Sabre Gold Mines Corp. provided a project update at its 100% owned Copperstone gold project located in Arizona, United States. In addition to the recently completed definition drilling at Copperstone, significant progress has been made with detailed mine planning, process engineering and mine-rehabilitation.

These efforts are a continuation of earlier work completed to prepare the fully permitted mine for start-up and progression to full production. A comprehensive detailed mine plan and production schedule was completed by Mine Development Associates in Reno, Nevada that defines stopes and production areas for the initial five years of mine-life. In addition, all capital and operating expenses were reviewed by way of further detailed engineering and have been incorporated into an updated discounted cashflow model.

The mine plan indicates annual production of approximately 40,000 to 45,000 ounces per annum while demonstrating favorable economics which includes future expected conversion of additional resources based on the open extent nature of both the Copperstone and Footwall zones. Due to limitations of underground development, drilling platforms and the geometry of the gold bearing shear zones Sabre intends to drill several years in advance as it advances underground development ahead of the underground mining areas. Years 5 to 13 are scheduled to produce from areas that currently have inferred resources and yet un-delineated extensions of the existing resources.

The cash flow model includes the required excavation of drill platforms as operational headings advance and the associated drilling required to identify, confirm and define mineable areas. Updated capital and operating expenses were reviewed and incorporated into a discounted cashflow model. Further engineering and refinement were completed on the processing facility that will incorporate a Whole Ore Leach process followed by Merrill-Crowe recovery and onsite refining.

Plant lay-out and flowsheets with associated capital and operating cost estimates were completed. Engineering is estimated at 60% completion with flowsheets and plant lay-out complete. Concurrently, metallurgical testing is in final stages, indicating excellent gold recovery.

Final metallurgical tests will provide data to confirm the equipment sizing and operating costs. Mine rehabilitation continued with significant progress made in the majority of areas that will be mined in the first several years of mine life. Small Mines Development have been engaged and are nearing completion of 1,674 linear feet of rehabilitation that included robust ground support and enhancement of mine dewatering systems. The rehabilitation completes a series of efforts to ensure safety standards and readiness for full scale mining production.