limited or of uncertain quality and reliability
"Indicated that part of a Mineral Resource for which tonnage,
Resource" densities, shape, physical characteristics,
grade and mineral content can be estimated with
a reasonable level of confidence. It is based
on exploration, sampling and testing information
gathered through appropriate techniques from
locations such as outcrops, trenches, pits,
workings and drill holes. The locations are
too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced
closely enough for continuity to be assumed
"JORC" The Australasian Joint Ore Reserves Committee
Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves 2012 (the "JORC Code"
or "the Code"). The Code sets out minimum standards,
recommendations and guidelines for Public Reporting
in Australasia of Exploration Results, Mineral
Resources and Ore Reserves
"koz" thousand troy ounces of gold
"Measured that part of a Mineral Resource for which tonnage,
Resource" densities, shape, physical characteristics,
grade and mineral content can be estimated with
a high level of confidence. It is based on detailed
and reliable exploration, sampling and testing
information gathered through appropriate techniques
from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are
spaced closely enough to confirm geological
and grade continuity
"Mineral a concentration or occurrence of material of
Resource" intrinsic economic interest in or on the Earth's
crust in such form, quality and quantity that
there are reasonable prospects for eventual
economic extraction. The location, quantity,
grade, geological characteristics and continuity
of a Mineral Resource are known, estimated or
interpreted from specific geological evidence
and knowledge. Mineral Resources are sub-divided,
in order of increasing geological confidence,
into Inferred, Indicated and Measured categories
when reporting under JORC
"Mt" million tonnes
"oz" troy ounce (= 31.103477 grammes)
"Reserve" the economically mineable part of a Measured
and/or Indicated Mineral Resource
"t" tonne (= 1 million grammes)
APPIX 1: SAMPLING TECHNIQUES AND DATA
Sampling
techniques * Nature and quality of sampling (eg cut channels, * Diamond drilling 1m samples
random chips, or specific specialised industry
standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma * Reverse circulation (RC) drilling was used to obtain
sondes, or handheld XRF instruments, etc). These 1 m samples from which 3 kg of material was sent for
examples should not be taken as limiting the broad analysis
meaning of sampling.
* Drilling sampled on a maximum of 1 m downhole
* Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used. * Samples were not composited
* Aspects of the determination of mineralisation that * Samples were submitted to the SGS Laboratory in
are Material to the Public Report. Mwanza for analysis
* In cases where 'industry standard' work has been done * At least 3kg sample pulverized and a 50g charge fire
this would be relatively simple (eg 'reverse assayed with AAS or aqua regia finish for gold
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay'). In other cases more
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of detailed
information.
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * Diamond core drilling; NQ core size
hammer, rotary air blast, auger, Bangka, sonic, etc)
and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or * RC Drilling
other type, whether core is oriented and if so, by
what method, etc).
Drill
sample * Method of recording and assessing core and chip * Core sample recoveries routinely measured and
recovery sample recoveries and results assessed. recorded in spreadsheet database
* Measures taken to maximise sample recovery and ensure * Samples split half core perpendicular to strike of
representative nature of the samples. mineralized zones
* Whether a relationship exists between sample recovery * RC samples recovered from on-site cyclone
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material.
Logging
* Whether core and chip samples have been geologically * Logging of geology, alteration and geotechnical
and geotechnically logged to a level of detail to aspects recorded in drill logs for diamond core
support appropriate Mineral Resource estimation, drilling
mining studies and metallurgical studies.
* Logging is qualitative; All drill core is
* Whether logging is qualitative or quantitative in photographed
nature. Core (or costean, channel, etc) photography.
* Entire intervals that were drilled and/or trenched
* The total length and percentage of the relevant were logged
intersections logged.
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Half core taken; Sawn
and half or all core taken.
sample
preparation * RC samples riffled and sub-sample; Submitted for
* If non-core, whether riffled, tube sampled, rotary analysis
split, etc and whether sampled wet or dry.
