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VIDEO: Sable Resources Ltd (CVE:SAE) New Silver Discovery

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Sable Resources Ltd (CVE:SAE) (OTCMKTS:SBLRF) (FRA:5XL) CEO Tom Obradovich joins James West and Ed Milewski in the Midas Letter studio to talk about Sable’s recent strike at its Margarita project in Mexico that includes 902 grams per tonne silver equivalent over 4.1 metres. Obradovich explains that Sable’s Margarita project has strike length throughout the property and that the base metal contribution strengthens the overall value of the strike. The trio discuss the decline in the base metal market and Obradovich suggests it’s not a long term issue. Obradovich explains that Sable prioritizes exploration, aiming to be the company “that brings everybody back to the mining market after a major discovery.” Abradovich outlines Sable’s plans for projects in Argentina and British Columbia.

Transcript:

James West:   Hey, how’s it going? Welcome back to Midas Letter Live! My guest this segment is somebody you probably might or might not know, if you’ve been in the mining space for a little while: Tom Obradovich is the President and CEO of Sable Resources, trades on the TSX Venture under the symbol SAE. Tom, welcome to the show.

Tom Obradovich:    Thank you very much.

James West:   Tom, you knocked out a screamer of a hole! Come on: 514 grams per tonne silver equivalent over 12.4 metres, including 902 grams per tonne silver equivalent over 4.1 metres. Tell us about this project.

Tom Obradovich:    Well, the Margarita project is a low sulphidation epithermal target that we established by doing a regional study in some of the more favourable parts of Mexico, and this is in Chihuahua state. Our technical people – Ruben Padilla and Terry Harbord identified the target. We managed to do a deal on it last year, and we’ve got good surface numbers. These are the first drill holes that are into the Margarita vein, and we’re quite pleased with it because it looks very similar to the mineralization that we see in the neighbouring property, that hosts about 200 million ounces of silver equivalent in a private company called Sunshine Silver & Refining. So it’s the Los Gatos deposit, and we have the extension of it in our project.

Ed Milewski:  And how much drilling are you doing in this first drilling program?

Tom Obradovich:    We’re completing 12 holes for approximately 7,000 metres. We’re going to be finished our 12th hole, wait for drill results and evaluate them in order to establish a second phase of drilling in the coming month or so.

James West:   So how many drill holes are at the lab now?

Tom Obradovich:    We have five remaining at the lab, one being drilled, and four in the lab. It covers the entire property. We have a very small property that covers about 1.6 kilometres of strike length, but we have the mineralization through the entire property.

James West:   Oh, that’s good. It always sort of annoys me when companies say ‘We’ve got 50,000 hectares, but we’ve only got, you know, 600 feet of strike.’

Ed Milewski:  Right.

Tom Obradovich:    We’re in good shape, we’re one end to the other. [laughter]

Ed Milewski:  Yeah, so, strike length throughout the property.

Tom Obradovich:    Strike length throughout the property.

James West:   So what is the composition of the silver equivalent?

Tom Obradovich:    I believe it varies on the depth of the drill hole. We get more base metal contribution to the values as we go deeper.

James West:   So, silver, lead, zinc?

Tom Obradovich:    Silver, lead, zinc.

James West:   Okay.

Tom Obradovich:    But primarily silver, not a lot of zinc and lead, but there is enough to beef up our numbers and add to the silver values that we do have.

James West:   The zinc price lately has been, you know, under pressure, despite the fact that global zinc inventories are depleting, quality of zinc deposits are going down. So in my view, the zinc is a good thing.

Tom Obradovich:    I think zinc is always a good thing, especially in a market like this. But it seems that trade wars have really kicked the crap out of the base metal market, and once those are resolved, I don’t think that’s a long-term issue. I think that Mr. Trump will get on some other bandwagon sooner or later and leave our base metals alone.

James West:   Right.

Tom Obradovich:    So I think we’re going to see a recovery in base metal prices, just strictly on the fundamentals.

James West:   Sure. And this isn’t your only project.

Tom Obradovich:    No. We are a –

Ed Milewski:  So you’re not a one-trick pony?

Tom Obradovich:    No! We’re a pure greenfields exploration company. We look for fresh, new deposits, and our goal is to be the company that brings everybody back to the mining market after a major discovery. And we’ve seen it with Hemlo, it happened. We saw it with Diamond Fields, and we saw it with Aurelian, which I’m rather connected to. Everybody started getting back in mining stocks after there was a major discovery. We haven’t had one in a number of years, but I think we’re destined to be that company. We’ll come back in about six months to see if Don Julio in Argentina, which is in the El Indio belt, is as good as we think it is.

James West:   So that, you mention that that’s in the El Indio Pascua Lama belt, which proximity to Pascua Lama?

Tom Obradovich:    Yes sir. We’re about 100k south of Pascua Lama, but only about 40 kilometres south of El Turas, which is the most recent discovery by Barrick: 6.5 million ounces.

