BUILDING A SIGNIFICANT GOLD PROJECT IN THE ASHANTI BELT

Transcription

1 BUILDING A SIGNIFICANT GOLD PROJECT IN THE ASHANTI BELT Obuasi Mine (AngloGold Ashanti)

2 COMPANY PROFILE West African gold company operating in the world class Ashanti Gold Belt of Ghana. Konongo Gold Project is 30kms along strike from +50Moz Obuasi deposit, AshantiShear runs through the property. Production Q from 1.27 Moz JORC resource. Plant refurbishment 50% complete, on schedule and budget for December commissioning. Aim to expand to a +100,000 ounce per annum gold producer. Excellent drill results to date, exploration continues on site. Numerous drill ready targets testing repetitions of mineralisation. Experienced management team with trackrecord of success and Experienced management team with track record of success and adding value to projects.

3 TARGETS FOR KONONGO PROJECT Commence production Q utilise existing CIL plant and JORC resources. currentspot gold pricegivessubstantial substantial operating margins. Aggressively explore to unlock the potential of the Konongo Project confirm Exploration Target of million ounces of contained gold 1 target depth/plunge extensions to high grade shoots 1 This Exploration Target is defined at the end of this presentation.

4 The Konongo Gold Project is situated on the world class Ashanti Gold Belt of Ghana. Located 200km NNW of the capital Accra and 50km from regional centre Kumasi. Ghana has a well established and successfulgold mining industry (9 th largest gold producer globally). Several giant deposits have beendiscovered andarebeing are developed/mined in Ghana.

5 ON TRACK TO PRODUCTION 350ktpa CIL plant present on site along with major infrastructure (power, water, haul/service roads, accommodation, communications). Plant being refurbished at a fraction of the cost of a new plant. Low CAPEXfor plant of less than US$5 million. Expansion to 700,000 tonnes per annum being examined. Project Manager resident in Ghana.

6 REFURBISHMENT OF PLANT 50% COMPLETE AREA COMPLETED PENDING PROGRESS MILL Rehabilitation and servicing of drive Final testing, fabrication of new 75% system, fabrication of new discharge chute, preliminary testing access walkways FINE ORE BIN New steel installed, hopper Sandblasting and painting 90% modified and extended CYCLONE ADSORPTION TANKS Replace steel, fabrication of new walkways 35% Repair of tanks Coating and painting 50% LEACHING Fabrication of new walkways, Refit and testing ti of motors, 50% stripping of agitator motors replacement of gratings, new piping ELECTRICAL Refurbishment of all control panels, Replacement of cabling, dials 40% CONVEYORS servicing and testing of motors and motors found to be u/s Replace conveyor belt, rubbers and rollers ELUTION New piping 0% 10%

7 REFURBISHMENT OF PLANT 50% COMPLETE Refurbishment commenced this month Refurbishment of plant on schedule and on budget. Fully funded through first 3 months of production. Commissioning anticipated December January. First pour in January 2011.

8 PRODUCTION SCHEDULE AVAILABLE SURFACE FEED Tonnes Grade (g/t) Old Konongo Tails 448, Existing stockpiles/dumps 1 150, TOTAL 598, PRODUCTION Tonnes Grade (g/t gold) Recovered Ounces Year 1 350, ,000 50:50 blend of tails and stockpiles Year 2 after plant expansion & commencement of mining 700, ,000 1 The tonnage and grade presented does not currently conform with JORC reporting criteria however results clearly demonstrate the economic potential of the stockpile/dump material. The grade is estimated from surface sampling of the stockpiles/dumps (300 samples). The tonnage is derived from surveying of the stockpiles and dumps and using an SG of 1.7.

9 FURTHER PRODUCTION FROM OPEN PITTABLE RESOURCES Previous pits operated when gold price was less than US$300/oz. New oxide pits designed to mine extensions to Boabedroo South & Atunsu North. Optimising designs to achieve head grade >2.5g/t to plant. Successful 2010 drill campaign identified high grade material, resource upgrade underway.

10 WHERE IS THENEXTDEPOSIT? 192km 2 of granted tenure Over 12 kilometres of mineralised strike along the world class Ashanti Gold Belt. Ashanti Shear runs through Project limited drill testing. 16 known gold deposits within the project area hosted on Birimian Tarkwaian contact. Repetitions of this contact have not been drilled.

11 BIRIMIAN TARKWAIAN CONTACT : SIMILAR SETTING TO EXISTING RESOURCES WHERE IS THENEXTDEPOSIT? ASHANTI SHEA AR ZONE TO BE TESTED 2m at 39.8g/t 54m at 0.22g/t 2m at 4.80g/t Intensive exploration programme (trenching, mapping, sampling) has already been successful. New surface discoveries away from known mineralisation. 8m at 3.84g/t 22m at 1.52g/t 2m at 11.7g/t 2m at 4.24g/t 30m at 0.24g/t 6m at 0.41g/t 4m at 0.89g/t Drill testing of these is a priority. Numerous drill ready targets in similar geological settings to known mineralisation. Conceptual targets also to be tested. Rockchips to 14g/t gold Several gold in soil il anomalies still to be followed up.

