SABRE RESOURCES LIMITED - Interim / Quarterly Report 2014

==> picture [55 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [4 x 118] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [54 x 60] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [54 x 60] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

ASX ANNOUNCEMENT

30 October 2014

QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2014

==> picture [8 x 32] intentionally omitted <==

==> picture [5 x 480] intentionally omitted <==

 A 10,000 m regional target testing reverse circulation (RC) drilling program is underway in the OML. High priority targets to be tested include:

11 Kombat copper analogue targets including Guchab South and Schlangenflach along the Guchab - Kombat mine trend.
► 2 zinc-lead targets at Toggenburg and East Border.
Copper discovery beneath cover at Guchab South ► Copper carbonate and sulphide minerals malachite, chalcocite, chalcopyrite and bornite observed in drill samples beneath cover.
► Discovery confirms exploration model predictions. ► Further bedrock geochemical drilling currently underway.
Renewed exploration focus on zinc in the OML. Initial work includes: ► Target generation using soil geochemical programs and geological modelling.
► Bedrock geochemical drilling program to assess high priority concealed zinc-lead targets.
► Infill drilling at Border.
Border Zinc Lead Inferred Resource updated to JORC 2012 standard: ► JORC compliant Inferred Mineral Resource of 16.0 Mt @ 2.12 % Zn+Pb and 4.76 g/t Ag using a 1.25 % Zn+Pb cut-off.
► Mineralisation is easily upgraded and treated, and responds exceedingly well to beneficiation by dense media separation (DMS).
► The deposit is amenable to low-cost open pit mining.

==> picture [25 x 121] intentionally omitted <==

==> picture [25 x 120] intentionally omitted <==

==> picture [25 x 121] intentionally omitted <==

==> picture [54 x 42] intentionally omitted <==

==> picture [55 x 42] intentionally omitted <==

==> picture [54 x 42] intentionally omitted <==

==> picture [55 x 42] intentionally omitted <==

==> picture [54 x 42] intentionally omitted <==

==> picture [55 x 42] intentionally omitted <==

==> picture [4 x 42] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [4 x 65] intentionally omitted <==

==> picture [52 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

During t he 3[rd] quar t er of 2014, exploratio n continued at the Guc h ab Mining Centre, wit h shallow drilling u ndercover a t the Guc h ab South t a rget identif y ing subsur f ace coppe r mineralisation. This drilling i s part of a new region- w ide 10,000 m reverse ci r culation (R C ) drill progr a m aimed a t defining previou s ly undiscov e red deposit s in soil cov e red target areas of the O tavi Mount a in Land. W o rk on the Guchab Canyon res o urce estim a tion contin u ed, while preparation fo r shallow dri l l testing of a number of unde r cover copp e r targets ne a r to the Ko m bat Copper Mine advanced.

Sabre c o nfirmed its renewed focus on zinc d iscovery, wi t h multiple programs un d erway. The resource for the B order zinc-lead deposit on the Pav i an Zinc-Le a d Trend wa s re-estimat e d and brought up to JORC 2 0 12 standar d . The Bord e r Inferred R esource is n ow 16.2 Mt @ 2.12 % Z n +Pb and 4.76 g/t Ag using a 1.25 % Zn+ P b cut-off. P r eparation i s well advan c ed for shall o w drill testi n g of the To g genburg and East Border un d ercover zin c targets, w h ile a large s o il geochemical progra m is progressing in the unexplo r ed Sinkhole target area in the western part of th e Pavian Trend.

1 RE G IONAL S C ALE RC D RILL PR O GRAM C O MMENCE S

A 10,00 0 m regional-scale reve r se circulati o n (RC) geochemical drilling progra m is underway in the Otavi Mountain Land. The pro g ram is inte n ded to pro v ide rapid s h allow testi n g of conce a led high priority t argets toge t her with some deeper RC follow u p of signifi c ant base m etal anomalism. The targets w ere define d by the regional targ e ting exerci s e undertak e n by the C ompany ov e r recent months.

