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Additional Information

Market:	ASX
Sector:	General Mining
EPIC:	SBL
Latest Price:	0.02 (0.00%)
52-week High:	0.04
52-week Low:	0.01
Market Cap:	37.28M

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Signature Metals

Signature Metals (ASX:SBL) is a minerals exploration company. Its flagship asset is the Konongo Gold Project in the Ashanti Gold Belt of Ghana. The company also controls large exploration licences and applications in Kenya and Uganda that are prospective for iron ore, nickel and copper.

Signature Metals completes acquisition of Konongo Gold Project

Monday, December 21, 2009

Minerals explorer Signature Metals (ASX: SBL) has exercised an option to acquire 70% of the Konongo Gold Project from Mwana Africa.

The move gives Signature Metals a majority holding in a million ounce resource in the world class Ashanti Gold Belt of Ghana.

The property has outstanding exploration potential as well as the opportunity to rapidly move into production through a CIL plant and associated infrastructure on site.

Managing director Bill Oliver said the decision to acquire the project followed receipt of final approvals from the Minister of Lands, Forestry and Mines in Ghana as well as from the Ghanaian Minerals Commission.

Encouraging initial results from the Company’s mining study into the Konongo Gold Project, coupled with outstanding drill results, have led all parties to the agreement to agree that the best way to develop the project is under the ownership of Signature Metals.

The Company will issue 50 million shares to Alpina Group (a wholly owned subsidiary of Mwana Africa PLC) to settle the transaction. Approval for the issue was granted by shareholders at last month’s AGM.

Under the terms of the agreement a further payment of 50 million shares or A$1 million cash will be made once the project achieves 1 million ounces in Measured and Indicated JORC resources. A final payment of A$3 million in cash or shares will be made following the production of 100,000 ounces of gold from the project.

The project currently contains JORC Code compliant resources of 15 million tonnes at 2.0g/t gold in the Indicated and Inferred categories, representing over 975,000 ounces of contained gold.

As previously announced initial drilling results include 14 metres at 5.44g/t gold from 129 metres, including 5 metres at 9.39g/t gold from 129 meters, including 4 meters of stope material from 134 metres; 3 meters at 10.4g/t gold from 159 metres, 10 metres at 5.70g/t gold from 173 metres, including 4 metres at 10.4g/t gold from 174 meters and 4 meters at 10.5g/t gold from 127 metres.

Diamond drilling continues on site and an RC rig has been contracted to commence in January.

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