Mount Burgess Soars 33% on ASX Following Review of High-Grade Silver Zones at Kihabe

Summary

• The persistent silver price rally took the silver spot to a record high of USD 26.743 per ounce on 25 August 2020.
• Australia-based mineral explorer Mount Burgess has countered the recent increase in the silver price by reviewing two high-grade silver zones at the polymetallic Kihabe deposit.
• The Company is focused on base metals and is currently developing it’s 100% owned Kihabe-Nxuu Zinc/Lead/Silver/Germanium and Vanadium Project, PL 43/2016 in Botswana.
• MTB is initially concentrating on developing the totally oxidised polymetallic Nxuu Deposit where further drilling is planned, and test works remain in the pipeline.

The silver spot is garnering ample global attention amid improved industrial activities and demand for physical investment. COVID-19 outbreak has molded the silver supply- demand, and prices dynamics, leading to positive price momentum.

White metal, Silver is currently up by almost 50 per cent on a year to date basis, and about 123 per cent since it bottomed in mid-March. Money managers are strongly betting on silver with net longs spiking and related- businesses are increasingly seeking opportunities in the white, lustrous metal.

Reciprocating to silver standing tall, mineral explorer Mount Burgess Mining NL (ASX:MTB) has reviewed two high grade silver zones at the polymetallic Kihabe Zn/Pb/Ag/Ge/V. The Kihabe deposit is part of the Company’s current focus- Kihabe and Nxuu Zinc/Lead/Silver/Germanium and Vanadium deposits in Botswana.

Recent Stock Price Momentum

Possibly driven by the silver zones review update as per the company, Mount Burgess share price marked a significant uptick on the ASX on 25 July 2020. MTB was up 33.33 per cent at $ 0.012. The stock has delivered whopping returns of 350 per cent in the past one year.

Last week, on 18 August 2020, MTB was up 11x (significant 1000 per cent uptick) and touched a fresh 52-week high of $ 0.022. On the same day, Mount Burgess had updated about consolidation of Nxuu Deposit drill hole data for better representation and publication of a paper on Mineralogy and Genesis of Kihabe Zn-Pb-V Deposit.

For more insight, READ HERE: Mount Burgess Up 11x on ASX: Further Consolidates Nxuu Data, Naples University Publishes Kihabe Paper

Details of Kihabe Deposit High Grade Silver Zones Review

Owing to the recent increase in the silver price, Mount Burgess reviewed two high grade silver zones at Kihabe deposit. This review was conducted to determine the potential for further silver mineralisation to be identified within these zones. The zones that were reviewed were identified via previous drilling conducted by the Company.

The Company advised that both higher grade silver zones are located between 9,900m East to 10,300m East and 11,500m East to 11,900m East of the deposit. Besides, additional holes need to be drilled into neighbouring sections to identify further potential silver mineralisation.

These additional holes have only been tested with one drill hole each- Section 9,950 E, Section 10,150 E, Section 10,250 E, Section 10,350 E, Section 11,550 E and Section 11,850E. In Section 11,650 E, no holes have been drilled (as denoted in the figure below).

Casting Eye on Kihabe & Nxuu Resource

In 2016, Mount Burgess was granted PL 43/2016, which was renewed in November 2018 for two years to 31 December 2020, with a right to renew beyond to 31 December 2022. To date, the Company has developed resources in both the Kihabe and Nxuu Deposits on PL43/2016 in Western Ngamiland Botswana.

Within the oxide zone of the Kihabe deposit recovery, test work has been conducted only on Zinc and Lead. Within the sulphide zone, recovery test work has been conducted on Zinc, Lead and Silver.

Way Forward

On completion of a further 2,500m of drilling at Nxuu deposit, the Company will be able to quote a resource compliant with the 2012 JORC Code. It plans to drill proposed vertical drill holes, subject to funding and accessibility to the Project site owing to COVID-19 restrictions.

Besides, Nxuu Deposit samples containing Ge have been sent to the University of Naples for test work to determine the nature and structure of the host mineral. Post lockdown, the University may commence this test work. Further Ge samples have been sent to mineralogist Roger Townend. These samples have been sent to CSIRO to conduct mineralogical test work and identify the host oxide mineral of Ge.

Test works by EDS South Africa (bulk test work via Vertical Milling process), and STEINERT (bulk test work via Sensor Sorter X ray process) also remain in pipeline.

GOOD READ: Mount Burgess: Enhancing Potential for On-site Beneficiation of Metal Production