* For trench samples, the entire sample for the
* For all sample types, the nature, quality and respective interval aggregated, not riffled or split
appropriateness of the sample preparation technique.
* Aggregated half core; Entire 3kg sample pulverized at
* Quality control procedures adopted for all laboratory prior to fire assay in order to minimize
sub-sampling stages to maximise representivity of bias
samples.
* Drilling and channels planned orthogonal to the
* Measures taken to ensure that the sampling is strike of structures/lithologies in order to maximize
representative of the in situ material collected, representivity
including for instance results for field
duplicate/second-half sampling.
* Field duplicates sampled at appropriate intervals
* Whether sample sizes are appropriate to the grain
size of the material being sampled.
Quality
of * The nature, quality and appropriateness of the * Fire assay is appropriate for the nature of gold
assay assaying and laboratory procedures used and whether mineralization being assayed
data the technique is considered partial or total.
and
laboratory * No geophysical tools used to generate exploration
tests * For geophysical tools, spectrometers, handheld XRF results
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their * Registered reference material inserted at the
derivation, etc. interval of 20 samples
* Nature of quality control procedures adopted (eg * Levels of accuracy and precision (detection limit)
standards, blanks, duplicates, external laboratory for gold is 0.01 ppm which is suitable for the level
checks) and whether acceptable levels of accuracy (ie of assays reported
lack of bias) and precision have been established.
Verification
of * The verification of significant intersections by * No twinning of drillholes
sampling either independent or alternative company personnel.
and
assaying * Primary data was logged onto paper and later
* The use of twinned holes. transferred into database, verified by a Senior
Geologist and stored in electronic database that is
regularly backed up
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and
electronic) protocols. * Database is verified and compared with standard
assays stored using established company protocols
* Discuss any adjustment to assay data.
* No adjustments have been made to assay data
Location
of * Accuracy and quality of surveys used to locate drill * Drillholes and trenches were accurately surveyed
data holes (collar and down-hole surveys), trenches, mine using Trimble DGPS survey equipment
points workings and other locations used in Mineral Resource
estimation.
* Drillholes and trenches surveyed in UTM Coordinates
System Arc 1960
* Specification of the grid system used.
* Topographical surveys were done using Aerial Lidar
* Quality and adequacy of topographic control. Survey
Data
spacing * Data spacing for reporting of Exploration Results. * Drillhole spacing was generally at 50m along strike
and of the targets with a vertical spacing of
distribution approximately 40 to 50m
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and
classifications applied.
* Whether sample compositing has been applied.
Orientation
of * Whether the orientation of sampling achieves unbiased * Drilling and trenching planned perpendicular to the
data sampling of possible structures and the extent to interpreted strike of lithological units and
in which this is known, considering the deposit type. geological structures
relation
to
geological * If the relationship between the drilling orientation
structure and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material.
Sample
security * The measures taken to ensure sample security. * Samples secured by senior personnel on site and
transported directly by company vehicle to the
laboratories (Quality Labs in NLGM and SGS in Mwanza)
Audits
or * The results of any audits or reviews of sampling * Internal reviews are regularly completed but no
reviews techniques and data. external audits were carried out for the currently
reported results
============= ============================================================ ============================================================
APPIX 2: REPORTING OF EXPLORATION RESULTS
Mineral
tenement * Type, reference name/number, location and ownership * ML 456/2012 valid until 19 Jan 2022
and including agreements or material issues with third
land parties such as joint ventures, partnerships,
tenure overriding royalties, native title interests, * ML 455/2012 valid until 19 Jan 2022
status historical sites, wilderness or national park and
environmental settings.
* ML 457/2012 valid until 19 Jan 2022
* The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.
Exploration
done * Acknowledgment and appraisal of exploration by other * Historical colonial exploration and mining works
by parties.
other
parties
Geology
* Deposit type, geological setting and style of * Underlain by a complex association of high grade
mineralisation. metamorphic- and intrusive lithologies, commonly
intruded by dykes of variable composition. Modally,
granodioritic and granitic lithologies are most
commonly encountered.
