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Signature Metals Limited [ASX: SBL] - Drill results received from the Konongo Tailings Dam



ASX Release
Tuesday 19 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
DRILL RESULTS RECEIVED FROM
THE KONONGO TAILINGS DAM
The Company is very pleased to announce results from aircore
drilling of the Old Konongo Tailings Dam, contained within the
Konongo Gold Project in the Ashanti Gold Belt of Ghana.
131 aircore holes were drilled across the dam at a spacing of 50
metres by 25 metres for a total of 2,376 metres (Figure 1).

Included in
this was an area drilled on a 25 metre by 25 metre spacing following
receipt of high grade assays.

Results include intersections of:
 12 metres at 2.24 g/t gold from surface (KGAC003)
 20 metres at 1.76 g/t gold from surface (KGAC004)
 including 8 metres at 2.80g/t from 12 metres
 16 metres at 2.00 g/t gold from surface (KGAC008)
 12 metres at 1.61 g/t gold from surface (KGAC009)
 12 metres at 1.86 g/t gold from surface (KGAC047)
 12 metres at 1.96 g/t gold from surface (KGAC048)
 including 8 metres at 2.58g/t from 4 metres
 16 metres at 2.06 g/t gold from surface (KGAC052)
 including 8 metres at 3.12g/t from 8 metres
 16 metres at 1.75g/t gold from surface (KGAC056)
 16 metres at 1.69 g/t gold from surface (KGAC057)
 including 4 metres at 3.09g/t from 8 metres
 16 metres at 1.66 g/t gold from surface (KGAC059)
 12 metres at 1.85 g/t gold from surface (KGAC063)
 16 metres at 2.12 g/t gold from surface (KGAC064)
 16 metres at 2.14 g/t gold from surface (KGAC065)
 16 metres at 1.76 g/t gold from surface (KGAC066)
 16 metres at 1.62 g/t gold from surface (KGAC086)
 12 metres at 1.70 g/t gold from surface (KGAC098)
Figure 1.

Plan showing results from aircore drilling at the Konongo tailings dam
HIGH
GRADE
AREAS
The Old Konongo Tailings Dam contains waste material from
processing at the historical Konongo Mine, which was operational
between 1918 and 1986.

Records show that approximately 2.8 million
tonnes of ore was processed at a head grade of 15.7g/t recovering
approximately 1.4 million ounces.

Interestingly drilling seems to have
identified two distinct high grade areas within the dam where
intersections were consistently greater than 1.5g/t gold (Figure 1).
All intersections are listed in Table 1 and a plan of the drilling is
shown as Figure 1.

Results have been received from 4 metre
composite samples taken from holes drilled through the entire
thickness of the dam.

Selected intersections will be re-sampled at 1
metre intervals to demonstrate grade consistency for calculation of a
JORC-compliant resource, although results from infill holes indicate
that there is good continuity.
Preliminary metallurgical testwork indicates that recoveries of over
60% are achievable from this material, with recoveries as high as 80%
being achieved.

Further work will be carried out this month testing
different methods to potentially increase recoveries.
A JORC-compliant resource is currently being estimated for the entire
tailings dam.

The Old Konongo Tailings Dam is just one of a number
of surface stockpiles/dumps (Figure 2) which the company is
evaluating to determine if they can provide initial millfeed for the CIL
plant present on site.

The likely cost of reclaiming these stockpiles is
anticipated to be lower than mining new ore making them potentially
viable sources of feed.

Sampling and surveying of these stockpiles is
underway to better quantify the grades and tonnages available.
Figure 2.

Stockpile of crushed material on the ROM pad.
SIGNATURE METALS
 Aiming to 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 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.

Results from Old Konongo Tails Dam drilling
All results from 4 metre composite samples collected by spear sampling.

