Mount Burgess Mining

KIHABE-NXUU BASE METALS PROJECT - BOTSWANA

Location: Ngamiland, Botswana and Tsumkwe, Namibia
Owner: Mount Burgess Mining NL 100%

Project Location

The Kihabe-Nxuu 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.

To date MTB has developed resources at two deposits on the Botswana side of the project. The Kihabe and Nxuu deposits, 7 kms apart, contain indicated and inferred JORC compliant resources of 33 million tonnes of mineralization. From this resource base 25 million tonnes @ 3% Zn/Pb are the subject of a scoping study to be revised to a pre-feasibility study for a proposed 10 year mine life @ 2.5 million tpa.The Kihabe resource also contains 3.5 million ozs of Ag, together with Cu and V credits.

NORTH WESTERN NGMILAND 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.

TSUMKWE DIAMONG PROJECT

Location: Ngamiland, Tsumkwe, Namibia
Owner:Mount Burgess Mining NL 90%, Kimberlite Resources (Pty) Ltd 10%

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. 

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.

Nigel Raymond Forrester, F.C.A. - Chairman and Managing Director

Mr Forrester is a Fellow of the Institute of Chartered Accountants in England and Wales and also a Fellow of the Institute of Chartered Accountants in Australia. He has been involved in the exploration and mining industry over the past twenty nine years. Mr Forrester is one of the original shareholders of the Company which he floated in 1985.

Ben Mosigi, M.Sc - Technical Director

Mr Ben Mosigi, M.Sc (Leicester University – UK), B.Sc (University of New Brunswick – Canada), Diploma Mining Tech (Haileybury School of Mines, Canada), Member of the Geological Society of South Africa, Geologist, currently a Director of the Company’s wholly owned subsidiary, Mount Burgess (Botswana) (Proprietary) Limited, is a resident and national of Botswana. 

Mr Mosigi has significant experience in base metal and diamond exploration/mining.  His previous diamond exploration and mining experience, which included a significant period of time with Debswana and Botswana Diamonfields, covered work on the Orapa, Lethlakane, Jwaneng and Damtshaa kimberlites in Botswana and the Bellsbank Bobbejaan and Water kimberlite fissures in the Republic of South Africa.

Godfrey Edward Taylor, LLB - Non-Executive Director

Mr Taylor, who was appointed to the Board on 2 July 1999, graduated in law from the University of Western Australia in 1968 and was admitted to practice in 1970. He has been practising law for about 30 years and specialises in commercial and corporate law. Mr Taylor and his family were original shareholders in the Company and have been shareholders throughout its existence. 

Ronald William O'Regan - Non-Executive Director

Mr O'Regan was appointed to the Board on 31 July 2000. Having established a career in stockbroking, he joined Astaire & Partners, a firm of London stockbrokers in 1968. He became a member of the London Stock Exchange in the 1970s and was appointed to the Board of Astaire & Partners in 1987. 

Alfred P Stirling, F.C.A. - Non-Executive Director

Mr Stirling was appointed to the Board on 1 December 2003. Mr Stirling, a Fellow of the Institute of Chartered Accountants in England and Wales, is Chairman and Managing Director of two Authorised Investment Trusts in the United Kingdom.

Top Twenty Shareholders as at 24 September 2010