Mount Burgess Mining N L : FIRST TRANCHE OF DRILL ASSAYS CONFIRM ZINC / LEAD MINERALISATION AT TARGET 52 16/01/2017 (pdf 1.1 MB)

16 January 2017

ASX Code: MTB

KIHABE ZINC, LEAD AND SILVER PROJECT - BOTSWANA FIRST TRANCHE OF DRILL ASSAYS CONFIRM ZINC / LEAD MINERALISATION AT TARGET 52

• First assays of RC drilling at Target 52 confirm the existence of Zinc / Lead mineralisation
• Target 52 soil anomaly has a strike length of more than double that of Kihabe and Nxuu deposits
• Assay results of a further 15 holes including additional targets pending.

In October/November 2016 Mount Burgess (The Company; ASX:MTB) conducted a drilling programme (Figure 1) on its Kihabe Zn/Pb/Ag project in Botswana (Figure 2), where to date it has delineated 2004 JORC compliant Zn/Pb/Ag resources amounting to 25 million tonnes @ 3% Zn equivalent grade from its Kihabe and Nxuu deposits (see Table 1).

In this SEDEX system mineralisation occurs in a quartz wacke (QW) at the zone of contact with the regional dolostone.

The objective of the drilling program was to test four additional Zn/Pb targets and a copper/cobalt anomaly not previously drill tested that might represent the QW/dolostone contact. The Company's strategy is to use RC drilling for early identification of regions of interest for follow-up diamond drilling.

The Company advises that the first tranche of assay results from 7 of the 22 RC holes submitted for assay has confirmed mineralisation at Target 52 - one of the Zn/Pb anomalies. Results from Target 52 drill lines 4, 5 and 6 (Table 2 and Table 3) intersected Zn/Pb mineralisation at anticipated depths at or near the contact between quartz wacke and regional dolostone.

In addition to confirming that Target 52 is mineralised, the program results thus far suggest the mineralisation occurs as a synclinal fold with both limbs of the fold dipping inwards. Drill lines 1, 2 and 3 of Target 52 (all results pending) focus on the fold nose of the possible syncline and it is anticipated results from these lines will give greater understanding of the structure of the mineralised zones, which will assist in targeting drilling going forward.

Target 52 (Figure 3), is a 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.

Results from the remaining 15 holes submitted for assay are pending and include:

1. The remainder of Target 52 drilling (6 holes)

2. Wanchu, a zinc geochemical anomaly 4km SW of the Nxuu deposit (2 holes)

3. Wanchu West anomaly, a smaller but strong zinc anomaly just 1.5km south of the Kihabe zinc deposit (3 holes).

4. Copper /Cobalt soil anomaly 3km NE of Lebala.

Samples are being pulped in South Africa and sent to Perth, Western Australia for assaying. This will also include a selection of umpire assays of results presented in this announcement. Drilling at the less well defined Lebala Zn/Pb target did not intersect QW before entering dolostone near-surface and therefore these 2 drill holes were not submitted for assay.

Figure 1: Kihabe Project regional map showing drill line locations over previously announced soil geochemical anomalies

Figure 2: 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 3: Target 52 drill line (eg X01) locations and results of note, grades calculated as a simple average of 1m intervals (see Table 3 for original assay results). Assay results from drill lines 01, 02 and 03 remain pending.

Table 1: Resource Statement for the Kihabe and Nxuu deposits. Reported 15/5/13

Deposit	External Cut %	Indicated M Tonnes %	Inferred M Tonnes %	Total M Tonnes %
Kihabe	1.5%	11.4 @ 2.90%	3.0 @ 2.60%	14.4 @ 2.84%
Nxuu	0.3%	-	10.9 @ 3.20%	10.9 @ 3.20%
11.4 @ 2.90%	13.9 @ 3.07%	25.3 @ 3.00%

Kihabe resource calculated on metal prices as at 17 July 2008:	Zn US$1,810/t	Pb US$1,955/t	Ag US$18.75/oz
Grades applied:	Zn 1.8%	Pb 0.8%	Ag 7.7 g/t
Nxuu resource calculated on zinc & lead par value
Grades applied:	Zn 1.8%	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.

DEPOSIT	Zone	Time	Zinc	Lead	Silver
Kihabe
Oxide Zone
Acid leaching @40oC 30 kg/t acid	Oxide *	24 hrs	96.9%	91.9%	n/a
Sulphide Zone
Rougher flot	Sulphide	90 seconds	91.9%	84.8%	94%
Sulphide	15.5 mins	93.8%	88.1%	96.4%
Nxuu
All Oxide
Acid leaching @25OC 30 kg/t acid	Oxide *	12 hrs	93%	93%	n/a

* 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.