ASX Release
Friday 5 March 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
JORC RESOURCE FOR OLD
KONONGO TAILINGS DAM
The Company is very pleased to announce the JORC resource for the
Old Konongo Tailings Dam, contained within the Konongo Gold
Project in the world class Ashanti Gold Belt of Ghana.
The resource
is 1.75 million tonnes at a grade of 1.09g/t gold for approximately
61,150 ounces of contained gold classified as follows:
Class Tonnes Grade (g/t) Ounces Au
Indicated 1,177,000 1.19 45,050
Inferred 575,000 0.87 16,100
Total 1,752,000 1.09 61,150
Significantly this resource includes a high grade area of
448,500 tonnes at 1.66g/t
for almost 24,000 ounces of contained gold.
The Old Konongo Tailings Dam contains residual material from
processing at the historic 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.
The JORC resource for the Old Konongo Tailings Dam is based on
aircore drilling carried out in late 2009.
131 aircore holes were drilled
across the dam at spacings of 50 metres by 25 metres and 25 metres
by 25 metres for a total of 2,376 metres.
Drilling identified high grade
areas within the dam where intersections were consistently greater
than 1.5g/t gold (Figure 1).
The Old Konongo Tailings Dam is one of a number of surface
stockpiles/dumps which the company is evaluating to determine if
they can provide feed for the existing 350ktpa CIL plant.
The cost of
reclaiming these stockpiles will be less than that of mining new ore
making them potentially viable sources of millfeed.
The option of
blending tailings material with oxide ore is also being assessed as part
of the optimisation of the mining schedule.
Note that the high grade
portion of the Old Konongo Tailings Dam resource could provide
sufficient material to run the CIL plant for the first year of operation.
Preliminary metallurgical testwork indicates that recoveries of over
60% are achievable from this material, with recoveries as high as 80%
being achieved.
Further work is underway to confirm these results.
The total resource for the project is now 19.6 million tonnes at a
grade of 2.02g/t gold for 1.27 million ounces of contained gold and
is classified as follows:
Class Tonnes Grade (g/t) Ounces Au
Indicated 8,804,500 2.01 568,235
Inferred 10,814,000 2.03 704,395
Total 19,618,500 2.02 1,272,630
Details of the resource contained in individual deposits are given in
Table 1.
The Company reminds investors that the second tranche of
shares to Mwana Africa PLC is only required after delineation of 1
million ounces in the Measured and Indicated categories.
The Company is entering an important phase in the development of
the Konongo Gold Project with the mining study and plant assessment
nearing completion.
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.
JORC Resources of approximately 1.27 million ounces.
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 programmes progressing well, with high grade
results received from drilling.
Onsite CIL plant available and serviceable at a fraction of the
cost of purchasing a new/second hand plant.
Lead time
envisaged to be 6 - 12 months.
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 Mineral Resources is based on information
compiled by Mr Peter Ball who a Member of the Australian Institute of Mining and
Metallurgy and the Manager of Data Geo.
Mr Ball 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 Ball consents to the inclusion in this release of matters relating to Mineral Resources in
the form and context in which they appear based on the information presented to him.
The information in this release which relates to Exploration Results is based on information
compiled by Mr Bill Oliver.
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 in this release of the matters relating to Exploration Results in the form and context
in which it appears based on the information presented to him.
Figure 1.
Plan showing results from aircore drilling at the Konongo tailings dam
HIGH
GRADE
AREAS
Table 1.
Resources contained within the Konongo Gold Project.
Re-estimated resources highlighted in bold.
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 3,267,000 3.08 323,605 1,739,000 2.37 132,695 5,006,000 2.83 456,300
Asieye 1,500,000 0.80 38,580 1,500,000 0.80 38,580
Kwakawkaw 344,000 4.31 47,675 344,000 4.31 47,675
Nyabo East 540,000 1.03 17,940 540,000 1.03 17,940
Patuo 128,000 1.43 5,905 445,000 1.44 20,660 573,000 1.44 26,565
Kyereben West 124,000 3.10 12,360 124,000 3.10 12,360
Aserewa 324,000 2.42 25,130 136,000 4.66 20,355 460,000 3.10 45,485
Atunsu 99,000 2.01 6,415 659,500 2.61 55,435 758,500 2.54 61,850
Apan 39,000 2.03 2,565 526,000 2.22 37,620 565,000 2.21 40,185
Leopard Shaft 95,000 7.55 23070 95,000 7.55 23,070
Boabedroo 192,500 2.63 16,295 2,184,500 2.58 180,900 2,377,000 2.58 197,195
Akyenase Central 58,000 4.00 7,460 96,000 8.80 27,160 154,000 6.99 34,620
Santreso West 3,520,000 1.20 135,810 810,000 1.25 32,555 4,330,000 1.21 168,365
Santreso South 340,000 1.16 12,680 340,000 1.16 12,680
Santreso East 700,000 1.27 28,610 700,000 1.27 28,610
Old Tailings Dam 1,177,000 1.19 45,050 575,000 0.87 16,100 1,752,000 1.09 61,150
Total 0 0 0 8,804,500 2.01 568,235 10,814,000 2.03 704,395 19,618,500 2.02 1,272,630
The Mineral Resources presented in this table for the Obenemase, Boabedroo, Aserewa, Atunsu, Apan and Patuo Deposits, and the Old Konongo Tailings Dam, is based on information compiled by Mr Peter Ball who is a Member of the
Australian Institute of Mining and Metallurgy and is the Manager of Data Geo.
Mr Ball 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 Ball consents to the inclusion of this tablein the
report in the form and context in which it appears based on the information presented to him.
The Mineral Resources for the Obenemase, Boabedroo, Aserewa, Atunsu, Apan and Patuo Deposits were derived from solid models of mineralised zones defined by geology and Au grade.
Au grade was estimated into block models
created from these zones using Inverse Distance2.
Tonnage was assigned by weathering condition (oxide, transition, fresh) using default SG values generated from historical drill core measurements.
The Mineral Resources are
classified according to geological continuity, grade continuity and geostatistical parameters relating to sample density.
The Mineral Resource is reported below the recorded extents of open cut mining at a 1.0g/t cutoff for fresh rock
material and a 0.5g/t cutoff for oxide & transition material.
Material recorded as being mined by underground methods has also been removed from the Mineral Resource.
Other Mineral Resources presented in this table have 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.
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 a 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.
