Signature Resources

Thank you very much. Thank you for everybody attending today. Also, one of my duties is Chairman of the Denver Gold Group, so I’m pleased to say that I think it’s been another great show. Thank you to the staff who put on a very successful show, and has proven once again, this is the greatest show on the earth for the gold space. So very happy to have that. So I’ll turn it over to a Signature Resources story now.

Forward-looking statements. I’m sure I’ll make some arm waving forward-looking statements. So this is your cautionary statement to take those with a grain of salt.

So Signature owns a property up in northwest Ontario, a little bit further north than the property just talked about in the prior presentation. It’s the Lingman Lake property. It was discovered in 1939. Tried to put it in production in the ’40s, inflation, World War II, other things, it just never happened. Over many different times has it been looked at, worked on in the ’60s, ’70s, ’80s. Our founder put the property package back together in 2012, and we’ve been working to try to advance it from there. We did put out a resource last year in July, and we have a very large regional package, 23,000 hectares that we’re working on as well. Just completed a field program on our best targets on that regional prospect, and we’re looking forward to those results coming out fairly soon.

This is a picture of our exploration camp. I show this for three reasons really. One, I wanna point out the two little aluminum boxes on the right. Those are two Zynex A5 drill rigs. They can drill to 1,250 meters. We own those. They stay at camp. That saves us a significant amount of time, rather than having to hire a mining or drilling contractor to bring them in. Probably cuts our cost in half by having those. This is our entire camp here. This is where we work on the core. We can do about 12,000 meters a year between April and October. November gets too expensive to drill once you get into the winter, but we can do a great amount of work there.

The other thing I highlight, if you see how all this is kinda scarred, wildfire approached the camp in 2022, and it hurt us significantly in terms of it wiped out our core from the 1980s drilling. This is significant when I talk about the resource because anything we couldn’t re-assay that had a zero, because in the ’80s, they were only assaying the high grade portion, not the lower grade halo. It carried a zero. By going in and retesting some of those ’80s holes, we can raise the average grade on the inferred up towards the indicated, I believe, just by infill drilling. The one benefit of that, making lemon out of lemonade or lemonade out of lemons, is because the ground has been burned off, it makes it very easy to see outcroppings when you’re flying over doing drone work. So for exploration, it’s kinda helpful. Also eases moving the rigs around sometimes.

This is where we are, far northwest Ontario. They claim we’re in the Red Lake district, but we’re still 300 kilometers north of that. Muscle White’s 200 kilometers to our east, southeast from us. Monument Bay is the closest project that most people know. It was owned by Yamana, then Agnico, and has been sold to a smaller exploration company. That’s across the border in Manitoba.

Being far up there, you gotta worry about infrastructure. Fortunately, two years ago, the power company, Watay Power Project, powered up the Sachigo Lake First Nations, put in grid power. That’s 40 kilometers from us, so when we go to build a mine, we can actually tie off into that. So that’ll give us good power once we’re going to build. Secondly is road infrastructure. Manitoba has promised to connect Garden Hill and Red Sucker Lake to all-season roads. That project kinda lost momentum during COVID. Ice roads have been very poor the last couple years, so they’re getting pressure again to re-pick that project up. Hopefully, by the time we’re ready to go into mining, this all-season road will be brought into those communities just across the Manitoba border for us, giving us something to connect to for more all-season access. And that’ll be very helpful. It’s also gonna be very helpful for those communities ’cause they’re somewhat isolated. The northern First Nations communities have been more isolated and kind of forgotten in all this process, and that will help them a great deal economically.

This is our land package that we control. I kinda call it the Greenstone Belt, our little amoeba-looking, funny-looking structure. The green outline is our claims package. As I said, it’s 23,000 hectares. The purple are patented claims. They do not do those any longer in Ontario, but you don’t have to pay to hold them. You hold them forever once they’re patented. The other darker green outline is held by another group. That’s kind of a donut hole within the package. At some point, we’ll clean that up. We’ll see what the pitch show has to look like, and maybe we can move on without them.

This is all the drilling that’s taken place within the property itself. The orange lines are the drilling that happened this year. There’s 43,000 meters that have gone into our resource. We’ve added another 4,000 meters this year. It’s been more extensively drilled on the east side of the post-mineralization diabase dike. We refer a lot to this property, the east and west, and it’s all divided by this dike that happened after the mineralization period. But it does provide good reference points.

