ONGAVA POLY-METALLIC PROJECT

Transcription

1 27 April 2010 QUARTERLY ACTIVITIES REPORT for the period ended 31 March 2010 ONGAVA POLY-METALLIC PROJECT Diamond drilling is underway at Border. Extensive geophysical surveys were completed at Border and Kaskara Border geophysical survey highlights numerous drilling targets. Known mineralisation corresponds to moderate anomalies. Stronger anomalies extend to and broaden at depth. A separate zone 200 metres south of drilled mineralisation. Copper mineralisation is associated at surface with the southern anomaly. Strong anomalies extend the 1000 metre breadth of the geophysical survey. Kaskara geophysical survey is complete and the report is pending. Preliminary data shows that the anomalies extend east and west of the first geophysical survey. Discovery of the Ondjima base metal prospect west of Kaskara.

2 ONGAVA POLY-METALLIC PROJECT, NAMIBIA Work continued on the Ongava Poly-Metallic Project during the first quarter of 2010 despite the ongoing wet season. Extended geophysical programmes at the Border lead-zinc deposit and the Kaskara and Lucas Post copperlead-zinc prospects are yielding very interesting results that will be tested by drilling. Border and Kaskara are located in the Ongava Poly-Metallic Project, northern Namibia (Figure 1). The project is at the centre of the Otavi Mountain Figure 1 Location of the Ongava Project, northern Namibia. Other base-metal projects throughout the region are shown. Land, a historic, world-renowned and highly prospective mining region that is home to the world-class Tsumeb copper-lead-zinc-silver mine (now closed). Figure 2 The Ongava Poly-Metallic Project area (EPL 3542). Major mines and prospects are labelled. Other prospects are represented by yellow dots (20km grid). BORDER DEPOSIT AND THE PAVIAN TREND Two phases of geophysical exploration were completed at the Border lead-zinc deposit in the quarter. Border is located roughly at the centre of the 15 km long Pavian Trend, a zinc, lead and copper trend of world-class potential. The Pavian Trend incorporates the Border zinclead deposit, the Nosib H and South Ridge copper-zinc-lead prospects, and the Irvington and Pavian zinc-lead prospects. Over 13 km of the trend is located within Sabre s exploration licence. 2

3 The anomalies defined by the geophysical programme extend the full 1,000 metre breadth of the programme. The programme comprised seven 2 km long lines spaced 200 m apart for an overall strike length of 1,000 m. Three techniques, induced polarisation (IP), magnetotellurics (NSAMT) and ground magnetics were used to define anomalies at Border. In particular, Chargeability Zone A (IP) (Figure 3) and Conductor A (NSAMT) (Figure 4) are considered to be the most prospective of the anomalies identified. Both are continuous throughout the programme and exceed 1,000 m in length (Figure 5). The results of the survey are considered to be highly encouraging because anomalism can already be correlated to known mineralisation at Border, and there is continuity of these drilled zones with deeper, more extensive and more intense anomalism. At surface, geophysical anomalism is directly associated with drilled mineralisation and with a newly defined zone 200 m to the south. This new zone is largely obscured by soil cover, but minor exposures of strong alteration and brecciation show localised copper sulphide and malachite (copper carbonate) mineralisation. At depth, the two anomalies identified at surface amalgamate and extend to be up to 800 m wide. Previous drilling has only intersected a small part of these extensive anomalies. The consultant geophysicist s preferred interpretation is that the coincident IP and conductive zones contain mineralisation that is as good as if not better than mineralisation intersected already. He goes on to state that this mineralisation may get better to the east as chargeability and conductivity tends to increase to the east. In order to test these extensive geophysical anomalies, drilling commenced at Border on 30 th March Three target zones extend the full 1000 m breadth of the geophysical surveys. The three targets are: 1. extensions to known mineralization; 2. strong geophysical anomalies 200m south of known mineralization; and 3. strong, broad geophysical anomalies at depth beneath known mineralization. For now, the exploration target for the Border deposit remains as previously stated, as: % Lead + Zinc 1. This represents a conservative tonnage that is substantially lower than estimates published by the Ministry of Mines and Energy, Namibia. 1 At this stage, the potential quantity and grade of the Border zinc-lead deposit is conceptual in nature, as Sabre has determined that insufficient work has been undertaken to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. The exploration target size was based upon deposit calculations undertaken by Etosha Petroleum Ltd (Border). 3

4 SBR Border drilling Figure 3 IP chargeability on Line 9 (compare to Figure 4 below), showing correlation of anomalism with existing drilling (black lines with mineralisation histrograms, left of centre). Anomalism is stronger and more extensive at depth, and is defined by white outlines labelled Chargeable Zone A. This zone is open at depth and corresponds in part to Conductor A. Figure 4 NSAMT resistivity model for Line 9 (compare to Figure 3 above). Conductor A extends to a depth of over 1,000 m and coincides partly with Chargeable Zone A (white lines). Conductor B (right) differs to Conductor A in that it is stronger, shows a magnetic signature (not shown here) and corresponds to the Maieberg Formation rocks. 4

