Ann: Progress at Kaskara , page-2

VANADIUM POTENTIAL OF THE ONGAVA PROJECT

Sabre has persisted in resolving technical issues of core recovery at Kaskara in the face of trying geological conditions. The great potential of the Kaskara area to host economic copper-lead-zinc-vanadium mineralisation is indicated by numerous geological features characteristic of significant Tsumeb-type* mineralisation.

At least seven other Tsumeb-type prospects are documented on Sabres Ongava Project licence area (Figure 4). Success in our exploration technique at Kaskara will allow more efficient exploration of these targets. All of these prospects contain copper, lead, zinc and vanadium, and like Kaskara are deeply weathered. Each prospect has at least some historical workings, ranging in significance from trenches to an open pit.

All of the Tsumeb-type prospects identified on Sabres licence area are highly prospective for:

Vanadium-rich copper-lead-zinc secondary mineralisation in the oxidised zones nearer to surface.

Copper-lead-zinc sulphide mineralisation at depth.


* Tsumeb-type copper-lead-zinc mineralisation contains significant proportions of vanadium, silver, gold, and germanium. The largest deposit of this style was Tsumeb (40km north of Kaskara), which produced around 25 Mt of ore grading 5.50 % copper, 11.48 % lead, 4.01 % zinc, and 171.6 g/t silver from a vertically extensive pipe no greater than 200 x 50 m in plan view. Other mined Tsumeb-type deposits in the region include Kombat and Gross Otavi. Mineralisation is structurally controlled and developed during regional deformation of the rock sequence at peak metamorphic conditions. Most of these deposits are deeply weathered near to surface where secondary vanadium-rich mineralisation is commonly developed.



The Otavi Mountainland was historically a major vanadium producer from 1920 through to 1978. Recent scientific publications have shown a direct link between the presence of the copper-lead-zinc vanadate minerals, at and near surface, and copper-lead-zinc sulphide mineralisation at depth.

With global interest in vanadium increasing, Kaskara and the other Tsumeb-type prospects will be a major focus for Sabres exploration efforts. Sabres recent high-grade vanadium intercepts at Kaskara (reported 17 March 2011) include:

21.9m @ 1.41% V (2.52% V2O5) and
2.7m @ 2.41% V (4.30% V2O5)

These values compare favourably with recently reported resource grades from some Australian deposits of between 0.40% and 0.85% V2O5.

The vanadium potential of each of these Tsumeb-type prospects means that vanadium is considered a target in its own right. Their vanadium potential will augment the copper, lead and zinc potential, both at surface and at depth.

EXPLORATION PROGRAMME

Kaskara

Around 30 drillholes are planned for the initial systematic drill programme at Kaskara. Holes will vary in depth from ~50 m to in excess of 200 m.

This drill programme is expected to yield significant intercepts of copper, lead, zinc and vanadium as drilling proceeds through the oxidised carapace. Some deeper drilling may intercept fresh copper, lead and zinc sulphide mineralisation.

The aim of this programme is to define the geometry and extent of the Kaskara mineralised system in three dimensions. Subsequent drill programmes will then expand, deepen and infill the current programme in order to define an inaugural resource.

Remainder of the Ongava Project

Concurrently with the Kaskara drilling, Sabre is pursuing other targets within the Ongava tenement in order to develop and augment our pipeline of projects throughout this mineral-rich region.

These currently include:

drilling at the Driehoek lead-zinc deposit,

metallurgical studies at the Border lead-zinc deposit,

further mapping and trenching at Harasib II,

examination of the other Tsumeb-type prospects, and
ongoing reconnaissance of mineralisation throughout the region.