Sabre Gold Corp Mines

A total of 12,900 meters of drilling included in 152 holes was incorporated into a new Mineral Resource Estimate as previously announced in news release dated September 21, 2021. The updated mineral resource estimate for the Copperstone gold mine increased by 23% in all categories at an average grade of 6.6 g/t gold and 53% increase in the Measured category at 7.6 g/t gold from the previously published resource estimate. The primary purpose for the drilling was for resource confirmation and classification of the previously reported resource estimate. The increase in the Inferred category will also provide upside potential for future conversion. Several other highly prospective expansion targets remain to be drill tested.

Previously planned definition and panel drilling was delayed due to drill rig availability and will now resume in October with the engagement of a new drill contractor. The delay in drilling did, however, impact project timing by approximately three months. During this period other key project milestones were advanced as described below with construction of the processing facility and initial development mining now scheduled to begin in the Fourth Quarter of 2021.
In addition, further trade-off studies on mining methods and specialty plant equipment evaluations such as Merrill Crowe are being completed. Further rehabilitation and dewatering in key areas of the mine are now schedule for completion in October.

Pre-Construction and Engineering

Mine Engineering – The Company has engaged Mine Development Associates of Reno, Nevada to prepare final mine designs and production scheduling. The purpose of the work is to optimize ore sequencing and haulage profiles associated with the new resource model. A full estimation of mining costs and initial capital costs will be completed as well. Underground electrical power needs and infrastructure requirements were completed and incorporated into the overall project schedule.
Mine Operations - The Company completed much of the necessary rehabilitation in the first quarter of 2021. Additional pre-production rehabilitation is scheduled for the fourth quarter of 2021 in preparation for the final definition drilling scheduled for October and subsequent full mine production in 2022. Several mining contractors have been engaged in a formal tender process in preparation for mine development quotes. A comprehensive list of pre-qualified contractors has been developed and RFQ’s are scheduled to be extended by late October, with final selection in November.
Mineral Processing - The original flotation circuit has been dismantled and removed making room for the construction of the new Whole Ore Leach (“WOL”) facility. A complete evaluation of the existing infrastructure was performed and included in the project scope.

Detailed engineering of the modifications to the existing mill and expansion of the new Whole Ore Leach facility has been brought to 60% completion by Hanlon Engineering and includes initial plant layout, tank and thickener sizing, and a revised capital estimate. Final detailed engineering and plant layout is pending final metallurgical testing derived from the final mine plan.

Long-lead items such as the ball mill feed chute, ball mill liners and a replacement cone crusher have been ordered. The Merrill Crowe unit and other WOL plant equipment will be ordered in October and will be available for construction later this year and early next year.

Klassifizierung Tonnen
('000's) Goldgehalt
Gramm/Tonne enthalten
('000's)

Gemessen 806 7,6 196
Angezeigt 502 6,8 110
Gemessen und angezeigt 1.308 7,3 306
Abgeleitet 1.124 5,9 212
Die aktualisierte Mineralressourcenschätzung hat ein Datum des Inkrafttretens am 16. Juni 2021 und wurde in Übereinstimmung mit den National Instrument 43-101 Standards of Disclosure for Mineral Projects („NI-43-101“) von Hard Rock Consulting, LLC mit Sitz in den USA erstellt.

Herr Richard A. Schwering, PG, SME-RM, ein Ressourcengeologe bei Hard Rock Consulting, LLC, ist mit Wirkung zum 16. Juni 2021 für die Mineralressourcenschätzung des Copperstone-Projekts verantwortlich. Herr Schwering ist eine qualifizierte Person als  definiert durch NI 43-101 und ist unabhängig von Sabre Gold Mine Corp. Herr Schwering schätzte die Mineralressourcen basierend auf Bohrlochdaten, die durch 48 strukturell kontrollierte Bereiche eingeschränkt wurden, unter Verwendung eines Ordinary Krige-Algorithmus.  Innerhalb der Domänengrenzen wurden 5-Fuß-Downhole-Verbundwerkstoffe erzeugt.  Zusammengesetzte statistische Populationen wurden nach Domänen auf Ausreißer untersucht.  Bei acht Domänen mit extremen Ausreißern wurden diese Werte begrenzt.  Achtundzwanzig Domänen hatten Ausreißer, die auf einen Prozentsatz des Variogrammabstands beschränkt waren.  Zwölf Domänen wiesen keine statistischen Ausreißer innerhalb der Populationen auf und Zusammensetzungen wurden nicht begrenzt oder eingeschränkt.  Das geologische Modell und die Mineralressourcenschätzung wurden mit den Leapfrog Geo®-Softwareversionen 6.0.5 und 2021.1.2 erstellt.

