signature metals shares rise on gold zone ext

Tuesday, July 27, 2010

Signature Metals shares rise on gold zone extension at Boabedroo South

Signature Metals (ASX: SBL) has reported "excellent" initial drilling results from the Boabedroo South Deposit at the Konongo Gold Project, located in the world class Ashanti Gold Belt of Ghana.

Significant intercepts include:

- 21 metres at 2.66 g/t gold from 47 metres including 5 metres at 3.16g/t gold and 2 metres at 6.72g/t gold;
- 3 metres at 6.15 g/t gold from 77 metres including 1 metre at 17.0g/t gold; and
- 9 metres at 2.18 g/t gold from 83 metres including 1 metre at 9.14g/t gold.

Bill Oliver, managing director, said the results from this recent drilling programme confirm the thickness and tenor of mineralisation present in this area as well as successfully extending high grade zones within the deposit along strike and at depth.

In total 38 holes were drilled for 4,008 metres. Results are still pending from 18 drill holes (corresponding to 2,040 metres of drilling).

Once all results are received the company will move to update the resource estimate for the Boabedroo Deposit (which currently stands at 2.38 million tonnes at 2.58 g/t gold for over 197,000 contained ounces of gold in the Indicated and Inferred category), following which the pit design for this deposit will be reoptimised.

The Boabedroo South Deposit is likely to be one of the first deposits mined when mining and processing re-commences at Konongo.

Signature Metals is aiming to develop the Konongo Gold Project into a +100,000 ounce per annum gold producer.


http://www.proactiveinvestors.com.au/companies/news/8924/signature-metals-shares-rise-on-gold-zone-extension-at-boabedroo-south--8924.html