Signet Minerals Inc.
TSX VENTURE : SGN

Signet Minerals Inc.

July 09, 2007 18:49 ET

Signet Minerals Updates Golden Eagle Project; Files Reports; and Re-States Second Quarter Financials

COMOX, BRITISH COLUMBIA--(Marketwire - July 9, 2007) - Signet Minerals Inc. (TSX VENTURE:SGN) ("Signet" or the "Corporation") updates progress on its 8,178-hectare Golden Eagle project located in north-western British Columbia. The project is prospective for intrusive and shear zone hosted gold mineralization and volcanogenic massive sulphide (VMS) deposits.

In 2006, Signet retained Aurora Geosciences Ltd. to conduct a geological mapping, sampling and diamond drilling program on the property. Drilling was delayed until October due to a limited availability of diamond drills, and an early onset of winter weather conditions forced suspension of the program in mid November. Only one hole was completed on the highest priority target (Tannis) before severe winter conditions forced the removal of the drill to a safer location. Five reconnaissance holes were subsequently completed on the second and third order priority Carbonate, Skarn and Plateau zones.

First-time drilling of the Tannis zone in 2005 (3 holes) intersected high-grade, intrusive hosted, gold and silver mineralization on the T-4 and T-9 structures beneath surface mineralization (Reference: Dec. 21, 2005 News Release):

- TAN05-01: 7.36 g/t gold & 102.8 g/t silver over 1.6 metres

- TAN05-02: 10.73 g/t gold & 104.2 g/t silver over 5.5 metres

- TAN05-03: 12.00 g/t gold over 3.5 metres

The T-4 and T-9 structures are approximately 50 metres apart and have been traced over 160 metres before becoming covered with overburden. Holes TAN05-01 and TAN05-02 were drilled 100 meters apart on the T-9 structure to test the depth extent of mineralization in trenches 8 and 9 respectively. TAN05-01 intercepted a portion of the mineralized structure but was interpreted as not drilled deep enough to test the strong mineralization intersected by surface trenching. TAN05-03, drilled under trench 4, was the only hole drilled on the T4 structure.

Hole TAN06-04 targeted the down dip extension of mineralization encountered in TAN05-01. Several quartz-arsenopyrite veins were intersected as well as two mineralized zones. The upper zone assayed 0.58 g/t gold and 9.8 g/t silver over 2.0 metres. The lower zone comprised a 6-metre quartz-arsenopyrite vein 60 metres down dip of the main mineralized intersection in TAN05-01. A 3.1 m interval within this vein returned 1.58 g/t gold & 25.4 g/t silver. Although the gold and silver grades are lower in comparison, the 6-metre vein width is substantially greater. The character of the veining and mineralization is typical of the Tannis zone, and variability in precious metals concentrations within this type of epithermal vein system is to be expected.

The 2006 mapping and prospecting program conducted on the Tannis zone resulted in the discovery of several new quartz-arsenopyrite showings. Twenty-six grab and 3 chip samples were collected of quartz sulphide veining and altered host rock across an area approximately 500 x 500 metres:

- 3.09 g/t gold and 15 g/t silver over 1.3 metres

- 2.12 g/t gold and 122 g/t silver over 0.3 metres

- 10 grab samples returned greater than 1 g/t gold, including:

-- 1 sample greater than 100 g/t

-- 2 samples greater than 39 g/t

-- 6 samples greater than 3 g/t

- 6 grab samples returned greater than 100 g/t silver, including:

-- 1 sample greater than 1,600 g/t

-- 4 samples greater than 600g/t

- 16 grab samples returned less than 1.0 g/t gold

The high-grade silver-gold bearing structures at the Tannis zone appear to have NW-trend in contrast to the NE-trending quartz veins and sheeted quartz veins. A grab sample of mineralized rhyolite breccia approximately 25 m south (across strike) of the T-6 and T-7 trenches returned 39.3 g/t gold and 1,171 g/t silver. Approximately 100-m west (on strike) of the trenches, a grab sample from a 10-cm quartz-pyrite-arsenopyrite vein at the western margin of the rhyolite exposure returned 104.3 g/t gold and 675 g/t silver. The field program was confined to the central and most easily accessible parts of the 500-metre wide ridge. The positive results further substantiate Tannis as a highly prospective drill target area and emphasize the need for expanding the detailed mapping and prospecting westwards into other prospective areas.

