Name of the Project
West Kenya gold project.

Location
Kakamega County, in western Kenya.

Project Owner/s
East Africa-focused gold producer, developer and explorer 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 completed 65% of its Phase 2 drilling campaign at its West Kenya project, with 55% of total planned drilling over three phases having been reported.

Most recently, the fifth set of results received from Phase 2 of the ongoing drilling campaign identified visible gold in 15 intersections, across 35 holes. Phase 2 of the drilling campaign is targeting mineralisation up to 550 m below surface.

Shanta CEO Eric Zurrin says the latest phase of drilling at West Kenya continues to show the vast potential the project offers in the Shanta Gold growth story.

Shanta expects to have a further update in the next few months with its priority being to expand the resource base at targets, including Kimingini and Ramula, where drilling is active and delivering “highly encouraging” results.

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.