Aim-listed Shanta Gold's net reserves have increased by 37 000 oz in 2020.
Providing an update on group-wide reserves and resources for its portfolio of gold projects in Tanzania and Kenya as at December 31, 2020, the company notes that its reserves in Tanzania, where it owns the New Luika gold mine and the Singida project, amount to 625 000 oz, grading 3 g/t.
Exploration drilling at New Luika during 2020 added 173 000 oz to the company’s reserves.
Further, the company's total resources stood at 3.2-million ounces, grading 3.53 g/t, at year-end.
A maiden resource of 64 000 oz, grading 2.08 g/t, was declared at the openpit Porcupine South deposit near New Luika, with additional drilling planned for the first half of this year.
The company indicates that there is significant upside potential through the conversion of resources across the portfolio.
“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 openpit 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 $8-million which will include a combined total of 41 250 m of drilling at New Luika and Singida,” says CEO Eric Zurrin.