Vancouver, BC / February 9, 2018 / JMN Wire / Sable Resources Ltd. ("Sable" or the "Company") (TSXV:SAE) is pleased announce that it has entered into a binding Letter of Intent ("LOI") with arms-length vendors to option the High Sulphidation Don Julio Gold Project (the "Project") located in San Juan Province, Argentina (the "Option").
The Project, which has been privately held since 1990, is located 60km south-east from Barrick's Alturas Project which contains an inferred resource of 211 million tonnes grading 1.00 g/t gold for a 6.8 million ounce gold resource (Barrick's Fourth Quarter and Year-End 2016 Report). Preliminary fieldwork has identified a large diatreme cut by volcanic domes and at least 2 phases of high sulphidation mineralisation within a 4km by 3km lithocap coincident with large robust Au geochemical anomaly, widespread quartz- alunite and illite-pyrite alteration with strong upper-level pathfinders.
"We're hunting for elephants in Elephant Country" said Tom Obradovich President & CEO of Sable Resources. "The project has never been explored for high sulphidation mineralisation and our geologists already see key indications to warrant systematic exploration."
Under the terms of he LOI, Sable may earn up to 100% in the Project, subject to a 2% net smelter royalty ("NSR") which one half of (1%) may be purchased by the Company for USD$2,500,000 at anytime after 12 months from which commercial production has been declared for any part of the Project. The terms are structured to allow for a 50%, 60%, 70% or 100% earn in at the Company's discretion. To earn 50% of the Project, the Company shall:
- Make payment to the vendors of USD$25,000 upon signing the LOI;
- Issue 200,000 common shares of the Company and make payment of USD$25,000 upon TSX Venture approval (the "Effective Date");
- Issue 200,000 common shares of the Company and make payment of USD$100,000 to the vendors and complete USD$300,000 in exploration work on the Project prior to the one (1) year anniversary of the receipt of an Environmental Impact Assessement Permit required for drilling (the "Permit Date");
- Issue 200,000 common shares of the Company and make payment of USD$150,000 prior to the second (2nd) anniversary of the Permit Date;
- Issue 400,000 common shares of the Company and make payment of USD$300,000 to the vendors, and complete USD$700,000 of exploration work on the Project prior to the third (3rd) anniversary of the Permit Date.
To earn an additional 10% for 60% ownership of the Project, the Company shall also:
- Issue 600,000 common shares and make payment of USD$600,000 prior to the fourth (4th) anniversary of the Permit Date.
To earn an additional 10% for 70% ownership of the Project, the Company shall also:
- Issue 800,000 common shares and make payment of USD$900,000 cash to the vendors, and complete an additional USD$1,500,000 of exploration work on the Project prior to the fifth (5th) anniversary of the Permit Date.
To earn an additional 30% for 100% ownership of the Project, the Company shall also:
- Issue 1,000,000 shares and make payment of USD$1,900,000 to the vendors, and complete an additional USD$1,500,000 exploration work prior to the sixth (6th) anniversary of the Permit Date.
The signing of the Don Julio deal is directly inline with the Company's Upper Level Epithermal Exploration Strategy, identifying endowed terranes and systematically exploring properties in under explored mineral districts. Due diligence has been completed to the satisfaction of the Company over the past 60 days. Drill definition, mapping and sampling is planned to begin immediately following receipt of applicable regulatory approvals.
The Option is subject to the approval of the TSX Venture Exchange.
For more information:
Tom Obradovich, President & Chief Executive Officer
This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel (416) 985-7140
Or visit http://www.sableresources.com
Forward-Looking Statements
This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "might", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information and/or statements. Forward-looking statements and/or information are based on a number of material factors, expectations and/or assumptions of Sable which have been used to develop such statements and/or information but which may prove to be incorrect. Although Sable believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements as Sable can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things, the receipt of final regulatory approvals for the Option and proposed exploration plans for, and potential mineralization on, the Project. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and/or statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results and/or events to differ materially from those anticipated in such forward-looking information and/or statements including, without limitation the uncertainty of obtaining all applicable regulatory approvals, and/or certain other risks detailed from time-to-time in Sable's public disclosure documents. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Sable does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and/or accuracy of this release.