So the resource we put out last July, 762,000 ounces at average grade of 1.16. As I mentioned, the inferred grade’s much lower than the indicated. As we infill and pick up more of that halo, I would expect the grade to pick up; as we upgrade it to indicated, that grade should pick up with infill drilling. Cutoff grade was 0.30. Here’s the conceptual mineralized pit with it, showing where the indicated and inferred is. And you can see there’s lots of areas within, especially on the west side, ’cause there’s been a lack of density to actually improve on that.

This is what the cutoff grade looked like. As I said, we did .3. What is important to note, because there is a high grade portion of this, if you use a 1.0 cutoff grade, you get a grade of 1.99 with 531,000 ounces. That’s a very nice starter pit when you wanna start moving forward into production. That’ll give you some quick cash flow, and then you can take it deeper from there.

This is what the mineralized blocks look like within the pit itself. If you start infilling some of these areas, you can easily see places to infill. We think we can take this up to a million ounces just within the conceptual pit itself. Even if you take it lower, then you can start picking up some of these that are outside. This is what it looks like when you use the cutoff grade, the grade bins. If you look at the red, that’s where the 1.0 cutoff grade is, and you can see there’s a significant amount of that that’s outside the pit shell itself. So again, easy adds of higher grade mineralization that can come into that mineralized pit.

These are the structural zones within the property. There’s the North, Central, South, and 11650 on the east side of the dike, and then we have what is called the West Zone. I know those are very creative names, so maybe we have to get a little sexier with our naming conventions in the future. The West Zone, you can see is all broken up. That’s just lack of drilling density. And what we’re gonna end up finding is this is probably a continuation of the South Zone and the North Zone as they continue across that diabase dike.

We also did a gold deportment study. We’ve been focusing a lot on trying to understand more and more about the deposit, the makeup on it. There were some concerns about the arsenopyrite, and was it refractory, and we discovered it is not with this gold deportment study. That’s why it’s important to do. There’s only 2% arsenopyrite across the deposit. The other thing, these are very early studies, but 90% recoveries at 150 microns. You can grind to a much finer status from that and probably upgrade that. We are doing a metallurgical study that’ll hopefully be done later this year or early next year that will further confirm this work and start talking about what type of processing do you need to put this into production.

Now, this shows the mineralized pit, and one of the things with this drill program that we did this year is we wanted to step out. And so all the orange traces that you see around the conceptual pit are what we drilled, the 4,000 meters we drilled this past year. As you can see, they’re well outside. We just wanted to test the boundaries of it, and we think we’ve been fairly successful in doing that. In every one of these holes, we were able to follow the structure down and prove that this structure continued at least 200 meters below where we’ve been before. Gotta keep in mind, most of our drilling has been 200 meters and above, so basically we have doubled the depth with the drilling that has taken place this last year.

What has that done for us? It’s given us some great targets to be able to go increase the resource. First is to increase within the pit, get that to about a million ounces. Then we need to see how do we get this to two to three million ounces outside the pit and continue growing it. So we have several great targets. B, that’s pretty easy. I don’t need AI, even though it’s pretty helpful, to see that that’s been missed when drilling. That’s a pretty easy target. Great for infill. Easy ounces to add.

The next is target A. So this first one would be South Zone, and then this would be North Zone. I know it looks flat, but it’s not on 3D basis. That’s what we found between hole number five and hole number three, where we’ve seen that the deposit is carrying on. The other thing I think we’ve learned from this is there’s a big western plunge on this deposit, so we need to follow it through these targets to move it forward. The other thing you’ll see, in terms of the space, this is a very wide body, these target As, 400 meters by 300 meters by 200 meters. That’s a lot of tonnage. And when you see it in more of a 3D form, we’re talking about trying to drill off something that looks more like this going forward. So that’s a lot of tonnage. Doubling the depth below, then we can move forward to it.

The last target that we would have to look at is target D, and even though it’s named D, it’s one of my more favorite targets because last year in 2024, we drilled hole number nine and ten, had 52 meters at 1.8, 34 meters at 1.8, and that was all what looks like South Zone. That’s these holes right here. If you link these holes to these South Zone holes here, you can see how it’s gonna carry down within the deposit, and I think that’s gonna be very significant in terms of adding tonnage to it. This hole number five had 128 meters at about roughly the cutoff, but within it had 22 meters at 1.24. So a very significant find for the South Zone right there.

