Signature Resources Ltd.
Signature Resources
Fresh Meat for When Exploration is Fashionable Again
With gold coming back into focus again the big question is how the demand for new projects can be serviced with so little exploration having taken place since 2011. Many of the historically productive gold zones of Ontario and Quebec are well-picked over, exhausted or totally staked, so the natural course for up-and-coming explorers is to push the borders of exploration beyond the same old, same old. What looks however like striking out into the wilderness in the case of Signature is actually a return to proven territory that has come to grief in the past not through lacking geological potential but due to the swings and roundabouts of gold pricing and financing moods. In this note we shall review the past and potential of the Lingman Lake property and the strategy being pursued to prove it up and make it an acquisition target.
Gold – Rebound Poses a Challenge
The gold price malaise since late in 2018 has been a source of dismay for many in the mining industry and its investment followers. Just when things looked good gold fell back into a swoon from which it has only recently rebounded. While some may claim the latest rebound was due to inevitability, others credited the rise to the tensions from the US-China trade “war”. The upmove was swift and widely welcomed with $1,300 being easily breached. However the price then petered out halfway to the next major milestone and retreated on talk of peace potentially breaking out with China. That the latter was so flimsy shows just how enervated the market is at the current moment.
Then the gold price got a second wind and charged higher and in recent days has breached the previous 2018 high and started into territory it has not seen in a long time.
One thing that is apparent is the lack of preparedness for any serious gold rebound. The pipeline for new projects is somewhat like it was 20 years ago when gold was coming out of a very long price slump. Majors and even mid-tiers have done scant exploration and so have no pipeline. Juniors must, however, have an offering that is attractive to the larger groups. By this we do not mean PFS in hand but resource estimates that merit the larger companies going to the effort of making a bid. However, for the larger companies, the days of making spit-bid JV and earn-in proposals must be drawing to a close as ounces in the ground start to be given something more like the values they deserve. Lingman Lake Signature Resources consolidated its acquisition of the property, which is located in the Kenora district of Ontario in the fall of 2013. At that time the company acquired its initial position in the Lingman Lake patents, a gold mineral property consisting of 4-patented claims encompassing 78.5-hectares.
The acquistion of the patents was completed by the exercising of an option agreement that resulted in Signature Resources Ltd. acquiring 100% interest of Cool Minerals, through its wholly owned subsidiary, Eagle Feather Resources.
In a separate agreement in November 2013, between Signature and Mantis Mineral Corp., the company entered into an option with respect to Mantis’ holding of a block of claims historically referred to as the Anaconda property. This property surrounds the patented claims and consisted of 12-staked legacy claims totalling 538 hectares. A significant portion of the historic resource that is contained in the North
Zone, approximately 40%, resides on this property. The company fulfilled the terms of this option agreement in the 3rd quarter of 2016.
The property is remote with no all-weather roads leading into it. Lingman Lake being 6,000-meters long and 500-meters wide accommodates safe aircraft landings and take-offs. Thus the site can be accessed by float or ski-equipped aircraft, either from the Town of Red Lake 325 kms south or from the First Nations community of Red Sucker Lake located in Manitoba, 55 kms northwest, or from the First Nations community of Sachigo Lake Ontario 50-kms east.
History
Despite its relative remoteness the Lingman Lake greenstone belt has been prospected since the mid to late 1930s, and it was in this interval that gold mineralized veins were discovered in the area of what was to become the Lingman Lake Gold mine. Lingman Lake Gold Mines Limited was incorporated in 1945 and secured patent status to the claims the company was developing, which culminated in a 3-compartment 131-meter deep shaft which serviced 3-levels, on a resource base of 69,000oz of gold.
Geology
The Lingman Lake property is situated in the Lingman Lake greenstone belt. The belt consists of complexly folded assemblage, of mafic metavolcanics, felsic metavolcanics and metasedimentary rocks. The assemblage is in intrusive contact with marginal granitic rocks and internally intruded by various intrusive rocks.
Source: https://6b4b62fb-9a78-434c-9910-2e500d98affc.filesusr.com/ugd/63a91d_77acef6db6e24f0e87b584eba5ac9ac6.pdf
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