Sable Mining Africa Limited, the AIM listed company focused in the mining sector in Africa, announces its results for the year ended March 31st 2012.
The Nimba Iron Ore Project
With such potential, we have re focused our efforts and treasury on rapidly developing Nimba. The project stretches over three plateaux with a total combined aerial extent delineated of approximately 35 sq km and is adjacent to the 600 million tonne EuroNimba iron ore project. It is located approximately 30 kilometers from the newly reopened and under utilized standard gauge railway in Liberia, which extends 260 kilometers from Nimba to the deep water port on the coast at Port Buchanan.
54 exploration drill holes totaling 1,032 meters have been completed to date in the exploration drilling campaign which commenced in April 2012 to target the Canga type iron ore accumulations present at Nimba. Results have been outstanding with wide haematite bearing intersections of up to 33.4 meters identified from surface and grades being reported of up to 69.1% iron, with low contaminant percentages. Assay results from the first holes of the drilling campaign returned broad intersections of high grade iron ore, with highlights of 33.38 meters at 62.28% Fe. Initial drill holes returned composite grades of more than 59.5% Fe, with an average mineralized width of 16.4 meters and an average grade of 62.8% Fe. Importantly low contaminants were returned with the possibility to further improve through screening of the coarse material. The potential for significant DSO tonnage was again highlighted and an exploration target for DSO material up to 200 million tonnes at more than 58% Fe on Plateau 2 alone was declared.
With the continuity of mineralization being confirmed we are rapidly advancing towards the publication of a JORC compliant resource, which we believe will confirm the scale and world class nature of this haematite project. Indeed, the near surface nature of the mineralization and proximity of infrastructure sets Nimba apart from many of its peers and we believe we can fast track Nimba to production with relatively low capital expenditure.
The Kpo Iron Ore Project
The 532 square kilometers Kpo Iron Ore Project situated between the Western Cluster and Wologisi Range in northern Liberia is also yielding excellent results. Located in the highly prospective West African Shield, where a number of world class iron ore projects are currently being developed, rock samples have returned grades of up to 62.4% Fe and an average grade of 43.9% Fe, with the geophysical signatures reflecting the presence of a major iron ore anomaly. Indeed work to date has confirmed an apparent initial strike of 36 kilometers, with modeled widths ranging from 100 meters to 750 meters, out of an overall target strike length in excess of 65km. If extrapolated, this represents an iron ore deposit that has the potential to yield 13 billion tonnes. Importantly, as with Nimba, the prospect is supported by established infrastructure, being located 45 kilometers north east of the existing Bong Mine rail link which terminates in the port of Monrovia and is in close proximity to the proposed Bomi rail link that will link the Western Cluster of iron ore projects to the port of Monrovia. A helicopter supported drilling campaign is anticipated to commence in quarter 4 of 2013 which we hope will confirm the prospective nature and scale of Kpo based on the initial ground mapping program undertaken.
Zimbabwe Coal
In Zimbabwe, it continues to advance our coal projects and have defined a total coal resource in excess of 1.75 billion tonnes. It has invested significant funds in the development of portfolio and is at a stage where we are consolidating our position and processing the significant amount of data generated from our exploration campaign. It is cognizant of present investor appetite for Zimbabwe however the potential remains huge and we continue to monitor the situation.
The Lubu Coal Project continues to look exciting. Covering 19,236 hectares of the highly prospective Karro Mid Zambezi coal basin in the established Hwange mining district in north western Zimbabwe, it already has a modeled in situ seam tonnage of 786 million tonnes. It has completed an intensive 36 hole drilling campaign at Lubu commenced in October 2010, results from which have already emphasized the quality and continuity of Lubu's shallow deposit, the grade parameters, as well as the high coking coal deposits across multiple seams. The results have been incorporated into the existing seam correlation work and when used in conjunction with the borehole geological logs and the down hole geophysical logs, have enabled Sable Mining's geologists to better understand the lithological sequences and correlate and model the seams more accurately.
During the period we secured an additional licence in the Karro Mid Zambezi coal basin covering the Lusulu Coal Project. The licence area was explored by Shell Developments Zimbabwe in 1975 and 1976 and again from 1980 to 1982 and recorded the drilling of some 185 boreholes. From the work completed at Lusulu by Shell Developments, the potential for the licence to host a conservative estimate of 1.2 billion tonnes of good quality coal has been demonstrated.
Timbo and Bopolu Iron Ore
Following the completion of a 7,006 meters, 33 hole diamond drill campaign and subsequent review of assay results from the initial holes drilled, which targeted one of the two iron ore anomalies identified in the airborne geophysical survey in October 2011, a decision was taken to suspend operations at Timbo, while we further evaluate the data. Although primary magnetite iron formation was intercepted at depth, this was largely low grade, and there was no DSO at surface. In line with this re evaluation process we are currently conducting a ground mapping survey to increase our understanding of the project which to date has been disappointing.
At Bopolu, it commenced a regional ground mapping program at the end of February 2012. The main thrust of the program is to target the main iron ore targets identified by the airborne geophysical survey previously completed over the area. Mapping is being undertaken concurrently with a systematic laterite and rock sample survey over cut lines completed to confirm the possible width, strike length and dip of a historically mapped itabirite body. To date we have completed a total of 28 lines for a total of 52.6 line kilometers, and collected 950 soil samples and 37 rock samples. The soil samples will be analyzed for iron using the recently acquired hand held Niton spectrometer. Rock samples have been submitted for analysis at the ALS laboratories and were pending at the time of writing.
Delta Mining Consolidated Limited
With such prodigious projects in Guinea, Liberia and Zimbabwe, we are currently evaluating various commercial opportunities through which to realize the value of the Rietkuil Coal Project in South Africa held through our 63.5% interest in Delta Mining Consolidated Limited. The project has a current SAMREC compliant gross in-situ tonnage resource of 199 million tonnes of coal (156.9 million tonnes in Measured and 42 million tonnes in Indicated categories) and a Bankable Feasibility Study was completed in May 2011. It is located 80 kilometers east of Johannesburg, 8 kilometers south of Delmas and is adjacent to Exxaro Resources Limited's Leeuwpan Colliery and Kuyasa Mining (Pty) Limited's Delmas Colliery, in the Mpumalanga Province of South Africa.
Mr Andrew Groves CEO of Sable Mining said that "The results that we have received to date from our Nimba Iron Ore Project have highlighted its position as one of the most exciting projects being developed globally. For this reason, we have re focused our exploration activities on to this project, and have so far been rewarded with outstanding haematite bearing intersections of up to 33.4 meters from surface with grades of up to 69.1% iron. Our rapid exploration program is set to continue over the coming months with a near term objective of delivering a JORC resource by the end of 2012."
He added that "Importantly, Nimba benefits from established proximal infrastructure which should enable us to bring the project up the value curve with an ambitious production schedule. With the upcoming JORC resource and further value trigger developments at Nimba anticipated in the coming months, I look forward to providing shareholders with further news in due course."
Source - Sable Mining Africa Limited
(www.steelguru.com)
