Signature Resources Announces Strategic Review Results
Signature Resources Announces Strategic
Review Results
Toronto, Ontario--(Newsfile Corp. - June 28, 2023) - Signature Resources Ltd. (TSXV: SGU) (OTCQB:
SGGTF) (FSE: 3S30) ("Signature" or the "Company") announces it has completed the previously
announced strategic review process and geologic model review (the "Reviews").
[
See PR dated
November 15, 2022
].
As part of the Reviews and recent Corporate Restructuring, the Company has:
Engaged Watts, Griffis, and McQuat Limited (WGM) to complete a review of its geologic modeling
and data and provide recommendations that would lead to an optimum outcome for resource
estimation.
Completed a corporate restructuring that has resulted in a significant reduction of monthly
expenditures.
This should ensure that all future capital raised will be used prudently to allow for the
maximum amount possible to be spent on the resource.
Commenced designing a new drill program with the assistance of WGM and Wood Canada that
should address gaps in the database and target the blocks within the historic drilling with the
highest potential to contribute resources.
Highlights of the Reviews include:
Encouragingly, the deposit remains open in all directions and Management continues to believe
that the mineralized envelope should grow as a function of drilling.
However, the Company has determined that the effort to develop an initial 43-101 resource
estimate was premature and hampered by a number of deficiencies in the historical database.
Significantly there were gaps in the sampling programs dating from the 1980s and areas drilled
during the 1940s could not be brought to modern standards. A forest fire during 2021 resulted in
the destruction of a number of core racks and significantly degraded our ability to fully rectify these
deficiencies through resampling and relogging. In light of this, Management has decided to delay
the planned resource estimate until a new drilling program is designed to bring the high-grade
mineralization discovered in the 1940s into the resource and the remaining deficiencies in the
database can be further addressed with new drilling and sampling.
The cost of a new follow-up drill program should be economical as the Company has
approximately $4 million in drill equipment and consumables at site.
As part of our effort to streamline costs, the Company has reviewed its claim package and has
slightly reduced its holdings by 120 staked claims to 1,300 covering over 24,000 hectares.
The
remaining claims package remains in good standing.
"The Reviews comprised a very important step for Signature. They have confirmed that we
are on the right path to move forward the Lingman Lake Project.
The work done by WGM
has verified previous work, and has identified several opportunities to improve the
database with additional drilling.
While we have made the decision to defer the completion
of the initial 43-101 resource estimate, we have greatly benefitted from the baseline
preparation work. This in turn puts Signature on a stronger foundation to deliver the best
possible outcome upon completion of the additional drill work.
We continue to believe
there are significant prospects for resource expansion at depth and along strike on the
patented claims or regionally on the 1,300 staked claims encompassing over 24,000
hectares (covering 90% of the 32km greenstone belt)."
-
J. Dan Denbow, CFA – Interim CEO and Director
Geology Review
Earlier this year the Company engaged WGM to complete a review of its existing database, geologic
model and to provide recommendations as to the best path forward to improve our knowledge of the
historic Lingman Lake Project and the regional land holdings.
As part of the process, WGM
representatives conducted a site visit to review the project and core stored at site and make any surface
observations possible given lingering snowpack.
Upon completion of the site visit, the WGM team
developed a geological model utilizing the drilling from 2016-2021 that has the highest data confidence.
WGM developed a geological model that confirmed our understanding that the locus of mineralization in
the system is adjacent to late stage felsic intrusions into the mafic volcanics. (Figure 1).
As phase 2 of
this modeling work progresses, the Company will work with WGM to bring the drilling completed in the
'80's which has deficiencies identified during the review into this model which will help define the areas
to target with the drill campaign to strengthen the model.
Figure 1 – WGM 3D Geological Model
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8296/171722_cd4474c5d495ea1d_001full.jpg
Initial 43-101 Compliant Resource Estimate
The Company has made substantial progress towards completing an initial 43-101 compliant resource
estimate but, in consultation with its external consultants, Signature has made the decision to delay the
completion of this work until it can complete additional exploration work that will fill in data gaps. It was
determined that the historical drilling completed in the 1940's that reported significant high-grade
intercepts (~5,000 metres) contained substantial information but it would not meet the standards
necessary to be included in the resource estimate as the core could not be re-assayed and there was
little modern drilling within these areas that could support the historic results for estimation purposes. The
geologic review, paired with the geophysics work, has identified several areas within the deposit that
additional drilling would greatly enhance the understanding of the mineralization (Figure 2).
Figure 2 – Geophysics Overlay of WGM Model
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8296/171722_cd4474c5d495ea1d_002full.jpg
Drilling program
The follow-up drill program (the "Program") will target the high-grade blocks identified in the 1940's
drilling data that should yield further insights on the controls and distribution of high-grade mineralization
within the deposit.
