METS mining lease in north-central British Columbia. METS mining lease Option
News
VANCOUVER, BRITISH COLUMBIA - February 9, 2012 - Sable Resources Ltd (TSX-V:SAE), is pleased to announce that it has signed a letter, subject to a formal option agreement, to acquire the METS mining lease in north-central British Columbia.
METS mining lease Option
The METS property consists of a 200 ha mining lease located 23 km north-northwest of Sable's Baker mill complex. The property and surrounding ground was aggressively explored in the late 1980's for high-grade epithermal vein systems, resulting in the discovery of the 'A' vein. Records indicate that exploration efforts were successful in providing a historical (not NI 43-101 compliant) resource of 158,000 tonnes grading 0.331 oz/t gold for the ‘A’ vein, which led to the decision to construct a haulage road and begin underground development. Underground development including, a portal and 349 metres of drifting, was completed in 1992. The production from the METS property was originally to be shipped to the Cheni mine and mill complex, but prevailing low precious metal prices led to the decision by Cheni Gold Mines to shut down operations in the fall 1992. As such, no material was ever shipped from the METS property, and the road to the mine was subsequently decommissioned. Minimal work has been completed on the property since that time.
Under the terms of the option, Sable is committed to pay 40% of the Net Profits earned from the operation of the property to the optioner to a maximum of $4 million, at which point Sable will be deemed to have earned a 100% interest in the property. The property is also subject to an underlying 1% Net Smelter Royalty payable to a non-related third party, purchasable at any time for $500,000. To maintain the option on the property, Sable must spend a minimum of $250,000 annually on permitting, infrastructure and access, development, exploration, mining or other activity to the benefit of the property.
Sable intends to pursue a mining operation on the property, whereby mineralized material produced initially from the 'A' vein will be hauled to Sable's Baker Mill complex for beneficiation. Sable plans to begin the permitting process immediately, to open the road and begin the appraisal of underground workings. Following the successful completion of these milestones during 2012, and positive results from underground evaluation, Sable intends to schedule production from the METS in the Summer of 2013.
The foregoing historical resource estimate was completed prior to the implementation of NI 43-101. Sufficient work to classify the historic mineral resource as a current mineral resource has not been completed. Hence, the resource estimate should not be relied upon.
About Sable Resources Ltd
Since 1989, Sable has focused on the Toodoggone Gold/Silver Project � mining and producing gold and silver from the Shasta and Baker properties. Operations have been from surface workings and underground developments on both properties. The mine and mill are permitted by the Province of British Columbia. Mineral processing takes place at the 250 tonne�per�day Baker Mill. The Baker Mill was commissioned for DuPont of Canada in 1980 by Kilborn Engineering (Vancouver). The mill allows the production of either a flotation concentrate to be exported for additional refining, or on�site production of gold and silver dore bars.
� Melvyn Rahal, President & C.E.O.
[email protected] Tel: (604) 685-8565 Fax: (604) 685-7625 1290 – 625 Howe Street Vancouver, BC V6C 2T6 Or visit http://www.sableresources.com/
Neither the TSX Venture Exchange nor its Regulator Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.
This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Sable. The forward-looking statements or information contained in this news release are made as of the date hereof and Sable does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.