Tanzania-based miner Shanta Gold (SHG) has completed a second exploratory drilling programme at its Ilunga prospect. The drilling activity, located 2.5km north of Shanta's New Luika mine, is likely to significantly upgrade the 74,000 ounces of gold resources estimated in 2015.
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The recent work showed some excellent grades, including 13 metres of 4.2g per tonne at a depth of 80 metres, and 2 metres at 10.5g/t and 3 metres at 40.6g/t at greater depths. Analysts at FinnCap forecast adjusted pre-tax profit of $14.8m and EPS of 1.6¢ for the 2016 calendar year, and $8.6m and 0.9¢ in 2017.