12 LIMITEDDRILLING OF DIP/PLUNGE EXTENSIONS 1,000 METRES DEPTH Mining in parts of the Ashanti belt extends >1000 metres. Current deposits have had little drilling below 100 metres. Several resources outside main development areas are not drilled deeper than 50 metres. Above diagram shows a 2x vertical exaggeration long section showing all drill intercepts as gram*metre.

13 OBENEMASE DEPOSIT PROVIDES BASE FOR EXPANSION 09KGDR003 4m at 10.5g/t 09KGDR007 16m at 9.76g/t 09KGDR001 14m at 5.44g/t & 3m at 10.4g/t 09KGDR003 10m at g/t 09KGDR008 10m at 1.85g/t 185g/t

14 2010 WORK PROGRAMME Plant refurbishment 50% complete, on schedule and budget. Production in January Environmental studies progressing rapidly. Drilling to re commence after wet season. Fully funded aggressive exploration to continue. Expansion studiesunderway. Significant manganese discovery to be evaluated.

15 COMPANY STRUCTURE No. % Shares Shares (million) Directors Top Total Shares 1, Prior to 1 for 8 rights issues and placement of 323 million shares 52 week trading range: 0.6c to 5.5c Placement and rights issue to raise A$13.4 million. Market capitalisation at A$0.023: A$31 million

16 At an EV / resource ounce below A$25 per ounce Signature Metals is underpriced relative to other West African gold explorers, developers and miners listed on the ASX ) f contained gold) ions of ounces o JORC Resource (mill AVERAGE EV/oz Enterpr rise Value / Res source Ounces (A$)

17 MANAGEMENT TEAM Bill Oliver (Managing Director) Wide ranging exploration and resource development experience including leading large resource dfiii definition projects for Rio Tinto Iron Ore and grassroots exploration teams in Europe. Matthew Wood (Chairman) Expertise in project identification, negotiation, acquisition and corporate development. Tim Flavel (Director) Chartered Accountant/Company Secretary with over 20 yrs experience inminingindustry industry & accounting professioninaustralia in & overseas. Stuart Murray (Director) Chief Executive Officer of Aquarius Platinum Limited. Provides a wealth of African project development and operating experience. Roger Bannister (Project Manager) Over 25 years of experience in operating, refurbishing and upgrading process plants in Australia, Africa, Europe and Asia.

18 SUMMARY Proven management team Million ounce JORC Resource in the world class Ashanti Gold Belt of Ghana. Market cap of $31M = $24 EV/resource oz. Considerable potential for resource growth. Past production of 1.6 Million ounces at 11.8g/t gold. 350ktpa CIL gold treatmentplant on site.

19 APPENDICES Recorded historical production of 16million 1.6 ounces of gold at a head grade of 11.8 g/t gold. Current JORC resources are 19.6 million tonnes at 2.02g/t Au, (Indicated and Inferred category) over 1.27 million ounces of contained gold, which includes 568,000 ounces in Indicated category The Competent Person Statement relating to these Mineral Resources can be found at the end of this presentation

20 RESOURCE TABLE Deposit Measured Indicated Inferred Total Tonnes (t) Grade (g/t Au) Ounces Au Tonnes (t) Grade (g/t Au) Ounces Au Tonnes (t) Grade (g/t Au) Ounces Au Tonnes (t) Grade (g/t Au) 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, , , , , ,950 Kyereben West 124, , , ,360 Aserewa 324, , , , , ,485 Atunsu 99, , , , , ,850 Apan 39, , , , , ,185 Leopard Shaft 95, ,070 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 Ounces Au The Competent Person Statement relating to these Mineral Resources can be found at the end of this presentation

21 D SC & CO P SO S DISCLAIMER & COMPETENT PERSON STATEMENT This release contains certain forward looking statements. These forward looking statementsarebasedonmanagement 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 Mineral Resources presented in this release for the Obenemase, Boabedroo, Aserewa, Atunsu, Apan and Patuo Deposits and the Old Konongo Tailings Dam are based on information compiled by Mr Peter Ball who is the Manager of Data Geo and a Member of the Australasian Institute of Mining and Metallurgy. 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 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Other Mineral Resources presented in this table have been compiled and reviewed by Mr Bill Oliver from information prepared by RSG Global for Mwana Africa s AIM listing document in compliance with the reporting standards of the 2004 JORC Code. Mr Oliver is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute 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 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Ball and Mr Oliver consent to the inclusion of this table in the form and context in which it appears based on the information presented to them. The information in this release which relates to Exploration Results and stockpile/dump material has been compiled and reviewed by Mr Bill Oliver, a Director of Signature Metals. Mr Oliver is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institue of Geoscientists and has sufficient eperience experience which is relevant to the style of mineralisation and tpeof type deposit under consideration and to the activityit which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian 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 information in the form and context in which it appears based on the information presented to him.