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Signal Gold Inc T.SGNL

Signal Gold Inc. is a Canada-based gold development company. The Company is engaged in advancing the wholly owned Goldboro Project in the Canadian mining jurisdiction of Nova Scotia. The Goldboro Project is an advanced exploration and gold development project located approximately 175 kilometers (km) northeast of the city of Halifax, 60 km southeast of the town of Antigonish, and 1.6 km north of the village of Goldboro, on the eastern shore of Isaac’s Harbour, in Guysborough County, Nova Scotia, Canada. The Company has consolidated approximately 28,525 hectares (285 km2) of prospective exploration land in the Goldboro Gold District.


TSX:SGNL - Post by User

Post by shiftyoneon Mar 24, 2024 10:32pm
234 Views
Post# 35949986

The possible problem that I see

The possible problem that I seeThe costs to get the mine in production are likely now about $400 million Cdn.  There is $30 million in debt.  Building the mine will take a couple of years, so that cost will likely rise (as it does with every mine in the last few years).  So you are looking at likely a $500 million dollar investment.  We don't know what the price of gold will be in a couple of years.

Unfortunately, when they drilled to the west of the two pits, the results were disappointing.  So there doesn't appear to be a great chance of them expanding the open pit.  The underground deposits do not in my opinion show any results that are likely to take the investment necessary to recover that gold.  The drilling results were not good last year.

So, who is going to invest $500 million to start a mine, when there appears to be no room for expansion.  At an AISC of about $1000 an ounce.  I don't think anyone is going to do it.

This is just all my opinion.  I like to discuss.
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