MARCH 2010 QUARTERLY REPORT

Transcription

1 MARCH 2010 QUARTERLY REPORT ASX Release HIGHLIGHTS Friday 30 April 2010 SIGNATURE METALS LIMITED Level 1 / 33 Richardson Street WEST PERTH Australia Tel: Fax: Contact: Bill Oliver (Managing Director) info@signaturemetals.com.au Directors / Officers: Matthew Wood Bill Oliver Timothy Flavel Stuart Murray Scott Funston Issued Capital: 935 million shares ASX Symbol: SBL Media: Fortbridge Bill Kemmery Resource update completed with resources at the Konongo Gold Project now standing at 19.6 million tonnes at 2.02g/t for 1.27 million contained ounces of gold: Class Tonnes Grade (g/t) Ounces Au Indicated 8,804, ,235 Inferred 10,814, ,395 Total 19,618, ,272,630 Includes new resource estimate for the Old Konongo Tailings Dam of 1.75 million tonnes at a grade of 1.09g/t gold (Indicated and Inferred categories, detailed below) Drilling continued during the quarter with three diamond core drill holes completed for 883 metres and 83 RC holes completed for 7,488 metres. Further high grade results from diamond drilling of the Obenemase Deposit including: 4 metres at 11.1g/t gold from 331 metres (10KGDR010) 1 metres at 24.3g/t gold from 250 metres (10KGDR010) 2 metres at 5.46g/t gold from 70 metres (10KGDR010) 2 metres at 8.66g/t gold from 152 metres (10KGDR011) Excellent results announced from RC drilling at the Obenemase D Lode including: 35 metres at 5.23 g/t gold from 98 metres (KGRC0010) 7 metres at 5.30 g/t gold from 133 metres (KGRC0004) 1 metre at 34.2g/t gold from 62 metres (KGRC0002) 11 metres at 2.05g/t gold from 15 metres (KGRC0011) 8 metres at 2.33g/t gold from 87 metres (KGRC0014) 2 metres at 9.72 g/t gold from 141 metres (KGRC0007) RC drilling continues on site. First phase of diamond core drill programme completed with eleven holes drilled for 3672 metres. 79 of 151 rock chip samples from stockpiles in plant area assay over 3g/t gold.

2 KONONGO GOLD PROJECT, GHANA The Konongo Gold Project contains 16 known gold deposits along 12 kilometres of strike of the world class Ashanti Gold Belt in Ghana (Figures 1 and 2). The project currently contains over 1.27 million ounces of gold in JORC compliant resources (19.6 million tonnes at 2.02g/t gold in the Indicated and Inferred categories; details in Table 3). Considerable infrastructure remains on site including a 350ktpa CIL processing plant as well as access to power, water and sealed roads. DRILLING RC drilling continues on site with a total of 83 drill holes completed for 7,488 metres. Drilling has been completed on the Obenemase D lode, which is located to the west of the Obenemase Deposit (Figure 3). No mining has been carried out on the D Lode. Drilling at the Obenemase D lode has returned 15 metres at 9.12 g/t gold from 46 metres, 7 metres at 5.30g/t gold from 133 metres in KGRC0003, 1 metre at 34.2 g/t gold from 62 metres in KGRC0002 and 35 metres at 5.23g/t gold from 93 metres including 3 metres at 10.9 g/t gold from 100 metres in drill hole KGRC0010. Additional results returned from this area included 8 metres at 2.33g/t gold in KGRC0007, 2 metres at 9.72 g/t gold in KGRC0014 and 11 metres at 2.05g/t from 15 metres in KGRC0011. Results received to date are tabulated in Table 1 and shown in plan on Figure 4. An initial phase of diamond core drilling was completed this quarter with three holes drilled for 883 metres. A total of 3,762 metres has now been drilled for eleven holes. All results are shown in Table 2 and recent results include: 4 metres at 11.1g/t gold from 331 metres (10KGDR010) 1 metres at 24.3g/t gold from 250 metres (10KGDR010) 2 metres at 5.46g/t gold from 70 metres (10KGDR010) 2 metres at 8.66g/t gold from 152 metres (10KGDR011) MINING STUDY During the quarter an update to the JORC resources contained within the Konongo Gold Project was completed. Resources in the Indicated category have been increased by 82% to almost 570,000 ounces. The total resource for the project is now 19.6 million tonnes at 2.02g/t gold for 1.27 million ounces of contained gold and is classified as follows:

