The Gulukwane iron ore project (‘Gulukwane’) comprises approximately 25,000 hectares in the highly prospective Thabazimbi area in the Limpopo Province of South Africa.  It is situated 15km north of the town of Thabazimbi, home to the large Thabazimbi Iron Ore Mine owned by Kumba Iron Ore Ltd.  It is underlain by the Penge Formation, and dips at approximately 24 degrees towards the east, away from the Makopa Dome which lies to the north-west.  The initial target zone within the area covered by the Prospecting Rights is immediately north and adjacent to the area held by Aquila Resources Ltd (‘Aquila’), and the Board believes that the mineralised zone being targeted by Aquila extends through the centre of the Gulukwane project area.

Haematite ore is the main target and occurs as large, tabular, stratabound bodies within the basal and lower part of the Penge Iron Formation.  The deposits generally occur as stratabound bodies of variable size and typically contain 15% to 35% Fe, although parts of this formation were partially transformed to deposits containing more than 60% Fe. 

The first phase of geophysics test work, which included a combination of ground gravity and magnetics, has been completed and a positive gravity anomaly that has the characteristics that would be expected from a tabular haematite occurrence has been identified.  The ground gravity data identified a north-south striking, positive Bouguer gravity anomaly on traverse lines four through eight over a distance of 2km.  The gravity anomaly spatially correlates with an iron ore horizon mapped at outcrop and lacks a magnetic correlation, indicating that the causative source of the anomaly may be haematite.

Following the identification of this potential haematite anomaly, a second phase of exploratory work has now commenced.  This includes a 12 hole reverse circulation (‘RC’) drilling programme, of which 5 holes have now been completed.  The aim of the drilling programme is to extract sufficient samples to confirm that the haematite is present, and initial results confirm this to be the case.  Haematite has been intersected at depths ranging between 5m and 70m, with thickness varying between 2m and 15m.

The Board of Sable believes that Gulukwane has the potential to become a high quality iron ore asset.  The locale of Thabazimbi has the correct geological address, established infrastructure and a mining history which are all positives with regards to resource development initiatives.