Stock Resources research note initiating coverage of Signature Metals November 16, 2009

Stock Resource has put out a research note initiating coverage of Signature Metals (ASX: SBL).

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Signature Metals: West African advanced exploration play SBL; Buy up to 3.5 cents

“Signature Metals represents an attractive low cost entry into the West African gold plays. It is entering a period of high activity which could lead to early production given the presence of an existing mill on-site.”

Signature is an African focussed company with prospective tenements in the world class Ashanti Gold Belt of Ghana. Its main project is the Konongo Gold Project which has an existing small plant and provides an opportunity for early production.

The company’s exploration target for the Konongo project is 1.5 – 2.5Moz including a new +1Moz high grade (+10g/t Au) Obenemase – style discovery. It wants an early move to full feasibility study with first production in 2010/2011.

While these are likely to be optimistic targets, it at least indicates that the company is fast tracking its activities which are likely to maintain market interest.

The West African gold plays have attracted strong support over the last 12 months, particularly with exploration success leading to 1Moz discoveries, or in the case of Perseus, multi-million ounce discoveries.

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For further information, please contact:

Bill Kemmery
Fortbridge
T: +61 9331 0655
M: +61 400 122 449
E: bill.kemmery@fortbridge.com