Mount Burgess: Nxuu Deposit Advances, Test Works in Pipeline Amid COVID Crisis

Summary

• With applied experience in metals including gold, zinc, lead, silver, germanium and vanadium, MTB aims at developing commercial deposits of mineral resources in the event of a discovery.
• Currently, it is unlocking the potential of Kihabe and Nxuu Project, while PL 43/2016 is valid until 31 December 2020 with option of an extension until 31 December 2022.
• With COVID-19 restrictions starting to ease, success of proposed test works at Nxuu deposit can result in significant saving of ~40% in power requirements and costs.

Mount Burgess Mining NL (ASX:MTB) is currently developing the Kihabe and Nxuu Zinc/Lead/Silver/Germanium and Vanadium deposits in Botswana, that hosts one of the most profitable vanadium mines across the world. The Company has now updated the progress at its first target- the completely oxidised Nxuu deposit which is a potentially shallow, low-risk and low-cost operation.

To know about the Kihabe-Nxuu project, READ HERE- Mount Burgess: Enhancing Potential for On-site Beneficiation of Metal Production

Mount Burgess has been proceeding well amidst crisis as evident from assembling and compiling of drill hole sections, progress made post easing of COVID-19 restrictions by the Botswana Government along with concrete pipeline of planned test works.

Assembling of Drill Hole Sections at Nxuu Deposit

Mount Burgess has finally assembled drill hole sections that run from East (090° Deg) to West (270° Deg) along South to North WGS Northings. This demonstrates WGS Eastings of individual holes drilled collectively along with proposed drill holes that are planned for those sections (drilled previously).

To gain a better understanding of the basin shaped Nxuu Deposit, the Company has now compiled further drill hole sections which enables it to better determine estimated depths to barren dolostone basement of the proposed drill holes planned for these sections containing holes already drilled.

Further, this orientation is likely to offer better understanding of the potential continuity of the mineralised domains. However, it should be noted that Mount Burgess has not compiled W/E sections (which only include proposed drill holes).

Reportedly, overall estimated average depth of the 58 proposed vertical drill holes for the whole of the Nxuu Deposit is around 45 metres.

Summarising drill progress at Nxuu-

• Of the 24 holes drilled to date, approximately 58 %, on average, of every hole contains recoverable mineralisation.
• 17 % consists of Kalahari sand cover.
• 25 % is deemed as insignificantly mineralised quartz wacke.
• Average depth to the bottom of mineralisation of the 24 holes is just under 40 metres.

COVID-19 Update from Botswana

In accordance to COVID-19 restrictions imposed by the Botswana Government, crossing regional borders within the region was possible solely by granted regional access permits. However, initial formal application process that aids to obtain these regional access permits, has now been amended. This is expected to allow Mount Burgess to apply for and be granted permits for local staff and consultants so that travelling to project sites is viable.

This is a significant development as, consequently, travelling to project site makes collection of core for planned test work finally possible.

Planned Test Works

Mount Burgess has previously stated that it plans to drill proposed vertical drill holes which will be assayed for Zn/Pb/Ag/Ge/V. Once drilling/assaying concludes, an Indicated/Measured resource compliant with the 2012 JORC Code might be quoted too.

Meanwhile, other test works delayed owing to the pandemic remain in pipeline- Bulk Vertical milling test work and Bulk Sensor Sorter X ray.

Bulk Vertical Milling Test Work : On Nxuu Deposit ore, EDS South Africa intends to perform bulk test work via its Vertical Milling process which it believes will work effectively as Nxuu deposit ore is deeply oxidised and soft. If its supposition comes true, significant reduction in power requirements and costs is a possibility.

It should be noted that EDS Vertical Milling process necessitates merely 25% of the power to operate conventional Ball/SAG/ROD mills, when working effectively.

Bulk Sensor Sorter X ray Testwork: STEINERT aims to carry out bulk test work via its Sensor Sorter X ray process once core is collected from site and exported to Australia after air freight services are accessible. Initial Sensor Sorter X ray test work has already demonstrated that only 55% of crushed feed over 4mm needs to be subject to milling and downstream treatment costs, as 45% was rejected as insignificantly mineralised or barren.

It should be noted that milling requires the largest amount of energy and this test work might cause significant saving on power requirements and costs.

Casting Eye on Recoverable Vanadium Pentoxide, Zinc Equivalent Grade

Based on metallurgical test work recovery results validated by ALS Laboratories, Mount Burgess has discounted V₂O₅ grades to 80 % to show RECOVERABLE grades. It should be noted that Vanadium mineral DESCLOIZITE can be treated on site to generate V₂O₅ which can further be sold as a marketable product.

GOOD READ- Mount Burgess Eyes Proposed Route for Simple Vanadium Production from Nxuu Deposit

Besides this, Zinc and Lead grade values were discounted to 93 % to reflect RECOVERABLE value based on metallurgical test work conducted by AMMTEC after calculation (applying average of five trading days LME closing prices for Zinc and Lead, five trading days of the USA closing prices for Silver- from 22 to 26 January 2018).

Silver grade values were discounted to 70 % to reflect RECOVERABLE value of Silver as achieved in similar deposits.

Combined total discounted USD value of each assay (any or all of Zinc, Lead and Silver) was divided by discounted calculated Zinc price of USD 32.21 per 1 % to determine RECOVERABLE Zinc Equivalent Grade.

To know more about these RECOVERABLE grades, PLEASE READ- Mount Burgess’ Nxuu Deposit Progress & Pipeline; Botswana Govt Eases COVID-19 Restrictions

While investors, market and mining enthusiasts await further developments at Mount Burgess’ lucrative project, MTB quoted $ 0.002 on the ASX on 25 June 2020.

(Note: All currency in AUD unless otherwise specified)