Sable Mining Africa Regulatory News (SBLM)

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

4 February 2015

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

Significant DSO Tonnage Increase Demonstrated in Resource Update

at Nimba Iron Ore Project

Sable Mining Africa Limited, the AIM listed exploration company, is pleased to announce a further JORC Code (2012) compliant Resource update at the Nimba Iron Ore Project in south-east Guinea ('Nimba' or 'the Project'). This follows the completion of 231 Reverse Circulation ('RC') drill holes conducted as a resource definition exploration drilling campaign across Plateau 2 and Plateau 3.

Overview

· Total JORC Resource increased to 205.2 million tonnes ('Mt') at an average in-situ grade of 57.8% iron ('Fe') from 181.8 million tonnes ('Mt') at an in-situ grade of 58.8% iron (announced 23 April 2014) - both estimated at a Fe cut-off of 40%

· Resource confidence improved with measured and indicated portion increasing by 31%, from 148.4Mt to 195.0Mt

· Significant anticipated increase in premium DSO product - on-going investigation has identified the upper portion of the unconsolidated domain to contain a very low clay content, which is expected to be screenable as a DSO product thereby significantly increasing the potential lump and fines products available for DSO mining

· DSO product will require a relatively simple crush and screen, and thereby a reduced operating cost is anticipated

· Considerable further potential to increase current JORC Reserve and enhance the robust fundamentals demonstrated in the Preliminary Feasibility Study ('PFS')

o PFS was based on a maiden JORC Reserve of 53.96Mt at a grade of 61.6% Fe calculated from the August 2013 JORC Resource of 135.5Mt @ 59.4% Fe

· Metallurgical test work to progress marketing studies for Sable Mining's end product is on-going, based on 16 HQ and 26 PQ drill hole's core, and detailed product characteristics are expected Q3 2015

· Results confirm the deposit contains easily fragmented rock (UCS averaging 20Mpa and CWI averaging 3kWh/t), which will allow for high crushing rates at low power consumption

· Further drop tower test work has confirmed the initial overall lump yields, with higher lump yields in the P2 South area - the high proportion and quality of lump product is expected to achieve a premium to the prevailing iron ore spot price as it is a direct blast furnace feed and does not require sintering

· Re-evaluated timeline for feasibility studies to take into account Liberian infrastructure development, as per Infrastructure Development Agreement announced on 26 January 2015 - a study progress report and updated Reserve statement is scheduled for Q3 2015 and full Bankable Feasibility Study to be published by Q1 2016

Sable Mining CEO Andrew Groves said, "Swiftly following on the back of our landmark rail access and infrastructure development agreement with the Government of the Republic of Liberia, this increase in our JORC compliant resource to 205.2Mt further highlights the scope, scale and potential commercial value of this asset. It is of particular importance to note the increase in screenable DSO material together with the higher lump yields, as this will directly impact the quality of our final saleable product and potentially further enhance margins.

"The Sable Mining team continue to drive progress at Nimba forward as we approach our ultimate goal of achieving commercial iron ore production in H2 2016. In line with this, the additional components of our development continue to make headway; mine design / scheduling and metallurgical test work is underway to progress the marketing studies for our end product. I look forward to providing additional news in due course as we look to unlock the significant value of Nimba for the benefit of all stakeholders, and open up this region as a new development corridor between the Republic of Guinea and the Republic of Liberia."

Updated Resource Statement

Table 1: Nimba Mineral resource statement for January 2015

* The tonnage has been factored to account for cavities

Table 2: Nimba Mineral resource statement for April 2014

* The tonnage has been factored to account for cavities

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 (2012) compliant resource estimate was conducted to incorporate an additional 231 Reverse Circulation ('RC') drill holes. The deposit consists of detrital iron mineralisation known as 'canga' that has been deposited in palaeochannels adjacent to the Mount Nimba mountain range.

Sable Mining has drilled a total of 604 drill holes (12,512.86 metres), made up of 373 diamond core ('DC') drill holes (7,167.86 metres) and 231 Reverse Circulation ('RC') drill holes(5,345 metres) in and around the current P2N1, P2N2, P2S, P2E, P3N and P3S areas. The majority of the drill holes are orientated vertically while the remaining are inclined (74). The average depth drilled is 20.7 metres. The drill holes are located along drill lines orientated north-easterly. The spacing of the drill lines and drill holes along the lines results in drilling grids of 400 metres by 400 metres, 200 metres by 200 metres and 100 metres by 100 metres. These grids have been in-filled with RC drill holes improving limited areas to a 50 metres by 50 metres grid. To ensure JORC compliance, drill hole information considered as below an acceptable quality control standard was excluded. 

Prior to November 2012, drill hole 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 Quality Assurance/Quality Control(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 composited drill hole samples where the targeted composited length is 1 metre. 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 drill hole. 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 for the major areas. Statistical and spatial comparison of the block model grades to the drill hole samples shows strong similarities but a slight smoothing of the model has occurred due to drill hole 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 is stated as within the mining permit boundary.

Feasibility Study

The Company has recalculated the schedule for its feasibility studies in light of the recently announced Infrastructure Development Agreement with the Government of Liberia. A study progress report will be completed in Q3 2015 which will provide an update of the operational and economic viability of Nimba taking into account ongoing detailed studies relating to mine and haul road design in Guinea, plus further refinement of concepts where appropriate. A full Bankable Feasibility Study will then be issued by Q1 2016 which will also calculate the infrastructure development requirements in Liberia.

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, 2012 Edition). The JORC Table 1 is included as an attachment to this announcement.

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.

To view the JORC Table 1, please click here 

http://www.rns-pdf.londonstockexchange.com/rns/9637D_-2015-2-3.pdf 

** ENDS **

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