The three reconnaissance holes at the Carbonate zone (GE06-03, 04 and 05) targeted IP chargeability anomalies in an area where selected grab samples had returned significant copper mineralization and sporadic gold mineralization. The holes intersected disseminated pyrite and pyrrhotite in carbonate altered mafic volcanics. The only significant intersection was from GE06-04, which returned 3.1 m grading 2.64 g/t gold in a sulphide-bearing quartz vein that may warrant follow-up.

At the Skarn zone, SIG06-05 tested an IP chargeability anomaly of the main trend of the mineralization and encountered 1-3% disseminated pyrrhotite and pyrite mineralization but no significant precious or base metal values. At the Plateau zone, SIG-06-06 tested the eastern extremity of an IP chargeability anomaly that had been partly tested by Westmin in 1997. The hole intersected disseminated pyrite in graphitic mudstone and shale but no significant precious or base metal values were returned.

Results of the 2006 program are presented in a technical report entitled "Report on the 2006 Mineral Exploration Program on the Golden Eagle Property, Atlin Area, Northwestern British Columbia" (the Technical Report), dated June 8, 2007 by independent qualified person, Scott Casselman, P. Geo. (filed on SEDAR concurrently with this press release).

Due to the late start of the 2006 drill program, the planned drill programs on the high priority Tannis zone and LQ vein were not completed. In addition, there are a large number of exploration target areas that require follow-up. An airborne geophysical survey flown on the property in 2005, for example, identified 62 electromagnetic conductors and a number of magnetic anomalies, the majority of which have not been investigated. Recommendations presented in the Technical Report for further exploration work on the property include:

1) Continue the drilling program on the Tannis zone.

2) Drill a minimum of two holes on the LQ vein.

3) Increase the extent of mapping and sampling on the Tannis zone.

4) Commence a property-scale geological mapping program with a focus on following up on the airborne electromagnetic and magnetic anomalies identified in 2005.

5) Ground geophysics where warranted to follow-up field work in preparation for drilling.

6) Additional drilling as dictated by results.

Curie Project

A technical report entitled "2007 Mineral Exploration Report for the Curie Property, North Central, Yukon Territory" dated December 1, 2006 by independent qualified person, Scott Casselman, P. Geo., has also been filed on SEDAR concurrently with this press release.

Re-stated Second Quarter Financials and MD&A

On July 9, 2007, the Corporation completed a restatement of its previously filed financial statements and associated management's discussion and analysis for the second quarter ended February 28, 2007. These restatements were required due to the proposed spinout of the non-uranium assets that is contemplated in the plan of arrangement among Cash Minerals Ltd., Signet and Signet's wholly-owned subsidiary Troymet Exploration Corp. (see press release dated April 24, 2007). As a result, in accordance with section 3063 of the CICA Handbook "Impairment of Long-lived Assets", the Corporation tested their non-uranium based assets for impairment. Consequently, Signet recorded a charge of $2,015,000 against income for the period ended February 28, 2007.

Tracy Hurley, PGeo, Vice President, Exploration and Qualified Person as defined by National Instrument 43-101 is responsible for the technical information provided in this release. Samples were analysed at Acme Analytical Laboratories in Vancouver, BC, an ISO 9002 accredited facility. All technical information for the Company's Golden Eagle project is obtained and reported under a formal quality assurance and quality control (QA/QC) program, details of which are presented on the Company's website at: www.signetminerals.ca/i/pdf/QAQC-GE.pdf.

Statements in this press release may contain forward-looking statements. Except for statements of historical fact, all statements in this press release - including, without limitation, statements regarding future plans and objectives of the Company - are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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