Sabre to upgrade scope of its Sherlock Bay nickel project

Tue 17 Jan 23, 10:24am (AEST)
Nickel rocks with little miner figurines
Source: iStock

Key Points

  • Sabre Resources has today reported nickel assay results at Sherlock Bay above and beyond grades currently reflected in project resource
  • By upgrading the resource at Sherlock Bay via demonstrating higher grades, Sabre stands to enhance bankability of the project
  • Higher grade mineralisation is present at depth but a westward electromagnetic anomaly suggests shallower hits possible

Sabre Resources (ASX:SBR) published the latest assay results from recent drilling at its Sherlock Bay nickel project on Tuesday. It reported nickel grades higher than accounted for in the existing Mineral Resource Estimate (MRE). 

Sabre’s exploration team found the higher grade nickel mineralisation remains open in a westward direction. That westward trend correlates with a recently discovered magnetic anomaly detected on-site the project to be the subject of further drilling. 

Sabre is confident the data supports the possibility of major extensions to the known mineralised area at Sherlock. 

“These higher-grade intersections are completely open towards the….west of the current nickel sulphide resource, which is the strongest surface conductor ever detected at the Sherlock Bay Project,” Sabre CEO Jon Dugdale said. 

What grades are we talking? 

The assay results on the two diamond drill holes completed at Sherlock (a third drillhole is pending) show nickel grades up to 1.18%. 

For reference, investor information provider Undervalued Equity classifies high-grade nickel as that above concentrations of 2%. 

The most recent nickel grades reported at Sherlock are broken down into Nickel Equivalent (NiEq) which captures other metals also present at Sherlock bay and indicating rich mineralisation (albeit below 2%). 

Included in each NiEq read are the metals nickel, copper, and cobalt, as well as platinum-palladium-gold. Nickel is the dominant mineralisation type in all results, with only trace elements of the latter metals detected.

Broken down, those results are as follows: 

  • 11m @ 0.54% NiEq from 414m depth, including 

  • 06m @ 0.75% NiEq from 419m depth, 

  • 01m @ 1.18% NiEq from 422m depth 

Boosting project bankability 

The company has one mission in mind for early 2023: upgrading the MRE at Sherlock Bay to enhance the bankability of the project.

“Sabre will now fast-track expansion of the resource as well as upgrading development studies to take advantage of the increased global demand for ‘future facing’ battery metals,” Dugdale said.

“Further drilling is now planned to extend this higher-grade sulphide mineralisation and test the massive sulphide potential of the strong [electromagnetic] anomaly to the west of this zone.” 

Are investors overlooking Sabre Resources?
Are investors overlooking Sabre Resources?
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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