Table 1 – Summary t able for the R C geochemical d rill program

Totalm etreage	10,000m
Numbe r of drill holes	Approxim ately 500 sh allow geoche mical drillhole s and
	around5 0 deeper drill holes
Coppe r targets	11 – in cluding Guch ab South	a nd Schlange nflach.
	Othersa t GuchabM ining Centre,		near Komba t, and
	between .
Zinc-le ad targets	2 – Togg enburg andE ast Border
Timing	Commen ced, expecte d to take	a round 6 mon ths to
	complete
Cost	A$550,00 0

The Co m pany belie v es that the discovery p otential for large and/or high-grad e copper or zinc-lead deposit s in the Ota v i Mountain L and is high in those ar e as not amenable to sur f ace prospe c ting and likely to have not b e en tested b y previous e x plorers. Th e se areas c o ntain little o r no outcro p , with all newly d e fined targe t s located b e neath soil- c overed plains. These p lains consti t ute over 6 0 % of the region and are almo s t completel y unexplore d . Soil cover is expected to be relati v ely thin ove r much of this con c ealed area.

Of the R C drill program, 5,000 m is allocate d for shallow geochemic a l drill testin g of targets. T his firstpass sh a llow drillin g will test for subsurfac e mineralisa t ion in each target area in order to coarsely define t h at mineralisation’s exte n t and style. Under this p hase of the d rill progra m , around 50 0 shallow RC drill holes will te s t 11 buried copper targ e ts within th e Kombat-Guchab corri d or and 2 buried zinclead tar g ets on the Pavian Tre n d. In most cases, eco n omic grade s of mineralisation are n ot to be expecte d in this first pass – rath e r the prese n ce and style of mineralisation and a lteration wil l be used to deter m ine the pro s pectivity of the target for the secon d phase of the drill progr a m.

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [4 x 65] intentionally omitted <==

==> picture [52 x 65] intentionally omitted <==

For this second pha s e of RC drilling, 5,000 m is allocat e d for appro x imately 50 d eeper drillh o les. Drill hole arr a ys will att e mpt to defi n e the distri b ution of a n y copper o r zinc-lead m ineralisation. These deeper h oles will ai m at the mor e mineralise d or more p r omising por t ions of the t argets. Tar g ets to be drilled i n this second phase will be define d by the results of the s hallow first phase of t h e drilling progra m .

The drilling program is expected to run for about 6 mon t hs. Individu a l programs are being d e fined for each of the targets a nd each will vary in ext e nt and nu m ber of drill holes. Copp e r targets to be drilled include Guchab South and Sc h langenflac h , and the z inc-lead ta r gets are T o ggenburg a nd East Border. A nother 11 c opper targ e ts are being prepared f o r testing, some in the G u chab Minin g Centre, some n e ar Kombat, and others l o cated in b e tween. Mor e targets ha v e been defi n ed for both zinc-lead and co p per mineralisation whic h may be a s sessed later, and ongoing work is g enerating a dditional targets.

Succes s of this regi o nal RC drilling progra m will likely l e ad to expa n sion of the p rogram to t est other recently defined targets.

2 COPPER EX P LORATIO N CONTIN U ES AT T H E GUCH A B MININ G CENTRE

Two un d ercover tar g ets, Gucha b South an d Schlangen f lach ( Figure 1 ), were defined on t h e flats in the south of the Gu c hab Mining Centre. Wh e ther there i s direct phy s ical connec t ivity of mineralisation betwee n these targ e ts and the G uchab Ca n yon deposit has yet to b e establish e d, but Sabre’s work shows c ommon ge n etic links b e tween the m . These ta r gets are directly along s trike from, and in a similar structural an d stratigraphic position to, the Kombat Copper Mi n e 10km to t h e west.

==> picture [38 x 80] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [42 x 80] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [38 x 80] intentionally omitted <==

==> picture [42 x 80] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [38 x 80] intentionally omitted <==

==> picture [42 x 80] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [38 x 80] intentionally omitted <==

==> picture [42 x 80] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

Figure 1 - Active work a reas at the Guchab Mining C e ntre. Subsurfa c e targets at G u chab are locat e d on the flats t o the south and southwest of the Guchab Can y on deposit.

