Signal Gold eyes resource expansion at Goldboro
Signal Gold Inc. [TSX-SGNL, OTCQX-SGNLF] said it has launched a 12,000-metre drill program to test the expansion potential west of the Golboro gold deposit toward the past-producing Dolliver Mountain mine in Nova Scotia. The company said it marks the largest ever drill program at Goldboro. So far, drilling has resulted in the discovery of further gold mineralization in the same style, structure and host environment as the Goldboro deposit.
The exploration update is contained in the company’s financial results for the third quarter ended September 30, 2023.
Signal is working to develop the Goldboro Project after recently agreeing to sell its shares in Point Rousse Mining Inc. to Maritime Resources Corp. [MAE-TSXV]. The Point Rousse gold project is located in the Baie Verte Mining District of Newfoundland and Labrador. The asset is comprised of the Pine Cove open pit mine, and fully-permitted Pine Cove Mill and tailings facility as well as the Stog’er Tight and Argyle deposits.
Signal sold the asset for $3 million in cash, 23.9 million common shares of Maritime, which has assumed responsibility for the reclamation liabilities at Point Rousse.
A 2021 Goldboro feasibility study is based on maiden open pit probable reserves of 1.15 million ounces of gold and a mill capacity of 4,000 tonnes per day. The study pegged the initial capital cost at $271 million and life of mine sustaining capital at $63.1 million.
Total gold recovered over an 11-year open pit lifespan is expected to be 1.10 million ounces with average gold production of 100,000 ounces annually at an average grade of 2.26 g/t.
The study envisages the creation of 345 direct full-time jobs during construction and 215 full-time jobs will the mine is in operation, generating $226 million in federal and provincial tax payments.
During the third quarter, Signal invested $5.52 million in the Goldboro project relating to the submission of key development permits, growth exploration drilling, geotechnical programs and the expansion of the Goldboro gold district to 19,450 hectares through staking and third party transactions.
“With the sale of the Point Rousse project to Maritime Resources, we are now fully focused on the Goldboro project and demonstrating the potential scale of the Goldboro deposit and greater Goldboro gold district which we consolidated in the third quarter of 2023,’’ said Signal Gold President and CEO Kevin Bullock.
“We achieved important permitting milestones for Goldboro with the submission of the mineral lease, industrial approval and Fisheries Act Authorization applications in the most recent quarter,’’ he said.
Meanwhile, Signal reported a third quarter loss of $5.5 million or $0.02, compared to a loss of $1.17 million or $0.01 in the third quarter of 2022. As of September 30, 2023, the company had $10.07 million in cash and working capital of almost $7.0 million.
On November 2, 2023, Signal Gold shares were unchanged at 17 cents and trade in a 52-week range of 42.5 cents and 16.5 cents.