Tanzania – The follows from its underground development work which commenced earlier in the year.
The intersect occurred just after the nose fault, as predicted in the geological model.
“I am pleased to report continued progress at the underground development at the New Luika gold mine. Intersecting first ore is a pleasing result and we remain on track to commence first stoping of ore in Q2, 2017,” said Shanta Gold CEO Toby Bradbury.
In May 2016, Shanta Gold announced its intention to conduct a conditional placing of new ordinary shares to raise +-US10 million.
The price at which the shares were placed was 6.5 pence per share.
[quote]The placing and the silver streamlining agreement provide Shanta Gold with a significant degree of financial flexibility as it reaches peak capital expenditure at the New Luika gold mine during 2016, assisting the company to execute its base case mine plan, undertake the underground development of New Luika and to progress satellite deposit exploration;
“In addition, the proposed placing and the silver stream agreement provide the financial headroom for the continued exploration of the satellite deposits across our highly prospective licence area as we continue our strategy of adding further ounces to our resources and reserves.”