Sabre Resources Ltd (ASX: SBR) is preparing to commence a ~2,400m diamond drilling programme to test high-grade nickel sulphide targets at the Sherlock Bay Nickel-Cobalt-Copper Project in Western Australia’s Pilbara region.
This follows the approval of a drilling Programme of Work (PoW) by the WA Government and the signing of a drilling contract with Mount Magnet Drilling.
The four-hole programme will commence as soon as access is established following recent rains at the site, which is expected to be early June. The drilling programme will test the potential for additional, high-grade nickel sulphide resources below both the Discovery and Symonds resource zones at Sherlock Bay, with the key objective of expanding and upgrading the existing JORC resources.
This will in turn enable Sabre to update its Sherlock Bay scoping study and accelerate preferred project development options as global demand for battery metals such as nickel, copper and cobalt, continue to strengthen.
The exploration programme will also include down-hole EM (DHEM) surveying to detect massive sulphides associated with either in-hole or off hole conductors – as successfully applied by Azure Minerals Ltd at Andover nickel sulphide deposit, 60km west of Sherlock Bay.
The WA Government previously approved co-funding for this drilling programme of up to 50% of the direct drilling costs and up to $10,000 mobilisation costs, capped at a total of $220,000.
We look forward with much anticipation to kicking off our new diamond drilling and down-hole EM program to test the high-grade nickel sulphide targets we have identified at Sherlock Bay,” CEO, Jon Dugdale, said,
“This is the first drilling program at Sherlock Bay since 2005 and we will be targeting high-grade nickel sulphide accumulations below the existing resource, in an analogous setting to the Nova-Bollinger massive sulphide deposits.
“Success in this programme will be a key step in upgrading our existing JORC resources at Sherlock Bay and advancing development studies at a time of strong global demand for battery metals.”
Background
The Sherlock Bay Project includes two nickel sulphide deposits, Symonds and Discovery, both of which are tabular and trend northeast-southwest within an overall 1.5km strike length mineralised horizon hosted by the regional Scholl Shear Zone corridor.
The Sherlock Bay nickel deposit is approximately 60km east of the Andover high-grade nickel sulphide discovery of Azure Minerals Ltd, which is associated with a gabbroic intrusive body similar to the Sherlock Intrusive.
The Project has an existing JORC 2012 Mineral Resource of 24.6Mt @ 0.40% Ni, 0.09% Cu, 0.02% Co, containing 99,200t Ni, 21,700t Cu & 5,400t Co (Measured 12.48Mt @ 0.38% Ni, 0.11% Cu, 0.025% Co; Indicated 6.1Mt @ 0.59% Ni, 0.08% Cu, 0.022% Co & Inferred 6.1Mt @ 0.27% Ni, 0.06% Cu, 0.01% Co).
A recent Scoping Study on the Sherlock Bay Project indicated positive cash-flow potential at prevailing nickel prices (US$10/lb at time of release, now ~US$12/lb6 ), while also highlighting the positive financial impact of continued strength in nickel prices and the discovery of additional higher-grade resources at the Project.
The company believes there is significant upside potential for additional, high-grade, nickel sulphide resources below both the Symonds and Discovery resource zones, with both deposits increasing in grade and open at relatively shallow depths.