- Shanta Gold said it had recorded encouraging results from the first phase of its Bauhinia Creek drilling campaign at the New Luika gold mine in South Western Tanzania.

The drilling was conducted during the second quarter of 2019.

Highlights included intersecting 7.33 meters grading 6.24 grams per tonne of gold.

Positive intersections below the existing reserves indicated that the existing underground decline may be continued and mine life extended, the company said.

'A very modest and low-cost drilling program has returned highly encouraging results that point to life of mine extension at depth at Bauhinia Creek,' chief executive Eric Zurrin said.

'A mine life extension would require only minimal capex, limited predominantly to underground development to access new ore.'

'Positive indications point to the existing underground decline being pushed down by at least three levels and new ounces added to our mine plan.'

'I look forward to confirming our expectation after the results of the Phase 2 drilling.'

At 8:27am: [LON:SHG] Shanta Gold Ltd share price was 0p at 6.6p

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