The Program will have three priorities to advance the Lingman Lake project.
First, to
drill targeting blocks within the model containing high-grade mineralization identified with the 1940's
drilling.
Second, to drill some areas identified with the 1980's drilling that would benefit from additions to
the current model and third, identifying gaps in the mineralization potentially due to lack of drilling activity.
Additionally, drilling has been relatively constrained to the upper 200m of the zones hosting the Lingman
Lake mineralization. The Company recognizes the potential to extend the mineralization to depth and
along strike. Importantly, the geophysical data and geology points to the potential for additional parallel
zones to the North and South of the area drilled to date.
The timing of the completion of the Program will
be dependent upon several factors including the availability of adequate funding.
Large Regional Opportunity
Considerable scope remains for future discoveries within the Company's land holdings. The Company
has identified several regional geological targets (Figure 3) based on the interpretation of the regional
airborne MAG-VLF surveys late 2021 across the 30 km greenstone belt largely controlled by Signature
(
see release dated 30 November 2021
). Ranking of the regional targets can be further improved by
advancing our understanding of the local controls of mineralization through the completion of the
geological modelling done in support of the resource estimation.
In addition to the drilling program, it is
anticipated the Company will undertake a regional field program to help prioritize these regional targets
that have been identified.
Figure 3 – Regional Targets
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8296/171722_cd4474c5d495ea1d_003full.jpg
During the strategic review period the Company also undertook a review of its mining claims to assure
they held potential for future work on a cost-effective basis.
We have slightly reduced our staked claims
by 120 to 1,300 covering over 24,000 hectares (Figure 4).
This package covers approximately 90% of
the 32km wide greenstone belt in the proximity of Lingman Lake.
Figure 4 – Regional Land Package
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8296/171722_cd4474c5d495ea1d_004full.jpg
To further reduce expenditures, the Company will only contract with one external consultant, WGM, during
this drilling program.
Wood has provided very valuable input during this process and they have identified
areas where we can improve both the understanding of the mineralization and the resource estimating
process, when we are ready to move it forward.
We thank them for their efforts and look forward to
working with them when we are ready to complete a compliant resource estimate.
Option Grant
On March 8, 2023 the Company announced it reserved for granting 1,000,000 incentive stock options to
be granted to senior management of the Company.
On June 26
th
, the Board of Directors granted stock
options to acquire 1,000,000 common shares of the Company at an exercise price of $0.05 for a period
of five years from the grant date. The options vest 25% immediately and 25% annually thereafter
About Signature
The Lingman Lake gold property (the "Property") consists of 1,300 staked claims, four freehold fully
patented claims and 14 mineral rights patented claims totaling approximately 24,761 hectares. The
Property includes what has historically been referred to as the Lingman Lake Gold Mine, an underground
substructure consisting of a 126.5-metre shaft, and 3-levels at 46-metres, 84-metres and 122-metres
depths. There has been over 28,000 metres of historical drilling done on the Property.
To find out more about Signature, visit our website at
www.signatureresources.ca
, or contact:
Dan Denbow
Interim CEO
416-840-6345
Cautionary Notes
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this news release.
This news release contains forward-looking statements which are not statements of historical fact.
Forward-looking statements include estimates and statements that describe the Company's future
plans, objectives or goals, including words to the effect that the Company or management expects a
stated condition or result to occur. Forward-looking statements may be identified by such terms as
"believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since
forward-looking statements are based on assumptions and address future events and conditions, by
their very nature they involve inherent risks and uncertainties. Although these statements are based
on information currently available to the Company, the Company provides no assurance that actual
results will meet management's expectations. Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results, performance, prospects and
opportunities to differ materially from those expressed or implied by such forward-looking information.
Forward-looking information in this news release includes, but is not limited to, the Company's
objectives, goals or future plans, statements, exploration results, potential mineralization, the
estimation of mineral resources, exploration and mine development plans, timing of the
commencement of operations and estimates of market conditions and risks associated with infectious
diseases, including COVID-19. Factors that could cause actual results to differ materially from such
forward-looking information include, but are not limited to changes in general economic and financial
market conditions, failure to identify mineral resources, failure to convert estimated mineral resources
to reserves, the inability to complete a feasibility study which recommends a production decision, the
preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, political risks, inability to fulfill the duty to
accommodate First Nations and other indigenous peoples, uncertainties relating to the availability
and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange
rates, fluctuations in commodity prices, delays in the development of projects, capital and operating
costs varying significantly from estimates and the other risks involved in the mineral exploration and
development industry, and those risks set out in the Company's public documents filed on SEDAR.
Although the Company believes that the assumptions and factors used in preparing the forward-
looking information in this news release are reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news release, and no assurance can be given
that such events will occur in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by law.
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