Holes drilled through entire
thickness of tailings dam into clay using aircore.
Hole Id
Project Grid Total
Depth
Dip/
Azimuth
Intercept
Easting Northing From To Interval Grade
Au g/t
KGAC001 50223 50951 30 -60 / 125 0 6 6 1.11
KGAC002 50200 50951 50 -60 / 125 0 5 No recovery
5 8 3 0.93
KGAC003 50163 50949 32 -60 / 125 0 12 12 2.24
KGAC004 50147 50949 36 -60 / 125 0 20 20 1.76
KGAC005 50125 50950 36 -60 / 125 0 16 16 1.38
KGAC006 50125 51050 39 -60 / 125 0 4 4 0.46
KGAC007 50175 50999 30 -60 / 125 0 4 4 1.13
KGAC008 50200 51000 41 -60 / 125 0 16 16 2.00
KGAC009 50225 51000 37 -60 / 125 0 12 12 1.61
KGAC010 50250 50999 43 -60 / 125 0 16 16 1.32
KGAC011 50272 51002 31 -60 / 125 0 16 16 1.11
KGAC012 50325 51050 55 -60 / 125 0 16 16 0.86
KGAC013 50344 51051 41 -60 / 125 0 16 16 0.62
KGAC014 50300 51051 50 -60 / 125 0 16 16 0.83
KGAC015 50275 51048 47 -60 / 125 0 16 16 0.88
KGAC016 50250 51049 23 -60 / 125 0 20 20 1.29
KGAC017 50225 51049 29 -60 / 125 0 16 16 1.34
KGAC018 50200 51050 20 -60 / 125 0 8 No recovery
KGAC019 50175 51050 17 -60 / 125 0 4 4 1.02
KGAC020 50164 51050 17 -60 / 125 0 4 4 0.75
KGAC021 50150 51100 17 -60 / 125 0 4 4 1.23
KGAC022 50175 51099 17 -60 / 125 0 8 8 0.95
KGAC023 50199 51095 5 -60 / 125 0 8 8 1.37
KGAC024 50224 51097 8 -60 / 125 0 8 8 1.13
KGAC025 50250 51099 20 -60 / 125 0 5 5 1.45
KGAC026 50083 51149 29 -60 / 125 0 4 4 1.42
KGAC027 49966 51272 41 -60 / 125 0 8 8 1.36
KGAC028 49962 51297 23 -60 / 125 0 12 12 1.49
KGAC029 50007 51330 20 -60 / 125 0 4 4 0.83
KGAC030 50012 51305 20 -60 / 125 0 12 12 1.25
KGAC031 50179 50820 29 -60 / 125 0 4 4 0.39
KGAC032 50203 50761 29 -60 / 125 0 4 4 0.45
KGAC033 50200 50901 29 -60 / 125 0 4 4 0.88
KGAC034 50173 50901 29 -60 / 125 0 4 4 0.91
KGAC035 50145 50900 29 -60 / 125 0 8 8 1.57
KGAC036 50125 50900 29 -60 / 125 0 8 8 0.87
KGAC037 50100 50899 23 -60 / 125 0 8 8 0.71
KGAC038 50075 50900 23 -60 / 125 0 4 4 1.22
KGAC039 50050 50900 10 -60 / 125 0 16 16 0.74
KGAC040 50028 50900 14 -60 / 125 0 8 8 0.59
KGAC041 50050 50868 17 -60 / 125 0 4 4 0.77
Hole Id
Project Grid Total
Depth
Dip/
Azimuth
Intercept
Easting Northing From To Interval Grade
Au g/t
KGAC042 50075 50870 17 -60 / 125 0 4 4 0.52
KGAC043 50095 50870 17 -60 / 125 0 4 4 0.42
KGAC044 50275 51099 29 -60 / 125 0 16 16 1.24
KGAC045 50300 51099 20 -60 / 125 0 6 No recovery
6 12 6 0.67
KGAC046 50325 51099 17 -60 / 125 0 8 8 0.70
KGAC047 50175 51149 20 -60 / 125 0 12 12 1.86
KGAC048 50100 51200 20 -60 / 125 0 12 12 1.96
KGAC049 50200 50925 25 -60 / 125 0 8 8 0.86
KGAC050 50175 50925 20 -60 / 125 0 8 8 1.06
KGAC051 50140 50926 23 -60 / 125 0 12 12 0.84
KGAC052 50125 50925 20 -60 / 125 0 16 16 2.06
KGAC053 50125 50948 20 -60 / 125 0 8 8 0.83
KGAC054 50125 51025 14 -60 / 125 0 12 12 0.96
KGAC055 50156 50974 20 -60 / 125 0 12 12 1.28
KGAC056 50175 50975 17 -60 / 125 0 16 16 1.75
KGAC057 50200 50975 25 -60 / 125 0 16 16 1.69
KGAC058 50225 50974 9 -60 / 125 0 9 9 1.25
KGAC059 50234 50975 20 -60 / 125 0 12 12 1.66
KGAC060 50216 50925 17 -60 / 125 0 8 8 0.93
KGAC061 50155 51025 11 -60 / 125 0 4 4 0.85
KGAC062 50175 51025 11 -60 / 125 0 8 8 0.72
KGAC063 50199 51025 17 -60 / 125 0 12 12 1.85
KGAC064 50225 51025 20 -60 / 125 0 16 16 2.12
