International gold developer, Signature Metals (ASX: SBL) has identified an onsite CIL plant at the Konongo Gold Project in Ghana that can be refurbished for early cash flows.
The costs associated with refurbishing the plan are expected to be minimal, especially in comparison to the capital cost of a new plant. Bringing an opportunity to move Konongo into production far earlier and more cheaply. Lead time is 6-12 months.
There are several prospective areas between the plant site and the initial development area which have not been adequately tested. These represent immediate drill targets and work programmes are being designed to test these areas for high-grade free-milling resources which can be fast-tracked into production.
Signature has an exploration target for the Konongo Gold Project of 20 – 25 million tonnes at a grade of 2 – 4 g/t gold containing 1.5 - 2.5 million ounces of gold based on historical drilling results in the target areas.
The strategy is to develop the Konongo Gold Project rapidly into a gold producer, with an objective annual production of +100,000 ounces of gold. The company is reviewing existing JORC Resources of approximately one million ounces.
Interestingly, Konongo Gold Project is located within the world-class Ashanti Gold Belt of Ghana.
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