Regionally, what do we have also? We talk a lot about regional work. We’ve done a lot of geophysical work on it. We’ve identified 14 targets. Our main focus today is actually the A and B up here. And then you can see structurally the way this property is formed. I think it’s very interesting. Almost looks like a weather map, the way the jet streams coming back around and looping around the property, which is sort of normal in the Red Lake District itself. But you see all the triangles. Those are all notes of mineralization that’s occurred, either gold or other type of metals that was discovered in the sixties and seventies.

We went back in this year and we did a very significant field program, picking up 240 samples just within this area on target five. And you can see all the significant mineralization that’s been noted. We found old trenches from the sixties. We found where they had grab samples from the sixties and seventies. We’ve mapped all that. We’ve picked it up. We will have those results coming out in the next 30 days from what we found with our samples. I haven’t seen the samples, but I can tell you the geologists from the field, which is sort of normal, are very excited about what they’ve seen in these samples. I’m excited to see what the results are when we get them back from the assay labs, and we’ll have those reports out very soon.

So why own Signature? We have our own rigs, we have our own camp, so we can drill very efficiently for being very remote. Significant insider ownership. We have insider ownership of 43%. Most of it’s controlled by three people. I myself own 18% of the company. John Goodman owns 12%, and Paul Lestride, the chairman, owns something similar. And then the board also is a significant contributor to insider ownership. We’re very cheap, trading at $11 an ounce resource ounce. We’re the cheapest company here at the show, at least in my mind, but I’m supposed to say that.

We do have catalysts coming because we do have the samples collected from the field program. We’ll have that metallurgical program coming as well. We’re defining what we can do in processing. So I think this story is looking very good and shaping up very nicely. Just looking at capital structure real quickly and the shareholder in... As I said, we had 43% insiders. We have a major retail component and a small institutional component at 10%. And that is about it. With that, I’ll be happy to take questions if there are any.

Great. Thank you very much, Dan. So just quick question from me. I know you mentioned drilling April to October is ideal, so kind of wrapping up here. What do you see for next year? Any thoughts on what you’d like to do when you get back out to the field next year?

Of course, funding’s always important. As an exploration company, you’re always somewhat panhandling for money, always on the broke side. But we need to put about 10,000 meters in that Target A and Target D, 5,000 meters in that Target B, and I think that will help us advance a great deal by doing that. As I said, we can do about twelve and a half or 12,500 meters per year. So I’d love to do that, spreading it between probably Target B and Target A next year, and then follow that up the following year with the same amount.

Oh, fantastic. It sounds like lots of great catalysts still to come. But what are you thinking in terms of, I know there’s always a bit of a trade-off in terms of growing the resource versus getting an economic study. What do you think in terms of the sequencing here and resource growth and then ultimately updated economics?

Sure. I think we’re still a way from that. We need to understand more about the deposit, understand these structures and this plunge. And that’s why we need to put more into A. It would be easy to go back in Target B and just add a ton of ounces, because you can see easily it’s gonna continue down through it. But I think going into A also and trying to figure out more of that plunge and where it’s going, I think will help a great deal. And also focusing on that new regional area. We need to do one more field program over on that new regional target. That’s 12 kilometers away from the Langan deposit, so it’s actually almost a whole new mining. It looks very different, actually. There’s something new going on. We don’t know yet what it is.

So I think putting more money also back on that side. Ontario has a nice program called the Ontario Junior Exploration Program, that you can file for a grant. We applied for that as well this year. So hopefully we’ll get some of that cost covered by that program as well, and then we’ll do the same thing next year. Cost is about $400,000, $450,000 to do a field program for 30 days, and I think it’s gonna be very valuable information. So with that on the regional, then also drilling back on the main Langan, there’s lots to be done here, and we’re trying to advance everything. So I think it’s exciting. It’s hard. These small early exploration, they’re slow. They’re slow to rise.

Indeed. Always takes longer than we think, doesn’t it? I think we have a question from the audience.

Dan, thank you very much for that creative naming you have on your deposit, A, B, C, D. I think that’s the extent of my alphabet as well. But, and apologies if I’ve missed it because I did arrive late, have you done any metallurgy?

We did that gold deportment study, and it did show that there’s good recoveries. We are doing an early-stage metallurgical program. Should be done end of this year or early next year. Labs are backed up, and so that always messes with timing to be able to get a report done. And we’ll have that. It’s not a met study that you would build a mine on, but it does tell us what we need to be considering and what kind of tonnage we may need to look at to really be trying to build this out before we start doing PFS studies, some type of feasibility studies.

Excellent. Well, I think our time is winding down here, but thank you for the great presentation and look forward to seeing the results coming out here in the months ahead.

Thank you, and thank you for everybody looking at this story.