STOP PRESS:

Company Information for Mount Burgess Mining NL

ASX-MTB

www.mountburgess.com

Company stock charts - 6 Month chart

ASX; MTB

View full financial data

Company Statement

MOUNT BURGESS MINING N.L. has been listed on the Australian Securities Exchange since 1985 and is currently developing a 30 million tonne Zinc, Lead and Silver resource in Botswana as well as exploring for diamonds in both Botswana and Namibia.

Current Operations

Kihabe Base Metals Project – Botswana
Location: Ngamiland, Botswana and Tsumkwe, Namibia
Owner: Mount Burgess Mining NL 100%
Project Location
The Kihabe Base Metals Project is located on the border of Botswana and Namibia about 700km north-west of the capital, Gaborone, in Ngamiland. The Project is 350km by road from Maun and 50km from Tsumkwe, Namibia.
Exploration Licences
The Company has exploration licences covering 100% of the known prospective Proterozoic Belt of metasedimentary rocks, with around one third of the prospective geology occurring in Botswana (PL 69/2003) and two thirds in Namibia (EPL’s 2818 and 3022).
The Kihabe Project was held in the early 1980’s by Billiton Botswana (Pty) Limited, which carried out extensive soil geochemical sampling programmes and drilled three anomalous prospects: Kihabe, Nxuu and the Gossan Prospect.
The Kihabe and Nxuu Zinc-Lead-Silver Resources
To date 13,400m of reverse circulation drilling and close to 7,300 metres of diamond core drilling has defined combined JORC Resources at Kihabe and Nxuu of 29.9 million tonnes grading 2.62% zinc equivalent, applying a 0.5% low cut. 55% of the Resource conforms to an Indicated Category and 45% to the Inferred Category.
For the purpose of the project scoping study a combination of resources from both the Khabe and Nxuu deposits, in the region of 25 million tonnes @3% Zn/Pb, would likely be selected to provide for a 2.5 million tonne p.a. mining rate over 10 years.
About 30% of the Kihabe resource is oxidised – the remainder being sulphidic and all of the Nxuu resource is oxidised.
The Kihabe Resource is a sedex style deposit located along a contact between the dolomite footwall and a sequence of rhythmically bedded sandstones, which have been folded and metamorphosed to, respectively, dolomitic marble and chloritic quartz wacke. The local geology of the deposit is known to be a west-plunging syncline.
Zinc, lead and silver mineralisation which is developed within the host quartz wacke occurs right at the contact with the dolomite. Mineralisation forms a series of overlapping stacked horizons controlled by the beds within the quartz wacke, over a strike length of 2.4 km.
Within this 2.4km mineralised strike length, 1.8kms falls within two currently proposed open cut pits. Within the two proposed pits, applying a 0.5% low cut, the deposits have an average width of 26m down to 175m, the depth extent to which the resource has been calculated to date. In parts the deposits are up to 60m wide, with many sections containing average widths of between 35m – 45m.
Drilling conducted to date shows that this Sedex style deposit extends below 175m depth, indicating a high probability of increasing the resource base with further deeper drilling. With pit wall slopes conservatively designed at 40 deg, the average waste to ore ratio for the two proposed open cut pits currently stands at 5.5 – 1. It is believed that this ratio will be reduced with geotechnical drilling confirming the known competency of the footwall dolomite and hanging wall quartz wacke, thereby allowing for the design of pit wall slopes greater than 40 deg.
The Nxuu resource, also a sedex style deposit, is located approximately 5.5 km east south-east of Kihabe. Zinc and lead mineralisation at Nxuu is developed within a shallow, flat lying sedimentary quartz wacke host rock, situated in a synclinal structure or basin, bounded by barren dolomite.
A pit for the recently updated Nxuu resource has yet to be designed. As a basinal shaped deposit, some 550m long, 250m wide and reaching a maximum depth of only 60m, it is anticipated that it will have a low waste to ore ratio.
Potential for the Discovery of Further Deposits/Resources
Zinc/Lead/Silver mineralisation in this region has to date been found at both Kihabe and Nxuu, to be hosted within quartz wackes at the point of contact with the regional dolomite. Two new quartz wackes have recently been found in regional drilling programmes, one 3kms and another 9kms SE of the Nxuu resource. Ground geochemical sampling programmes are being conducted to more precisely delineate areas for drill testing.
Development Progress
Recent mineralogical test work has shown that within the oxidised resource zones, zinc is tied up in Smithsonite and Baileychlore. Both the Smithsonite and Baileychlore are amenable to acid leaching, yielding zinc recoveries of 93% over 12 hours at 25 degrees celsius. The zinc within the acid solution can then be recovered on site as zinc metal by way of electrowinning. Lead recoveries from galena have also been tested to the 93% level.
Half of the Company’s current combined resource base at both Kihabe and Nxuu, representing some 12.5 million tonnes or 5 years of the projects estimated mine life will be amenable to acid leaching, allowing for the production of zinc metal on site. This should have a significant positive impact on project margins.
The project scoping study compiled in May 2009 will be updated to incorporate the following:

The significant increase in zinc and lead prices from US$1,200/t in May 2009
The 43% increase in metal recoveries from around 65% recovered to 93% recovered
The revision of the process flow sheet to incorporate acid leaching and electro-winning of zinc metal on site and to reduce the size of the flotation circuit as now required for only half of the project resource base.

