Signature Resources Drilling Continues to Highlight a Larger Halo of Near Surface Gold Mineralization; Featured by 1.14g/t Gold over 54 Metres in the Central Zone
Toronto, Ontario--(Newsfile Corp. - January 10, 2025) - Signature Resources Ltd. (TSXV: SGU) (OTCQB: SGGTF) (FSE: 3S30) ("Signature" or the "Company") is pleased to provide an update on its 2024 drill program and provide assay results for diamond drill holes LM 24-04, LM 24-05 and LM 24-06. Drilling so far has highlighted a larger halo of near surface mineralization that not been fully tested prior to the 2024 drill program. This was seen in LM 24-06 which returned 1.14 grams per tonne of gold ("g/t Au") over 54 metres ("m") which includes three higher grade sections with one meter intercepts of 9.97 g/t Au, 7.16 g/t Au and 17.69 g/t Au. The Company is still waiting for assays from the remaining eight diamond drill holes that are being processed by the labs.
The Company has completed its 2024 drilling program and all the necessary field work in November and has delivered all the samples to the lab for assaying. The Company remains on track to deliver its initial NI 43-101 resource in early Spring 2025. Before the camp was closed for the winter, the independent geologists were able to complete all the necessary verification at the project site required for the resource estimate. The resource estimate is being undertaken by the independent geologic consulting firm of Watts, Griffis and McQuat Limited (WGM).
As previously announced, the Company's 2024 drill program consists of 14 DDH's for a total of approximately 4,650 metres of drilling. The drilling program was carefully designed to improve our knowledge of the Lingman Lake gold deposit, fill identified data gaps and test new targets identified in our updated geologic model completed earlier this year. The drill program includes continuous core assaying for the entire length of each hole, thereby providing total lithological gold distribution, giving us a much more complete data package about the mineralization contained in and outside the mineralized zones. All new drilling information and assays will be incorporated into the database to expand and build the Lingman Lake deposit model. We look forward to these results informing the resource modelling exercise currently underway.
We are very pleased to have completed our 2024 drill program and look forward to receiving all the results of this work. It is exciting to see the new data coming in to continue building our knowledge of the Lingman Lake Project. With the drilling and field work completed we remain on track to deliver our initial NI 43-101 resource in the Spring of 2025. This will be a significant step in putting in a floor valuation and demonstrating the potential of the Lingman Lake gold deposit. We look forward to the implications of this new understanding once fully compiled this spring."
- J. Dan Denbow, CFA - President, CEO and Director
The largest concentration of historical drilling has been conducted east of a diabase dyke and has identified four zones of mineralization beginning with the 11650 Zone on the southern edge moving north to the South Zone, Central Zone and North Zone. The North and South Zones have been the most consistent with respect to mineralization running proximal to the Quartz-Feldspar-Porphyry (QFP) intrusion contact. It is still undetermined if the 11650 Zone is an independent zone or a splay of the South Zone as it begins to converge into the South Zone east from the diabase dyke.
Figure 1 is the surface view of the 2024 drill program east of the diabase dyke (yellow drill traces) relative to the historical drilling beginning in 1987 up to 2021. Signature's interpretation of the gold zones are shown in the red shading and the QFP body in the yellow shading. Based on the observations from the drill core and the assay results, the gold zones are further highlighted on the drill traces in colored rectangles including the newly observed Leopard and Contact Zones as well as grade disks representing the assayed results.
As a result of the Spring mapping program and on-going GIS data and drill compilation, the QFP has been interpreted to be an intrusion that bifurcates going from east to west forming a north and south arm. The intervening area between the two arms displays a more fragmented dyke array resulting in a more complex distribution of gold relative to the Central Zone.
As the QFP narrows going eastward, the North, South and Central zones converge in the vicinity of DDH LM24-03. This convergence is important in that, as the zones merge, they form a wider mineralized area which is attractive in a bulk mining scenario. We still are awaiting results on LM 24-07 and LM 24-08 that were drilled at an oblique southeast angle on the east side of the diabase dyke. The final six holes of the program are on the west side of the diabase dyke. Two are testing the possible extension of the South Zone and the other four in the area of Shoe Lake where there is also lower density of drilling. These are targeting the west extension of the West Zone.