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [4 x 65] intentionally omitted <==

==> picture [52 x 65] intentionally omitted <==

==> picture [38 x 71] intentionally omitted <==

==> picture [55 x 71] intentionally omitted <==

==> picture [54 x 71] intentionally omitted <==

==> picture [55 x 71] intentionally omitted <==

==> picture [54 x 71] intentionally omitted <==

==> picture [42 x 71] intentionally omitted <==

==> picture [38 x 71] intentionally omitted <==

==> picture [55 x 71] intentionally omitted <==

==> picture [54 x 71] intentionally omitted <==

==> picture [55 x 71] intentionally omitted <==

==> picture [54 x 71] intentionally omitted <==

==> picture [42 x 71] intentionally omitted <==

==> picture [38 x 71] intentionally omitted <==

==> picture [55 x 71] intentionally omitted <==

==> picture [54 x 71] intentionally omitted <==

==> picture [55 x 71] intentionally omitted <==

==> picture [54 x 71] intentionally omitted <==

==> picture [42 x 71] intentionally omitted <==

Figure 2 - Chalcocite ( b lack-grey) and malachite (gr e en) mineralisa t ion in silicified dolomite at G u chab South, G CGDD0006 1.65 m

2.1 Guchab Sou t h copper d iscovery

During the quarter, a reconnais s ance drillin g program o f 25 shallo w drill holes on a 100x100m grid identifie d Kombat-st y le copper m ineralisatio n in the subs u rface at Guchab South. Drillholes p e netrated several m etres of s a nd, mud, d e trital dolom i te fragment s , and then 0.5-1.0m in to the bedro c k to find the cop p er minerals, malachite a nd chalcoc i te, along with minor ch a lcopyrite a n d bornite, i n 6 of the 16 drill holes that e nded in do l omite. The mineralisati o n is chara c terised by s trong alter a tion and brecciat i on of the host dolomite, as it is throughout the G u chab Cany o n deposit.

Initial b e drock sampling utilised S abre’s dia m ond drilling rig to collec t partial bed r ock samples until an RC drill could be m o bilised to si t e. Follow- u p RC bedr o ck geoche m ical drilling i s currently u nderway to comp l ete the first pass test.

Importa n tly, the copper-mineralised bedrock samples are from the portion of the target that Sabre’s modelling predicted most likely to be mineralised . Th e mineralise d samples a ppear to define a contiguous zone that m e asures aro u nd 550 m b y 200 m (Fi g ure 3). Min e ralisation a t Guchab South a p pears to be open to the east as well as under th e shale to the south and west.

The early stage of d a ta collectio n at Guchab South mea n s that it is d ifficult to de f ine its relationship to the Gu c hab Canyo n deposit. It is possible that the new mineralis a tion identifi e d at Guch a b South represe n ts an exten s ion of the G uchab Canyon deposit . Additional d eeper drilli n g will be pl a nned on complet i on of the b e drock geoc h emical drilli n g to delimit the extent a nd the inte n sity of mineralisation at Guch a b South.

2.2 Sc h langenfl a ch coppe r target

The Sc h langenflach copper tar g et area to t h e west of G uchab Sou t h is the ne x t target to b e tested (Figure 1) following completion of the prog r am at Guc h ab South. C omparison of the results of the Schlang e nflach pro g ram with th o se of Guc h ab South will give thes e results so m e context a nd allow determi n ation of a clearer pictur e for the nex t phase of e x ploration in the Guchab area.

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [4 x 65] intentionally omitted <==

==> picture [52 x 65] intentionally omitted <==

==> picture [38 x 80] intentionally omitted <==

==> picture [42 x 80] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [38 x 80] intentionally omitted <==

==> picture [42 x 80] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [38 x 80] intentionally omitted <==

==> picture [42 x 80] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [38 x 80] intentionally omitted <==

==> picture [42 x 80] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

==> picture [55 x 64] intentionally omitted <==

==> picture [54 x 64] intentionally omitted <==

Figure 3 - Distribution o f visible coppe r mineralisation in bedrock sa m ples and its m a nganese halo, coinciding wit h interpreted fault s and contact b e tween the sha l e and dolomite.

3 ZI N C EXPLO R ATION R E COMME N CES

During t h e quarter, t he Compan y renewed i t s exploratio n focus on t h e discover y and devel o pment of zinc de p osits throughout the Ot a vi Mountai n Land. Initi a l programs are focussi n g on Sabre ’ s Pavian Zinc-Le a d Trend, a 30km lo n g structur a lly-controlle d lineament of similar zinc-lead deposits, occurre n ces, and anomalies. Th e Company’ s zinc exploration strategy includes:  T arget generation, using soil geochemical progr a ms and geological mod e lling.

