Signal Gold Unlocking Value at the High-Grade Goldboro Project

About

Signal Gold is a Canadian gold mining company focused on developing its flagship high-grade Goldboro gold project located in Nova Scotia. The company is led by CEO Kevin Bullock, who has a strong track record of building and operating profitable mines.

Interview with Signal Gold

The Core Asset

The Goldboro gold project is a large, high-grade gold deposit located in a premier mining jurisdiction. The project currently hosts a total mineral resource of 3.1 million ounces of gold, with 1.1 million ounces in proven and probable reserves. A 2016 feasibility study outlined an open pit mine producing 100,000 ounces of gold per year over a 10 year mine life. However, Signal Gold believes there is strong potential to significantly expand the scale and mine life of Goldboro through additional exploration.

The company recently raised $6.7 million to fund an aggressive 10,000 meter drill program west of the known deposit, on a structure that hosted past producing mines but has never been drilled. Positive drill results from this program could substantially increase the project's resource base. Signal Gold has set an ambitious goal of defining a 5 million ounce resource at Goldboro, which would propel it into a whole new league in terms of asset attractiveness and corporate appeal.

Permitting and Project Advancement

On the permitting and development front, Signal Gold has already received the key environmental assessment approval for Goldboro. The company is now focused on securing additional permits required to commence project development while also conducting exploration to prove up resource upside.

The current challenging market conditions make an imminent construction decision unlikely, but Signal Gold continues to prudently advance Goldboro in preparation for an eventual market turnaround. The company aims to demonstrate the large scale potential at Goldboro in order to attract a well-capitalized partner or suitor to help finance construction when the timing is right.

Access to Capital

With gold equities deeply out of favor, raising sufficient capital for project development is a challenge. However, Goldboro's location in a low-risk jurisdiction, strong economics and exploration upside make it attractive for non-dilutive and alternative forms of financing. The company is assessing various options to fund development including debt, streaming, joint ventures, and strategic investments. While requiring some patience in the current market climate, Signal Gold is positioning Goldboro to be "shovel ready" to enable a quick construction ramp up when capital becomes available.

Investment Thesis

Signal Gold offers extreme value trading at just ~$25/oz of gold in the ground, versus peers at $50-100/oz. Positive exploration results demonstrating resource upside could catalyze a significant re-rating. With permitting progressing in the background, any improvement in the sector and availability of capital would also unlock fundamental value.

For investors with a 3-5 year time horizon, Signal Gold provides exceptional leverage to the inevitable recovery in the gold sector. The company's experienced leadership team has a track record of building mines and creating substantial value for shareholders. Goldboro's high margins, long mine life potential and location in Canada's East coast put Signal Gold in a class of its own among junior developers. Overall, Signal Gold appears primed for huge returns as Goldboro progresses from resource to reserve to producer over the next several years.