Mining and metals trader Yintai Gold has informed Africa-focused gold miner Shanta Gold that it no longer intends to make an offer to acquire the company. 

In addition to receiving interest from Yintai, Shanta said on October 18 that it had also received approaches from Chinese State-owned mining company Shandong Gold Group and Kyrgyz exploration and development company Chaarat Gold Holdings, which might result in an offer for the company.   

Shanta said at the time that any offers made by Shandong and Yintai would likely be solely in cash. With Yintai out, Shandong and Chaarat have until November 15 to make a firm offer. 

DRILLING RESULTS 

Yintai’s retreat, announced on November 2, coincided with Shanta’s exploration update on drilling conducted in the second half of the year at the New Luika gold mine, in southwestern Tanzania. 

The drilling intersections will be incorporated into the yearly mineral reserve and resource update that will be released in January and the next update of the mine plan as Shanta continues to extend the mine life at New Luika.

"[These are] encouraging drilling results at New Luika, adding to the exploration success we have had around the wider portfolio this year. These results give us confidence that the reserve-based mine life at New Luika will continue to be extended beyond its current timeline of the first half of 2027,” Shanta CEO Eric Zurrin said. 

He added that the company was scheduled to continue drilling next year, testing the Elizabeth Hill, Porcupine South and Black Tree Hill targets following the encouraging results from the recent drilling, modelling and technical studies, as well exploring several outlined targets situated in proximity to the known orebodies.

“This is an exciting time for Shanta Gold as we transition towards becoming a 100 000 oz/y gold producer in March 2023 as Singida comes onstream. With a diversified asset base and a healthy balance sheet, the company is well positioned operationally to deliver on our strategy of sustainable growth through exploration," Zurrin said. 

Shanta said 7 891 m was drilled over 47 holes at BC North, Ilunga, Luika Deep, Black Tree Hill and Elizabeth Hill targets – which are all located within the mining licences of New Luika – and a Porcupine South target on the Porcupine South mining licence. 

The reported results from the drilling were over strike lengths of 400 m, 130 m, 140 m, 410 m, and 550 m for BC North, Ilunga, Luika Deep, Black Tree Hill, and Elizabeth Hill respectively. 

Most of the newly reported drilling intersections fall outside existing mineral reserves and will therefore have an impact on future mining considerations.  

Additionally, the mineralisation at Luika, Black Tree Hill, and Porcupine South remains open at depth. 

Notable intersections included the hole CSR637 at Black Tree Hill, which returned a grade of 17.33 g/t gold for 9 m, while hole CSD322 at Ilunga returned a grade of 17.30 g/t gold for 4.15 m, along with 46.53 g/t gold for 1.46 m. 

The rest of the drilling results reported less than 10 g/t gold, with the exception of 12.08 g/t gold from hole CSR648 on Elizabeth Hill and 13.21 g/t from hole PSRC116 on Porcupine South.