Sable Mining Africa Regulatory News (SBLM)

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

13 September 2013

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

JORC Code compliant Resource at Nimba Iron Ore Project Increased to 135.5Mt

Sable Mining Africa Limited, the AIM listed exploration company, is pleased to announce an updated JORC Code compliant resource at the Company's 123.5km sqNimba Iron Ore Project in south-east Guinea ('Nimba' or 'the Project'), which further underpins Nimba's potential as one of the most commercially attractive undeveloped iron ore assets in West Africa.

Overview

· 12% increase in JORC Code compliant Mineral Resource at Nimba to 135.5Mt at an in-situ grade of 59.4% iron ('Fe') estimated at a Fe cut-off of 40% from infill drilling on prospects Plateau 2 and Plateau 3

· Increased Indicated Resource tonnes to 90.7Mt from 4.2Mt - supports the conversion to Reserves during the completion of the Pre-Feasibility Study

· Pre-Feasibility study is underway, examining a variety of options, including the requirements of early term production

· Increase in tonnage and grade continues to highlight the commercial attractiveness of Nimba when considering the anticipated high grade product, high margin and low capital expenditure

· Significant resource upside potential remains within both Plateau 2 and 3, as well as in parts of the 11 km sq Plateau 1 which is larger than Plateau 2 and is yet to be properly explored

· An expansion phase of drilling has been completed - this will result in another resource update expected in Q4 2013

· Key milestones including grant of Mining Licence, award of export decree and completion of Pre-Feasibility Study are well advanced - further announcements anticipated shortly

Sable Mining CEO Andrew Groves said, "Further setting itself apart from its West African peers, Nimba continues to demonstrate itself as a high tonnage, high grade, high margin and low capex iron ore project with potential to become a world class production asset in the near term. This Resource update to 135Mt at an in-situ grade of 59.4% Fe, strengthens our confidence in the quantity and quality of ore, which together with the additional benefits inherent at Nimba, including the established under-utilised standard gauge railway nearby, means it is one of the world's premier undeveloped iron ore assets.

"We remain in an enviable position of being independent, in so far that we are yet to sell our off-take, and with highly significant milestones set to be reached in the near future, including the grant of a Mining Licence, export decree and publication of Pre-Feasibility Study, we are well positioned to rapidly build value at Nimba."

Table 1: Increased in JORC Resource Estimate at Nimba Iron Ore Project

Updated Resource Estimate

Xstract Mining Consultants, an Australia-based consultancy group and wholly-owned subsidiary of engineering services company Calibre Group, which has significant expertise in iron ore, conducted the Updated Resource Estimate for Nimba.

The updated JORC code compliant resource estimate was conducted over Plateau 2 north (P2N), Plateau 2 south (P2S) and Plateau 3 (P3) of Nimba. The deposit consists of detrital iron mineralisation known as 'canga' that has been deposited in palaeochannels adjacent to the Mount Nimba mountain range. This update follows the return of assay results for P2S and the completion of infill drilling and sampling of selected areas on P2N and P3. The latest classified resource statement for Nimba is shown in Table 2, while the classified resource statement for P2N, P2S and P3 is shown in Table 3, Table 4 and Table 5 respectively.

Table 2: Nimba Iron Ore Project classified resource statement (JORC, 2004)

All figures are rounded to reflect appropriate levels of confidence.

Table 3: Mineral Resource Estimate Plateau 2 north

Table 4: Mineral Resource Estimate Plateau 2 south

Table 5: Mineral Resource Estimate Plateau 3

Sable has drilled 276 diamond drillholes in and around the current P2N, P2S and P3 areas. The majority of the drillholes are orientated vertically (202) while the remaining are inclined (74). The average depth drilled is 20.9 metres. The total length currently drilled is 5,775.2 metres The drillholes are located along drill lines orientated north-easterly. The spacing of the drill lines and drillholes along the lines results in drilling grids of 400 metres by 400 metres, 200 metres by 200 metres and 100 metres by 100 metres.

Prior to November 2012, drillhole samples were prepared by ALS Bamako and analysed at ALS Ireland by XRF methods. After this date samples were prepared by ALS Bamako but analysed using XRF methods by Ultra Trace in Perth. The pre-November 2012 LOI results displayed a bias due to handling procedures at ALS Ireland and the pulps of these samples were re-assayed by Ultra Trace in Perth. The QAQC analyses show a marked improvement in accuracy and precision since the changeover.

The mineral resource estimate was completed in Datamine software using a three dimensional block model (parent block size of 100 metres by 100 metres by 6 metres in the X, Y and Z directions respectively). A full suite of Fe elements were estimated into the blocks using ordinary kriging from 1 metre composited drillhole samples. The estimation was restricted by project and domain code, while the search was restricted to the search ellipse and a maximum of five samples per drillhole. The search distance was based on the general semi-variogram range and the direction was dictated by the anisotropy evident in the semi-variogram fan. Statistical and spatial comparison of the block model grades to the drillhole samples shows strong similarities but a slight smoothing of the model has occurred due to drillhole spacing. The tonnage of each block has been adjusted by a factor that reflects the estimated proportion of cavities for each parent block, based on areas where such cavities have been recorded.

The Mineral Resource Statement has been compiled in the accordance with the guidelines defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2004 Edition).

The information in this announcement that relates to Mineral Exploration results and Mineral Resources, together with any related assessments and interpretations have been reviewed by a qualified geologist. Kevin Lowe, Principal Consultant Geologist at Xstract Mining Consultants Pty Ltd 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.

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