San Juan: Sable and Moxico Resources Sign Letter Agreement for the El Fierro Project and the Cerro Negro Property
Sable Resources Ltd. announced that the Company and its wholly-owned subsidiary, Sable Argentina S.A., have signed a binding letter agreement with Moxico Resources plc, an unlisted private UK public company granting Moxico an exclusive option to acquire 51% of the Company’s El Fierro Project and Cerro-Negro Property, subject to certain exploration and expenditure terms.
By Panorama Minero
Letter Agreement
The Letter Agreement grants Moxico an option to earn up to 51% of the El Fierro Project by completing the following within a five year period:
- 20,000 metres of drilling, with a minimum of 1,600 metres in the first year;
- The payment of US$1,540,000 worth of property option payments; and
- The payment of US$600,000, payable to Sable in annual amounts of US$150,000 commencing in year two.
As regards the Cerro-Negro Property, the Letter Agreement provides for Moxico to earn up to 51% by completing the following within a six year period:
- Expenditure of US$550,000 in the first year to conduct exploration activities in advance of drilling
- Completion of 20,000 metres of drilling (diamond or core) over six years; and
- the payment of US$750,000, payable to Sable in annual amounts of US$150,000 commencing in year two.
The Letter Agreement also provides for Moxico to earn up to 70% (an additional 19%) in either or both of the projects by completing a feasibility study on, as applicable, the El Fierro Project and/or the Cerro-Negro Property. Unless Moxico elects otherwise, Sable will operate all exploration programs during the option period and will receive in the first year a 10% management fee on all eligible exploration expenditures incurred, with the exception of direct drilling costs for which the management fee will be reduced to 8%.
Ruben Padilla, Sable’s President and CEO stated, “We are very pleased with having signed this Letter Agreement with Moxico. The 2025 work plan, fully funded by Moxico, will commence in February and includes camp construction, on-going geochemical and geophysical studies on both properties, and initiation of drilling at the El Fierro-Pyros porphyry Cu-Au-Mo deposit during the fourth week of February. We are thrilled to be partnering with Moxico to move both of these tier-one exploration assets forward. Moxico’s high quality financial and development teams provide excellent cornerstone support for Sable’s strong technical skills associated with the exploration of large-scale porphyry Cu-Au-Mo deposits in Argentina. We’re excited to be part of Moxico’s expansion plans in the Americas.”
ABOUT EL FIERRO PROJECT
El Fierro Project is located 250 km northwest of San Juan city, 120 km north of Sable’s Don Julio Project, and 110 km south of the world-class Filo del Sol porphyry system. El Fierro is a large (10 km x 10 km) Miocene magmatic – hydrothermal system centered on the Pyros Cu-Au-Mo porphyry centre; Pyros was discovered by Sable during the 2021-2022 drilling campaign. Sable drilled 13 holes at Pyros in 2022, discovering a large multiphase Miocene stock hosted within Permian granitic rocks. Multiple holes intercepted significant intervals of Cu-Mo-Au mineralization, including:
- FZ-DH-21-72 – 142.0m @ 0.24% CuEq including 30.3m @ 0.44% CuEq
- FZ-DH-21-68 – 119.0m @ 0.22% CuEq including 34.0m @ 0.34% CuEq
- FZ-DH-21-55 – 200.0m @ 0.14% CuEq including 85.0m @ 0.18% CuEq
- FZ-DH-22-84 – 38.0m @ 0.27% CuEq; 30.0m @ 0.15% CuEq; 8.0m @ 0.24% CuEq
- FZ-DH-22-78 – 18.0m @ 0.32% CuEq; 11.0m @ 0.23% CuEq; 5.8m @ 0.36% CuEq
ABOUT CERRO NEGRO PROJECT
Cerro Negro is an innovative play of porphyry exploration under Quaternary gravels in the province of San Juan in proximity and along strike with known deposits like the Hualilan gold skarn (Challenger Gold); Chita Valley (South32), and Sable’s Don Julio project. The project comprises the Cerro Negro property (2,700 ha) and the Potrerillos property (19,000 ha) both covering regional magnetic anomalies. Work at Cerro Negro in 2023 revealed chargeability anomalies associated with the magnetic feature and significant anomalies of Cu, Mo, Au, Ag, and other porphyry pathfinders obtained through systematic MMI sampling on the gravels.
