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SABRE RESOURCES LIMITED Capital/Financing Update 2012

Aug 13, 2012

65750_rns_2012-08-13_f90040cd-2b4c-49b2-87c8-fee51a86d8ec.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT 14 August 2012

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COPPER DISCOVERY AT GUCHAB

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C o pper mineralis a tion in drill core f rom the Gucha b , Kombat Trend, northern Nami b ia.

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  • The first hole of a diamond drilling programme at the recently acquired Guchab copper prospect has been completed and has intersected a broad zone of copper mineralisation from surface.

  • GCDD0001 was drilled to a depth of 111.4 metres and shows mineralisation along most of its extent from surface, including:107.75 m @ 1.15% Copper & 6.93 gpt Silver from 0.60 m including 2.35 m @ 13.24% Copper & 70.84 gpt Silver from 17.90 m 23.55 m @ 2.08% Copper & 10.11 gpt Silver from 29.80 m

  • A second hole has now been completed at Guchab, also showing significant visible copper mineralisation, with a third hole in progress also intercepting mineralisation – assays are pending.

GUCH A B DRILL R ESULTS

Drilling h as interce p ted extensi v e copper m ineralisatio n from surfa c e at the G u chab copp e r mining centre, w ithin Sabr e ’s Otavi M o untain Lan d (‘OML’) c o pper proje c t in northe r n Namibia. Sabre is presentl y drilling a p r ogramme o f approxima t ely twenty diamond drill holes, to es t ablish the s t yle, size, and orientation of mineralisation at Guchab. Guchab is o ne of many copper pro s pects locat e d on the Kombat Copper Tre n d, a 45 km l ong lineam e nt rich in copper and sil v er

The first diamond drill hole a t Guchab ( G CDD0001) has been completed with great success, intersec t ing a broad zone of visible copper mineralisation along m uch of the l e ngth of the h ole. The hole wa s originally d esigned to be only 50 metres in l e ngth, but w a s extende d to 111.4 m etres, as visible m ineralisatio n continued to be interse c ted.

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Assay r e sults show a n extensive zone of co p per mineralisation, inclu d ing:

G C DD0001 107.75 m @ 1.15% Co p per & 6.9 3 gpt Silver from 0. 6 0 metres i n cluding 2.35 m @ 13.24% Co p per & 70. 8 4 gpt Silver from 1 7 .90 metre s 23.55 m @ 2.08% Co p per & 10.11 gpt Silver from 2 9 .80 metre s 3.15 m @ 2.85% Co p per & 22. 9 0 gpt Silver from 9 6 .90 metre s

Like m a ny of the deposits of t h e related Z ambian Copper Belt t o the northe a st, mineralisation is hosted b y copper-ri c h breccias. Sabre’s dril l programm e is presentl y determinin g the orient a tion and attitude o f these mineralised bre c cias.

Sabre’s General Ma n ager – Exp l oration, Dr M atthew Pai n ter, said: strong an d extensive c opper mine r alisation h a s been inte r cepted by t h e maiden hole a t our Gucha b deposit. A c opper-rich i ntercept of o ver 100 metres is an e x citing start t o a p r ogramme w h ich will giv e us a solid u nderstanding of the deposit before w e proceed t o a r e source drill o ut progra m me later i n the year. Guchab is a priority b ecause of t he e x cellent gra d es encount e red at surfa c e and its si m ilarities to the nearby K ombat Cop p er M ine.”

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Drill c ore from GCD D 001 – copper breccia mineralis a tion clearly visi b le as green mal a & brown-gr e y zones contain i ng chalcocite

Copper mineralisati o n intercepted to date is entirely w ithin the o x ide zone a nd is pred o minantly compris e d of malachite (green) and chalcocite (grey) w ithin distin c t breccia z o nes. There are also notable occurrence s of native c opper, cha l copyrite, a n d bornite. C halcopyrite and bornit e are the major o r e minerals a t the Kombat Copper Mine (which produced 8.7 Mt @ 3.1% Copper, 1.1% Lead

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and 26 gpt Silver) located 10 km to the west , and ar e expected t o be the m ain primary sulphide mineral s at depth at Guchab.

