ASX Release
Thursday 14 January 2010
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:
935 million shares
ASX Symbol: SBL
Media:
Fortbridge +612 9331 0655
Bill Kemmery 0400 122 449
2010 DRILLING COMMENCES
AT KONONGO
Signature Metals Limited is pleased to announce that drilling has re-commenced at its Konongo Gold Project, located in the world class Ashanti Gold Belt of Ghana.
RC drilling commenced at the Obenemase deposit targeting extensions to mineralisation intersected in 09KGDR009 that assayed 14 metres at 9.01g/t from 46 metres (see Figure 1).
Drillholes are also planned to follow up shallow high grade intersections in historical drilling of the "D" Lode including:
OBAD111B - 15m at 6.54g/t gold from 51 metres
OBAR7 - 6m at 8.73g/t gold from 29 metres
OBAR94 - 6m at 6.08g/t gold from 15 metres
OBRC013 - 8m at 3.79g/t from 97 metres
OBRD009 - 8m at 6.05g/t gold from 107 metres
Diamond core drilling will commence this weekend with initial drilling aimed at following up results received from 09KGDR007 including:
1 metre at 438 g/t gold from 147 metres
2 metres at 13.5 g/t gold from 165 metres
16 metres at 9.76g/t from 170 metres
5 metres at 7.25g/t gold from 200 metres
Diamond drilling will continue to target high grade zones within the Obenemase Deposit including those intersected to the north of the pit in the 2009 drilling.
The Company looks forward to updating the market with results from drilling as they are received.
Bill Oliver
Managing Director
SIGNATURE METALS LIMITED
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 1).
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 with high grade results received from first drill holes.
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.
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.
Figure 1.
Plan showing drilling and infrastructure at the Obenemase Deposit.
RC drill targets circled in yellow
Table 1.
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.