* These granodiorites and granites have been
interpreted as late-orogenic intrusive phases
associated with gold mineralisation in the area.
Subordinate diorite, porphyroblastic hornblende
gabbro, quartzo-feldspathic felsite and migmatite are
also regularly observed.
* Dyke intrusives include dolerite, pegmatite and
common aplite and alaskite, seemingly randomly
crosscutting major lithologies, and therefore
regarded as younger than the country rock.
Drill
hole * A summary of all information material to the * Relevant tables included summarizing drill holes and
Information understanding of the exploration results including a trenches locations, RL, azimuth, length/depth, and
tabulation of the following information for all significant intersection intervals
Material drill holes:
o
easting
and
northing
of
the
drill
hole
collar
o
elevation
or
RL
(Reduced
Level
-
elevation
above
sea
level
in
metres)
of
the
drill
hole
collar
o
dip
and
azimuth
of
the
hole
o
down
hole
length
and
interception
depth
o
hole
length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
Data
aggregation * In reporting Exploration Results, weighting averaging * Exploration results from drilling and trench sampling
methods techniques, maximum and/or minimum grade truncations have been weighted by interval
(eg cutting of high grades) and cut-off grades are
usually Material and should be stated.
* High-grade caps have been applied
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade * Lower cut-off grade of 0.5 g/t Au has generally been
results, the procedure used for such aggregation applied to significant intersections
should be stated and some typical examples of such
aggregations should be shown in detail.
* Aggregate drilling and trenching intervals do not
incorporate longer lengths of low-grade results
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
* No metal equivalent reported
Relationship
between * These relationships are particularly important in the * Drill holes and trenches have been drilled/excavated
mineralisation reporting of Exploration Results. as perpendicular as possible to the general strike of
widths the mineralized zones and structures so that the
and intersected lengths are close to true widths
intercept * If the geometry of the mineralisation with respect to
lengths the drill hole angle is known, its nature should be
reported.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (eg 'down hole length, true width not known').
Diagrams
* Appropriate maps and sections (with scales) and * Maps and sections are being generated
tabulations of intercepts should be included for any
significant discovery being reported These should
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
Balanced
reporting * Where comprehensive reporting of all Exploration * All significant drilling and trench results have been
Results is not practicable, representative reporting reported
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
Other
substantive * Other exploration data, if meaningful and material, * Metallurgical studies of the ore from potential five
exploration should be reported including (but not limited to): pits were conducted and completed by SGS in South
data geological observations; geophysical survey results; Africa in 2009. The ore minerology variability is
geochemical survey results; bulk samples - size and insignificant but relatively coarse gold grain was
method of treatment; metallurgical test results; bulk observed
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances. * The relatively coarse nature of much of the gold
provides reason for an upfront gravity circuit to
recover coarse gold prior to cyanidation. An overall
gold recovery of 90% can be achieved through gold
dissolution by direct cyanidation and the gravity
concentrator.
Further
work * The nature and scale of planned further work (eg * Drilling to be continued to test along strike and the
tests for lateral extensions or depth extensions or down-dip continuity of the delineated mineralization
large-scale step-out drilling).
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
=============== =============================================================== ============================================================
APPIX 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES
Database
integrity * Measures taken to ensure that data has not been * The data capturing Access database is linked to a
corrupted by, for example, transcription or keying superseding Access database on the geological server
errors, between its initial collection and its use
for Mineral Resource estimation purposes.
* Queries allow specially selected information from the
captured data and create core data sheets which
* Data validation procedures used. include Collar, Survey, Lithology and Assay logs.
