ASX Release
Monday 18 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
COMMENCEMENT OF ENVIRONMENTAL STUDIES
Signature Metals is very pleased to announce that it has engaged Tagit Consulting to carry out the environmental studies required for the recommencement of mining and processing at the Konongo Gold Project in the world class Ashanti Gold Belt of Ghana.
Completion of these studies will represent a major step towards the Company moving into production.
Tagit Consulting is a Ghanaian based consultancy whose area of expertise encompasses environmental auditing and management, water resources management and safety management.
It has co-ordinated environmental studies for projects across a variety of industries as well as completing reporting required by the Environmental Protection Agency (EPA) including environmental impact statements (EIS).
Tagit Consulting has completed environmental impact assessments for several gold mining projects within Ghana and most recently completed the EIS for Perseus Mining"s Ayanfuri Project.
Tagit Consulting will commence work immediately on the following tasks:
Completion of a baseline data collection programme in accordance with Ghanaian regulations and in line with internationally recognized guidelines for data quality, representivity and completeness;
Identification and assessment of environmental and social impacts associated with the refurbishment and operation of the Konongo Gold Project;
Preparation of an Environmental Impact Statement document to meet Ghanaian EPA requirements; and
Assistance in compliance with environmental regulations and liaison with the Ghanaian EPA.
The EIS documentation is anticipated to be completed in the second half of 2010 at which point Signature Metals will be able to apply to the EPA for an environmental permit to recommence mining and processing at Konongo Gold Project.
Consultants utilised by Tagit Consulting include respected academics from Ghanaian universities as well as internationally accredited environmental scientists with considerable experience studying the regional environment and working under Ghanaian environmental regulations.
They also utilise international standards such as those of the World Bank / International Financial Corporation.
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 ongoing with high grade results received from drilling.
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.
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.
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.
