Signal Gold Advances Exploration at High-Grade Goldboro Project While Seeking Strategic Partners

• Signal Gold (TSX: SGNL) is a gold project development company based in Nova Scotia, Canada.
• They have a three million ounce gold resource and a one million ounce gold reserve.
• The company plans to obtain final permits and start building the project within the next year and a half.
• Signal Gold has been focusing on raising flow-through dollars to demonstrate the potential for project expansion, increasing their land position by 600% and exploring west of their current resource.
• They are actively seeking strategic partners willing to invest in the project's growth potential, with a focus on adding value and increasing annual production.

About Signal Gold

Nova Scotia based Signal Gold Inc. (TSX: SGNL) is advancing exploration at its 100% owned Goldboro gold project while concurrently seeking strategic partners or joint venturers to help fund further development and construction.

Goldboro is a high-grade Archean mesothermal gold system located approximately 185 kilometers northeast of Halifax, Nova Scotia. The project currently hosts an estimated 3 million ounce gold resource at a grade of approximately 11 g/t gold. Signal Gold has completed a feasibility study outlining annual production of 100,000 ounces per year over a 7-year mine life from existing reserves. However, the company believes there is strong potential to significantly expand production beyond this level through additional exploration and underground mining.

Interview with President & CEO, Kevin Bullock

Drilling Expands Known Mineralization and Uncovers New Discovery Targets

Over the past year, Signal Gold has expanded its landholdings around Goldboro by 600% to over 200 sq km. This has increased the strike length of known mineralization from 3 km to over 40 km. The company is now about halfway through a 12,000 meter drill program targeting resource expansion.

Recent drill results west of the proposed open pits have intersected multiple zones of high-grade mineralization analogous to what is found in the existing resource. This supports the potential for a third open pit in this area, which could substantially boost annual production over the 7-year mine life contemplated in the feasibility study.

Incorporating a Possible Underground Component

The Goldboro deposit also contains an inferred underground resource which the company has not yet incorporated into its development plans. Conducting additional drilling to upgrade a portion of this to the measured and indicated categories could allow for the incorporation of an underground mining component.

Signal Gold believes developing an underground mine beneath or adjacent to the open pits could increase annual production to 150,000 ounces per year. The underground zones tend to be higher grade, which would increase mill feed grades and annual gold production.

Seeking Strategic Partners to Unlock Upside Potential

While Signal Gold could fund the capital costs to construct Goldboro as outlined in the feasibility study solely through debt financing, current weak equity market conditions mean this is not an ideal scenario. With the company’s shares trading significantly below levels seen a year ago, management is focused on demonstrating additional upside potential to attract strategic partners.

By expanding mineralization along strike and highlighting the potential for increased production, the aim is to secure either a joint venture partner or partial project acquisition. A strategic partner could provide capital for continued exploration and project optimization in return for a 50-100,000 ounce per year gold stream.

Signal Gold’s management believes they have now sufficiently demonstrated the potential for Goldboro to produce 200,000+ ounces per year through open pit expansion and underground mining. The next steps are to engage with potential partners capable of providing development capital and technical expertise to help unlock this world-class mining opportunity in a Tier 1 jurisdiction.

The Investment Thesis

High-grade resource ‍

The current 3 million-ounce gold resource grades approximately 11 g/t, which is well above the industry average. Higher grades mean lower costs and higher profit margins.

Exploration upside

Recent drilling has shown mineralization extends well beyond the known resource and the company has expanded its land package significantly. There is strong potential to grow the resource.‍

Advanced project ‍

A feasibility study has been completed and permitting is well underway. The technical work has been largely derisked.

Potential low-cost production

With estimated cash costs under $600/oz as per the feasibility study, Goldboro could be a low-cost producer in a Tier 1 mining jurisdiction.

Opportunity to optimize

Going with a strategic partner could allow for further optimization through additional drilling and engineering studies. Underground mining and an expanded throughput rate could enhance economics.‍

Proven management

The Signal Gold management team has developed and sold high-grade gold projects before. They know how to create value for shareholders.

Renewed M&A potential

If the gold price rises and general market conditions improve, larger producers could look to acquire advanced projects like Goldboro to bolster falling reserves.

Conclusion

Signal Gold offers investors quality high-grade ounces in a good jurisdiction with significant potential for resource growth and project optimization. The experienced management team is focused on surfacing this value by demonstrating the upside potential to attract strategic partners. This could lead to a very favorable outcome for shareholders in the long run.