Bedrock ge o chemical d r illing progr a m, to asse s s the pros p ectivity of h igh priority zinc-lead t argets for e c onomic mi n eralisation.
Deposit def i nition drilling where a p propriate, w hich will include infill d rilling and resource modelling.
Re assess m ent of the Border zi n c-lead dep o sit, comm e ncing with re-estimation of the resource to J ORC 2012 standard.

3.1 Be d rock geochemical RC drillin g

Reconn a issance sh a llow drillin g will consti t ute first-pa s s assessm e nt of the T o ggenburg a nd East Border t argets. Th e se are con c eptual and geochemical targets defined ben e ath the soil-covered Toggen b urg Plains b etween the Border dep o sit and the S outh Ridge prospect (Figure 4). To g genburg represe n ts a signi f icantly siz e d (+2km l o ng) target under cover with an o malous Z n -Pb soil geoche m istry and a n anomal o usly subdu e d topogra p hic signature. East B o rder coincides with geoche m ical anom a lism at the eastern margin of th e Border d e posit. Drilli n g here will test for extensi o ns to the d e posit. Clea r ing of lines through the dense scrub is under w ay at both targets to allow d r ill rig acce s s. The pr o grams will be similar in nature to those at Guchab S o uth and Schlang e nflach, wit h lines of sh a llow drillhol e s designed to sample the bedrock and the cove r -bedrock

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [4 x 65] intentionally omitted <==

==> picture [52 x 65] intentionally omitted <==

interfac e for geoc h emical dis p ersion. Su c cessful delineation of zinc-lead m ineralisation in the subsurf a ce will assi s t with focusing deeper d r ill testing.

==> picture [38 x 93] intentionally omitted <==

==> picture [42 x 93] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [38 x 93] intentionally omitted <==

==> picture [42 x 93] intentionally omitted <==

==> picture [55 x 63] intentionally omitted <==

==> picture [54 x 63] intentionally omitted <==

==> picture [55 x 63] intentionally omitted <==

==> picture [54 x 63] intentionally omitted <==

Figure 4 - The Pavian Trend, extendi n g over 30 km and showing m any deposits, p rospects and t argets. The n e wly-defined targ e ts at East Bor d er and Togge n burg are mark e d with a black ‘x’. Soil geochemistry for Zn + Pb illustrates t h e extent of the t r end, with war m er colours representing high v a lues.

3.2 Infill drilling at Border

Infill drilling at the B o rder deposi t will be req u ired to defi n e potential h igher-grad e zones in th e deposit and to u pgrade the resource classification to “Indicate d ” status. Currently, drill lines at B o rder are spaced at 200 m. T h ree-dimen s ional grade distribution s near the c e ntre of the deposit suggest that higher grade zones m ay exist between thes e lines and r e quire drill te s ting.

3.3 Ta r get gene r ation

Target g eneration is currently u n derway wit h a large regional soil geochemistry p rogram co v ering the Sinkhol e area in the central western part of t he Pavian T rend (Figur e 4). Aroun d 3200 of th e planned total 50 0 0 samples have been collected. L i ke the Tog g enburg Plains, the Sin k hole target is under cover a n d may conc e al buried zinc-lead min e ralisation.

3.4 Border zinc-lead-silver resource updated t o JORC 2 0 12 stand a rd

Sabre has complet e d a review o f the Bord e r deposit a n d associat e d revision o f the resource to the JORC 2 0 12 standar d . Since the release of t h e previous resource (A S X release 2 4 January 2 012), an addition a l two hundr e d and eigh t bulk densi t y measure m ents were collected and incorporate d into the model. A revised re s ource statement has b e en compile d .

Full det a ils of supp o rting inform a tion relatin g to the res o urce estim a te and Infe r red classifi c ation are include d in Appendi x 3 – JORC Table 1 of t h is report. The Border Resource is a key component of a strategy of identify i ng and developing m u ltiple Zn-Pb-Ag depo s its feeding a centrall y located process i ng plant on t he Pavian t r end.

3.4.1 Border Inferred Mineral Resource Estimate

Sabre h a s estimate d an Inferred Mineral Re s ource at the Border Deposit to JOR C 2012 stan d ard of:

16.0 Mt @ 1.53% Zn , 0.59% Pb and 4.76 g/t Ag ,

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [4 x 65] intentionally omitted <==

==> picture [52 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

when re p orted at a 1.25% Zn+P b cut-off gra d e. The min e ral resourc e estimate in c reases to 31.2 Mt @ 1.10% Z n and 0.40 % Pb and 3.37 g/t Ag wh e n reported a t 0.5% Zn+ P b cut-off gr a de.

