- Shanta Gold said it had proved up enough new resources at its New Luika gold mine in Tanzania to replace all of the depletion expected from 2019 gold production.

Six new holes were drilled at a total cost to the company of $164k.

Drilling at Bauhinia Creek Central conducted in April and May had converted 126,787 ounces of inferred resources grading 3.15 grams per tonne into 83,543 ounces of indicated resources grading 7.85 grams per tonne.

A further 58,553 ounces of new inferred resources grading 4.79 grams per tonne had been added to the mineral resource.

Incorporation of the additional resource ounces was expected to extend the current life of mine to at least 2025.

'Following the drilling of six holes costing the company $164k, we have replaced all of the depletion expected from 2019 gold production,' chief executive Eric Zurrin said.

'This highlights the exceptional nature of the BC orebody and the long-life potential of the high margin, New Luika gold mine.

'It is worth remembering that in 2012, New Luika gold mine's overall reserve based mine life was just 2.5 years and has grown incrementally since then despite production of approximately 80,000 ounces per year and limited exploration.'

At 9:37am: [LON:SHG] Shanta Gold Ltd share price was -0.1p at 8.2p

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