East Africa-focused gold producer, developer and explorer Shanta Gold has updated the mineral resource estimate (MRE) for the Ramula deposit at its West Kenya project, adding 39% more ounces.
This updated resource estimate follows the successful completion of the company’s 2022 drilling programme at West Kenya and adds to the updated MRE for the Bushiangala and Isulu deposits.
The West Kenya resource increased from its previous 2021 estimate of 1.18-million ounces to 1.76-million ounces.
The West Kenya project covers 580 km2 of the highly-prospective and underexplored greenstone Archaean Busia-Kakamega Gold Belt in western Kenya.
The Ramula target is about 40 km northwest of Kisumu City and 40 km west-southwest from the Isulu-Bushiangala deposit.
Shanta says Ramula is the most advanced prospect in the Ramula region.
CEO Eric Zurrin says a significant increase in indicated resources across the whole of West Kenya further decreases the risk of this project and confirms its quality nature.
The Ramula deposit has total resources of 469 800 oz, grading 2.41 g/t of gold – an increase of 16% following infill drilling, with 89% of resources upgraded to the indicated category.
Based on a cut-off grade of 0.7 g/t gold, Ramula currently has an indicated, pit-constrained resource estimate of 416 700 oz, grading 2.43 g/t.
At Ramula, preliminary indications point to the potential of openpit mining operations.
“The initial indications that Ramula has openpit mining potential is particularly attractive from a cost and timing perspective when considering how to ultimately develop the asset,” Zurrin says.
Shanta reports that, for Ramula, company management is reviewing permitting, plant location, mining sequencing and an accelerated timeline to full economic assessment.
Further work being planned for Ramula includes expansion drilling across four high-priority targets, metallurgical testing, a scoping study and infill drilling for conversion to mineable resources.
In addition, planned drilling on the targets adjacent to Ramula this year and next is aimed at delivering substantial resource additions and new discoveries.
“As we diversify our production portfolio in Tanzania, with Singida's first gold pour in March, our continued exploration success in West Kenya remains very exciting for the team and for everyone involved in Shanta.
“We believe Shanta delivers a unique investment case when compared with our peers, with our clear growth story and ever-increasing production profile allowing us to be confident about the near to mid-term prospects of the company,” concludes Zurrin.