🕐13.10.09 - 00:46 Uhr

Signature Metals Limited [ASX: SBL] - Shallow, high grade gold intersected at th
e Konongo Project, Ghana



ASX Release
Tuesday 13 October 2009
SIGNATURE METALS LIMITED
Level 1 / 33 Richardson Street
WEST PERTH
Australia
Tel: +61 8 9481 0101
Fax: +61 8 9200 4469
Contact:
Bill Oliver
(Managing Director)
E-mail:
Directors / Officers:
Matthew Wood
Bill Oliver
Timothy Flavel
Stuart Murray
Scott Funston
Issued Capital:
420 million shares
ASX Symbol: SBL
Media:
Fortbridge +612 9331 0655
Bill Kemmery 0400 122 449
SHALLOW, HIGH GRADE GOLD INTERSECTED IN DRILLING AT THE KONONGO GOLD PROJECT
Signature Metals Limited is very pleased to announce that shallow high-grade mineralisation has been intersected in pre-collar drilling at the Konongo Gold Project, located in the world class Ashanti Gold Belt of Ghana.
Sampling of the RC pre-collars from the current diamond core programme at the Obenemase Deposit has returned an excellent intersection of 14 metres at 9.01g/t gold from 46 metres downhole in drillhole 09KGDR009.

Significant results from the pre-collars are shown in Table 1.
The mineralisation intersected is interpreted to be a high grade shoot within the Obenemase "D" lode, which runs to the west of the main Obenemase Deposit.

No mining has been carried out on the D Lode.
Importantly mineralisation is hosted within oxide/transitional material which can be treated at the CIL plant currently onsite.

Drillhole 09KGDR009 is less than 1 kilometre from the plant and therefore could potentially provide high-grade feed ore during the initial production phase.
This result extends D lode mineralisation 40 metres to the north.

Significantly it is 140 metres north of intersections of 6m at 6.3g/t gold and 15 metres at 15.6g/t gold returned in historical RC drilling.
Diamond drilling continues at the Konongo Gold Deposit with two holes completed to date for 561 metres.

Results are pending.
SIGNATURE METALS
􀂾 Building a strategy to rapidly develop the Konongo Gold Project into a +100,000 ounce per annum gold producer.
􀂾 Past production from Konongo Gold Project of 1.6 million ounces at a head grade of 11.8g/t gold.
􀂾 Reviewing existing JORC Resources of approximately one million ounces (see Table 2).
􀂾 Exploration Target1 of 1.5 - 2.5 million ounces of gold (20 - 25 million tonnes at a resource grade of 2-4g/t gold).
􀂾 Exploration work programmes have commenced.
􀂾 Onsite CIL plant and tailings dam available and serviceable at a fraction of the cost of purchasing a new/second hand plant.

Lead time envisaged to be 6-12 months if fast tracked.
􀂾 Currently completing a rights issue to raise over A$3 million to fast-track the Konongo Gold Project towards production.
Signature Metals is rapidly advancing the Konongo Gold Project and putting in place a strategy for the Company to become a significant gold producer in a proven high grade gold belt.
Bill Oliver
Managing Director
SIGNATURE METALS LIMITED
1This exploration target is conceptual in nature and relates to defined exploration targets/areas where mineralisation has been identified but resources have not been delineated.

The quantity and grade of the exploration target is based on past production records and in comparison with currently defined Mineral Resources contained within the project.

There has been insufficient exploration to define a Mineral Resource in these areas (aside from the resources presented earlier) and it is uncertain if further exploration will result in the determination of a Mineral Resource different to the JORC-Code compliant resource presented earlier.

Signature Metals has an exploration strategy to systematically test these areas to determine if Mineral Resources are present.
The information in this release which relates to Exploration Results and Mineral Resources has been compiled and reviewed by Mr Bill Oliver from publically stated JORC-compliant information originally prepared in 2005 by RSG Global for Mwana Africa"s AIM-listing document along with a 2006 resource update for the Obenemase Deposit and a 2008 resource update for the Boabedroo deposit.

