Quarterly report on activities and cash flows


ASX code: SBR

October 29, 2021

Quarterly activity report for the period ended September 30, 2021

Strong points:

  • Sherlock Bay Scoping Study Nickel-Copper-Cobalt Sulphide project nearing completion, with finalized processing cost inputs and mine studies to update for optimized cash flow model focused on higher grade early in sequence mining
  • A potential has been identified to discover high grade nickel sulphides at Sherlock Bay where the resource increases in grade with depth and EM anomalies along strike are poorly tested. The company will develop these targets for drill testing in the next quarter.
  • The acquisition of the Ninghan gold project has been completed. Very Undercover gold trends, north of the 3Moz Mt Gibson gold project, to be tested with other planned drilling
  • Phase 2 studies on the border Zinc-Lead Project and Continued Exploration to Expand Resources Await Renewal Decision from Namibian Ministry of Mines

Sherlock Bay Nickel Sulfide Project M47 / 567, WA – Scope Study:

Saber Resources Ltd (“Saber Resources” or the “Company”) owns a 70% interest in the Sherlock Bay Nickel (Sulfide) Project (“SBNP” or “Project”) on the M47 / 567, located 40 km to the east of Roebourne in the Pilbara Region of Western Australia (see Figure 1).

The SBNP includes a current measured, indicated and inferred JORC 2012 nickel sulphide mineral resource of 24.6 million tonnes at 0.4% nickel (Ni), 0.09% copper (Cu), 0.02% cobalt (Co)1, containing

nearly 100,000 tonnes Ni, 21,700 tonnes Cu and 5,400 tonnes Co.

In April 2021, the Company commenced an SBNP scoping study (the “Study”) to determine the economics of the Project at current and projected nickel, copper and cobalt prices. Global nickel consumption is expected to more than double by 2040 and the proportion used in precursors for electric vehicle (EV) batteries is expected to rise from 7% to over 30% of demand with near exponential demand growth d ‘by 2030 (Wood-McKenzie,Paydirt Nickel conference, October 21). Nickel sulfide projects are favored due to the high profitability (> 90%) of the nickel intermediates produced, which are suitable for the production of batteries for electric vehicles.

This study is based on previous work carried out from 2004 to 2007 by Sherlock Bay Nickel Corporation, which included heap leach treatment, and mining study reports conducted by consultants AMC Pty Ltd (AMC), initially in 2005 and updated for the Company in August. 20182.

The SBNP comprises two nickel sulphide deposits, Symonds and Discovery, both tabular and trending northeast-southwest over a corridor of approximately 1.5 km (see mineralization envelopes, Figure 2), at the inside the Scholl shear zone (figure 1). The beds are each about 15 to 20 m wide and tilt and dip almost vertically (see cross section, Figure 3).

Figure 1 – Regional geology and location map of the Sherlock Bay Nickel project in WA

Figure 2 – 0.20% Ni mineralization envelope of Discovery and Symonds wells, plan view

The updated AMC mining report (2018)2 includes two optimized open pits that would operate for up to 5 years and overlap with underground development and establishment of sub-level cave operations, via separate ramps (see longitudinal section, Figure 3). Underground mining continues for the remaining 8 years of a 12-year operation, producing 2.0 million tonnes of “ore” per year (Mtpa) once full production levels are reached.







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Figure 3 – AMC mining study, optimization of surface mines and underground development and mine development2

AMC’s mining report2 demonstrated that at the applied nickel price of $ 15,000 / t (now> $ 20,000 / t), significant operating cash flows could be generated from surface and underground operations and, subject to Further studies needed to determine updated processing capital and operating costs, it is possible that an economical mining project will be set up at PNSB.

The new work is based on inputs generated by Strategic Metallurgy Pty Ltd of Perth, which completed the design of the treatment scheme, and Lycopodium, which is finalizing its updated capital cost report for treatment and infrastructure. surface area and operating costs of the treatment.

The final step of the study is to integrate the updated processing capital costs and the updated operating costs with the updated operating schedules to produce a new SBNP cash flow model at current nickel prices. , copper and cobalt, which maximizes the cash flow of current resources. This will be an iterative process, with potential changes to operating schedules needed to optimize cash flow in the early stages of operations.

It is clear from the first assessment of the study inputs that cash flows are sensitive to the content extracted. The average grade of the SBNP resource is 0.4% nickel with copper and cobalt credits. However, there is

evidence that the nickel sulphide content of both deposits increases at depth, as shown in a cross section

through the Symonds deposit, Figure 4. Nickel sulphide deposits occur in felsic volcanic rocks of the lower wall but converge with the Sherlock (ultramafic / gabbro) intrusive contact at depth. Previous work has indicated that the nickel-copper-cobalt mineralization is associated with the Sherlock mafic-ultramafic intrusion, which has been shown to be saturated with sulfur. Anomalous values ​​of base metals and EGP with associated sulphides have been reported by Outokumpu based on drilling from the 1990s and previous EM anomalies along the direction of the Sherlock Bay deposit have not been investigated. only limited testing.

The probable presence of higher grade disseminated massive sulphides at Sherlock Bay is also confirmed by the Andover discovery by Azure Minerals Ltd (ASX: AZR), located 40 km west of Sherlock Bay (Figure 1). Andover has produced nickel intersections, with massive sulphide mineralization, including 4.5m @ 3.95% Ni, 0.8% Cu, 0.16% Co over 486.6m in ANDD0045 and 16.8m @ 1.04% Ni, 0.46% Cu, 0.05% Co over 460 m in ANDD004323. The mineralogy of these intersections and the association with gabbro intrusions is similar to the Sherlock Bay nickel deposit associated with the Sherlock intrusive (Figure 1).

In summary, the Company is focused on performing studies that maximize the cash flow potential of the current PNSB resource, in parallel with developing a program to take advantage of the exceptional opportunity at Sherlock Bay to discover sulphides of higher grade nickel in the near-resource area. environment. The addition of higher grade nickel sulphide discoveries would likely have a very positive impact on the SBNP economy and drilling targeting is well advanced.

Figure 4 – Sherlock Bay Nickel Project, 20,760 mE cross section, Symonds deposit with Ni intersections

Ninghan Gold Project, E59 / 2402, WA

During the quarter, the Company completed the acquisition of the Ninghan Gold Project, E59 / 2402 (“the Project”), which is located approximately 50 km southwest of Paynes Find in the southern part of Murchison Province. in Western Australia, very rich in gold.4.

The Mt Gibson gold mine is located less than 20 km along the southern direction of the project and has a previous production of nearly 0.9 Moz and a resource upgrade recently released by Capricorn Metals Ltd.5 of 2.1Moz, for a total of 3.0Moz pre-mininggold endowment (see figure 5 below).



Figure 5 – Ninghan gold project on the regional magnetic image (TMI, RTP) and the Mt Gibson gold deposit

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Saber Resources Limited published this content on November 01, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 31, 2021 09:26:09 PM UTC.

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