3 Class Tonnes Grade (g/t) Ounces Au Indicated 8,804, ,235 Inferred 10,814, ,395 Total 19,618, ,272,630 Resources for the Apan, Atunsu, Aserewa, Boabedroo and Obenemase Deposits have been re-estimated by an independent consultant following a significant amount of data compilation and validation. New ore body interpretations were modelled in 3D for each deposit allowing creation of new resource / block models. The resources for each of these deposits, including their classification into Indicated and Inferred categories, is detailed in Table 3. The resource update also includes the resource for the Old Konongo Tailings Dam. The Company is finalising its study into the re commencement of mining and processing at the Konongo Gold Project and has recently lodged a submission to the Minerals Commission of Ghana in support of an extension to its mining license. Environmental studies are well underway with environmental consultants spending a significant amount of time during the quarter on site. The Environmental Impact Statement remains on track to be submitted to the Ghanaian EPA in the second half of this year. PLANT During the quarter the Company completed its evaluation on the current state of the 350ktpa CIL plant which remains on site at the Konongo Gold Project. The Board is currently considering the proposed budget and schedule for the refurbishment. Sampling of stockpiles in the immediate plant area has yielded very encouraging results with 79 of 151 samples assaying over 3g/t gold. These samples are shown on Figure 5 and all results are listed in Table 4. The Company is currently quantifying the volume and tonnage of each of these stockpiles and will carry out metallurgical test work on representative samples taken from the stockpiles. CORPORATE The Company is very pleased to announce the appointment of Warren Thorne as Exploration Manager. Mr Thorne has significant field experience and the ability to manage all stages in the development of resource projects from exploration through to mine geology. His expertise in structural geology will be key in generating targets both at depth and outside the current mine area. He will be resident in Ghana.

4 Bill Oliver Managing Director SIGNATURE METALS LIMITED This release contains certain forward-looking statements. These forward-looking statements are based on management s expectation and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, some of which are outside the control of Signature Metals Limited, that could cause actual results to differ materially from such statements. *The Exploration Target presented in this release is conceptual in nature and relates to defined exploration targets/areas where mineralisation has been identified but resources have not been delineated. The quantity and grade of the exploration target is based on past production records and comparison with currently defined Mineral Resources contained within the project. There has been insufficient exploration to define a Mineral Resource in these areas (aside from the resources presented in the attached table) and it is uncertain if further exploration will result in the determination of a Mineral Resource different to the JORC-Code compliant resource presented earlier. Signature Metals has an exploration strategy to systematically test these areas to determine if Mineral Resources are present. The information in this release which relates to Mineral Resources has been compiled and reviewed by Mr Bill Oliver from publically stated JORC-compliant information originally prepared in 2005 by RSG Global for Mwana Africa s AIM-listing document along with a 2006 resource update for the Obenemase Deposit and a 2008 resource update for the Boabedroo deposit. This information, in the opinion of Mr Oliver, complies with the reporting standards of the 2004 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Oliver is a Member of the Australian Institute of Mining and Metallurgy and the Australian Institue of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Oliver is a Director of Signature Metals and consents to the inclusion of this table in the form and context in which it appears based on the information presented to him.

5 Figure 1. Project Location

6 Figure 2. Deposits within the Konongo Gold Project showing development area.

7 Figure 3. Plan of the Obenemase Deposit showing drilling results and infrastructure. Boxed area is area of RC drilling.

