Sable Mining Africa Regulatory News (SBLM)

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

13 June 2012

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

Update on Exploration Activities

Sable Mining Africa Limited, the AIM listed exploration company, announces that following the receipt of assays from drilling at the Timbo Iron Ore Project in Liberia ('Timbo'), aimed at testing the magnetite formation at depth, it has suspended activities on the project. The Board is instead focussing its exploration activities on the 123.5 sq km Nimba Iron Ore Project in south-east Guinea ('Nimba'), where grades of up to 69.1% Fe and intersections from surface of in excess of 31.7 metres were recently reported, in addition to the 532 sq km Kpo Iron Ore Project in northern Liberia ('Kpo'). As such, camp infrastructure, drilling equipment and exploration personnel will be re-mobilised to Nimba and Kpo.

Sable Mining had drilled 7,000m of the planned Phase 1 programme at Timbo. The Company has received assay results from initial holes drilled, which targeted one of the two iron ore anomalies identified in the airborne geophysical survey in October 2011. The decision to suspend operations at Timbo is based on results indicating that although magnetite iron formation was intercepted at depth, this was low grade, and there was no Direct Shipping Ore at surface. Consequently, the Board decided a more prudent use of shareholder funds would be to advance the Company's additional iron ore interests in West Africa, namely Nimba and Kpo.

In line with the Company's heightened focus on its Nimba and Kpo projects, the Board is also evaluating commercial opportunities to realise the value of its Rietkuil Coal Project in South Africa. 

Sable Mining CEO Andrew Groves said, "Following the paucity of results at Timbo which suggest that the mineral continuity and grade at depth did not match our initial expectations, we have decided to suspend all activities and divert our exploration capital to our Nimba and Kpo iron ore projects, which the Board believes represents the optimum route to enhance shareholder value."

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