The company said it will proceed to a prefeasibility study for the Sherlock Bay nickel project as quickly as possible to capitalize on a rising nickel price.
“Sabre is very encouraged by the positive results of the mining study and will now proceed to a detailed processing study and operating/capital cost update,” says the release.
The completed processing study will then go towards a prefeasibility study.
Sabre says that the study has shown costs and schedules that provide it with confidence that the deposit “has potential for future development.”
The study, which was carried out by AMC Consultants over the last six months, looked into conceptual open-pit and underground mining operations using current mining costs as a template.
While Sabre did not give a timeline for future works, it said it is “continuing to compile development data” for the project.
It is in a self-confessed hurry though — the company says it “intends to progress feasibility work as quickly as possible in order to maximize exposure to a forecast rising nickel price.”
As of Monday (August 13), nickel was trading on the London Metal Exchange at US$13,675 a tonne, up 7.84 percent from the beginning of 2018, when it was trading at US$12,680.
Sabre holds a 70-percent interest in Sherlock Bay, which is located in the lucrative Pilbara region of Western Australia, on the coast between Port Hedland and Karratha, making it well connected to vital infrastructure.
According to an updated resource estimate released in June, Sherlock Bay holds an estimated mineral resource of 24.6 million tonnes grading 0.4 percent nickel, “equivalent to 100,000 tonnes of contained nickel metal” on the 189 square kilometre property.
The ore also grades 0.09 percent copper and 0.02 percent cobalt.
In addition, the property is described as having “exploration potential for conglomerate-hosted gold mineralization untested on strategically located ground.”
Sabre is primarily focused on exploration and development in Northern Namibia, where it has the Otavi Mountain Land base metals projects, 400 kilometers north of Windhoek.
On the Australian Securities Exchange, Sabre was up 7.14 percent on Tuesday (August 14), trading at AU$0.015.
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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.