LM 24-04
DDH LM 24-04 was drilled at slight northeast path at a 25 degree azimuth reaching total depth of 400 m terminating in the granite rock package. It has been assumed but never confirmed that the deposit did not continue into the granite. The granite had not been previously assayed and as part of our full hole assaying work we have a better understanding of the interaction of the granite rock package within the deposit and can limit our drilling once it is encountered. LM24-04 had mineralized intersections in the three main identified zones, South, Central and North. It also showed mineralization in two new areas identified in the 2024 program, the Leopard and Contact zones. The South zone had the highest grading one metre intercept of 6.96 g/t Au with the total zone having mineralization over 9 m grading 0.95 g/t Au. See Table 1: Assay Results for further highlights of the drilling program.
LM 24-05
The fifth DDH of the program, LM 24-05, is the most eastern hole of the 2024 drill program and drilled to a total depth of 359 m. It intersected the North zone at a drilling depth of 295 and continued for over 3 m. While the returned values in the assay were lower grade it is leading us to reconsider the interpretation of the North and Central zones in this area as the hanging walls and footwalls appear to be merging. We know from past modeling the Central zone is present based on data from DDH 89-03. In future drill programs this hole warrants additional work, either extending the existing hole another 100 m into the Central zone or to twin the hole extending it into the Central and possibly the South zone. The orientation of drilling North to South is downdip of the structure and extends the necessary length to intersect all zones within the deposit.
LM 24-06
The sixth DDH of the program, LM 24-06, was drilled to the northeast at a 20 degree azimuth for 400 m. The South and Central zones showed broad areas of mineralization of 50 and 54 m. The south zone was segmented into three distinct area of 18 m of 0.65 g/t Au, 15 m of 0.44 g/t Au and 17 m of 0.23 g/t Au. The central zone mineralization was over 54 m grading 1.14 g/t Au and contained three higher grade segments with intercepts of 9.97 g/t Au 7.16 g/t Au and 17.69 g/t Au over 1 meter each. The North zone was also present with only one mineralized intercept of 1 m grading 9.21 g/t Au.
Reported widths are drill intercepts (core lengths). Computer modelling of the zones for true widths is pending. LM24-04 was drilled at azimuth 025 degrees, dip -55 degrees. LM24-05 was drilled at azimuth 180 degrees, dip -50 degrees. LM24-06 was drilled at azimuth 020 degrees, dip -50 degrees NORTH ZONE strikes at 093 degrees. CENTRAL ZONE strikes at 087 degrees. SOUTH ZONE strikes at 082 degrees All zones dip steeply south 70-80 degrees.
With all the drilling completed and all the samples at the lab for analysis we would anticipate additional results throughout January.
Related Party Loan
The Company also announces that it has entered into a loan agreement with a related party to provide interim funding for general corporate activities.
The C$200,000 loan, dated January 2, 2025, matures on April 30, 2025, and is intended to support ongoing operations as the Company awaits additional assay results from its 2024 drilling program. Notably, the loan is provided on a no-cost basis to the Company, with no interest, finder's fees, or bonuses payable to the lender.
The Company anticipates repaying the loan through future equity financings. The company confirms that the loan agreement meets the exemption requirements and complies with TSXV Policy 5.9 and MI 61-101. The transaction remains subject to the approval of the TSX Venture Exchange.
Qualified Person
The scientific and technical content of this press release have been reviewed and approved by Mr. Walter Hanych, P. Geo, who is a Qualified Person under NI 43-101 regulations.
Quality Assurance and Quality Control
Signature Resources maintains an industry standard Quality Assurance / Quality Control (QA/QC) program at the Lingman Lake Project to ensure sampling and analysis of all exploration work is conducted in accordance with best practices. John Siriunas, P. Eng. is the independent Qualified Person under 43-101 who monitors and scrutinizes the results of the QA/QC program.
Assay results from SGS's Red Lake lab for gold and the Burnaby lab for gold and multi-element are directly e-mailed to three individuals: Dan Denbow, President and CEO of Signature Resources, Walter Hanych, P. Geo. consultant to the company, and John Siriunas, P. Eng. independent consultant to the company.
SGS a certified laboratory and also have internal quality control ("QC") programs that include insertion of reagent blanks, reference materials, and pulp duplicates. The Corporation inserts QC samples (blanks and reference materials) at regular intervals to monitor laboratory performance.
About Signature Resources Ltd.
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 depths of 46-metres, 84-metres and 122-metres. There has been over 28,000 metres of historical drilling done on the Property and four 500-pound bulk samples that averaged 19 grams per tonne of gold. In November 2023, the Ontario government energized a new 115kV high tension transmission line within 40 km of the historic Lingman Lake Mine (https://www.wataypower.ca/).
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.
