Signature Metals Ltd is an Australian gold mining company. Its flagship operation is Owere Mines, of which it owns 70%. Owere holds 100% of the Konongo Gold Project which has 192 km2 of contiguous concessions in Ghana's renowned Ashanti Gold Belt.
Today, Konongo contains 16 known old deposits along 12 kilometers of strike. The global resource at the Konongo Gold Project is 9.1Mt at 3.2g/t Au for 0.940 Moz Au. For more details please refer to pages 4 and 12 to 25 of the December 2014 Quarterly Activities Report.
Gold was discovered at Konongo at the Obenemase Deposit in 1903. Between discovery and 1997, approximately 4.4 million tonnes of ore was treated for approximately 1.6 million ounces of gold at a recovered grade of 11.8 grams per tonne. Most of this production was carried out between 1932 and 1984 which included underground mining from five shafts to a depth of 844 metres.
The Ashanti Gold Belt is host to Anglogold Ashanti’s Obuasi mine, which contains over 30 million ounces of resources and with past production of over 22 million gold ounces. The Prestea/Bogosu deposits are also in Ashanti, being mined by Golden Star Resources. These have gold resources of about six million ounces and have historically produced about eleven million ounces of gold. Both the Obuase and Prestea/Bogosu deposits have a similar geological setting and mineralisation style to the deposits found with the Konongo Gold Project.
West Africa has the geologic potential to become among the leading gold producing regions worldwide. Numerous new gold-mining projects are being developed in Ghana, Berkina Faso, Mali, Liberia, Mauritania and Sierra Leone. Gold production in the greater region reached 6.7 million ounces in 2010, accounting for nearly 8% of global supply.
Ghana in particular has benefited from foreign investment in the region's gold resources, supported by government initiatives and under the auspices of the Minerals and Mining Act 2006. The country has a gold mining history going back over 1000 years and is currently the second largest producer of gold in Africa and the eighth largest globally.