5 Figure 5 Plan view of the geophysical survey programme at Border, showing survey points. Lines 8-10 were reported on 26 February Lines 6, 7, 11, & 12 are reported here. This diagram shows IP response at 100 metres beneath surface. Note that within Chargeability Zone A the Southern Anomaly ( Conductor A ) increases in intensity to the east. Also note that the Northern Anomaly (which corresponds to drilled mineralisation) appears to end after line 10, but this is a function of the anomaly plunging below the 100m level to the east (see Figure 3). Previous Sabre drilling KASKARA DISCOVERY AND THE LUCAS POST TREND Ongoing geophysical surveys have continued at Kaskara despite rain hampering access during the quarter. The programme has been extended to cover all ground between the Kaskara and Lucas Post prospects (Figure 6). Sabre is presently awaiting the final report regarding the extended geophysical programme. Preliminary data from lines adjacent to the original survey suggests that the anomalism detected at Kaskara continues to both the east and the west of the original surveys. A total of 23 lines, each 1,000 m long, have been surveyed over a strike length of 3,000 m. It is anticipated that this dataset will provide numerous drill targets for drilling at and around Kaskara and Lucas Post. Further geological mapping has also identified galena (lead sulphide) mineralisation (Fig.7) to the northwest of Lucas Post, on the northern side of the valley (Fig.6). Mineralisation at the newly defined Ondjima prospect appears to be continuous for at least 400 m of strike. The discover of Ondjima means that the Kaskara-Lucas Post corridor of mineralisation extends for around 3600 m. As with many prospects throughout the Otavi Mountainland, it is expected that galena at Ondjima is the sole sulphide preserved at surface, but may be indicative of other sulphides below the influence of weathering. 5

6 Figure 6 The geophysical programme along the Kaskara-Lucas Post corridor. Lines 4100 to 4400 have been reported. Work is completed on the remaining lines. Each line is 1 km long The approximate location of the recent Ondjima discovery is shown to the northwest of Lucas Post prospect. Grid is 500 m. Figure 7 Extensive galena mineralisation (dark grey to silver) in outcrop from Ondjima (33S mE mN) 6

7 UPCOMING WORK Drilling is ongoing at Border, targeting the three defined target zones, each of which extend laterally for over 1,000 metres. Results will be reported as they come to hand. The two diamond drilling rigs are scheduled to drill throughout the second quarter. This is likely to be extended should mineralisation be intercepted in the new target areas. Ongoing rains and damp ground are still hampering access for heavy vehicles (such as drill rigs and their support vehicles) to the Kaskara-Lucas Post area. At and around Kaskara, targeting of drillholes will commence upon the receipt of the final report on the geophysical surveys between Kaskara and Lucas Post, which is due shortly. Preliminary data suggests that the anomalies present at Kaskara extend beyond the initial survey area. Given the rugged terrain, defining the location of suitably accessible drill sites above the most prospective targets will enable quicker drilling mobilisation. Access to the more rugged sites will require a different, more manoeuvrable type of drill rig. Mapping is continuing at the Ondjima discovery west of Kaskara. The full extent of outcropping mineralisation is presently being defined and will be reported as results are finalised. Licence renewal Sabre has submitted the application for renewal of licence EPL3542 and is awaiting confirmation by the Ministry of Mines and Energy in Namibia of the renewal. The required expenditure commitments have been exceeded, and more than the requisite 25% has been excised from the licence area (Figure 14). The excised area contains no known prospects or mines. Long delays are reported by other companies seeking licence renewals in Namibia at present. Data from the Ministry s website (Figure 15) shows that the reduced size for EPL3542 has been accepted and that, as of the most recent listing of the status of EPLs on 7 April 2010, its status is officially Pending. Sabre has full confidence that the licence will be renewed, and is not aware of any factors that would deny renewal. Consequently, exploration at Kaskara and Border will continue. Figure 8 Reduction of exploration licence EPL3542 (Ongava). The reduction amounts to over 25% and does not include any known prospects or mines. The total area of the reduced licence is around 600 km 2. 7

8 Figure 9 Excerpt from the most recent Current Minerals Licences Map from the Ministry of Mines and Energy, Namibia (7 April 2010). The reduced EPL3542 is shown at centre, indicating that the Ministry is in the process of renewing the licence. Note that the area dropped by Sabre as part of the renewal procedure has since been pegged by Namibia East China Non-ferrous Lorelei Dev (Pty) (EPL4363), which is also pending. The full map can be obtained from Yours faithfully, Norman Grafton Company Secretary Sabre Resources Ltd For further information please contact: Dr Matthew Painter, General Manager - Exploration Phone (08) Or consult our website: Competent Person Declaration The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Matthew Painter, who is a member of The Australasian Institute of Geoscientists. Dr Painter has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves. Dr Painter consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 8