Mount Burgess Mining N L : Drilling Update - Nxuu Polymetallic Deposit, Botswana

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29 November 2021

ASX CODE: MTB

UPDATE ON DRILLING AT THE POLYMETALLIC NXUU DEPOSIT, BOTSWANA

PQ and HQ diamond core in-fill drilling is currently being conducted with two drill rigs at the Company's polymetallic Nxuu Deposit on Prospecting Licence PL43/2016, in Western Ngamiland, Botswana. Refer to Appendix A.(See Figure 1 - Nxuu Deposit, Completed and Proposed Drill Holes)

Nxuu Deposit Characteristics

The Nxuu Deposit is a shallow basin-shaped polymetallic deposit where Zinc (Zn), Lead (Pb), Silver (Ag), Vanadium (V) and Germanium (Ge) mineralisation is hosted within a totally oxidised quartz wacke, situated in a barren dolostone basin.

Prior to the current drilling programme, 28 holes previously drilled by the Company found as follows:

• To a large degree the boundaries of the mineralised domain have now been determined
• Mineralisation was intersected from as shallow as 3.0m below surface (NXDD030 on Section 15) and was intersected at depths to 64.0m (NXDD048 on Section 11) - Refer to Figure 2
• Overall, the average depth to base of mineralisation in the 28 holes drilled is 40.0m
• On average 54% of the 28 drill hole lengths contains mineralisation above cut-off grades
• Of the remaining 46% 17.5% is Kalahari cover, leaving only 28.5% as low grade or barren quartz wacke

Current Drilling Programme

To date three PQ diamond core holes have been completed, one of which was a twin hole and sixteen HQ diamond core holes have been completed, three of which were twin holes, in the Nxuu Deposit NW Zone (Figure 2). To date two HQ diamond core holes have been completed in the Nxuu Deposit NE zone (Figure 3)

The completed holes have been marked as 'DONE', or 'DONE & TWIN' shown in red.

It is anticipated that drilling will continue after the Christmas break.

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HQ and PQ Diamond Core for assaying and further confirmatory Test Work

Half HQ diamond core will be sent for assaying. All assay results will be reported to the market as they become available.

Half PQ core together with portions of quarter HQ core can be used to determine operating characteristics of the minerals involved to progress the process route to a Pre-feasibility study, including:

• Mineralogy to assess the economic liberation of mineral assemblage throughout the process
• Confirmation of previous test work and refinement of on-site process requirements

Mineralogical and Metallurgical Test Work conducted to date

Mineralogical test work conducted to date has confirmed that:

• Zinc is hosted in the oxide mineral Smithsonite
• Vanadium is hosted in the oxide mineral Descloizite, where the mass of Vanadium Pentoxide (V2O5) is 1.785 times the mass of Vanadium

Metallurgical test work conducted to date has confirmed that:

• 93% of Zinc metal can be recovered on site by acid leaching, followed by solvent extraction and electro-winning (SX/EW)
• 81% Vanadium Pentoxide can be recovered on site, initially by gravity separation, followed by flotation using hydroximate acid as reagent for recovery to a concentrate.

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For personal use only

For personal use only

For personal use only