James West:   Right. And are you all in Argentina? There’s no part of the deposit going into Chile?

Tom Obradovich:    No, no, no! We kept everything where it’s safe, in San Juan Province of Argentina, the best mining jurisdiction on the planet.

James West:   Good! Yeah, no kidding. Oh, well, we’ll have to get down there with a camera crew and shoot it, because it’s really beautiful.

Tom Obradovich:    Well, we’d love to have you after we have the discovery that ignites the market.

James West:   [laughter] Because of that, we’ll come down.

Ed Milewski:  What’s your treasury like right now, Tom?

Tom Obradovich:    We’re sitting with about $2.5 million in cash. We’ve got avenues and offers of financing right now. We’re coming up with creative ways to finance by possibly – I guess I can’t tell you right now, because we’re going to have to pull off the deal before I tell you.

Ed Milewski:  Yeah, right. But you’ve never had trouble raising money?

Tom Obradovich:    Never.

Ed Milewski:  That’s been one of your –

Tom Obradovich:    We went to raise $2.5 million last summer, and we raised 4.3.  We’ve had offers –

Ed Milewski:  And still in a tough market, too.

Tom Obradovich:    In a tough market, but, you know –

Ed Milewski:  You know a lot of guys with deep pockets.

Tom Obradovich:    Yeah, we’ve had, you know, between Terry, Ruben, myself and the people involved in this company, we’ve been involved in the discovery of over 60 million ounces. So those guys led the Anglo exploration team…

Ed Milewski:  Yeah, you’ve got quite a pedigree, for sure.

Tom Obradovich:    Yeah. Between Young Davidson, Aurelian, and the deposits that were discovered for Anglo by our team in South America, we’ve found a lot of gold.

Ed Milewski:  Good, good.

Tom Obradovich:    Some of the people that remember how much money they made off of us are still writing cheques.

Ed Milewski:  Are you doing a lot of work in British Columbia?

Tom Obradovich:    We’re doing a little bit of work in BC right now. We’re drilling a project called Tulox in the next six months or so. Well, we’re just finishing up some of the requirements by the government with respect to First Nations, but we will be drilling Tulox property in the near term.

James West:   So four holes at the lab, did you say?

Tom Obradovich:    Yep.

James West:   And then you’re going to drill a Phase II?

Tom Obradovich:    Phase II will be determined on the results of the next four holes, but they look the same, they smell the same, and they taste the same.

Ed Milewski:  Yeah, I was just going to ask: do the cores look similar?

Tom Obradovich:    The cores look good. We’ve got a strike length of over a kilometre and a half on the ground; we’ve got a drilled strike length of 500 metres now. We’ve stepped out another 500 metres, we’re down to 100 metres in depth. We’ve got intersections at 50 and 100 metres.

James West:   So these are right from surface?

Tom Obradovich:    This is an open pit.

James West:   Right, okay.

Tom Obradovich:    If everything hangs together the way we think it does, it will be an open pit.

James West:   What’s the elevation?

Tom Obradovich:    Elevation, I’m not quite sure. I haven’t – all I know is, it’s on surface.

James West:   [laughter] The surface of the planet?

Ed Milewski:  Are there mines? There’s mines in the area.

Tom Obradovich:    Well, the Los Gatos deposit is being built right now by the Electrum Group. They own the majority of the stock in Sunshine Silver.

Ed Milewski:  Just about every state in Mexico is friendly, isn’t it?

James West:   Argentina?

Tom Obradovich:    We’re talking about the Mexican project now at Margarita.

James West:   Oh, okay.

Tom Obradovich:    But in Argentina, we’re in the most favourable state. In Mexico, we’re in probably one of the most favourable states, being Chihuahua. So San Juan in Argentina, Chihuahua in Mexico.

James West:   Okay, right. Awesome. Well, it sounds pretty exciting. We’re going to leave it there for now, Tom. Thank you very much for the introduction; we’re going to come back to you in, well, as soon as we see the next drill results and find out what happened. Thanks very much for coming in today.

Tom Obradovich:    Okay, thank you very much for having me.

Ed Milewski:  Maybe we can have Tom on the RAW show and we’ll have all the Skype action.

James West:   You bet, absolutely. We’re going to cut live now to our correspondent in California. Justin B. Marshall is joining us live with another visit of a major growing operation.

Justin Marshall:   And now we’re here with Jeff, Freya and Mike at their C Quadrant facility here in the Salinas Valley location. It’s quite an impressive size. Mike, what is the size of this operation?

Mike:     Under roof here, we have 43,000 square feet, and we have about 10,000 square feet of outbuildings. So, about 53,000.

Justin Marshall:   And three shipping bays, and quite the operation here. What are you going to be doing here in the future? What are your plans?

Mike:     So this facility is…

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