Application for Mining Licence for Chunya

Shanta Gold Limited
 
                  ("Shanta Gold" or the "Company")
 
   Shanta Gold Lodges Application for Mining Licence for Chunya PL
                              2787/2004
 
The Board of Shanta Gold is pleased to announce that an application
for a mining licence has been lodged with the Commissioner of
Minerals, the competent authority in Tanzania. The application is in
respect of PL 2787/2004, on its Saza licence in the Chunya
prospecting area, covering a total area of 7.83 square kilometres and
proposes the establishment of an open pit and underground mine and a
gravity and carbon in leach ore treatment plant.
 
The ore resource over the five known orebodies announced on 17 April
2009 totals 642,000 ounces at 2.39g/t at a 1g/t cut off. The
Directors believe that the mine could produce at a rate of 30,000
tons per month, producing gold at the rate of around 23,500 oz per
annum. It it's the Directors intention that extensions to the known
orebodies and additional ore zones subsequently identified and
evaluated will be considered for possible future expansion of the
mine. The Directors initially estimate the capital cost to be around
US$5 million.
 
Shanta Gold is currently finalising funding arrangements for the
mine, a portion of which will be subject to the award of the mining
licence.
 
It is expected that it will take several months for the application
to be processed and the licence to be awarded.
 
For further information:
 
Shanta Gold Limited http://www.shantagold.com
 
Walton Imrie
Mobile: +27 (0) 82 444 2851
 
Walter Vorwerk
Moblie: +27 (0)83 308 0080
 
Fairfax
Ewan Leggat/Laura Littley
+44 (0) 20 7598 5368
 
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