Die technischen Informationen in dieser Pressemitteilung wurden von Michael Maslowski, CPG, einer qualifizierten Person gemäß National Instrument 43-101, geprüft und genehmigt, der vom Unternehmen als Vice President, Technical Services & Exploration angestellt ist

A comprehensive detailed mine plan and production schedule was completed by Mine Development Associates in Reno, Nevada that defines stopes and production areas for the initial five years of mine-life. In addition, all capital and operating expenses were reviewed by way of further detailed engineering and have been incorporated into an updated discounted cashflow model. The mine plan indicates annual production of approximately 40,000 to 45,000 ounces per annum while demonstrating favorable economics which includes future expected conversion of additional resources based on the open extent nature of both the Copperstone and Footwall zones.

Due to limitations of underground development, drilling platforms and the geometry of the gold bearing shear zones Sabre intends to drill several years in advance as it advances underground development ahead of the underground mining areas. Years 5 to 13 are scheduled to produce from areas that currently have inferred resources and yet un-delineated extensions of the existing resources. The cash flow model includes the required excavation of drill platforms as operational headings advance and the associated drilling required to identify, confirm and define mineable areas. Updated capital and operating expenses were reviewed and incorporated into a discounted cashflow model.

Further engineering and refinement were completed on the processing facility that will incorporate a Whole Ore Leach process followed by Merrill-Crowe recovery and onsite refining. Plant lay-out and flowsheets with associated capital and operating cost estimates were completed. Engineering is estimated at 60% completion with flowsheets and plant lay-out complete. Concurrently, metallurgical testing is in final stages, indicating excellent gold recovery. Final metallurgical tests will provide data to confirm the equipment sizing and operating costs.

Mine rehabilitation continued with significant progress made in the majority of areas that will be mined in the first several years of mine life. Small Mines Development have been engaged and are nearing completion of 1,674 linear feet of rehabilitation that included robust ground support and enhancement of mine dewatering systems. The rehabilitation completes a series of efforts to ensure safety standards and readiness for full scale mining production.

The technical information in this news release has been reviewed and approved by Michael Maslowski, CPG, a qualified person as defined by National Instrument 43-101 and is employed by the company as its Vice President, Technical Services & Exploration

Sabre Gold Drills 4.6 Meters at 26.9 G/T Gold

Source: GlobeNewswire Inc.

Sabre Gold Mines Corp. (TSX: SGLD, OTCQB: SGLDF) (“Sabre Gold” or the “Company”) is pleased to announce continued positive underground drilling results at its 100% owned Copperstone gold project located in Arizona, United States.
Mike Maslowski, Vice President of Technical Services and Exploration of Sabre Gold stated: “We have now received further assays which continue to show better than expected continuity of the mineralized shear zone with extremely positive grades that will prove helpful as we moved to mine design and scheduling”

Drilling Highlights Include:

RC P6F58                4.6 m at 26.9 g/t including 3.0 m at 38.5 g/t

RC P2E93                6.0 m at 15.5 g/t including 3.0 m at 26.5 g/t

RC P2C26                3.0 m at 19.7 g/t

RC P2A06                3.0 m at 18.6 g/t

RC P2C34                3.0 m at 19.7 g/t

RC P2C29                3.0 m at 15.0 g/t
Assay results for the underground reverse circulation (“RC”) drill program have been received on 67 out of the 83 RC holes sampled and submitted with further assays results pending.

Holes were drilled from eight drill stations targeting the D zone and two stations targeting the C Zone. Complete results have been received on two stations for the Zone D and partial results on the remainder. The results continue to show good strike and dip continuity of the zones thickness and gold grade. As anticipated, local high-grade intercepts ranging from 10.0 g/t to 30.0 g/t gold have been returned from various holes across the drill fans. Drill station location and drill cross sections showing the drill holes follow in this release.

Mr. Tolbert is a mining engineer with more than 30 years of experience focused on underground operations and engineering. Mr. Tolbert has held various Mine Manager and General Manager positions with Hecla Mining Company and Klondex Mines Ltd. Mr. Tolbert was instrumental in advancing Klondex’s Fire Creek Mine from an exploration stage project to an operating mine. While at Fire Creek Mr. Tolbert optimized mining operations by changing the mining method to better fit the narrow character of the ore. He led the transition from long-hole stoping to cut and fill and shrink stoping where he reduced costs by an average of 40% per ounce, increased production, and reduced dilution, all maintaining a keen focus on safety with an exceptional safety record. Prior to Klondex, Mr. Tolbert worked at Newmont Mining for fourteen years starting as an underground miner before achieving his engineering degree and advancing to Superintendent for the Midas Mine and Vista Project. He holds Mining Engineering degree from the Haileybury School of Mines and is a certified Project Management Professional.