Table 2 – Bor d er 2014 Miner a l Resource Estimate

Cate Infe Infe Infe Resour gory Cut (% rred 0. rred 1.2 rred 2. ces off Tonnag ) (Mt) 5 31.2 5 16.0 0 7.5 e	Zinc (%) 1.10 1.53 1.93 Metal Grad Lead (%) 0.40 0.59 0.80 e Silver (g/t) 3.37 4.76 5.96	Con tained Metal
		Zinc (t) Lead (t) Silver (Moz)
		343,000 246,000 144,000 126,000 95,000 59,000 3.4 2.5 1.4

3.4.2 Mineral Resource Estimation

Border i s consider e d to be an epigenetic zinc-lead-sil v er deposit that consis t s of sphalerite (zinc sulphid e ) and galen a (lead sulp h ide) minera l isation within dolomitic h ost rocks. N o pyrite or a ny other sulphid e s are pres e nt in signif i cant amou n ts, and we a thering is minor and s hallow so as to be immaterial. The dep o sit dips at 6 0° to the n o rth-northwe s t, stretches along strike for 2,430 m, extends for up t o 390 m ben e ath surface (with the bulk of the ton n age and gr a de within 1 5 0 m of surf a ce), and varies b e tween 10 m and 85 m t hick (25 m a verage thickness). A plan of the h o le collars a n d grademetre di s tributions of the minera l isation is shown in Figu r e 5. A drill cross section is shown in Figure 6. A long s e ction show i ng Zn+Pb% x m (grade t hickness) i s shown in Figure 7.

The foll o wing inform a tion pertains to the Min e ral Resour c e estimate;

T he Inferred Resource estimate is b a sed on a n o minal 0.5% Z n+Pb wiref r ame cut-off with a m aximum in t ernal dilution of five me t res. Grade w as interpol a ted using a n inverse dis t ance w eighting s q uared (IDW [2] ) technique in Micromin e Software. A ppendix 1 c ontains a li s t of all d rilling colla r information at Border.
A ppendix 2 c ontains a li s t of all drill i n tercepts us e d in the co n struction of the compos i tes and u sed in the interpretatio n of the mineralised wireframes. A nominal cutoff of 0.5% Zn + Pb was u sed to defi n e the drill intersections c omposites. A 5m maxi m um internal dilution was used. H igher grad e intercepts w ithin the c o mposites ar e shown in t h e table.
Bulk densit y measure m ents have been taken and analysed. 208 samples w ithin the mineralised envelope w e re determi n ed by weight in air/ water techniq u e. A regre s sion line w as determined for min e ralisation s a mples whe r e bulk density (D) = (P b +Zn% * 0.014825) + 2 .818494.
A waste de n sity of 2.82 w as assigne d .
T he entire r esource is c lassified a s an Inferre d Resource. The limitin g factors to a higher c lassificatio n include th e wide drill spacing of 2 0 0m x 50m a nd the use of handheld GPS for hole collar c o -ordinates, which introduces signifi c ant uncertainty in the es t imates.

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [4 x 65] intentionally omitted <==

==> picture [52 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [38 x 87] intentionally omitted <==

==> picture [42 x 87] intentionally omitted <==

==> picture [55 x 66] intentionally omitted <==

==> picture [54 x 66] intentionally omitted <==

==> picture [55 x 66] intentionally omitted <==

==> picture [54 x 66] intentionally omitted <==

==> picture [38 x 86] intentionally omitted <==

==> picture [42 x 86] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [38 x 87] intentionally omitted <==

==> picture [42 x 87] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

Figure 5 - Drillhole plan and contoured grade-metres for th e Border depos i t.

==> picture [43 x 75] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [35 x 100] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [54 x 60] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [54 x 60] intentionally omitted <==

==> picture [43 x 75] intentionally omitted <==

==> picture [35 x 100] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [54 x 60] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [54 x 60] intentionally omitted <==

==> picture [43 x 76] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [54 x 60] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [54 x 60] intentionally omitted <==

==> picture [35 x 100] intentionally omitted <==

==> picture [43 x 75] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

Figure 6 - Cross section of the Border D eposit (807,60 0 mE section), showing the dist r ibution of min e ralisation downhole (red) and fr o m 3D modelling (yellow).

