Sabre Resources can’t stop finding nickel sulphides at Sherlock Bay, WA

Mon 06 Feb 23, 12:06pm (AEST)
A mineral geologist surveys outcrop in an unknown location in Western Australia
Source: iStock

Key Points

  • Sabre hits more nickel sulphides at depth on-site the Sherlock Bay battery metals project in WA
  • Company tracking ahead with planned JORC-compliant MRE upgrade for 1H 2023
  • Containing nickel, copper, and cobalt, Sherlock is shaping up as a keystone battery metals play for Sabre

To say “there’s nickel” at Sabre Resources’ (ASX:SBR) very own Sherlock Bay Project might be a bit of an understatement

First quarter 2023 activities have been running strong, with results from early December last year confirming more evidence of a significant nickel sulphide system on-site.  

The project, which boasts a resource of around 100,000 tonnes of nickel, is also prospective for cobalt and copper. 

That may be upgraded soon, with a Mineral Resource Estimate (MRE) boost one of the key things Sabre has its eyes on to deliver to shareholders in early 2023.

All three metals are used in Electric Vehicle (EV) battery supply chains. Not only that, but the nickel market broadly is set for a deficit in 2025 according to Sabre’s calculations. 

What has Sabre found? 

“Planning is already advanced for a new drilling program which will test the strong electromagnetic conductors we have identified, including the strongest conductor identified to date,” company CEO Jon Dugdale said. 

“Drilling also provides metallurgical samples for new sulphide concentrate testwork and development studies into a major new nickel-sulphide project development.”

Sabre Resources reported the following assay results from its latest drilling at Sherlock on Monday: 

  • 17m @ 0.6% Nickel Equivalent (NiEq)* from 359m depth, including: 

    • 04m @ 0.8% NiEq from 366m 

    • 1.66m @ 01% NiEq from 367

Investor information provider Undervalued Equity classifies high-grade nickel as that in concentrations over 2%. Nickel Equivalent is a method of putting different hits of metal together. 

Comprising the latest assay results in aggregate were nickel, copper, and cobalt.

Premium for sulphide 

Nickel sulphide is a superior form of mineralisation compared to laterite for EV battery chains and a premium is often paid for the former style of nickel. 

“The latest intersection of higher-grade nickel, copper and cobalt reinforces potential to discover further massive and breccia-matrix sulphides at Sherlock Bay and upgrade the existing resource,” Dugdale added.

Sabre Resources' three month charts
Sabre Resources' three month chars
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Sabre was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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