For personal use only

ASX ANNOUNCEMENT

ASX code: SBR

10 March 2022

SABRE TO DRILL HIGH-GRADE NICKEL SULPHIDE TARGETS AT SHERLOCK BAY

Drilling targets identified with potential for high-grade massive nickel sulphides

  • The Scoping Study on the Sherlock Bay Nickel Project1 indicated positive project cashflow can be generated at a nickel price of US$10/lb3, and that cashflow potential could be significantly enhanced through discovery of higher-grade resources and/or a higher nickel price (currently >US$17/lb3).
  • A new deposit model for Sherlock Bay shows potential for high-grade massive nickel sulphides and key targets have been identified for drill testing, including:
    • Down plunge of the Symonds nickel sulphide resource where grades are increasing with depth as the mineralised horizon projects to intersect the Sherlock (mafic - ultramafic) Intrusive - a scenario conducive to massive nickel sulphide accumulations.
    • Down plunge to the west of the Discovery nickel sulphide resource where VTEM anomalies indicate potential for massive nickel sulphides,
  • Three diamond drillholes are initially planned for up to 2,000m, to initially test these key high-grade nickel sulphide targets as well as carry out down-hole electromagnetics (DHEM) to detect off-hole conductors for further testing.
  • A diamond drilling rig has been identified to test these high-gradenickel-sulphide targets at Sherlock Bay Nickel Project, with drilling planned to commence as soon as possible, subject to approval of a Program of Work (PoW) to be submitted immediately.

Sabre Resources Ltd ("Sabre" or "the Company") is pleased to announce the identification of high- grade massive nickel sulphide targets for drill testing on its 70% owned Sherlock Bay Nickel-Copper-Cobalt Project ("Sherlock Bay", or "the Project").

The Sherlock Bay nickel sulphide deposit contains a substantial nickel sulphide resource (see below)3 and is located on granted mining lease, M47/567, 40km east of Roebourne in the Pilbara Region of Western Australia (see Figure 1 below).

The recently completed Scoping Study1 on development of the Sherlock Bay Nickel Project indicated positive cashflow potential at prevailing nickel pricing of US$10/lb/US$22,040/t, with projections of continued price appreciation based on forecast increases in global nickel consumption. The nickel

price is now >US$17/lb/US$37,500/t (Kitcometals, 9/3/223) which, if sustained, will trigger a review of the 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.

For personal use only

Re-interpretation and targeting work along-side the Scoping Study identified potential for additional higher-grade resources associated with extensions to both the Symonds and Discovery deposits that are increasing in grade with depth1.

The projected intersection of these nickel sulphide deposits with the footwall of the Sherlock mafic- ultramafic intrusion will be targeted with an initial drilling program to test potential for higher grade

to massive nickel sulphides.

The key objective of this diamond drilling will be to identify potential to increase high-grade nickel sulphide resources and enhance the economic viability of the Sherlock Bay Nickel Project.

Figure 1: Sherlock Bay Nickel-Copper-Cobalt (sulphide) Project, regional geology and location plan

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.

A review of previous reports and re-interpretation of the deposits has been carried out to examine potential for higher-grade extensions and/or higher-grade nickel sulphide bodies in the near resource environment.

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 increase in nickel sulphide grade at depth, as shown in longitudinal projection, Figure 2, below.

2

For personal use only

Figure 2 - Sherlock Bay Longitudinal Projection with Discovery and Symonds nickel deposits, Ni% x m contours

Previous models for Sherlock Bay nickel deposit include hydrothermal remobilisation of nickel and re-precipitation in the mineralised horizon. However, Ni-Cu-Co ratios are similar to other intrusive related nickel sulphide deposits such as the nearby Andover nickel sulphide deposits (Azure Minerals Ltd, ASX:AZS)4, (Figure 1), suggesting that mineralisation is magmatic fluid related rather than remobilised hydrothermal, as this would disrupt magmatic metal ratios associated with sulphur saturation of magma.

Previous work by Outokumpu, based on 1990s drilling, has indicated that the proximal Sherlock mafic-ultramafic Intrusion has anomalous base metal and PGE values with associated sulphides, indicating sulphur saturation prior to intrusion.

A new model for the Sherlock Bay deposit suggests that the mineralisation, which is in the felsic footwall to the Sherlock Mafic-Ultramafic Intrusion, is associated with nickel bearing magmatic fluids that may have interacted with a sulphidic horizon in the footwall of the Sherlock Intrusive magma chamber and become sulphur saturated, causing the precipitation of Ni, Cu and Co sulphides as well as the deposition of amphibole, magnetite and other minerals that relate to the magmatic source.

Under this scenario, massive sulphides are targeted where the mineralised horizon projects to intersect the footwall of the Sherlock Intrusive, potentially representing the "neck" of the intrusive. Massive sulphides occur in this position at analogous deposits such as Voisey's Bay in Canada, indicating potential for massive nickel sulphide deposits under this analogy at Sherlock Bay.

3

For personal use only

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

  1. Deeper extensions of the Symonds nickel sulphide deposit, where higher-gradeintersections 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 3 below).
    The Symonds deposit also changes dip from steep northerly to a southerly dip with depth (see Figure 3) - projecting towards the contact with the Sherlock Intrusive.

Figure 3: Symonds Nickel Deposit, Cross Section 20,760mE showing high-grade nickel sulphide target

4

For personal use only

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 3).

  1. Down plunge extensions of the Discovery nickel sulphide deposit, where higher-gradeintersections including: SBD077 - 50m @ 0.42% Ni from 227m incl. 22m @ 0.57% Ni & 4m @ 1.02% Ni1 indicate improving nickel grade down-plungeat relatively shallow depth to the southwest that remains open down plunge (see Figure 3 and cross section 19,600E Figure 4).

Figure 4 - Sherlock Bay cross section 19,600mE, Discovery deposit with high-grade Ni sulphide target

5

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

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Sabre Resources Limited published this content on 10 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2022 00:22:04 UTC.