Name of the Project
West Kenya gold project.

Location
In Kakamega County, in western Kenya.

Project Owner/s
Shanta Gold.

Project Description
The project comprises the greenfield Isulu and Bushiangala prospects, with combined inferred mineral resources of 2.9-million tonnes grading 12.6 g/t gold, and includes mineral rights that cover 1 161 km².

A pit optimisation study has suggested the potential of developing an initial openpit at each of the deposits.

Following pit optimisation results, a pit shell has been selected for each deposit. Standard drill, blast, truck and shovel methods will be used for openpit mining.

Underground mining will start after openpit mining, with the proposed mining method for the deposits being longhole open stoping with backfill. The envisaged underground mine will be accessed through two portals, at Isulu and Bushiangala, from which declines will be driven down at each deposit.

The project will include a 480 000 t/y carbon-in-leach processing plant.

Average gold production over the project’s nine-year mine life is estimated at 105 000 oz/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $507-million and an internal rate of return of 196%.

Capital Expenditure
The project has an estimated preproduction cost of $161-million.

Planned Start/End Date
Not stated.

Latest Developments
Shanta Gold has announced an upgraded mineral resource estimate (MRE) for the West Kenya project to 1.55-million ounces of gold, including a 221% increase in indicated resources to 378 000 oz of gold grading 11.70 g/t.

Total resources at the Isulu, Bushiangala and Ramula deposits increased by 31% to 1.55-million ounces.

There are resources of 1.12-million ounces grading 10.80 g/t at Isulu and Bushiangala, of which 34% have been upgraded to the indicated category up from nil at the start of 2021.

Current oxides in the indicated category contain 67 070 oz grading 15.84 g/t, providing potential excellent high-margin cash flow during future construction ramp-up, Shanta has said.

About 700 000 oz of additional inferred resources are being targeted for potential conversion to the indicated category during this year.

CEO Eric Zurrin has said that he welcomes the increased MRE, as well as the future potential for conversion to the indicated category.

He notes that Shanta has three drill rigs operational and that feasibility study work will begin in May.

Key Contracts, Suppliers and Consultants
Bara Consulting (scoping study review and cash-flow modelling); Adiuvare Geology & Engineering (mineral resource estimate); ALS Global and SGS Laboratories (metallurgical testwork); Lycopodium Mineral (process engineering and infrastructure); Rescology (permitting, baseline and environmental studies); Knight Piésold (tailings, waste rock and surface water management); and MineScope Service (scoping study management).

Contact Details for Project Information
Shanta Gold, tel +255 22 2925148 or email mining@shantagold.com.