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Company Strategy and Overview
Signature Metals is working towards assembling a package of quality resource projects in Africa. This strategy is bearing success with the Company recently acquiring an option to purchase 70% of the multi million ounce Konongo Gold Project (with ability to move to 90%), located in the world class Ashanti Gold Belt of Ghana, as well as Signature Metals controlling large exploration licences and applications in Kenya and Uganda that are prospective for iron ore, nickel and copper.
Ghana
In May 2009, Signature Metals Limited announced that it had acquired an option to purchase 70% of the multi million ounce Konongo Gold Project, located in the world class Ashanti Gold Belt of Ghana.
Signature Metals immediately commenced review and re-estimation of the existing resources, including carrying out an evaluation of mining these resources at the modern day gold prices. In addition the Company carried out a review of previous exploration to generate exploration targets with drilling commencing in September 2009. Results from drilling have been excellent with several high grade intersections both near surface and at depth below previous mining.
The Konongo Gold Project is situated in the Ashanti Gold Belt, which hosts the world class Obuasi Gold Deposit, operated by Anglogold Ashanti Limited, and the Prestea/Bogosu deposits which are currently being mined by Golden Star Resources Limited. Obuasi is located approximately 50 kilometres from the Konongo Project and contains resources of 33 million ounces of gold and past production exceeding 22 million ounces of gold. The Prestea/Bogosu deposits have current resources of six million ounces of gold and have historically produced approximately eleven million ounces of gold. Both the Obuasi and Prestea/Bogosu deposits are similar in terms of geological setting and mineralisation styles to the deposits found within the Konongo Gold Project.
Gold was discovered on the Konongo Gold Project at the Obenemase Deposit in 1903. Between discovery and 1997 approximately 4.4 million tonnes of ore was treated from the project for approximately 1.6 million ounces of gold at a recovered grade of 11.8g/t Au. Most of this production was carried out between 1932 and 1984, with underground mining to a depth of 844 metres from five shafts. A number of small, shallow oxide deposits were mined between 1988 and 1997. Exploration since this date has included an airborne geophysical survey and over 30,000 metres of RC and diamond core drilling, as well as 7,000 meters of trenching.
Kenya
The Company has applied for a number of licences in Kenya totalling close to 2,500km2. These licences are highly prospective for iron ore and nickel. The Company is working towards the granting of these licences and will immediately commence exploration activities at such time.
Uganda
The company is in the process of compiling data on its 100% owned Karamoja Project (920km2) located in the north east of Uganda near the border with Kenya. The district has numerous ultramafic intrusions and historical data relating to nickel and copper mineralisation in the area suggest that Karamoja has considerable potential. The Company also owns leases in the Arua-Nebbi area in NW Uganda which may host greenstone formations similar to the adjacent Kilo Moto Gold Belt in the DRC. Only limited geological investigations have been carried out in this area.
