- Shanta Gold said it had recorded 'highly encouraging' results from drilling at the New Luika gold mine in South Western Tanzania.

The company said 66 core holes totalling 7,410 metres had been drilled between October and December, at a cost of around $0.7m.

Highlights included intersecting 11 meters grading 8.55 grams per tonne of gold.

'Exploration at New Luika remains a high priority focus for Shanta, given the impact that increasing ounces has on shareholder value,' chief executive Eric Zurrin said.

'The ongoing results are highly encouraging as we can see that they show high grades, at good widths that suggest ongoing life of mine extension.'

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