The se c ond drill h o le (GCDD 0 002) at G u chab has n ow also b e en comple t ed and al s o shows significant visible co p per mineralisation.

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D rill core from G C DD0002 – cop p er mineralisatio n visible as gree n malachite, with chalcocite and m inor chalcopyri t e.
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Drill cor e from GCDD00 0 2 – visible ‘nati v e’ copper mine r alisation.

A third d iamond dril l hole (GCD D 0003) is n o w underwa y testing the mineralisat i on at Guch a b and is due for c ompletion in the coming days. As s ays for bot h GCDD000 2 & GCDD0 0 03 are pe n ding and Sabre l o oks forward to updating the market a s these res u lts are received.

GUCH A B DELIN E ATION P R OGRAMME

Drilling is being undertaken fro m up to four sites acros s the Gucha b mine area utilising ‘fa n s’ of drill holes to test the min e ralisation. T he core is b eing structu r ally oriente d , which will a llow the ar c hitecture of the deposit to b e determine d . This will p rovide an o ptimal drill o rientation f o r a future resource drilling programme .

Diamon d drilling wil l continue a t Guchab th r oughout A u gust and in t o Septemb e r 2012. Sa b re looks forward to updating investors a s further r e sults of the drilling pro g ramme ar e received i n coming weeks.

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Tabl e showing the de t ails of the three diamond drill holes drilled to dat e at the Guchab deposit. Coppe r and silver values were determined at the accredited B u reau Veritas la b oratory, Swako p mund, Namibia.

Hole No. Northing Easting Di
(°)
p
Azimuth
(°true)
From
(m)
(
To
m)
Downh
width (
ole
m)
Grade
GCDD000 1 7818105 796081 -4
0
180 0.60 10
8.35
107.7
5
1.1
5% Cu & 6.93g
/t Ag
including 17.90 20
.25
2.35 13.2
4% Cu & 70.84
g/t Ag
and 29.80 52
.15
22.35 2.08
% Cu & 10.11
g/t Ag
and 96.90 10
0.05
3.15 2.85
% Cu & 22.90
g/t Ag
GCDD000 2 7818105 796081 -6
0
180 R
esults
pending
GCDD000 3 7818105 796081 -8
0
180 R
esults
pending

THE G U CHAB C O PPER MI N ING CEN T RE

The Gu c hab mining centre was d iscovered i n the early 1900s and o p erated for a short time p roducing high-grade copper ores (up to 33%) b e fore the di s covery of s ignificant, n ear surfac e copper minerali s ation at Ko m bat, some 1 0 kilometre s to the wes t (see below).

Sabre’s work at G uchab sho w s that it encompass e s three hi s toric mini n g centres (Guchab, Rodger b erg & Schlangental) co v ering more t han 4,000 m etres of strike, defined b y historical workings and sur fa ce geoche m istry of up t o 10,000 ppm, or 1%, C o pper in soil s .

Sabre’s exploration and structu r al analysis s hows that G uchab hosts ‘Kombat-style’ metamorphic copper mineralisation, as vei n and brec c ia style de p osits, with high-grade copper-silver rich zones w hich are s u rrounded b y moderate grade vein networks. M ajor coppe r minerals at surface include m alachite, c h alcocite, and dioptase.

Channe l sampling o f the histori c workings a t the Gucha b deposit has returned s ome very high-grade intercep t s, including :

GC T R 001 17m @ 5.86% Cop p er & 29 g p t Silver GC T R 002 16m @ 10.16% Cop p er & 64 g p t Silver GC T R 021 14m @ 6.40% Cop p er & 62 g p t Silver GC T R 023 25m @ 6.70% Cop p er & 59 g p t Silver GC T R 026 22m @ 5.83% Cop p er & 48 g p t Silver

In addition to the e x cellent drill and chann e l sampling r esults, infr a structure at and aroun d Guchab make it a very attractive copper t arget. Guch a b is locate d within 1 k m of an activ e train line a n d sealed highwa y , and is lo c ated aroun d 10 km ea s t of the Kombat Copp e r Mine and Concentra t ion plant (presen t ly being rej u venated). It is also app r oximately 5 0 km south from the Ts u meb Copper Smelter Comple x , to which it is connecte d by rail.