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [4 x 65] intentionally omitted <==

==> picture [52 x 65] intentionally omitted <==

==> picture [38 x 102] intentionally omitted <==

==> picture [55 x 68] intentionally omitted <==

==> picture [54 x 68] intentionally omitted <==

==> picture [55 x 68] intentionally omitted <==

==> picture [54 x 68] intentionally omitted <==

==> picture [42 x 68] intentionally omitted <==

==> picture [55 x 68] intentionally omitted <==

==> picture [54 x 68] intentionally omitted <==

==> picture [55 x 68] intentionally omitted <==

==> picture [54 x 68] intentionally omitted <==

==> picture [42 x 68] intentionally omitted <==

==> picture [38 x 101] intentionally omitted <==

==> picture [55 x 68] intentionally omitted <==

==> picture [54 x 68] intentionally omitted <==

==> picture [55 x 68] intentionally omitted <==

==> picture [54 x 68] intentionally omitted <==

==> picture [42 x 68] intentionally omitted <==

Figure 7 - Long section through the Bo r der Deposit, lo o king south.

3.4.3 Metallurgical testwork

Sabre h a s complete d detailed m e tallurgical t e st work on t he Border D eposit to te s t the respo n se of the minerali s ation to de n se media s e paration (DMS). DMS i s a cheap a n d efficient p rocess that becomes more ef f icient with h igher density contrasts, providing g r eatly reduc e d mineral p rocessing c o sts. The results a re summari s ed in Table 2.

Table 3 – Su m mary of the re s ults of benefici a tion testing of Border mineralisation on bulk c omposite sam p le (60kg, crushe d and screened all passing 12.5mm)

Process			Lead	Zinc
1 - Origin al sample (he ad assay)			0.77%	1.66%
2 – Dens e media sepa ration sinks (+ fines from
crushing)
	Product gra de:		6.3%	12.5%
	Enrichment factor (from 1	):	8.2 times	7.5 times
	Metal Recov ery (from 1):		9 2.5 %	86.0 %
3 - Grind	and float
	Product gra de:		63 -69%	61-62%
	Enrichment factor (from2	):	~10 times	~5 times
	Recovery (f rom 2):		94 -95 %	~95 %
ProcessS ummary
	Overall enric hment (from	original):	~82 times	~37 times
	Overall reco very (from ori	ginal):	87.8%	81.7%

The be n eficiation te s ts on the b ulk sample show exce p tional upgrading of the mineralisati o n, in the DMS st e p with 92.5 % of the lea d and 86% o f the zinc r e covered to o nly 17% of the feed m a ss with a resultin g product gr a de of 12.5 % zinc and 6 .3% lead. This greatl y reduces th e amount o f material requirin g grinding p r ior to flotati o n. Grind a nd float tes t work dem o nstrated ex c ellent liber a tion at a relativel y coarse gri n d size of 1 5 0 microns. Final flotation concentrate grades were around 65 % lead and 62 % zinc (from min e ralisation g r ading 0.77 % Pb and 1. 6 6% Zn), w i th final rec o veries of around 8 7% for lead and 82% for zinc.

The optimised test r e sults are as follows;

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [4 x 65] intentionally omitted <==

==> picture [52 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

A t a coarse 12.5 mm ( h alf inch) cr u sh size approximately 87% of the waste mas s can be rejected by D MS
A t a relativ e ly coarse o ptimum gri n d size of 150 microns, good sepa r ation is ac h ieved to produce lea d and zinc cleaner conc e ntrates
A fter flotation, a lead cl e aner conce n trate grade of 65% Pb was achiev e d, recoveri n g 94.5% o f the lead i n the flotatio n feed
A fter flotatio n , a zinc cle a ner concen t rate grade o f 61.5% Zn was achiev e d, recoveri n g 95% of t he zinc in t h e flotation f e ed

A major factor in th e success of the DMS te c hnique at B order is the lack of was t e sulphides, such as the iron sulphides p y rite and pyr r hotite. Suc h minerals w o uld typicall y concentrat e with the g a lena and sphaleri t e and woul d thereby re s ult in a low e r concentra t e grade, po s sibly requiri n g further p r ocessing such as flotation to s eparate wa s te sulphide s from ore s u lphides. Ho w ever, the near absenc e of these waste s u lphides at B order means that the si m ple DMS p rocess is hi g hly efficient , resulting in very low process i ng costs to produce a m arketable c oncentrate. This indica t es that low e r grades of zinc and lead mi n eralisation c an be processed profita b ly.

