15 November 2016
ASX Code: MTB
KIHABE ZINC / LEAD / SILVER PROJECT DRILLING PROGRAM UPDATE
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Drilling at all three previously untested zinc anomalies has intercepted the same Quartz wacke / Dolostone contact where the SedEx Zn/Pb/Ag mineralisation is found at the Company's near-by Kihabe and Nxuu deposits.
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19 RC holes drilled thus far for a total of ~1000m, across the three zinc soil geochemical anomalies. Two additional anomalies to be drilled within current program.
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First tranche of assay results expected in late November.
Drilling at Mount Burgess' (The Company; ASX:MTB) Kihabe Zinc Project in Botswana (Figure 1) is progressing to schedule. Drilling has been completed at three of the previously untested target anomalies thus far, with the Quartz wacke / Dolostone contact intercepted at each anomaly at depths consistent with the Company's expectations.
Zinc / lead / silver mineralisation at the Company's established near-by deposits of Kihabe and Nxuu is contained within a mineralised zone of Quartz wacke at the contact with regional Dolostone. This consistent geological profile acts as a significant pathfinder for the discovery of additional resources. A recent independent geological review conducted by CSA Global supported this view by concluding that "It is obviously a huge system in a known productive basin and a system where it should be possible to develop an effective targeting model". It is therefore encouraging that drilling has intercepted that geological marker at all anomalies drilled in this drilling program thus far.
The Reverse Circulation (RC) program has drilled three targets thus far for a total of 19 holes and approximately 1,000m. (Refer to Figure 2)
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Target 52, is a Zn geochemical soil anomaly identified 2km SE of the Company's Nxuu deposit. The geochemical soil results suggest a possible mineralised strike length of more than 5km, which is more than double that of the combined strike lengths of the Kihabe and Nxuu deposits.
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Wanchu, a Zn geochemical anomaly 4km SW of the Nxuu deposit
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Wanchu West anomaly, a smaller but strong Zn anomaly just 1.5km south of the Kihabe zinc deposit.
Upon completion of drilling at Wanchu West the drill rig will progress to a section of the Lebala zinc anomaly and a Copper /Cobalt soil anomaly 3km NE of Lebala.
The first tranche of RC drilling assay results are expected in late November with the second and final tranche expected in December.
ABOUT THE COMPANY
Mount Burgess is one of a few ASX stocks positioned to leverage the increasingly strong zinc price.
The Company is entirely focussed on the Kihabe Zinc Project which consists of two deposits (Kihabe and Nxuu) and many additional soil anomalies within the ~1000km2 licence area. The Kihabe and near-by Nxuu deposits have a combined Resource of 25 million tonnes @ 3% Zn equivalent grade (2004 JORC Code - see Table 1) with mineralisation occurring from 5m to 175m below surface and, as such, the Kihabe Project could potentially be mined by means of open pit mining methods.
Metallurgical test work has generated zinc recoveries of greater than 90% and zinc and lead concentrates of good marketable grade with few deleterious elements. Test work has also suggested the possibility of producing zinc metal on site via SX/EW.
The Company believes methods employed during historic RC drilling /sampling has resulted in assays under-calling the resource grade (see announcement dated 31/8/16 for detail). With additional investigation and validation, it is believed that the magnitude of the under-call of the grade of the existing Resource will be substantiated and, together with the possibility of material Germanium credits recently identified (see ASX announcement dated 5/5/16), there is the potential to substantially increase the overall Zn equivalent resource grade at the Kihabe and Nxuu deposits.
Figure 1: The Kihabe Project (red box) covers 997km2 and is located in Botswana near the Namibian Border and border crossing of Dobe. The nearest railhead is 337km west. There is a landing strip on the licence area and an international airport at Maun ~250km east. There is an established camp on the licence area.
Figure 2: Kihabe Project zinc soil geochemical anomalies and their relative locations.
Table 1: Resource Statement for the Kihabe and Nxuu deposits. Reported 15/5/13
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Deposit
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External Cut %
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Indicated M Tonnes %
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Inferred M Tonnes %
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Total
M Tonnes %
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Kihabe
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1.5%
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11.4 @ 2.90%
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3.0 @ 2.60%
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14.4 @ 2.84%
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Nxuu
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0.3%
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-
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10.9 @ 3.20%
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10.9 @ 3.20%
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11.4 @ 2.90%
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13.9 @ 3.07%
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25.3 @ 3.00%
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Kihabe resource calculated on metal prices as at 17 July 2008:
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Zn US$1,810/t
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Pb US$1,955/t
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Ag US$18.75/oz
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Grades applied:
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Zn 1.8%
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Pb 0.8%
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Ag 7.7 g/t
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Nxuu resource calculated on zinc & lead par value
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Grades applied:
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Zn 1.8%
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Pb 1.4%
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.
This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
KIHABE-NXUU METAL RECOVERIES
Independent metallurgical testwork has confirmed the metal recoveries shown in the table below. Accordingly, the Company believes these recoveries are achievable. Zinc recovered from acid leaching oxide zones will enable Zn metal to be recovered on site from electro-winning.
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DEPOSIT
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Zone
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Time
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Zinc
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Lead
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Silver
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Kihabe
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Oxide Zone
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Acid leaching @40oC 30 kg/t acid
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Oxide *
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24 hrs
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96.9%
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91.9%
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n/a
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Sulphide Zone
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Rougher flot
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Sulphide
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90 seconds
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91.9%
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84.8%
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94%
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Sulphide
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15.5 mins
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93.8%
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88.1%
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96.4%
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Nxuu
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All Oxide
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Acid leaching @25OC 30 kg/t acid
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Oxide *
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12 hrs
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93%
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93%
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n/a
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* Note: Zn mineralisation in the oxidised zones is hosted within Smithsonite and Baileychlore and independent test work has confirmed both of these are amenable to acid leaching.