Guchab , which is part of the 45 k m long Ko m bat Copper Trend, was a cquired by S abre in Ju n e 2012.

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Obliqu e view east from the Kombat cop p er mine (foregr o und, excised ar e a shaded) along strike to Sabre’ss series of copper targets (yellow ) at Nehlen and R endezvous in th e Kombat Ost co p per target area, and Guchab in t h e Guchab miningg centre. Note th e railway and hi g hway on the righ t of the diagram, a nd the white zone of hydrothermal alteration on the flank of the hill atat Guchab. The Rietfontein and O d in lead-zinc targets (grey) are also shown - the licen c e boundary is s h own in yellow.

Tim P u tt General Manager – Development & Marketing Sabre R esource s Ltd

For further information regarding the Company’s activities, please contact:

Mr Timothy Putt General Manager – M arketing & Developme n t Phone ( 08) 9481 7 8 33

Dr M atthew Pai n ter Ge n eral Manag e r – Explora t ion Phone (08) 94 8 1 7833

Or consult our website:

www.sabr e sources.co m

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SABRE’S OTAVI M O UNTAIN L AND COPP E R PROJE C T

The Otavi Mountain Lan d Copper Proje c t (‘OML’) is loc a ted in norther n Namibia, lyin g within the tria n gle created b y the mining towns of T sumeb, Otavi a nd Grootfontei n .

The entire region is well served by sealed roads, high voltage power, telephone an d water, rail to port and is clo s e to major towns an d mining proce s sing facilities, including the K o mbat copper c oncentrator a n d Tsumeb Sm e lter complex ( o ne of only five opera t ing smelters in Africa).

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2 Sabre’s OML project consists of two Exclusive Prospe c ting Licenses (EPL 3540 & 3 542), which c o ver more than 800 km of highly pro s pective base m etal stratigra p hy. Sabre has identified two k ey copper tre n ds within its p r oject area, ea c h covering more than 25 km of strik e , defined by surface geochemistry and histor i cal workings.T h ese extensive copper trends, namely the Lucas Po s t and Kombat T rends, are the present focus o f exploration.

The regio n hosts a num b er of world cla s s Copper, Zin c , Lead, Silver a nd Vanadium mines, includi n g the Tsumeb & Kombat Copper m ines. The Otavi Valley tenem e nt (EPL 3540) surrounds the Kombat Copper mine on all s ides and cove r s the strike extension s of the mine stratigraphy. To d ate, the Kombat Mine has pr o duced more t h an 8.7 Mt @ 3 . 1% Cu, 1.1 P b and 26 g/t Ag.

Competent Persons Declarations

The inform a tion in this report that relates to Exploration Res u lts, Mineral Re s ources or Ore R eserves is basedd on information compiled by Dr Matthew Painter of Sabre Resources Ltd, w ho is a membe r of The Australian Institute of Ge o scientists. Dr Paiinter has sufficie n t experience that is rele v ant to the style o f mineralisation and type of dep o sit under consid e ration and to th e activity that he is undertaking to qualify as a Competent Person as defin e d in the 2004 E dition of the “A u stralian Code for Reporting of E x ploration Resultss, Mineral Reso u rce and Ore Reserves”. D r Painter conse n ts to the inclusio n in the report of t h e matters based on his informatio n in the form and ccontext in which i t appears.

Forward-Looking Statements

This document may include f orward-looking statements. Forwa r d-looking statem e nts include, but a re not limited to, statements concerning Sabre Resources L td’s planned ex p loration program m e and other sta t ements that are n ot historical fact s . When used in ththis document, th e words such as "could," "plan," "estimate," "expect," "intend," "may”, "pote n tial," "should," a n d similar expres s ions are forward--looking stateme n ts. Although Sabre Res o urces Ltd believ e s that its expect a tions reflected i n these forward-l o oking statements are reasonable, such statements involve risks and uncert a inties and no ass u rance can be gi v en that actual re s ults will be consi s tent with these forward-looking stattements.

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