In sum m ary, after d e nse media s eparation a n d flotation, 81.7% of th e total zinc a nd 87.8% o f the total lead an d 89% of th e total silver c an be expected to be r e covered. M o st importa n tly for the e c onomics of the p roject, afte r crushing a nd DMS, o n ly 17% of the original feed woul d require milling and flotation . This mill f e ed is mad e up of natu r ally upgrad e d < 1mm fi n es (10%) a nd DMS co n centrate (7%). E x cellent libe r ation of zin c and lead s u lphides in t h is mill feed o ccurs at a r elatively co a rse grind size of 150 microns p roviding a p otential furt h er cost ben e fit.

3.4.4 Border Scoping Study

A Scoping Study f o r Border w a s completed based on the 2011 Inferred Re s ource esti m ate, with positive results achi e ved. The cost assump t ions and c o mmodity prices utilised in this scoping study are no l o nger valid a nd are bei n g reviewed by Sabre. In conjunction with this r e view, additional infill drilling m ay be warr a nted at Bo r der to focu s on definin g higher gra d e zones, i m proving the resource classific a stion to Indicated statu s and to assi s t with a pit r e optimisati o n. Further processing test work will als o be require d to confirm earlier res u lts, and as s ist with de s ign of a c o st effectiiv e process flowshe e t. Depending on the r e sults of the s e investiga t ions and th e results of n earby expl o ration, a revised S coping Stu d y for Border will be und e rtaken in c a lendar 201 5 .

3.4.5 Similar deposits in southern Africa

The Pe r ing Zn-Pb M ine in the Northern C a pe Provinc e of South A frica show s many simi l arities to Sabre’s Border Dep o sit. Operat e d by Shell South Afric a and BHP B illiton from 1988 to 2003, output over the life of mine was 20.4 Mt @ 0.58% Pb and 2.58% Zn . The m ining cut-off was 1.1% Zn+Pb . (ref Pering Base M e tals (Pty) L t d Techno E conomic St a tement as at 31 Dece m ber 2010) Pering is conside r ed to be a M ississippi V a lley-Type ( M VT) deposit, hosted by dolomite se q uences.

The example of the Pering Mine shows that moderate-grade, high-t o nnage zinc - lead deposi t s can be econom i cally viable, profitable a ssets in so u thern Afric a . Sabre believes that B o rder, with a dditional tonnage s from Drie h oek and other deposits t o be define d along the P avian Tren d , will be a s ignificant lead an d zinc produ c er in the Ot a vi Mountai n Land.

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [54 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

==> picture [4 x 65] intentionally omitted <==

==> picture [52 x 65] intentionally omitted <==

==> picture [55 x 65] intentionally omitted <==

4 FO R THCOMI N G WORK

During t h e next qua r ter, Sabre w ill continue w ith the be d rock geoch e mical drillin g program a t Guchab South, S chlangenflach, Toggen b urg and Ea s t Border. Bed rock geo c hemical drilling is also expected to com m ence in oth e r high priori t y copper ta r gets near K o mbat as on ground acc e ss allows. R esults of this drilling will be c o mpiled and i nterpreted b efore appro p riate follow up is plann e d.

Sabre i n tends to re investigate the utility o f ground g e ophysical t e chniques i n the search for high grade K o mbat style l odes.

A first p ass of the Guchab Canyon reso u rce estimation will be completed before furt h er work progra m s are plann e d.

Soil geochemical pr o grams in th e Sinkhole a rea will be c ompleted, and target generation will continue in those areas yet to be assesse d .

Plannin g will also b e finalised f o r further wo r k at Border in preparation for a rev i sed scopin g study in 2015.

For further information please contact:

Dr Matt h ew Painter, General Manager – Exp l oration Ph o ne (08) 94 8 1 7833

Or cons u lt our webs i te:

http://www.sabresources.com /

Competent Person Declaration

The inform a tion in this repor t that relates to E x ploration Result s is based on information compiled by Dr Matthew PPainter, a full-time employee of Sabre Res o urces Ltd, who i s a member of T h e Australian Ins t itute of Geoscie n tists. Dr Painter h as sufficient expperience that is r e levant to the style of mi n eralisation and t y pe of deposit under consideratio n and to the acti v ity that he is un d ertaking to qualiffy as a Compete n t Person as defined in t he 2012 Edition of the “Australian Code for Rep o rting of Exploration Results, Min e ral Resource annd Ore Reserves”. Dr Painter consents to the inclusion in t h e report of the m a tters based on h i s information in t h e form and cont e xt in which it appeears.