These logs are essentially used to display in the
mining software by an OBDC link
* An independent validation process is run for each log
sheet in Micromine by Shanta. Should there be any
queries, a report file is created and exported to
excel. The report will be mailed to the personnel
responsible for data capturing to correct on the
original data
* Once confirmation is given of the updates, all
databases are refreshed and the validation process in
Micromine and Surpac repeated with the use of form
sets
* Once all data validates, a number for the tear of
validation is indicated in the collar file of the
superseding database
Site
visits * Comment on any site visits undertaken by the * Dr Corné Koegelenberg, assisted by Mr Jonathan
Competent Person and the outcome of those visits. Gloyn-Jones, visited the property from the 14 - 20th
of February 2020 to conduct a drill core
investigation of macrostructural and gold
* If no site visits have been undertaken indicate why mineralization features. Mr Ken Lomberg joined the
this is the case. site visit from the 19 - 20th of February 2020
Geological
interpretation * Confidence in (or conversely, the uncertainty of ) * Diamond drilling was done perpendicular to the strike
the geological interpretation of the mineral deposit. of the ore body at a dip designed to give a true
intersection width of the mineralized body at a
spacing less than 42m
* Nature of the data used and of any assumptions made.
* The downhole survey was done at every 15m
* The effect, if any, of alternative interpretations on
Mineral Resource estimation.
* Core meter marking, geological logging, structural
interpretation, core sampling, Data validation and
* The use of geology in guiding and controlling Mineral QAQC analysis was done by competent and experienced
Resource estimation. geologists
* The factors affecting continuity both of grade and * Only samples submitted to the accredited laboratory
geology. (SGS Mwanza) are used in the estimate
* The limits of the structural features hosting the
mineralized zone was interpreted by overlaying the
assays against geological logging section by section
using section strings
Dimensions
* The extent and variability of the Mineral Resource * Drill hole spacing is generally between 25 to 42m
expressed as length (along strike or otherwise), plan along with a vertical spacing of approximately 20 to
width, and depth below surface to the upper and lower 38m in the upper to mid-level portions of the
limits of the Mineral Resource. mineralized zones. This drilling spacing combined
with the surface exposures and trench sampling, along
with the geophysical data, permits the assumption
that both the mineralized structures are continuous
and persistent, and the mineralization within the
structures has the continuity necessary to consider
these deposits as Mineral Resources
Estimation
and * The nature and appropriateness of the estimation * Compositing data into regular composite intervals was
modelling technique(s) applied and key assumptions, including performed to moderate the presence of extreme short
techniques treatment of extreme grade values, domaining, sample interval grade values in the data, by
interpolation parameters and maximum distance of combining them with adjacent data to form the
extrapolation from data points. If a computer composite
assisted estimation method was chosen include a
description of computer software and parameters used.
* A combination of several methods was used to decide
what constitutes an appropriate capping value. The
* The availability of check estimates, previous spatial position of outlier values, as well as
estimates and/or mine production records and whether coefficient of variation plots, lognormal probability
the Mineral Resource estimate takes appropriate plots and decile analysis, were used in the
account of such data. determination of capping values
* The assumptions made regarding recovery of * Scatter plots of the gold grade composites versus
by-products. location were generated, to assess any potential
non-stationarity in the data
* Estimation of deleterious elements or other non-grade
variables of economic significance (eg sulphur for * Block models were created to represent the
acid mine drainage characterisation). mineralized body contained within the wireframe
solids for each target. Cell sizes were chosen based
on the average drillhole spacing
* In the case of block model interpolation, the block
size in relation to the average sample spacing and
the search employed. * Geostatistics was performed using Datamine Studio RM
to determine the estimation parameters
* Any assumptions behind modelling of selective mining
units. * The mineralized targets were modelled for gold grade
using Ordinary Kriging, with the shell of the
wireframe solid as a hard boundary. Only data within
* Any assumptions about correlation between variables. the solid was used in the estimate
* Description of how the geological interpretation was * The Estimation process used Datamine Studio RM
used to control the resource estimates. software for all block grade estimates
* Discussion of basis for using or not using grade
cutting or capping.
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and
use of reconciliation data if available.
