Margarita Project

Drill Ready Bonanza Grade Target

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Key Highlights

  • 1.7km of outcropping vein
  • Silica textures indicating upper levels of Bonanza Zone
  • Low-Sulphidation Epithermal Ag
  • Surface sampling of 100-900g/t Ag
  • Multiple Veins Identified
  • Mining Friendly Chihuahua
  • On Strike of Sunshine Silver Los Gatos (95Moz)
  • Surrounded by Sunshine Silver Claims
  • Not Previously Drilled
  • Option to Earn 100%

Acquired as part of Sable Resources Upper Level Epithermal Strategy the Margarita project is located on a claim totally encompassed by Sunshine Silvers’ claims associated with their 95Moz Los Gatos discovery. Sable has signed an option agreement to obtain 100% of the project.

The initial sampling confirms the validity of the first target in the Mexico Upper Level epithermal strategy with 3/4 of samples in the 100-900g/t Ag range. The project is drill ready, with permitting underway.

Location

Margarita is located in the Satevó Municipality in Chihuahua state, approximately 120km SW of the state capital of Chihuahua City, and 110km NNW of the historic Parral Mining district. The property has year round unrestricted access provided by a good network of Federal-State highways and well maintained dirt & ranch roads.

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Deposit Geology

Mineralization on the Margarita Property is hosted in a series of parallel, steeply dipping, northwest-trending veins, some of them known for ~1.8 km along strike. The veins show classical banded epithermal quartz textures with an apparent thickness of between 1 and 5m.

The Margarita-El Tren and El Caido veins are the main exploration targets in the property. They are separated by 150-200m and can be traced along strike on surface for at least 1.8km and 500m respectively. Several other additional veins have been identified in outcrop although the strike extent is currently unknown. Margarita-El Tren vein structure dips to the SW while El Caido vein structure dips to the NE. Both veins have steep dips ranging from 60°-76°.

The mineralized structures consist of quartz–barite and lesser fluorite veins, stockwork and breccias with abundant manganese and iron oxides. Vein widths range from 1-5 m with an average of 1.5m and are hosted by volcanic rocks of andesitic and rhyolitic composition.

The quartz in the veins is multi-stage, ranging from fine-grained to coarse grained, white, greenish; chalcedonic, sacaroidal and drusic. Sometimes the vein shows rhythmic banded quartz textures and is commonly accompanied by manganese & iron oxides. Mineralization at Margarita is characterized by silver and anomalous values of lead, zinc and gold.  Quartz texture and geochemistry suggests that it is epithermal in origin and is likely of low sulphidation affinity.

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Exploration to Date

Sable has conducted preliminary channel sampling at Margarita to define suitable locations for drill targets. Of the 44 samples taken nearly 3/4 (29) were in the range of 100g/t to 900g/t. The presence of chalcedonic silica with these samples indicates the current surface level is above the epithermal bonanza zone suggesting these grades should increase with once the Bonanza zone is encountered. Sable is currently engaged in gaining the necessary drill permits to test these significant anomalies at depth towards the end of Q1, 2018.

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Drilling

Based on the encouraging results obtained during the mapping and rock-chip sampling program carried out at Margarita project, a drill program consisting of 4,025m in 11 holes is proposed to explore for economic mineralization and test the Margarita-El Tren and El Caido veins at depths of 200-400m below surface. This proposed drill program includes 6 priority 1 holes  for a total of 1,780m and 5 priority 2 holes for a total of 2,245m. Sable expects permitting to be acquired by the end of Q1, 2018.

Status: DRILL READY

GREENFIELD EXPLORATION AT ITS BEST