Gossan Prospect
The Gossan anomaly is a two kilometre long, by half kilometre wide soil anomaly with +1,000ppm zinc and +500ppm lead in soil, hosted within a valley bounded by dolomite, situated 15 km south of the Kihabe resource.
The Company has identified an in-situ gossan outcrop with peak values in rock sampling of 21.95% zinc, 7% Pb and 30 ounces per tonne of silver, which is a likely source for the extensive soil anomalism.
End Uses of Zinc, Lead and Silver
ZINC END USE
50% Galvanising
17% Zinc Alloying
17% Brass and Bronze
6%   Zinc Semi-Manufacturers
6%   Chemicals
4%   Miscellaneous
Source: International Lead and Zinc Study Group
LEAD END USE
80% Batteries
6%   Rolled and Extruded Products
5%   Pigments and other Compounds
3%   Shot/Ammunition
3%   Miscellaneous
2%   Alloys
1%   Cable Sheathing
Source: International Lead and Zinc Study Group
SILVER END USE
54% Industrial Applications: Dental Alloys, Solder, Electrical Contacts, High Capacity Batteries, Paints, Mirrors and Polyesters
19% Jewellery
12% Photography
8%   Coins and Medals
7%   Silverware
Source: The Silver Institute

Tsumkwe Diamond Project
Location: Ngamiland, Tsumkwe, Namibia
Owner: Mount Burgess Mining NL 100%
Project Location
The Tsumkwe Diamond Project is located on the north-eastern border of Namibia adjacent to the Kihabe Base Metals Project and the Western Ngamiland Diamond Project in Botswana. The project surrounds the small town of Tsumkwe and covers an area of 6700km2 under 11 Exclusive Prospecting Licences, seven of which are in Joint Venture with Kimberlite Resources (Pty) Ltd.
Exploration to Date
Exploration by the Company to date has involved the collection of 3700 loam samples, which were processed for kimberlitic indicator minerals and drilling over 52,050m of percussion drilling to test potential kimberlite targets and to sample the basal Kalahari contact for indicator minerals.
The basal drilling and surface loam samples have generated several distinct surface and subsurface indicator mineral anomalies. These indicator minerals include 8 macrodiamonds and significant numbers of G9 and G10 kimberlitic garnets, occurring in distinct clusters.
The Company believes that the freshness and sub-rounded state of some of these G9 and G10 garnets is indicative of a short transport distance in the regolith and, thus, these indicator mineral anomalies are in close proximity to as yet undiscovered kimberlitic sources.
Exploration Model
The Company believes that the known kimberlitic indicator anomalies can be constrained to discrete palaeosurface domains defined by a series of subtle extensional half-grabens filled by the Kalahari Sands and bounded by listric extension faults.
It is the interpretation of the Company that these listric faults bounding the sediment-filled grabens represent zones of transcrustal weakness providing conduits for kimberlitic intrusives. As such, the Company’s focus for ongoing exploration is to define the relationship of indicator mineral anomalies to the palaeosurface and to nearby fault domains and grabens, and to back-trace the source of the indicator minerals to kimberlite intrusions.
Initial success of this model has been the discovery of three non-diamondiferous Gura Kimberlites. The Company believes that the presence of macrodiamonds and G10 garnets infers the existence of a local diamondiferous kimberlite source.
Further Exploration
The forward programme to assess the diamond potential of the Tsumkwe Diamond Project revolves around:

Imaging the palaeosurface and basement contours of the extensional half-grabens via magnetics, drill testing and gravity surveys to refine transport directions for kimberlitic indicator mineral anomalies
Targeted ground magnetic and gravity surveys over the upland sources of kimberlitic indicator mineral anomalies
Drilling discrete kimberlite type magnetic targets as well as sampling the base of the Kalahari sand cover in order to best assess the distances any recovered indicator minerals have travelled.

Hardap Project
Location: Maltahohe district, Hardap, Namibia
Owner: MTB (Namibia) (Proprietary) Ltd. (various percentages)
The Company's wholly owned subsidiary, MTB (Namibia) (Proprietary) Ltd has been granted four adjoining Exclusive Prospecting Licences (EPLs), covering a total area of 3,796 km² in the Hardap region of Namibia. The EPLs 3435, 3473, 3474 and 3475 have been granted with the right to explore for precious stones.
Several kimberlite pipes are known to exist within the area covered by these EPLs and the potential for the discovery of further kimberlites is ranked as very high. Recent work conducted by the Geological Survey of Namibia concluded that this area has potential to host diamantiferous kimberlites. The area lies inland and west of Meob Bay and Diamond Area 2, in the drainage area of the Tsauchab River and its tributaries. Although the present river disappears beneath the sands of the Namib Desert, its palaeochannel reaches the coast near Meob Bay. The Company believes that kimberlites contained in the EPL's have the potential to be the source for the diamond placer deposits that have been found around Meob Bay.
MTB (Namibia) (Proprietary) Ltd will maintain a 60% interest in EPL3435, with 40% equity being held on behalf of other Namibian corporations and an 80% equity in EPLs 3473, 3474 and 3475, with a 20% equity being held on behalf of other Namibian corporations.