Drill Result Highlights

RC P2D47
4.6 m at 16.9 g/t includes 1.5 m at 47.6 g/t
Core P2F06
3.4 m at 5.4 g/t includes 0.8 m at 17.8 g/t
RC P2C32
4.6 m at 8.4 g/t
RC P2C36
1.5 m at 29.1 g/t
RC P2G69
3.0 m at 7.9 g/t
RC P2G73
3.0 m at 9.5 g/t includes 1.5 m at 16.4 g/t
RC P2H101
3.0 m at 9.0 g/t
Core P3B03
2.6 m at 14.2 g/t includes 0.9 m at 30.6 g/t
Mike Maslowski, Vice President of Technical Services and Exploration of Sabre Gold stated: “Drilling results continue to confirm the high gold and thickness continuity alone strike and dip for these areas. The results also indicate strong potential for the D Zone to extend further north than previously anticipated. New drill platforms developed further north than any existing underground access is required and being designed to provide proper drill angles to define the northern extents of the D Zone. This phase of drilling is complete and will now be used to develop initial detailed mine plans for these areas.”

Assay results for the underground drill program have been received on the final holes from the 2021 drill program.   Holes were drilled from eight drill stations targeting the D zone and two stations targeting the C Zone.

The results on the final holes from various drill stations in Panel 2 of the D zone continued to show the high-grade gold continuity across the shear zone with the drill holes spaced 6 to 8 meters apart. Drill station location and drill cross sections showing the drill holes follow in this release.

Tabl

Mr. Maslowski is a geological engineer with a career spanning more than 40 years of varied experience in resource exploration and mining operations in diverse parts of the world. He has directed grassroots exploration programs, developed properties from exploration to production and managed mining operations. He was the team leader for the discovery of the Diamond Hill Mine for Pegasus Gold in the 1990’s and advanced the mine into production. He worked for Coeur d’Alene Mines for 10 years in positions that included Director of Exploration and Assistant General Manager for the Palmarejo Mine in Chihuahua, Mexico. He was Vice President Exploration and Chief Operating Officer for Golden Predator Canada. More recently he was Technical Services Superintendent for Teck’s underground lead-zinc Pend Oreille Mine in northeast Washington State. Mr. Maslowski holds a B.Sc. in Geological Engineering from Colorado School of Mines, is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists (AIPG), a Qualified Person (QP) as defined by National Instrument 43-101 and a member of SME.

John Galassini has stepped down from his position as Chief Operating Officer. Sabre Gold would like to extend its thanks to Mr. Galassini for his contributions as well as facilitating what has been a very smooth transition to our incoming Chief Operating Officer, Mike Maslowski. We wish John well in his future endeavors.

Project Financing Update

Sabre Gold continues to advance discussions regarding project debt which will allow Copperstone to advance to production within twelve months from funding. Sabre Gold’s project funding strategy remains focused on minimizing dilution to our existing stakeholders. To date we are pleased with the progress made advancing discussions with potential lenders, Star Royalties, and our current lenders both of which are directors of the Company.

Sabre Gold is in the enviable position of being one of the few companies that owns a fully permitted gold project in the American Southwest that can be advanced to production within a very short timeline. The required restart capital remains in line with previous estimates. In view of the existing infrastructure and underground development the required capital is significantly lower than what would be typically required. Existing infrastructure includes a tailings impoundment, 600 ton per day mill, site facilities and over 4,300 meters of underground development.

Project financing will focus on project debt as the primary source which will minimize dilution and may include the sale of short-term investments inclusive of proceeds from option or warrant exercises. The Company is currently evaluating several project debt financing alternatives and will provide a further update as discussions advance further.

Project Status

As previously reported additional detailed engineering and refinement were completed on the 600 ton per day processing facility that will now incorporate a whole ore leach process followed by Merrill-Crowe recovery and on-site refining. Plant layout and flowsheets with associated capital and operating cost estimates have been completed. Detailed engineering is estimated at 70-per-cent completion with flowsheets and plant layout complete. Concurrently, metallurgical testing is in final stages, indicating excellent gold recovery. Final metallurgical tests will provide data to confirm the equipment sizing and operating costs.

In addition to the recently completed definition drilling, a comprehensive detailed mine plan and production schedule was completed by Mine Development Associates, Reno Nevada that defines stopes and production areas for the first five years of mine life which is a continuation of earlier work completed to prepare the fully permitted mine for start-up and progression to full production.

In addition, all capital and operating expenses were reviewed by way of further detailed engineering and have been incorporated into an updated discounted cash flow model. The mine plan indicates annual production of approximately 40,000 to 45,000 ounces per annum while demonstrating favourable economics which includes future expected conversion of additional resources based on the open extent nature of both the Copperstone and Footwall zones.

Due to limitations of underground development, drilling platforms and the geometry of the gold bearing shear zones, the Company intends to drill further as it advances underground development ahead of the underground mining areas.

Mine rehabilitation has been completed with significant progress made in the majority of areas that will be mined in the first several years of mine life. Small Mines Development were engaged and has completed 1,674 linear feet of rehabilitation that included robust ground support and enhancement of mine dewatering systems. The rehabilitation completes a series of efforts to ensure safety standards and readiness for full scale mining production.