Moisture
* Whether the tonnages are estimated on a dry basis or * Tonnages are reported on a dry basis
with natural moisture, and the method of
determination of the moisture content.
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * A simple financial assessment was undertaken to
parameters applied. ascertain whether they fulfil the criteria of
"reasonable prospects for eventual economic
extraction" using current operating costs
Mining
factors * Assumptions made regarding possible mining methods, * The mineral resource was deemed amenable to
or minimum mining dimensions and internal (or, if extraction by open pit mining method and were
assumptions applicable, external) mining dilution. It is always declared at a cut-off of 1.0g/t
necessary as part of the process of determining
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the
assumptions made regarding mining methods and
parameters when estimating Mineral Resources may not
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis
of the mining assumptions made.
Metallurgical
factors * The basis for assumptions or predictions regarding * Shanta commissioned the first of a series of gold
or metallurgical amenability. It is always necessary as deportment and metallurgical studies on mineralized
assumptions part of the process of determining reasonable material from potential pits in 2009. Reverse
prospects for eventual economic extraction to circulation drill chips from five mineralised targets
consider potential metallurgical methods, but the were submitted for gold deportment studies in order
assumptions regarding metallurgical treatment to understand the mode of gold occurrence, and to
processes and parameters made when reporting Mineral ascertain possible cost effective and practical
Resources may not always be rigorous. Where this is process routes.
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
* Further metallurgical studies commissioned on
mineralized material from the Gold Tree (Tree Top and
Tree Bottom) deposit in 2011 support initial gold
deportment findings. A report from Mintek summarized
that the ore contains coarse gold which should be
recovered prior to the leaching process with an
overall gold recovery 90% - Mintek External Report
No: 5887 of February 2011).
Environmental
factors * Assumptions made regarding possible waste and process * Shanta Mining Company Limited is fully permitted
or residue disposal options. It is always necessary as mining operation under Tanzanian law with the
assumptions part of the process of determining reasonable prerequisite Environmental Impact Assessments (EIA)
prospects for eventual economic extraction to issued in 2019.
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
Bulk
density * Whether assumed or determined. If assumed, the basis * Density determinations have been carried out on the
for the assumptions. If determined, the method used, diamond cores. The results ranged from 2.82 g/cm(3)
whether wet or dry, the frequency of the measurements to 3.15 g/cm(3)
,
the nature, size and representativeness of the
samples.
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
Classification
* The basis for the classification of the Mineral * The resources have been classified as Measured,
Resources into varying confidence categories. Indicated and Inferred based primarily on sample
spacing as determined by drilling density and
proximity to informing data as well as the grade
* Whether appropriate account has been taken of all distribution of the supporting data. For the resource
relevant factors (ie relative confidence in classification, a solid shape was constructed around
tonnage/grade estimations, reliability of input data, the parts of the mineralised body where most
confidence in continuity of geology and metal values, estimates were informed by data not more than 30m
quality, quantity and distribution of the data). from the estimated block, are estimated within the
primary search volume, and where the estimates have
been interpolated rather than extrapolated. All
* Whether the result appropriately reflects the blocks located within these areas were classified as
Competent Person's view of the deposit. Measured and Indicated resources. All blocks located
outside of these areas, around the periphery of the
drilling were classified as Inferred resources
Audits
or * The results of any audits or reviews of Mineral * Only internal audit completed
reviews Resource estimates.
Discussion
of * Where appropriate a statement of the relative * Refer Estimation and modelling techniques comments
relative accuracy and confidence level in the Mineral Resource above
accuracy/ estimate using an approach or procedure deemed
confidence appropriate by the Competent Person. For example, the
application of statistical or geostatistical
procedures to quantify the relative accuracy of the
resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative
discussion of the factors that could affect the
relative accuracy and confidence of the estimate.
* The statement should specify whether it relates to
global or local estimates, and, if local, state the
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures
used.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
=============== ============================================================ ============================================================
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END
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