Mount Burgess Mining N L : Kihabe Deposit, Botswana - Silver Domains 23/02/2021 (pdf 3.7 MB)

23 February 2021

ASX CODE: MTB

KIHABE POLYMETALLIC Zn/Pb/Ag/Ge/V DEPOSIT - SILVER DOMAINS

On 25 August 2020, the Company released an announcement to ASX outlining two silver domains within the polymetallic Zn/Pb/Ag/Ge/V Kihabe Deposit in Botswana. The south-west domain covered 400m from 9,900mE to 10,300mE and the north-east domain covered 400m from 11,500mE to 11,900mE.

Since March 2020, the silver price has risen from around US $17/oz to its current level of US $27 +/oz. One possible reason for the extended time frame of elevated silver prices could be the result of an increase in its industrial demand. The major portion of its industrial demand is for solar panels as power sources become more reliant on green technology.

With this concept in mind, the Company has conducted a further in-depth review of all holes it has drilled into the two Kihabe Deposit silver domains. Only intersections in excess of 15g/t Ag have been taken into account. This has resulted in an extra 21 drill hole results (highlighted in pale red) being added to that reported in August 2020. All these results have previously been reported to ASX.

Thirteen holes have been added to the SW domain, extending it to 500m in length from 9,900mE to 10,400mE. Overall, the average width of mineralisation of the 26 holes in this domain amounts to 12.2m per hole. The average grade of the total 319.4m of mineralisation of the 26 holes amounts to 2.2 oz/t Ag.

Eight holes have been added to the NE domain extending it to 500m in length from 11,500mE to 12,000mE. Overall, the average width of mineralisation of the 18 holes in this domain amounts to 11.7m per hole. The average grade of the total 212m of mineralisation of the 18 holes amounts to 2.5 oz/t Ag.

Subject to funding, this in-depth review of drill holes, mostly drilled on 100m line spacings, will now enable the Company to better determine a future in-fill drilling programme with much closer line spacing.

For assay results of Ag mineralised drill hole intersection widths and depths please refer to the Kihabe silver grade Tables 1 and 2. For the location of the drill holes, please refer to the Kihabe Drill Hole Map (Figure 1)

THE KIHABE RESOURCE

The Kihabe Resource estimated under the 2004 JORC Code, applying a 1.5% Zinc equivalent low cut grade amounts to 14.4 million tonnes at a Zn/Pb/Ag Zinc equivalent grade of 2.84%. This resource category contains 3 million ozs of silver. Vanadium and Germanium also present were not included in this resource estimate.

Within the oxide zone of the Kihabe deposit recovery test work has only been conducted on Zinc and Lead. Within the sulphide zone recovery test work has been conducted on Zinc, Lead and Silver, (Ref attached Resource Statement).

Zinc Equivalent Recoverable Grade - Calculation Formula

• • US$ Zinc price/t divided by 100 = US $ Zinc price per 1% X Recoverable % X Zinc Grade % = US$A

• • US$ Lead price/t divided by 100 = US $ Lead price per 1% X Recoverable % X Lead Grade % = US$B

• • US$ Silver price/oz divided by 31.1 = US $ Silver price per gram X Recoverable % X Silver Grade g/t = US$C

  US$A + US$B + US$ C divided by US$A = Zinc Equivalent Grade

TABLE 1

KIHABE SILVER GRADES SECTION 9,900E TO SECTION 10,400E

HOLE ID	COORDINATES	DIP	AZI-MUTH	INTERVAL	Silver Grade
Easting	Northing	Degrees	Degrees	From (m)	To (m)	Width (m)	g/t	Oz/t
SECTION 9,900E
KRC034	9,900	9,937	-60	339	181	191	10	48.2	1.5
KRC015	9,900	9,957	-60	339	140	143	3	33.7	1.1
KRC036	9,900	9,974	-60	339	106	109	3	57.3	1.8
KRC014	9,900	9,997	-58	336	87	90	3	31.7	1.0
SECTION 9,995E
KIH003	9,995	10,009	-60	339	109	113	4	124.0	4.0
118	120	2	63.5	2.0
SECTION 10,000E
KRC037	10,000	9,940	-60	339	128	150	22	26.2	0.8
(including)	138	140	2	40.5	1.3
and	142	150	8	45.9	1.5
KRC041	10,000	9,960	-60	339	90	93	3	44.7	1.4
KIH004	10,000	9,976	-60	339	96	112	16	48.2	1.5
KIH001	10,000	10,003	-60	339	62	79	17	37.9	1.2
KRC038	10,000	10,020	-60	339	27	44	17	59.5	1.9
(including)	29	32	3	69.5	2.2
and	38	44	6	104.0	3.3
KDD204	10,000	10,025	-60	340	16	18	2	47.5	1.5
SECTION 10,025E
KDD203	10,025	10,033	-60	340	14	23	9	23.1	0.7
33	40	7	32.8	1.0
46	48	2	23.1	0.7
SECTION 10,050E
KDD124	10,050	10,000	-60	339	64	71	7	85.89	2.8
91	95	4	172.3	5.5
KDD125	10,050	10,025	-60	339	47	61	14	101.6	3.3
KDD202	10,050	10,037	-60	339	24.90	29.80	4.90	55.3	1.8
39.16	43	3.84	33.4	1.1
64	67	3	227.8	7.3
SECTION 10,060 E
KRC098	10,100	10,048	-60	69	42	74	32	36.5	1.2
(including)	59	67	8	96.8	3.1
76	78	2	83.1	2.7
SECTION 10,075E
KDD201	10,075	10,045	-60	340	34	39	5	19.4	0.6
41	45	4	27.8	0.9
50	55.68	5.68	24.5	0.8
70	76	6	221.4	7.1
82	84	2	92.9	3.0