8 Figure 4. Plan showing RC drilling and results announced to date

9 Figure 5. Plan showing stockpile samples in plant area.

10 Table 1. Significant RC Intersections from Obenemase D Lode. All intersections > 1m with grade > 1g/t (including up to 2 metres internal waste if present) Hole Id Project Grid Intercept Total Dip/ Easting Northing Depth Azimuth From To Interval Grade Au g/t KGRC / 125 No Significant Assays KGRC / KGRC / including including including KGRC / 125 No Significant Assays KGRC / KGRC / 125 No Significant Assays KGRC / KGRC / 125 No Significant Assays KGRC / 125 No Significant Assays KGRC / including KGRC / including KGRC / 125 No Significant Assays, hole abandoned KGRC / 125 No Significant Assays KGRC /

11 Table 2. Significant Intersections from Diamond Drilling at the Obenemase Deposit All intersections > 1m with grade > 1g/t (including up to 2 metres internal waste if present) Hole Id Project Grid Intercept Total Dip/ Easting Northing Depth Azimuth From To Interval Grade Au g/t 09KGDR / including including stope material KGDR / 120 No Significant Intersection 09KGDR / , including KGDR / 125 No Significant Intersection 09KGDR / including including KGDR / KGDR / including including including * (Mineralisation at EOH) 09KGDR / including

12 09KGDR / including including including KGDR / including KGDR / including Hole abandoned due to dropped bit

13 Table 3. Resources contained within the Konongo Gold Project. Re-estimated resources highlighted in bold. Deposit Measured Indicated Inferred Total Tonnes Grade Contained Grade Contained Grade Contained Grade Contained Tonnes Tonnes Tonnes (g/t) Ounces (g/t) Ounces (g/t) Ounces (g/t) Ounces Obenemase 3,267, ,605 1,739, ,695 5,006, ,300 Asieye 1,500, ,580 1,500, ,580 Kwakawkaw 344, , , ,675 Nyabo East 540, , , ,940 Patuo 128, , , , , ,565 Kyereben West 124, , , ,360 Aserewa 324, , , , , ,485 Atunsu 99, , , , , ,850 Apan 39, , , , , ,185 Leopard Shaft 95, , ,070 Boabedroo 192, ,295 2,184, ,900 2,377, ,195 Akyenase Central 58, ,460 96, , , ,620 Santreso West 3,520, , , ,555 4,330, ,365 Santreso South 340, , , ,680 Santreso East 700, , , ,610 Old Tailings Dam 1,177, , , ,100 1,752, ,150 Total ,804, ,235 10,814, ,395 19,618, ,272,630 The Mineral Resources presented in this table for the Obenemase, Boabedroo, Aserewa, Atunsu, Apan and Patuo Deposits, and the Old Konongo Tailings Dam, is based on information compiled by Mr Peter Ball who is a Member of the Australian Institute of Mining and Metallurgy and is the Manager of Data Geo. Mr Ball has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Ball consents to the inclusion of this tablein the report in the form and context in which it appears based on the information presented to him. The Mineral Resources for the Obenemase, Boabedroo, Aserewa, Atunsu, Apan and Patuo Deposits were derived from solid models of mineralised zones defined by geology and Au grade. Au grade was estimated into block models created from these zones using Inverse Distance 2. Tonnage was assigned by weathering condition (oxide, transition, fresh) using default SG values generated from historical drill core measurements. The Mineral Resources are classified according to geological continuity, grade continuity and geostatistical parameters relating to sample density. The Mineral Resource is reported below the recorded extents of open cut mining at a 1.0g/t cutoff for fresh rock material and a 0.5g/t cutoff for oxide & transition material. Material recorded as being mined by underground methods has also been removed from the Mineral Resource. Other Mineral Resources presented in this table have been compiled and reviewed by Mr Bill Oliver from publically stated JORC-compliant information originally prepared in 2005 by RSG Global for Mwana Africa s AIM-listing document. This information, in the opinion of Mr Oliver, complies with the reporting standards of the 2004 JORC Code. Mr Oliver is a Member of the Australian Institute of Mining and Metallurgy and the Australlian Institue of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Oliver is a Director of Signature Metals and consents to the inclusion of this table in the form and context in which it appears based on the information presented to him.

