Mount Burgess Mining N L : Kihabe Deposit - Copper Zone 09/03/2021 (pdf 1.1 MB)

9 March 2021

ASX CODE: MTB

KIHABE POLYMETALLIC DEPOSIT, BOTSWANA

COPPER GRADES NOT CURRENTLY INCLUDED IN THE MINERAL RESOURCE ESTIMATE

Previous Assessment

On 7 September 2020, the Company released an announcement to the ASX, headed 'Kihabe Polymetallic Deposit - Copper Grades not currently Included in the Mineral Resource Estimate'.

This announcement shows that in the NE sector of the Kihabe Deposit, some 15 drill holes intersected potentially commercial copper grades over 600m strike length from section 11,200mE to Section 11,800mE.

In March 2007, Ravensgate, independent geological consultants, compiled an Inferred Mineral Resource estimate (under the 2004 JORC Code) for copper at various low-grade cuts in this NE sector of the Kihabe Deposit (Refer to Table 1).

Because focus on the Kihabe resource at the time only concentrated on Zn/Pb/Ag, none of the additional credits for Vanadium, Germanium and Copper were taken into account.

Recent Assessment

Following increases in the copper price since September 2020, currently in excess of US $8,800/t, the Company has conducted further in-depth assessment of this zone where Cu occurs in association with the Zn/Pb/Ag/Ge/V mineralisation.

This recent assessment has taken into account results from five additional diamond core holes drilled into the area of Cu mineralisation since Ravensgate compiled the Inferred Mineral Resource Estimate (Refer Table 2 and Figure 1). The assessment has shown:

• • This zone of Cu mineralisation now extends from 11,200mE to 12,000mE, covering a potential strike length of 800m.

• • The 17 drill holes now taken into account show that the average width of Cu mineralisation per drill hole amounts to 18.4m

• • The average grade of the mineralised intersections of the 17 drill holes amounts to 0.27% Cu/t.

• • Results from the five additional diamond core holes (highlighted in orange in Table 2) will enable the Company to better understand the continuity of the Cu mineralised zones.

• • Subject to funding, the results from the five additional diamond core holes will enable the Company to more precisely plan future in-fill drilling programmes. Lines of drill holes in this area are mainly 100m apart, which now need to be reduced.

Further Leach Extraction and Mineralogical Test Work

Further leach test work is being conducted to confirm the Zn metal on site recoveries from the Kihabe oxide zone. Mineralogical test work is also being conducted to confirm the host mineral of Vanadium in the Kihabe oxide zone. At the Nxuu Deposit, 7km to the east of the Kihabe Deposit, the host mineral of Vanadium has been confirmed as Descloizite. In Descloizite, Vanadium Pentoxide (V2O5) is 1.785 times the grade of Vanadium (V).

All assay results from drill holes shown in Table 2 have previously been released to ASX.

The Kihabe Deposit with various zones of Zn/Pb/Ag/Cu/Ge/V mineralisation covers an overall strike length of 2,400m and is situated 7km West of the Nxuu Deposit.

The 2004 JORC Code Kihabe Deposit Mineral Resource Statement, showing the Zn equivalent grade for only Zn/Pb/Ag, is attached as Table 3.

Table 1

Mineral Resource Statement - 16 March 2007

(2004 JORC Code) - Kihabe Base Metals

Deposit - Cu Mineralisation - Inferred Resource - Reported at % Cu lower cut-offs

Table 2

HOLE ID	COORDINATES	DIP	AZI-MUTH	INTERVAL	Copper Grade %	Oxide (O)/ Sulphide (S)
Easting	Northing	Degrees	Degrees	From (m)	To (m)	Width (m)
Section 11,200E
KRC092	11,200E	10.070N	-60	160	65	67	2	0.18	S
71	73	2	0.13	S
74	76	2	0.13	S
78	83	5	0.14	S
103	105	2	0.42	S
KRC093	11,200E	10,100N	-60	159	100	109	9	0.14	S
123	126	3	0.19	S
Section 11,300E
KRC090	11,300E	10.114N	-60	159	136	146	10	0.16	S
Section 11,450E
KDD140	11,450E	10,100N	-60	339	73	77	4	0.13	S
91	97.50	6.50	0.67	S
Section 11,500E
KDD114	11,500E	10,073N	-90	0	9	54	45	0.16	O
60	63	3	0.13	O
66	68	2	0.39	S
97	99	2	0.94	S
101	104	3	0.15	S
106	117	11	0.37	S
inc	116	117	1	1.44	S
118	128	10	0.43	S
inc	125	126	1	1.22	S
KRC049	11,500E	10,099N	-60	159	28	31	3	0.15	O
32	47	15	0.17	O
50	65	15	0.27	O
KRC052	11,500E	10,129N	-60	159	63	65	2	0.12	O
69	77	8	0.12	S
80	84	4	0.11	S
86	89	3	0.15	S
92	94	2	0.16	S
115	121	6	0.20	S
122	140	18	0.43	S
inc	125	127	2	0.75	S
inc	130	133	3	0.76	S
Section 11,600E
KDD115	11,600E	9,900N	-60	339	38	39	1	0.20	O
50	51	1	0.16	O
119	120	1	0.11	S
151	152	1	0.10	S
181	182	1	0.11	S
KDD143	11,600E	10,010N	-60	339	45	47	2	0.12	O
52	54	2	0.13	O
112	113	1	0.12	S
126	130	4	0.22	S

Table 2 (cont'd)

HOLE ID	COORDINATES	DIP	AZI-MUTH	INTERVAL	Copper Grade %	Oxide (O)/ Sulphide (S)
Easting	Northing	Degrees	Degrees	From (m)	To (m)	Width (m)
Section 11,600E
KIH007	11,607E	10,037N	-60	339	62	64	2	0.12	O
95	96	1	2.45	S
98	101	3	0.18	S
135	138	3	0.43	S
inc	136	137	1	1.06	S
KRC056	11,600E	10,110N	-60	159	61	64	3	0.17	O
69	71	2	0.13	O
72	75	3	0.16	S
99	101	2	0.21	S
KRC058	11,595E	10,130N	-60	159	87	91	4	0.24	S
92	95	3	0.52	S
112	115	3	0.19	S
Section 11,700E
KRC072	11,700E	10,150N	-60	159	125	130	5	0.28	S
137	141	4	0.20	S
Section 11,770E
KIH011	11,769E	10,124N	-60	339	54	56	2	0.18	O
60	62	2	0.39	S
63	66	3	0.32	S
71	78	7	1.04	S
81	86	5	0.21	S
87	89	2	0.39	S
Section 11,800E
KRC076	11,800E	10,075N	-60	159	17	37	20	0.28	O
inc	23	25	2	0.71	O
42	47	5	0.31	O
inc	46	47	1	1.34	O
KRC077	11,800E	10,090N	-60	159	37	43	6	0.23	O
Section 12,000E
KDD117	12,000E	11,090N	-60	159	76	78	2	0.23	S
82	86	4	0.19	S
92	93	1	0.29	S
106	110	4	0.22	S