This information, in the opinion of Mr Oliver, complies with the reporting standards of the 2004 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".
Mr Oliver is a Member of the Australian Institute of Mining and Metallurgy and the Australian Institue of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Mr Oliver is the Managing Director of Signature Metals and consents to the inclusion of this table in the form and context in which it appears based on the information presented to him.
Table 1.

Significant Intersections
All intersections > 1m with grade > 1g/t (including up to 2 metres internal waste if present)
Project Grid
Intercept
Hole Id
Easting Northing
Total Depth
Dip/ Azimuth
From
To Interval
Grade
Au g/t
09KGDR001
9979
10129
240
-55 / 305
Results pending
09KGDR003
9910
10321
330
-60 / 125
Results pending
09KGDR006
9850
10320
243*
-60 / 125
43
45
2
1,35
(*in progress)
69
71
2
1.28
09KGDR005
9826
10410
32*
-60 / 125
24
28
4
3.32
(*pre-collar)
09KGDR009
9925
10260
60*
-60 / 125
39
42
3
2.43
(*pre-collar)
46
60*
14
9.01
including
47
52
5
12.3
including
55
60
5
10.5
Table 2.

Resources contained within the Konongo Gold Project
Deposit
Measured
Indicated
Inferred
Total
Tonnes
Grade (g/t)
Contained Ounces
Tonnes
Grade (g/t)
Contained Ounces
Tonnes
Grade (g/t)
Contained Ounces
Tonnes
Grade (g/t)
Contained Ounces
Obenemase
1,297,000
3.43
143,000
1,081,000
2.88
100,000
2,378,000
3.18
243,000
Asieye
1,500,000
0.80
38,581
1,500,000
0.80
38,581
Kwakawkaw
344,000
4.31
47,673
344,000
4.31
47,673
Nyabo East
540,000
1.03
17,939
540,000
1.03
17,939
Patuo
43,000
1.60
2,212
122,000
1.42
5,565
165,000
1.47
7,777
Kyereben West
124,000
3.10
12,359
124,000
3.10
12,359
Atunsu North
164,000
4.49
26,165
164,000
4.49
26,165
Aserewa
20,000
1.90
1,222
423,000
3.27
44,423
443,000
3.20
45,645
Atunsu
14,000
3.10
1,395
146,000
4.32
20,275
160,000
4.21
21,670
Apan
24,000
2.50
1,929
530,000
5.46
93,121
554,000
5.34
95,050
Leopard Shaft
95,000
7.55
23,071
95,000
7.55
23,071
Boabedroo
30,000
2.82
2,720
2,985,972
1.59
152,506
3,015,972
1.60
155,226
Akyenase Central
58,000
4.00
7,459
96,000
8.80
27,161
154,000
6.99
34,620
Santreso West
3,520,000
1.20
135,807
810,000
1.25
32,553
4,330,000
1.21
168,360
Santreso South
340,000
1.16
12,682
340,000
1.16
12,682
Santreso East
700,000
1.27
28,612
700,000
1.27
28,612
Total
0
0
0
5,006,000
1.84
295,744
10,000,972
2.12
682,686
15,006,972
2.02
978,430
The Mineral Resource presented in this table has been compiled and reviewed by Mr Bill Oliver from publically stated JORC-compliant information originally prepared in 2005 by RSG Global for Mwana Africa"s AIM-listing document with a 2006 resource update for the Obenemase Deposit and a 2008 resource update for the Boabedroo deposit.

This information, in the opinion of Mr Oliver, complies with the reporting standards of the 2004 JORC Code.

Mr Oliver is a Member of the Australian Institute of Mining and Metallurgy and the Australlian Institue of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Mr Oliver is the Exploration Director of Signature Metals and consents to the inclusion of this table in the form and context in which it appears based on the information presented to him.




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