14 Table 4. Stockpile and Surface Sampling from the Konongo Gold Project Sample ID Description Local East Local North Au (g/t) Sample ID Description Local East Local North Au (g/t) PPR001 ROM pad sample PPR061 ROM pad sample PPR002 ROM pad sample PPR062 ROM pad sample PPR003 ROM pad sample PPR063 ROM pad sample PPR004 ROM pad sample PPR064 boulder sampling PPR005 Laterite PPR065 boulder sampling PPR006 Laterite PPR066 boulder sampling PPR007 masked laterite PPR067 boulder sampling PPR008 ROM pad sample PPR068 boulder sampling PPR009 ROM pad sample PPR069 boulder sampling PPR010 ROM pad sample PPR070 boulder sampling PPR011 ROM pad sample PPR071 boulder sampling PPR012 ROM pad sample PPR072 boulder sampling PPR013 Laterite PPR073 boulder sampling PPR014 Stockpile PPR074 boulder sampling PPR015 Stockpile PPR075 boulder sampling PPR016 Scats PPR076 boulder sampling PPR017 ROM pad sample PPR077 boulder sampling PPR018 ROM pad sample PPR078 boulder sampling PPR019 ROM pad sample PPR079 boulder sampling PPR020 ROM pad sample PPR080 boulder sampling PPR021 ROM pad sample PPR081 boulder sampling PPR022 ROM pad sample PPR082 boulder sampling PPR023 ROM pad sample PPR083 boulder sampling PPR024 ROM pad sample PPR084 boulder sampling PPR025 ROM pad sample PPR085 boulder sampling PPR026 ROM pad sample PPR086 boulder sampling PPR027 Scats PPR087 boulder sampling PPR028 ROM pad sample PPR088 boulder sampling PPR029 ROM pad sample PPR089 boulder sampling PPR030 ROM pad sample PPR090 boulder sampling PPR031 ROM pad sample PPR091 boulder sampling PPR032 ROM pad sample PPR092 boulder sampling PPR033 ROM pad sample PPR093 boulder sampling PPR034 ROM pad sample PPR094 boulder sampling PPR035 ROM pad sample PPR095 boulder sampling PPR036 ROM pad sample PPR096 boulder sampling PPR037 ROM pad sample PPR097 boulder sampling PPR038 ROM pad sample PPR098 boulder sampling PPR039 ROM pad sample PPR099 boulder sampling PPR040 ROM pad sample PPR100 boulder sampling PPR041 ROM pad sample PPR101 boulder sampling PPR042 ROM pad sample PPR102 boulder sampling PPR043 ROM pad sample PPR103 boulder sampling PPR044 ROM pad sample PPR104 boulder sampling PPR045 ROM pad sample PPR105 boulder sampling PPR046 ROM pad sample PPR106 boulder sampling PPR047 ROM pad sample PPR107 boulder sampling PPR048 ROM pad sample PPR108 boulder sampling PPR049 ROM pad sample PPR109 boulder sampling PPR050 ROM pad sample PPR110 boulder sampling PPR051 ROM pad sample PPR111 boulder sampling PPR052 ROM pad sample PPR112 boulder sampling PPR053 ROM pad sample PPR113 boulder sampling PPR054 ROM pad sample PPR114 boulder sampling PPR055 ROM pad sample PPR115 boulder sampling PPR056 ROM pad sample PPR116 boulder sampling PPR057 ROM pad sample PPR117 boulder sampling PPR058 ROM pad sample PPR118 boulder sampling PPR059 ROM pad sample PPR119 boulder sampling PPR060 ROM pad sample PPR120 boulder sampling Page 1 of 2

15 Table 4. Stockpile and Surface Sampling from the Konongo Gold Project Sample ID Description Local East Local North Au (g/t) PPR121 boulder sampling PPR122 boulder sampling PPR123 boulder sampling PPR124 boulder sampling PPR125 boulder sampling PPR126 boulder sampling PPR127 boulder sampling PPR128 boulder sampling PPR129 boulder sampling PPR130 boulder sampling PPR131 boulder sampling PPR132 boulder sampling PPR133 boulder sampling PPR134 boulder sampling PPR135 boulder sampling PPR136 boulder sampling PPR137 boulder sampling PPR138 boulder sampling PPR139 boulder sampling PPR140 boulder sampling PPR141 boulder sampling PPR142 boulder sampling PPR143 boulder sampling PPR144 boulder sampling PPR145 boulder sampling PPR146 boulder sampling PPR147 boulder sampling PPR148 boulder sampling PPR149 boulder sampling PPR150 boulder sampling PPR151 boulder sampling Page 2 of 2