Shanta Gold has tapped the resource estimation powers of Micromine to confirm the presence of an impressive gold reserve at its Singida project, in central Tanzania.
MICROMINE’s comprehensive and easy-to-use exploration and mine design solution, offering integrated tools for modelling, estimation, design, optimisation and scheduling, was used to validate Singida’s 243,000 ounce gold deposit.
AIM-listed gold producer Shanta Gold (AIM:SHG) has defined ore resources on the New Luika and Singida projects in Tanzania. The New Luika Gold Mine commenced production in 2012 and produced 874,506oz in 2019.
A mining license was granted for Singida in 2012, with drilling results from an exploration program conducted in 2016 and a feasibility study indicating the project has nine ore bodies, within a 5 kilometre radius, with a combined resource of 858,000 gold ounces. It is estimated production will average 26,000 ounces per annum for an initial 6-year period.
In May 2020, a revised Reserve Estimate was declared, enabling Shanta Gold to move towards construction and first production at Singida, confident in the possibility of a number of high-grade open pits.
Shanta Gold used Micromine to interrogate exploration drilling data to establish and validate the revised estimate.
An independent validation process was run for each core data log sheet using Micromine.
Where there were queries, a report file was created, exported to Excel and sent to the personnel responsible for data capturing to correct the original information.
Once data confirmation of the updates was received, all databases were refreshed and the validation process repeated in Micromine, with the use of form sets, until all data had been validated.
“Shanta Gold has trusted Micromine to validate data at its flagship New Lukia gold mine so it was an obvious choice to use at Singida,” said Lee Bothma, MICROMINE Africa Sales Manager.
“Micromine’s Resource Estimation functionality enables a precise and detailed analysis of the resource based on early exploration data.”
“Over the years, Shanta Gold has used Micromine’s tools to model and estimate open pit ore reserves at New Lukia. The ability to validate the presence of additional mineralisation has significantly extended the life of mine.”
A JORC-compliant Reserve of 2.51 million tonnes, grading 3.00 grams per tonne and containing 243,000 ounces of gold at a cut-off grade of 1.0 grams per tonne was declared for Singida in May 2020.
Of the Reserve estimate, 91% of the contained gold is within 120 metres of the surface, highlighting the potential for reserve expansion. The Reserve represents a 50% conversion of the project’s independently-verified Measured and Indicated (M&I) Resource and an updated mine plan will incorporate the new Reserve estimate.
Singida’s JORC-complaint Mineral Resource Estimate (MRE) was also re-calculated and independently verified by Pivot Mining Consultants. The total MRE is 11.8 million tonnes, grading 2.38 grams per tonne and containing 904,000 ounces of gold, using a cut-off grade of 1.0 grams per tonne.
This includes a 17% increase in M&I Resources, totalling 5.7 million tonnes, grading 2.66 grams per tonne and containing 484,000 ounces of gold.