Sable Mining Africa Regulatory News (SBLM)

Sable Mining Africa Ltd/ Index: AIM / Epic: SBLM / Sector: Natural Resources

16 November 2010

Sable Mining Africa Limited ('Sable Mining' or 'the Company')

Acquires Iron Ore Interests in Guinea

Sable Mining Africa Limited, the AIM listed resource company, is pleased to announce that it has acquired the total issued share capital of Guinea Development Mineral Ressources SA ('GDMR') for a cash consideration of US$6 million. GDMR owns a 1,107 sq km iron ore Prospecting Licence, covering three permits in the highly prospective Kissidougou area of south east Guinea.

The acquired permits are positioned in what is widely recognised as one of the world's largest underdeveloped iron ore and bauxite provinces. They are located between Bellzone Mining plc's multi billion tonne Kalia Project and Rio Tinto's world class Simandou Iron Ore Project, which is expected to commence production in 2013.

Preliminary work conducted by the Company on the permits has focussed on high level aeromagnetic surveys and spectrometry, targeting Banded Iron Formation ('BIF') deposits located within a Lower Proterozoic greenstone belt. Results have already identified significant anomalies. Extensive trenching has also been conducted with samples ranging from 30.86% Fe up to 57.78% Fe.

The next objective for the Company is to initiate a comprehensive exploration programme and development strategy aimed at developing a JORC compliant resource and providing an initial economic assessment of the licence area. 

The Company believes that Guinea represents an ideal location in which to build a portfolio of iron ore assets. Rich deposits have been found in the Mount Nimba area along the Liberian border and the Simandou mountain area, with the iron content of these BIF deposits estimated to be between 63% and 68%.

The Guinean Government is encouraging the development of iron ore projects to diversify from the country's traditional bauxite mining. Mining is the single largest contributing economic activity in Guinea based on its contribution to exports and government revenue. Power supply is available with the two major sources of supply being thermal and hydro. Infrastructure is improving, especially when considering the Guinean Government's intention to build a 1,012km railway from Simandou in the south east to Conakry (the Trans-Guinean railway) in partnership with Rio Tinto plc, BHP Billiton PLC and other parties. Importantly, shipping from west Africa to China is comparable in distance and voyage time from Brazil to China. 

Sable Mining CEO Andrew Groves said, "This is potentially a fantastic deal for Sable Mining and provides us with significant exposure to one of the world's most prospective underdeveloped iron ore regions. Early work has been highly encouraging, in particular the aeromagnetics which have yielded some excellent follow-up targets. We look forward to rapidly advancing this concession area and delivering on our strategy of building a world class portfolio of iron ore projects."

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