signature metals aggressive explorationprogram, page-2

nice post nectar38,

Bill has stated on many occasions that they want to "maximise shareholder value" and while a cap raising doesn't seem to fit into that equation in the short term there is little doubt by the $7m exploration budget that they intend to go hard with the drilling. This coupled with the provision they have made to expand capacity of the plant should set SBL up nicely.

I remember reading a report on SBL and why it's EV was so low compared to other Ashanti Belt explorers was the fact that markets see better value in companies that have projected more aggressive exploration as this increases the chance of SP appreciation if they can sure up their resource.

I spoke to a CEO of an iron ore coy on drilling costs back in 2009, RC drilling was around $100 per metre (in Australia, not sure if comparable to Ghana) so looking at provision for 70,000 metres of drilling. Not sure of the AC drilling costs that SBL used at Konongo. Diamond drilling around $400 per metre so a lot more expensive.

Of course they have to get good results from the drilling too but the Ashanti Belt has proven pedigree so my confidence is quite high.

Interesting to see how the market factors in this more aggressive approach by Bill.

cheers