Killer Gold-Growth at Lingman Lake
Just as gold prices begin to approach US$1,300 per ounce, Signature Resources Ltd. (TSX: SGU | OTCBQ: SGGTF) (“Signature”) have recently confirmed the superb nature of their Lingman Lake gold prospect. Their confidence, inspired by the results, caused the company to expand the historically high-grade deposit by an astonishing 1,500%, resulting in a 40% surge in share prices over the last fortnight alone.
The Lingman property was first discovered in the 1940’s and passed between numerous companies due to money trouble. Signature acquired the site in 2013 from one such unfortunate explorer, have since made compelling progress in only four years and seems poised to become the team that will finally get this asset moving up along the value curve!
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The key to Lingman’s appeal lies in the historical estimate of 234,648 oz of gold grading at an average of 6.86 grams per tonne, which any experienced gold investor will know to be significant. Numbers like these have driven explorers to attempt to mine the site for over seventy years, and recent resampling of the archived drill cores has corroborated the previous estimates, and in some cases, exceeded them almost beyond belief.
Bulk and composite samples demonstrated higher grade potential of up to 19g/t could be reasonable to expect, and one 240 m deep vertical drill returned a 1.5 m section containing a jaw-dropping 325 g/t Au.
“We are extremely pleased with the strong correlation from the sampling program and the expected savings that we will have thanks to its success. All of the historic assays, including those that were not resampled, for a total of 25,000 meters will be meshed with future core assays when working towards a defined resource. This allows us to direct future drill programs on expansion drilling versus twinning, resulting in significant savings”, commented Walter Hanych, President and CEO.
The acquisition of new land along the 22km gold trend leaves the company with a massive 9,896.8 hectares of gold property to explore throughout 2017. The recent on-site revelations have resulted in a pledge to spend around $5m on achieving a NI43-101 compliant resource estimate, but rest assured, a project that progressing as promisingly as Lingman Lake, will force stocks skyward long before then.
Moreover, last year’s dip in gold prices is expected to continue to rally out of its rut throughout 2017, thus, waiting around for rising prices goes beyond cautionary and into the realms of purest wasteful apathy.
It’s not like the guys at Signature are the only people in the area either; Lingman is located in a geological zone staked by numerous other gold-miners, including Goldcorp, and is only a few hundred miles north of the famously gold-rich Red Lake area. Furthermore, Ontario displays one of the most mining friendly attitudes when it comes to permitting and generally getting things done. The site can currently be accessed only by plane, but an all-weather road is expected to be constructed in the near future to ensure smooth logistics.
The recovering price of gold, coupled with the fantastic sampling data, in addition to the ongoing development of the area, looks to be a favourable marriage of trends for Signature Resources; their site already contains a shaft of just under 130m deep constructed by previous owners of the property, but the density of gold present at-depth demonstrates that this was woefully inadequate for a prospect such as this. Given the successes of the last four years, we have every confidence that Signature will be able to pull off the task-at-hand and be ready to ship large quantities of yellow metal, at low-cost in the very near future.
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