comments on konongo, page-9

An interesting new play is Signature Metals which has just taken an option to buy 70 per cent of the Konongo project in Ghana, which already has an indicated and inferred resource totalling 978,000 ounces of gold. SBL is aiming at becoming a 100,000 ounce-a-year producer (that’s a very handy $93 million a year at today’s price).

SBL was originally involved, as Signature Brands, in the wine and clothing sectors and then moved into acquiring a chain of juice bars. Not a good move, the company being suspended in 2006.

Now it is a resources company with Konongo as well as iron ore, nickel and copper aspirations in Kenya and Uganda.

The people behind SBL's new thrust are chairman Matthew Wood (who has extensive experience in the resources sector), exploration director Bill Oliver (whose CV includes time with iron ore in the Pilbara) and Stuart Murray, CEO of Aquarius Platinum.

There is only one cloud on the horizon. There have been recent reports that Ghana is considering raising the tax levied on gold produced in the country. At present, companies pay a royalty of 3 per cent, and there is talk of lifting that to 5 per cent. But that should not deter those with high grade deposits.