North Western Ngamiland Diamond Project
Location: North Western Ngamiland, Botswana
Owner: Mount Burgess (Botswana) (Proprietary) Limited (100%)
Project Location
The North Western Ngamiland Project granted in February 2009 is located on the north western border of Botswana and adjoins the Company’s Tsumkwe Diamond Project in Namibia. Seven exploration licences which are situated some 30km south of the Xau Xau kimberlite field cover an area of approximately seven thousand square kilometres.
Regional Geology
Similar to the adjoining Tsumkwe diamond project area in Namibia the North Western Ngamiland project area is located on the southern margins of the Angolan Craton and is underlain by basement lithologies of Proterozoic and granite gneiss belts of pre-Damaran and Damaran age. A portion of the area has been intruded by the Trans-African Limpopo-Botswana dolerite dyke swarm. A veneer of Kalahari sands covers virtually the whole of the area.
Exploration Model
The Company believes that the North Western Ngamiland Project area has high potential for the discovery of kimberlites for the following reasons:

The area is situated on the southern margins of the Angolan Craton
The area is some 30 km south of the Xau Xau kimberlite field in Botswana and the western borders are some 30 kms east of the Gura Kimberlites in Namibia
A large portion of the area is situated within the Trans-Africa Limpopo-Botswana dolerite dyke swarm, offering a potential zone of weakness for the intrusion of kimberlites
There is a probability that one or possibly two of the G10 garnet nomalies found by the Company in Namibia were sourced from the area now covered by the prospecting licences in Botswana and transported into Nambia through an evident palaeo drainage.

Future Exploration
This area in Botswana was flown for aero-magnetics in 1998, which led to the discovery of the Xau Xau kimberlite field, some 30 km to the north of the Company’s prospecting licences.
The Company believes that it is in an extremely advantageous position to have secured the grant of these prospecting licences in Botswana as, together with its adjoining ground holding in Namibia it has consolidated a significant area, highly prospective for the discovery of diamondiferous kimberlites.
Through its previous base metals exploration and resource development of its Kihabe zinc/lead/silver project, which falls within this same area in Botswana, the Company has a well established base camp and infra-structure from which it can conduct future diamond exploration programmes within reasonable distances. This will significantly reduce on going future exploration costs while operating in this area during this period requiring strict resource management.

Geographical Spread

Tsumkwe, Namibia and Kihabe, Botswana

Board of Directors and Key Management

Nigel Raymond Forrester, F.C.A.	Chairman and Managing Director
Ben Mosigi, M.Sc	Technical Director
Godfrey Edward Taylor, LLB	Non-Executive Director
Ronald William O'Regan	Non-Executive Director
Alfred P Stirling, F.C.A.	Non-Executive Director

Management
Ben Mosigi	Director of Mount Burgess (Botswana) (Proprietary) Limited
Serene Chau	Company Accountant & Joint Company Secretary
Jan Forrester	Joint Company Secretary

Company Address

Level 4, 109 St Georges Terrace
Perth, Western Australia, Australia 6000


Telephone:	+61 8 9322 6311
Facsimile:	+61 8 9322 4607
Email:	mtb[at]mountburgess.com
Website:	http://www.mountburgess.com

Additional Address/Key Contact

Mailing Address
PO Box Z5301, St Georges Terrace
Perth
Western Australia, 6831

Capital

As at 1 April 2009 the Company had 320,257,000 ordinary shares on issue.

Year End

30th June

Major Shareholders

Citicorp Nominees Limited	54,823,000	17.12%
National Nominees Limited	16,826,623	5.26%
Strata Drilling WA Pty Ltd	16,000,000	5.00%
ANZ Nominees Australia Ltd	15,311,961	4.78%
N R Forrester & Associates	11,358,591	3.55%
HSBC Custody Nominees (Australia) Ltd	6,242,540	1.95%
Mrs Alison Fay Davies & Mr Peter Murray Davies	5,100,000	1.59%
Cen Pty Ltd	3,070,000	0.96%
Mr Jeremy Bewick Dowler	3,000,000	0.94%
Romadak Pty Ltd	3,000,000	0.94%
Davmin Pty Ltd	3,000,000	0.94%

Most Recent Statement

29/06/10 - Botswana Resource Sector Conference Presentation
12/05/10 - Presentation - Kihabe Project Update - May 2010
06/05/10 - Hardman and Co. Research Report, May 2010
12/04/10 - Quarterly Activity/Cash Flow Reports
12/04/10 - Quarterly Activities Report - for the Quarter ending 31 March 2010
11/03/10 - Change of Director's Interest Notice

To top