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Update: Sable Mining Increases Its Tonnage And Adds More Millions To The NPV

Sable Mining (SBGGF) has announced a resource update on its Nimba iron ore project in Guinea, after it completed a drill program consisting of not less than 231 drill holes. The company was able to add almost 24 million tonnes to its resource estimate which now stands at 205.2Mt at 57.8% Fe (coming from 181.5Mt at 58.8% Fe).

This is a nice increase in tonnage, but the average grade has dropped by 1% Fe. This might sound like a non-event, but in the current iron ore price environment, an end-product with a grade which is 1% lower will see an additional discount of $3-5/t, so whilst the tonnage does increase, the average value per tonne actually decreases. I'd have hoped Sable Mining would have been focusing on quality over quantity as the situation on the iron ore market remains quite dire. However, the situation might be better than I expected… Read More …