Lingman Lake’s Gold Results Imminent
Signature Resources Ltd. (TSXV: SGU | OTCQB: SGGTF) (“Signature”) is presently engaged in delineating the historic Lingman Lake mine property in Ontario, which hosts a historic gold estimate of 243,000 oz contained within four major zones. This year Signature aims to upgrade its resource estimate to a NI 43-101 compliant resource before expanding it even further by drilling down-dip and along strike.
The survey is aimed at revealing new mineralized systems within the Lingman Lake greenstone belt; not only will this provide a baseline for investigating the potential strike extension of these zones beyond their current footprint, but will also build a model of any additional high-value targets that exist outside of the known gold zones, simultaneously de-risking and growing the resource.
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However, assay results from 2016 and 2017 already correlate well with the historic assessment. In 2016, 1,331 samples were collected and assayed for gold and 52 multi-elements. 450 samples were core duplicates producing 94% correlation with historical drill results, and 17% of the core duplicates yielded results at or above 5 g/t. From where I’m sitting, this already looks like good news, and once retail investors return from their recent foray into technology stocks, Lingman could be a real bagger.
Despite its relative remoteness, the Lingman Lake greenstone belt has been prospected since the mid to late 1930s when gold mineralized veins were discovered in the area that later became the Lingman Lake Gold mine. Overall, significant gold grades returned from diamond drilling at the zones ranged from 3.97 g/t over 2.63 meters to 9.25 g/t over 2.59 meters. (Visible gold is rare at the site but has been observed on a number of occasions)
Between 1987 and 1989, approximately 28,000 meters of diamond drilling was completed on the property, which served as the base from which the most recent historic estimate was derived. The Lingman Lake property possesses many of the significant geological characteristics of gold environments, closely resembling contemporary models of Archean lode gold greenstone belts. Lingman Lake Gold Mines secured patent status to the claims culminating in a 131 meter deep shaft that serviced 3-levels on a resource base of 69,000 oz of gold.
The property consists of four free hold patented claims and 50 staked claims, totaling 9,896.8 hectares and located just 63 kilometers south of Mega Precious Metals’ Monument Bay project, which hosts a Measured and Indicated Resource of 2.9 million ounces of gold at 1.3 g/t Au. Signature’s historic grades already make for a far more economical operation than this producing mine.
The Lingman property hosts an historic estimate of 234,684 oz of gold (1,063,904 tonnes grading 6.86 g/t with 2.73 gpt cut-off) and includes what has historically been referred to as the Lingman Lake Gold Mine, an underground substructure consisting of a 126.5-meter shaft, and 3-levels at depths of 46-meters, 84-meters and 122-meters.
Although the EM survey is currently on hold due to poor weather conditions, we expect that this project will receive considerable investor attention once additional certainty is achieved. 2018 could very well be the year that Lingman Lake comes back online, and the existing infrastructure means it could be one of the lowest cost producers in the industry.