Signature Metals (ASX: SBL) has commenced drilling at its Konongo Gold Project, located in the world class Ashanti Gold Belt of Ghana.
Bill Oliver managing director of Signature Metals said a drill rig has been mobilised for a 4,000 metre diamond core programme.
Drilling will continue until the end of the year.
The Konongo gold mine had past production of 1.6 million ounces of gold at a head grade of 11.8g/t gold.
The company is reviewing the current resource model of almost one million ounces of gold, in parallel with the drilling program.
Oliver said there was a conceptual exploration target of 1.5 - 2.5 million ounces of gold at a resource grade of 2-4g/t gold, from the various deposits at Konongo.
Signature Metals' project resides in a world class gold producing region, the Ashanti Gold Belt of Ghana.
Where Newmont has its 8.5 million ounce Akyem gold project, and Anglo Gold Ashanti its 55 million ounce Obuasi Mine. Ghana has long been a stable West African country with some of the world's largest gold mines, putting
Signature Metals (ASX: SBL) has released its Quarterly Report for the period ending 30 September 2009.
HIGHLIGHTS:
* Drilling commenced during the September quarter with 3 diamond core holes completed for 1,481 metres
* High grade results from drilling at the Obenemase Deposit including:
- 14 metres at 9.01g/t gold from 46 metres (09KGDR009)
- 14 metres at 5.44g/t gold from 129 metres (09KGDR001)
- 10 metres at 5.70g/t gold from 173 metres (09KGDR003)
- 4 metres at 10.5g/t gold from 127 metres (09KGDR003)
- 3 metres at 10.4g/t gold from 159 metres (09KGDR001)
* Appointed a Ghana-based Project Manager to assess the 350ktpa CIL gold treatment plant and associated on-site infrastructure
* Fast tracking a strategy to bring the Konongo Gold Project rapidly into production, with potential for early cash flow from reclamation of stockpiles.
* Reviewing existing JORC Resources of approximately one million ounces.
* Past production from Konongo Gold Project of 1.6 million ounces at a head grade of 11.8g/t gold.
* Exploration Target of 1.5 - 2.5 million ounces of gold at a resource grade of 2-4g/t gold.
* Focussed on developing the Konongo Gold Project into a +100,000 ounce per annum gold producer.
To view the Quarterly Activities Report, click here:
signaturemetals.com.au/pdfs/...owReportSep09Quarter26Oct09.pdf
Signature Metals in good company at Konongo.
Oliver said the company will begin drilling at the Obenemase deposit at Konongo. Defining the high grade shoots within the deposit could well result in an increase in the resource grade, more like the historical head grade, intersected in previous drilling.
To cap it off, there is an onsite conventional Carbon in Leach (CIL) plant and tailings dam available and serviceable, far cheaper than purchasing a new/second hand plant. It could be readied with a 6-12 months lead-time.
The aim is to develop the Konongo Gold Project into a +100,000 ounce per annum high grade gold producer in the Ashanti Gold Belt of Ghana. While early days, the prospectivity of the region for hosting large gold deposits is good.
