Sabre Resources : Drilling of High-Grade Nickel EM Targets Set to Commence

ASX ANNOUNCEMENT

• 11 April 2022

  DRILLING OF HIGH-GRADE NICKEL SULPHIDE TARGETS SET TO COMMENCE AT

  SHERLOCK BAY

• - Major Conductor Targets Confirmed by Electromagnetic Anomaly Modelling

• ➢ Modelling of electromagnetic (EM) survey data has confirmed a major, 1.4km strike length, conductor extending west and open at depth below the Sherlock Bay nickel sulphide resource in WA's highly-prospective west Pilbara region.

• ➢ The presence of this major EM conductor supports the Company's new model0 at Sherlock Bay for massive sulphides to be located at the projected intersection of the mineralised horizon with the base of the Sherlock gabbro/ultramafic intrusion.

• ➢ Massive sulphides occur in this position at analogous deposits such as the Nova-Bollinger intrusive related nickel sulphide deposit in WA (owned and operated by IGO Limited).

• ➢ A four-hole diamond drilling program for up to 2,400m is set to commence to test these high-grade nickel sulphide targets, with the objective of increasing the grade of the resource and further enhancing the economic viability of the Sherlock Bay Nickel Project.

Sabre Resources Ltd ("Sabre" or "the Company") is pleased to announce that modelling of previous electromagnetic anomalies has highlighted a major conductor extending west and to depth below the Sherlock Bay nickel sulphide resources at the Company's 70% owned Sherlock Bay Nickel-Copper-Cobalt Project ("Sherlock Bay", or "Project") located in the west Pilbara of WA (Figure 3).

Previous Moving Loop Electromagnetic (MLEM) surveys were carried out by Outokumpu in 1998 at Sherlock Bay. Newexco Exploration, specialist geophysical group, have re-modelled the MLEM data and identified a 1.4km strike-length conductor that extends beyond the currently drilled resource and is open to the west and down dip/plunge in the direction of increasing grade (see Discovery cross section, Figure 1). Newexco also concluded that the mineralisation has rolled over from steeply north dipping to possibly south dipping further west, which would indicate the mineralisation will intersect with the base of the Sherlock Intrusive at a shallower point than previously interpreted, being immediately down-plunge of the Discovery Resource (see longitudinal projection, Figure 2).

Under the new target model for the Sherlock Bay nickel sulphide deposits0 massive sulphides are targeted where the mineralised horizon projects to intersect the footwall of the Sherlock Intrusive, potentially representing the "neck" or "throat" of the intrusive (See cross section Figure 3).

Massive sulphides occur in this position at analogous deposits such as the Nova-Bollinger intrusive related nickel sulphide deposit in WA (owned and operated by IGO Ltd, ASX:IGO).

Four diamond drillholes totalling up to 2,400m will test this targeted intersection point, down plunge of both the Discovery and Symonds resources.

A diamond drilling contractor is available to carry out this program and the Program of Work (PoW) for the drilling has been lodged with the WA Department of Mines (DMIRS). It is expected to be approved shortly to allow commencement of drilling during the second Quarter (Q2).

Figure 1 - Sherlock Bay

nickel deposit, cross

section 19,600mE with

Target Zone.

About Sherlock Bay Nickel Sulphide Deposit:

Sabre holds a 70% interest in the Sherlock Bay Nickel-Copper-Cobalt Project - a significant nickel sulphide resource located on granted mining lease, M47/567, 40km east of Roebourne in the highly prospective Pilbara Region of Western Australia (see Figure 3). The Project is well-located 12 km off the Northwest Coastal Highway, 40km east of Roebourne in the Pilbara Region of Western Australia.

The Sherlock Bay Nickel Project includes two nickel sulphide deposits, Discovery and Symonds, that have a current JORC 2012 nickel sulphide Mineral Resource of 24.6Mt @ 0.40% Ni, 0.09% Cu, 0.02% Co, containing 99,200t Ni, 21,700 tonnes Cu and 5,400 tonnes Co (including a Measured & Indicated 18.5Mt @ 0.45% Ni, 0.10% Cu, 0.02% Co and Inferred 6.1Mt @ 0.27% Ni, 0.06% Cu, 0.01% Co)3.

The Company recently completed an extensive Scoping Study on the on development of the Sherlock Bay Nickel Project1 that indicated positive cashflow potential at the prevailing nickel pricing of US$10/lb/US$22,040/t. The nickel price is now >US$15/lb/US$33,000/t (Kitcometals, 8/4/223) which, if sustained, will trigger a review of the scoping study cash-flow model and commencement of a Pre-Feasibility Study (PFS).

The Company confirms that it is not aware of any other new information or data that materially affects the information included in the Sherlock Bay Nickel Project Scoping Study release of 27th January 2022.

The average grade of the Sherlock Bay resource is ~0.4% nickel with copper and cobalt credits.

However, there is evidence that the two deposits comprising the resource increase in nickel sulphide grade at depth (see longitudinal projection, Figure 2).

Two key target zones have been identified with potential for higher-grade to massive sulphides:

i)Deeper extensions of the Symonds nickel sulphide deposit, where higher-grade intersections at depth including: SBD065 - 43m @ 0.54% Ni from 508m incl. 17m @ 0.71% Ni and 3m @ 1.10% Ni1, indicate improving nickel grade with depth within a steep westerly plunging zone that remains open down plunge (see longitudinal projection, Figure 2 and cross section 20,760mE, Figure 4 below).

The Symonds deposit also changes dip from steep northerly to a southerly dip with depth (see Figure 4) - projecting towards the contact with the Sherlock Intrusive.

Two diamond drillholes have been planned, including a ~550m deep diamond drillhole hole from south to north to test the Sherlock Intrusive and continue to test the sulphide mineralised horizon, and a deeper ~750m drillhole from north to south to test extensions of the mineralised horizon and continue to the Sherlock Intrusive footwall contact (Figure 4).

ii)

Down plunge extensions of the Discovery nickel sulphide deposit, where higher-grade intersections including: SBD077 - 50m @ 0.42% Ni from 227m incl. 22m @ 0.57% Ni & 4m @ 1.02% Ni1 indicate improving nickel grade down-plunge at relatively shallow depth to the southwest that remains open down plunge (see longitudinal projection, Figure 2 and cross section 19,600mE, Figure 1).

Two diamond drillholes have been planned to test the down-plunge extensions of the Discovery deposit (See Figure 1, cross section 19,600mE).

This is an excerpt of the original content. To continue reading it, access the original document here.