KGAC065 50250 51025 20 -60 / 125 0 16 16 2.14
KGAC066 50275 51025 23 -60 / 125 0 16 16 1.76
KGAC067 50300 51025 23 -60 / 125 0 16 16 1.38
KGAC068 50325 51075 17 -60 / 125 0 12 12 0.88
KGAC069 50300 51074 17 -60 / 125 0 12 12 1.20
KGAC070 50275 51075 23 -60 / 125 0 16 16 1.06
KGAC071 50250 51075 23 -60 / 125 0 16 16 1.25
KGAC072 50220 51075 23 -60 / 125 0 16 16 1.20
KGAC073 50200 51075 20 -60 / 125 0 12 12 0.68
KGAC074 50179 51075 11 -60 / 125 0 4 4 0.90
KGAC075 50200 51125 20 -60 / 125 0 16 16 1.38
KGAC076 50225 51124 23 -60 / 125 0 16 16 0.91
KGAC077 50250 51125 17 -60 / 125 0 16 16 0.83
KGAC078 50276 51125 17 -60 / 125 0 12 12 0.89
KGAC079 50300 51125 14 -60 / 125 0 12 12 0.92
KGAC080 50250 51175 14 -60 / 125 0 12 12 0.71
KGAC081 51100 51175 20 -60 / 125 0 12 12 0.99
KGAC082 50226 51176 17 -60 / 125 0 12 12 0.84
KGAC083 50175 51174 20 -60 / 125 0 12 12 0.93
KGAC084 50150 51175 14 -60 / 125 0 14 14 1.14
KGAC085 50125 51150 14 -60 / 125 0 8 8 1.82
KGAC086 50125 51175 20 -60 / 125 0 16 16 1.62
Hole Id
Project Grid Total
Depth
Dip/
Azimuth
Intercept
Easting Northing From To Interval Grade
Au g/t
KGAC087 50150 51200 17 -60 / 125 0 16 16 1.46
KGAC088 50100 51177 17 -60 / 125 0 12 12 1.31
KGAC089 50075 51200 19 -60 / 125 0 16 16 1.49
KGAC090 50075 51225 23 -60 / 125 0 12 12 1.55
KGAC091 50100 51225 20 -60 / 125 0 12 12 1.03
KGAC092 50125 51225 17 -60 / 125 0 12 12 0.89
KGAC093 50150 51250 14 -60 / 125 0 12 12 0.56
KGAC094 50125 51250 17 -60 / 125 0 12 12 0.78
KGAC095 50075 51249 20 -60 / 125 0 12 12 1.26
KGAC096 50050 51250 17 -60 / 125 0 12 12 1.43
KGAC097 50038 51257 9 -60 / 125 0 8 8 1.23
KGAC098 50001 51300 17 -60 / 125 0 12 12 1.70
KGAC099 50025 51300 17 -60 / 125 0 12 12 1.41
KGAC100 50049 51298 17 -60 / 125 0 12 12 1.58
KGAC101 50075 51300 17 -60 / 125 0 12 12 1.13
KGAC102 50100 51300 14 -60 / 125 0 8 8 1.09
KGAC103 50050 51350 14 -60 / 125 0 8 8 1.08
KGAC104 50024 51350 20 -60 / 125 0 8 8 1.28
KGAC105 50000 51350 17 -60 / 125 0 12 12 0.64
KGAC106 49975 51349 14 -60 / 125 0 8 8 0.86
KGAC107 49950 51401 14 -60 / 125 0 12 12 1.33
KGAC108 49975 51400 17 -60 / 125 0 8 8 1.01
KGAC109 50001 51404 14 -60 / 125 0 8 8 1.06
KGAC110 50025 51400 17 -60 / 125 0 12 12 0.74
KGAC111 50024 51449 14 -60 / 125 0 12 12 0.47
KGAC112 50000 51450 14 -60 / 125 0 8 8 0.97
KGAC113 49975 51449 17 -60 / 125 0 8 8 0.74
KGAC114 49950 51449 11 -60 / 125 0 8 8 0.45
KGAC115 49949 51499 14 -60 / 125 0 8 8 0.78
KGAC116 49975 51499 11 -60 / 125 0 8 8 0.54
KGAC117 50000 51500 11 -60 / 125 0 8 8 0.40
KGAC118 50024 51499 11 -60 / 125 0 8 8 0.40
KGAC119 50000 51550 14 -60 / 125 0 8 8 0.61
KGAC120 49975 51550 17 -60 / 125 0 4 4 0.50
KGAC121 49950 51550 14 -60 / 125 0 8 8 0.54
KGAC122 49925 51550 14 -60 / 125 0 4 4 0.55
KGAC123 49900 51550 11 -60 / 125 0 4 4 0.58
KGAC124 49850 51600 8 -60 / 125 0 4 4 0.45
KGAC125 49875 51600 11 -60 / 125 0 8 8 0.90
KGAC126 49900 51600 14 -60 / 125 0 8 8 1.05
KGAC127 49925 51600 11 -60 / 125 0 8 8 0.60
KGAC128 49950 51600 17 -60 / 125 0 8 8 0.59
KGAC129 44925 51650 14 -60 / 125 0 8 8 0.49
KGAC130 49900 51650 11 -60 / 125 4 11 7 0.41
KGAC131 49875 51650 14 -60 / 125 0 8 8 0.54
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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