Sabre Resources (ASX: SBR) will now fast track exploration at its contiguous projects in Western Australia’s Youanmi gold mining district after raising $982,313.
Sabre’s ground is adjacent to the Penny West gold discovery.
The Youanmi gold district gained investor attention with the discovery of the Penny West gold resource by the former Spectrum Metals and its subsequent takeover this year by Ramelius Resources (ASX: RMS). Also, several other companies have reported significant exploration success on gold projects in the mining district.
There has also been the recently discovered northern extension of Penny West.
The funds raised by Sabre will be used to accelerate exploration at the Bonanza and Beacon gold projects acquired last August. Bonanza covers 18sq km and Beacon, which adjoins Bonanza, covers 15sq km.
Sabre has previously said it will use magnetic data to generate targets and plans to test the highest ranked targets with air core drilling.
The Youanmi district also hosts Rox Resources (ASX: RXL) and its Youanmi project with a confirmed mineral resource estimate of 1.19 million ounces of gold, as well as Venus Metals Corporation’s (ASX: VMC) project with a JORC estimate of 1.2Moz of gold.
The historic Youanmi gold mine closed in 1997 when the gold price averaged US$331 per ounce. Now with a gold price over US$1,800/oz (A$2,570/oz), the WA exploration scene has been transformed.
Capital raising indicates confidence among investors
Sabre had given Peak Asset Management the mandate to raise $982,313 as a minimum amount.
Sabre chairman Michael Scivolo said the capital raising’s success indicates confidence among investors regarding the company’s ground in the Youanmi district.
“Through this capital raising, Sabre is now able to accelerate its exploration work in this rapidly expanding gold district,” he said.
The shares being issued will come with a free attached listing option exercisable at $0.008 by 30 September 2022.
Sabre also has base metals interests
The company holds a 70% interest in the Sherlock Bay nickel project in WA’s Pilbara region with a JORC resource of 24.6 million tonnes at 0.4% nickel, 0.09% copper and 0.02% cobalt, for a contained 98,400t of nickel.
Sabre also owns a copper, lead and zinc project at Otavi Mountain in Namibia and plans further drilling programs for copper, vanadium and lead-zinc.
Work so far has identified near-surface vanadium. At the Border area, there is a JORC inferred resource of 16Mt at 1.53% zinc, 0.59% lead and 4.76g/t silver.
In addition, extensive copper mineralisation has been intersected by drilling at the Guchab South copper-silver prospect.