Sable Mining Africa Regulatory News (SBLM)

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

30 July 2013

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

Nimba Iron Ore metallurgical test work demonstrates low cost DSO potential

and drill testing of licence extension area completed for Resource update in Q4

Sable Mining, the AIM listed exploration company, is pleased to announce further positive results from metallurgical test work from the Company's 123.5 sq km Nimba Iron Ore Project in south-east Guinea ('Nimba' or 'the Project'). 

Overview

·; Metallurgical test work completed on eight drill holes across Plateau 2 ('P2') and Plateau 3 ('P3')

·; Results further highlight the commercial value of Nimba, which, with an initial JORC resource of 121.5Mt at an in-situ grade of 57.8% iron and a current resource expansion exploration target of 45-80Mt, makes it the second largest on- or near-rail undeveloped DSO deposit in West Africa

·; Results demonstrate low cost DSO potential:

o Deposit contains easily fragmented rock, which should allow high crushing rates at low power consumption

o Iron can be separated from gangue elements using a simple gravity circuit allowing good grade improvement at high recoveries - over 95% of the iron oxides have been found to be liberated in the dense fractions

·; Lump yield percentages of both the consolidated and unconsolidated ore have risen from results of metallurgical test-holes on canga ore closer to the mountain and original source - significant lump yield improvement of the P2 north and P3 unconsolidated ore from 15% to 40%

·; Drill testing of extension area as reported by the Company on 13 May 2013 has been completed and will be used for the resource expansion update expected in Q4 2013

·; 893.9m were drilled in this programme, 48 boreholes completed and 1,326 samples taken which are being transported to the designated UltraTrace laboratory in Perth

Sable Mining CEO Andrew Groves said, "These highly positive metallurgical testwork results further support our belief that Nimba has the potential to be a world class asset. With anticipated low capital expenditure because of existing nearby rail, and low operating expenditure because of the DSO grades, Nimba continues to set itself apart from its West African iron ore peers.

"Having already demonstrated significant DSO tonnage and a maiden JORC resource of 121.5Mt at an in-situ grade of 57.8% iron, these latest results further underline the Project's commercial viability. The metallurgical test work has highlighted that the iron mineralisation is amenable to relatively low cost production as the deposit contains easily fragmented rock, allowing for high crushing rates at low power consumption, and can be separated from gangue elements using a simple gravity circuit to further upgrade the ore. I am therefore confident that Nimba has strong potential to become a high tonnage, high grade and low cost production asset in the near term."

Further Information

In line with Sable Mining's exploration programme, metallurgical test work was recently completed on eight drill holes covering the northern part of Plateau 2 and Plateau 3.

The test work, which was conducted at AMDEL in Perth, confirmed that similarities in Unconfined Compressive Strength (UCS) and Crushing Work Index (CWI) characteristics exist in the iron mineralisation found across Plateau 2 and Plateau 3 with the earlier test work which was limited to an area in the southern part of Plateau 2. The combined UCS average is 15.9MPa with a maximum of 40.9MPa while the CWI average is 3.0kWh/t with a maximum of 13.0kWh/t. These results confirm that the deposit contains easily fragmented rock, which will allow for high crushing rates at low power consumption.

Heavy liquid separation (HLS) test work was also conducted on composite samples of high aluminium and high silica gangue mineralisation in the fines fraction from both the consolidated and unconsolidated areas within the Project. The test work was conducted on four size fractions across three specific gravities ('SG'). Both domains produced good grade improvement at high recoveries indicating that the gangue elements were well liberated and can be separated by a simple gravity circuit. These results were confirmed by QEMSCAN analysis conducted at AMDEL in Adelaide. A majority (>95%) of the iron oxides were found to be liberated in the dense fractions (+3.32 SG), representing 80% and 85% of the iron in the consolidated and unconsolidated domains respectively (see Table 1).

Drop tower test work, completed at AMDEL Perth, was also conducted on samples taken from the northern part of Plateau 2 and Plateau 3. The results indicated a higher lump yield from these sections of the deposit, when compared to earlier work conducted at the southern part of Plateau 2. While both the consolidated and unconsolidated domains show a lump yield improvement, the lump yield improvement from the unconsolidated domain was significant (from 15% to 49%).

Table 1. Composite, deslimed and HLS product grades.

# silica plus alumina.

* calculated value based on 30% fines deportment to tails from wet plant. Data based on met test sample average grades with mining dilution

^^ estimated fines (-6.3mm) recovery.

The information in this announcement that relates to Metallurgical Test Work has been reviewed by Jasbir Khosa, a qualified metallurgist and processing engineer employed by Xstract Mining Consultants. Jasbir Khosa 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 **

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