Economy

Shanta Gold reports Sh365bn deposits in western Kenya


gold

Gold miners in Kakamega. FILE PHOTO | NMG

brianngugi_img

Summary

  • The firm says in its latest market update that it has established high-grade gold deposits estimated at 1.6 million ounces in Kakamega County, with a current market value of Sh364.8 billion.
  • The price of gold has touched highs of $2,000 (Sh228,000) per ounce as investors rushed to buy the commodity in the aftermath of the Russia-Ukraine crisis.
  • The miner hailed Western Kenya’s as-yet largely untapped deposits of gold, as the possible future of the country’s gold mining industry.

Exploration firm Shanta Gold says it has found more high-grade gold at its western Kenya project, estimated to be worth Sh365 billion.

The firm says in its latest market update that it has established high-grade gold deposits estimated at 1.6 million ounces in Kakamega County, with a current market value of Sh364.8 billion.

The price of gold has touched highs of $2,000 (Sh228,000) per ounce as investors rushed to buy the commodity in the aftermath of the Russia-Ukraine crisis which has impacted the value of currency-based assets.

Though the area has a history of small-scale and informal gold mining stretching back decades and has long been a popular destination for artisanal miners hoping to strike it rich, commercially viable large-scale mining has remained elusive.

“We are delighted with the transformative drilling results announced at the Ramula target, adding 434k oz grading to 2.08 g/t and increasing total resources at our West Kenya Project by a significant 37 percent to 1.6 million oz, further strengthening our view that the region is a major new gold district and an area of massive future growth for the Company,” said Shanta chief executive Eric Zurrin.

The firm which bought licences from another Canadian miner, Barrick Gold hopes to actualise large scale gold mining but has not provided timelines. Canada’s Barrick held licences for rights to mine gold over a 1,161 km2 that straddles Kakamega, Kisumu, Siaya and Vihiga counties.

“Situated in close proximity to the Liranda Region which holds the Isulu-Bushiangala resource, we are confident that in time, we will be able to expand Ramula into the second significant resource region in the wider West Kenyan Project,” said Mr Zurrin in a statement.

The miner hailed Western Kenya’s as-yet largely untapped deposits of gold, as the possible future of the country’s gold mining industry.

“In the near-term, we are looking forward to updating shareholders on the updated mineral resource estimate at Isulu-Bushiangala as well as the re-estimated historical maiden resource at the Bumbo polymetallic target,” he said.

“The West Kenya Project continues to produce exciting results the more we look, and we are confident that it has the potential to be a multi-million-ounce gold district comparable with other prolific greenstone belts in the world.”

[email protected]