Signature Metals (ASX) closed with an impressive 13.33% gain today after Gold's strong rally in the US market the night prior. SBL closed above previous resistance (.033) to finsih the day on .034. The intraday high of .035 matched that seen on December 31st and January 4th, but both these days closed lower (.033 and .032 respectively). So we may see some resistance at .035, but once the SP passes this final barrier I think technically SBL is primed to run much higher in the short to medium term (if we see the price of Gold also hold up).
Fundamentally their position supports a higher share price as well, providing their move from developer to producer goes smoothly. I bought into SBL in early 2010 (adding to my position during price weakness over middle months of the year), their prospects looked strong and still do.
With 1.86b shares on issue their market capitalization at today's close was approximately $63m.
They are nearing completion of a plant refurbishment which should see them start production early this year in Ghana (Konongo Gold Project).
SBL recently upgraded their Gold resource to 1.47m ounces (@ 1.95g/t). They have a resource target of 1.5-2.5m ounces @ 2-4g/t.
Their tenements lie within a prospective region (Ashanti Gold Belt), which should lead to further exploration success and resource increases.
Keep your eye on this one.
Disclosure: Positions held in SBL. Not investment advice. Do your own research.