Mount Burgess Mining (ASX: MTB) will raise A$228,000 through a placement of 17,538,465 shares at $0.013 per share to fund ongoing exploration in Namibia and Botswana in southern Africa.
The company has sourced a drilling contractor who will be available to commence drilling initially at a rare earth prospect at the Tsumkwe base metals project in Namibia, once the area has completely dried out after seasonal rains.
Mount Burgess' rare earths progress has so far flown under the investor radar, however results to date indicate some early stage potential that bears watching.
Mount Burgess also plans to drill test a potential kimberlite target and a copper/cobalt anomaly, recently delineated with soil geochemical sampling.
On March 29 Mount Burgess delineated a discrete copper (Cu) and cobalt (Co) anomaly over a distance of about 2.5km from ongoing XRF analyses of soil geochemical samples collected at the project.
At the company’s Kihabe-Nxuu zinc lead gold project in Botswana assays from close-spaced geochemical soil sampling have delineated a copper cobalt anomaly and three zinc/lead anomalies, all with potential to increase the company’s resource base.
The current potential open cut resource base at Kihabe-Nxuu of 25.3 million tonnes at 3% zinc (Zn) metal equivalent, containing some 750,000 tonnes of zinc equivalent metal, is subject to a Scoping Study for a 10 year mine life at 2.5 million tonnes per annum throughput.
The company is now conducting further infill sampling and assaying.
Mount Burgess is currently trading at $0.014.