The inform a tion in this repo r t that relates to M ineral Resource s or Ore Reserv e s is based on information compileed by Luke Marshall who is a member of The Australian Institute of Geos c ientists. Mr Mar s hall is a full tim e employee of Golden Deeps Limmited and consultant to Sabre Resources a nd has sufficien t experience that is relevant to the style of minerali s ation and type of deposit under coonsideration and t o the activity that he is undertaking to qu a lify as a Compe t ent Person as d e fined in the 201 2 Edition of the “ A ustralasian Codee for Reporting o f Exploration Results, Mi n eral Resource a n d Ore Reserves ” . Mr Marshall co n sents to the incl u sion in the report of the matters b ased on his information in the form and c o ntext in which it a ppears.

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 and other state m ents that are not historical facts. W hen used in this document, the words such as "could," "pl a n," "estimate," "e x pect," "intend," "may”, "potential," "should," and si m ilar expressions a re forward-lookinng statements. Although Sabre Resources Ltd believes that its expectations reflected in thes e forward-looking statements are r easonable, such statements invo l ve risks and uncertaintie s and no assuran c e can be given t h at actual results w ill be consistent with these forward-looking statemeents.

AI assistant

SABRE RESOURCES LIMITED Interim / Quarterly Report 2014

65750_rns_2014-10-29_670bdebb-a441-4654-ba92-ed7dc25da204.pdf

ASX ANNOUNCEMENT

QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2014

1 RE G IONAL S C ALE RC D RILL PR O GRAM C O MMENCE S

2 COPPER EX P LORATIO N CONTIN U ES AT T H E GUCH A B MININ G CENTRE

2.1 Guchab Sou t h copper d iscovery

2.2 Sc h langenfl a ch coppe r target

3 ZI N C EXPLO R ATION R E COMME N CES

3.1 Be d rock geochemical RC drillin g

3.2 Infill drilling at Border

3.3 Ta r get gene r ation

3.4 Border zinc-lead-silver resource updated t o JORC 2 0 12 stand a rd

3.4.1 Border Inferred Mineral Resource Estimate

16.0 Mt @ 1.53% Zn , 0.59% Pb and 4.76 g/t Ag ,

3.4.2 Mineral Resource Estimation

3.4.3 Metallurgical testwork

3.4.4 Border Scoping Study

3.4.5 Similar deposits in southern Africa

4 FO R THCOMI N G WORK

For further information please contact:

http://www.sabresources.com /

Competent Person Declaration

Forward-Looking Statements

AI assistant

SABRE RESOURCES LIMITED — Interim / Quarterly Report 2014

65750_rns_2014-10-29_670bdebb-a441-4654-ba92-ed7dc25da204.pdf

ASX ANNOUNCEMENT

QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2014

1 RE G IONAL S C ALE RC D RILL PR O GRAM C O MMENCE S

2 COPPER EX P LORATIO N CONTIN U ES AT T H E GUCH A B MININ G CENTRE

2.1 Guchab Sou t h copper d iscovery

2.2 Sc h langenfl a ch coppe r target

3 ZI N C EXPLO R ATION R E COMME N CES

3.1 Be d rock geochemical RC drillin g

3.2 Infill drilling at Border

3.3 Ta r get gene r ation

3.4 Border zinc-lead-silver resource updated t o JORC 2 0 12 stand a rd

3.4.1 Border Inferred Mineral Resource Estimate

16.0 Mt @ 1.53% Zn , 0.59% Pb and 4.76 g/t Ag ,

3.4.2 Mineral Resource Estimation

3.4.3 Metallurgical testwork

3.4.4 Border Scoping Study

3.4.5 Similar deposits in southern Africa

4 FO R THCOMI N G WORK

For further information please contact:

http://www.sabresources.com /

Competent Person Declaration

Forward-Looking Statements

More from SABRE RESOURCES LIMITED

SABRE RESOURCES LIMITED Interim / Quarterly Report 2014