Sable Mining Africa Regulatory News (SBLM)

Sable Mining Africa Ltd / Index: AIM / Epic: SBLM / Sector: Natural Resources

28 November 2011

Sable Mining Africa Limited ('Sable Mining' or 'the Company')

Kakoulima Project Update

Sable Mining Africa Limited, the AIM listed resource company, is pleased to announce a positive update from the Company's 80% owned Kakoulima Project, a 298 sq km exploration permit on the Mount Kakoulima mafic-ultramafic igneous intrusive complex, approximately 50km north-east of Conakry, Guinea, which is prospective for iron ('Fe'), nickel ('Ni'), copper ('Cu'), cobalt ('Co'), chromium ('Cr') and platinum group elements ('PGE').

Highlights:

·; Magnetics define an anomalous area 13km long

·; Encouraging initial results from a 50 hole reconnaissance programme focussed primarily on newly defined Kakoulima 2 area

·; Auger Hole Kak11-30 included

o 29m grading 45.1% Fe,

o 29m grading 4.14% Cr2O3,

o 12m grading 0.63% Ni

·; Mineralogical study commissioned as part of a scoping study

Sable Mining CEO Andrew Groves said, "The Kakoulima Project continues to yield highly encouraging results which are emphasising the high grade nature of the prospect as well as its potential scalability. We will finalise the initial auger programme, combine the results with our existing data set and construct a full drilling programme as part of our project development strategy.

"Kakoulima complements our existing resource portfolio which includes several highly prospective iron ore projects in West Africa and a coal resource of in the region of 3.5 billion tonnes in South Africa and Zimbabwe. We are well funded and have a defined development strategy aimed at advancing our projects and generating value."

Full Update:

The Company's current focus is to examine mineral accumulations in the overlying laterite and saprolite horizons. Studies thus far have been focussed on the south-east flank of Mount Kakoulima intrusive, concentrating on an area of highly anomalous magnetics extending approximately 13 kilometres in a north east direction. This includes an area newly identified by Sable Mining's reinterpretation of both satellite imagery and existing geophysical data as a further ultra-mafic intrusive known as Kakoulima 2. 

A reconnaissance drilling programme using a 160 mm auger is currently underway with 50 holes having been completed over the 20km2 area. A further 17 holes are planned to complete this initial programme. All analyses are being undertaken ALS Global's ISO certified laboratory in Brisbane, Australia.

Encouraging initial results have been received from the Kakoulima 2 area with significant intersections tabulated below:

(Applying cut-offs of 30% Fe for iron, 2.4% Cr2O3 for chromite and 0.5% Ni for nickel)

A mineralogical study by ALS, including QEMSCAN, has been initiated to characterise mineralisation in the different lateritic layers, as a first step to scoping a metallurgical process to produce saleable products. Hand-panning of the lower saprolitic clays, where anomalous magnetic susceptibility was observed, has shown significant quantities of magnetite and chromite in panned concentrates. It is currently assumed that the magnetite is a secondary product of the decomposition of the underlying dunite (olivinite) ultramafic rock. In the lateritic sequence above the saprolite the magnetite has altered to hematite, goethite and maghemite.

The information in this announcement that relates to mineral exploration results and any related assessments and interpretations, has been reviewed by Dr Christopher JV Wheatley, a qualified geologist and consultant to the Company. Dr Wheatley has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a qualified person as defined by the AIM Note for Mining and Oil & Gas Companies.

** ENDS **

For further information please visit www.sablemining.com or contact:

Notes

Sable Mining Africa Ltd is an AIM listed resource company focussing on coal and iron ore assets in sub-Saharan Africa. The primary objective of the Company is to benefit from early exposure to mining businesses or assets in underdeveloped locations which could attract substantial foreign investment and have the potential for rapid and sustainable growth. The Company has a diverse portfolio of assets at varying stages of development, from greenfield exploration to near term production, and a geographic spread that includes Zimbabwe and South Africa for coal and Liberia, Sierra Leone and Guinea for iron ore. Sable Mining's portfolio of thermal and metallurgical coal interests in central and southern Africa is well advanced with a current attributable resource in excess of 3.5 billion tonnes. Management sees potential to raise the coal resource to 4 billion tonnes. 

The Company has interests in four major coal projects in established producing regions with robust infrastructure networks in South Africa and Botswana. All four projects have active development programmes in place to raise their respective resource base. Sable Mining also holds the Lubu coal concession in the Bulawayo Mining District of Zimbabwe; a 61% interest in the Gulukwane iron ore project in the Limpopo province of South Africa; a 100% interest in a 1,107 sq. km iron ore licence, covering three permits in the highly prospective Kissidougou area of south east Guinea; and a 51% interest in Southern Cross Investments Limited, a company which holds the Bopolu and Timbo iron ore reconnaissance licences in Liberia. The Liberian licences are located in a widely recognised world-class iron ore province which include major iron projects such as the 1 billion tonne Yekepa Project, owned by Arcelor Mittal; the 1.1 billion tonne Putu Range, owned by Severstal; and the 290 million tonne Bong Project, owned by China Union/Wisco.