Table 1

HOLE ID

DIP	AZI-	INTERVAL
MUTH
Northing	Degrees	Degrees	From (m)	To (m)	Width (m)	g/t	Oz/t
KRC046	10,100	9,985	-60	339	120	131	11	25.1	0.8
KRC044	10,100	10,010	-60	339	73	81	8	17.4	0.6
83	88	5	452.0	14.5
KDD109	10,100	10,030	-65	339	60	70	10	38.2	1.2
73	82	9	318.0	10.2
KDD206	10,100	10,050	-60	340	60	68	8	31.6	1.0
KDD126	10,100	10,075	-60	339	98	102	4	448.2	14.4
10,000	-60	339	66	69	3	38.3	1.2
71	74	3	26.3	0.8
90	91	1	51.0	1.6
10,037	-90	0	44	79	35	30.2	1.0
10,014	-60	339	32	34	2	39.5	1.3
10,129	-60	159	115	117	2	48.0	1.5
118	123	5	25.0	0.8

KIHABE SILVER GRADES SECTION 9,900E TO 10,400E (cont'd)

Easting

SECTION 10,100ESECTION 10,300E

KRC021

10,300

10,300

SECTION 10,400E

KRC025

KRC028

10.400 10,400

TABLE 2

HOLE ID

COORDINATESEasting

SECTION 11,500E

KRC048

KDD114

KRC052

KIHABE SILVER GRADES SECTION 11,500E TO SECTION 12,000E

11,500

11,500

11,500

SECTION 11,595E

KRC058

11,595

SECTION 11,600E

KDD115

KDD143

KIH007

KRC059

KRC054

KRC056

11,600 11,600 11,607 11,600

11,600 11,600

SECTION 11,700E

KRC061

KRC067

KRC072

11,700

Northing

10,069

10,073

10,129

10,130

9,900 10,009 10,037 10,055

10,060

11,700 11,700

10,120 10,150

DIPAZI-MUTHINTERVALDegreesDegreesFrom (m)To (m)

-60

159

50 59 72

52 63 74

-90

0

65 97

81 141

16 44

-60

159

124 136 142

84 106

134 138 146

10 2 4

-60

159

135 161

136 163

-60 -60 -60 -60

339 339 339 159

50

52

91

26

44

53

-60

159

41 48

62

66

14

112

27

50

58

74 104

43.5 124.4

43 50

-60 -60

159 159

96 129 140

97 138 141

1 9 1

Width (m)

2 4 2

1 2

21

1

6

2 2

Silver Gradeg/t

26.0 43.3 132.0

42.6 181.7

25.4 30.5

40.8 26.5 34.0

97.0 33.0

35.6

44.3

120.1

43.0

34.5

1.1

28.6

25.3 28.5

36.0 35.3 57.0

Oz/t

0.8

1.4

4.2

1.3

0.8

1.1

3.1 1.1

1.4

0.8

0.9

1.2

Table 2

KIHABE SILVER GRADES SECTION 11,500E TO SECTION 12,000E (cont'd)

HOLE ID

KRC076

DIP	AZI-	INTERVAL
MUTH
Northing	Degrees	Degrees	From (m)	To (m)	Width (m)	g/t	Oz/t
10,015	-67	339	48	52	4	80.0	2.6
10,075	-60	159	46	47	1	64.0	2.1
64	65	1	30.0	1.0
10,096	-60	159	97	107	10	31.5	1.0
KDD117	10,100	-60	159	85	91	6	32.8	1.1

Easting

SECTION 11,800E

KDD116

11,800 11,800

SECTION 11,900E

KRC082

11,900

SECTION 12,000E

12,000

KIHABE 2004 JORC CODE - Zn/Pb/Ag RESOURCE STATEMENT

KIHABE RESOURCE DOES NOT INCLUDE COPPER, VANADIUM OR GERMANIUM

Deposit	External Zn-eq Cut %	Indicated M Tonnes %	Inferred M Tonnes %	Total M Tonnes %	Contained Zinc metal (kt)	Contained Lead metal (kt)
Kihabe	1.5%	11.4 @ 2.90%*	3.0 @ 2.60%*	14.4 @ 2.84%*	259kt	115kt

*Zinc Equivalent	Ag
Kihabe resource calculated on metal prices as at 17/7/2008	US$1,810/t US$1,955/t	US$18.75/oz
Kihabe Grades	Zn 1.8% Pb 0.8%	Ag 7.7g/t

Zn

Pb

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.

COMPETENT PERSON'S STATEMENT

The information in the resource statement that relates to the Kihabe Resource is compiled by Byron Dumpleton, B.Sc., a member of the Australasian Institute of Geoscientists. Mr Dumpleton is an independent qualified person and has sufficient experience relevant to the style of mineralisation under consideration and to the activity to which they have undertaken to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code of Reporting of Mineral Resources and Ore Reserves". Mr Dumpleton consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

KIHABE METAL RECOVERIES

Independent metallurgical test work 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 Kihabe Oxide Zone

Zone

Time

Zinc

Lead

Silver

Acid leaching @40oC 30 kg/t acid

Oxide *

24 hrs

96.9%

91.9%

n/aSulphide Zone Rougher floatSulphide Sulphide

90 seconds 15.5 mins

91.9% 93.8%

84.8% 88.1%

94% 96.4%

* Note: Zn mineralisation in the oxidised zones is hosted within Baileychlore and independent test work has confirmed it is amenable to acid leaching.