Mount Burgess Mining N L : Test Work Conducted on NXUU Deposit, Botswana 24/04/2019 (pdf 1.6 MB)

ASX Code: MTB

24 April 2019

ULTRA-FINE DENSE MEDIA SEPARATION TEST WORK CONDUCTED ON THE NXUU Zn, Pb, Ag, Ge, V DEPOSIT, BOTSWANA

In late February 2019, the Company submitted 9.35 kg of crushed core samples from the Nxuu Deposit to EXXARO in South Africa for Ultra-fine Dense Media Separation (UFDMS) test work.

These samples were from four HQ diamond core holes drilled into the Nxuu Deposit in October/November 2017 (Refer Table 1 - samples selected and Figure 1 - Drill Hole Map) and broken down into five sample batches, as shown in Table 1 for UFDMS test work.

The purpose of this test work was to determine whether barren gangue Quartz Wacke, (which is the host rock of mineralisation) could be separated from mineralised Quartz Wacke, through UFDMS after crushing but prior to milling. If successful this could produce a mineralised concentrate which only then would need to be milled and processed, thereby reducing the tonnage required to be milled and treated which, in turn would reduce treatment and power costs.

Three size ranges of samples were selected for UFDMS laboratory scouting testwork in the form of Heavy Liquid Separation (HLS) These were -300µm + 75µm, -1mm + 300µm and +1mm. The discussion of results is focussed on samples in the size range of -1mm + 300um as this size fraction is the typical size fraction used in UFDMS treatment.

The HLS was applied at Specific Gravity (SG) cut points of 2.96 and 2.6, in order to separate barren Quartz Wacke as floats and mineralised Quartz Wacke as sinks.

The SGs of the various minerals are as follows:

∙Barren non-oxidised Quartz Wacke, 2.6 - 2.8

∙Smithsonite, oxide host mineral of Zn, 4.4 - 4.5

∙Host minerals for Ge, 5.3

∙Host minerals for Ag, 5.57 - 5.62

∙Descloizite, oxide host mineral for V, 6.16

∙Cerussite, oxide host mineral for Pb, 6.58

Once assayed, the sinks from all five sample batches (Refer Table 1) showed the following:

∙Greater than 88% recoveries were achieved for Pb and V. Sample 039 showed a mass rejection of 52.3% of the sample as gangue into floats and sample 040B showed a mass rejection of 72.4% as gangue into floats.

∙The Zn, Ge, Ag showed little response to the HLS at a SG of 2.6. Sample 040B did however show upgrade for Zn with 51.4% being recovered from only 27.6% of the sinks mass.

As Zn, Ge and Ag have lower SGs than Pb and V, further test work will be conducted applying various SG cuts to the HLS, both lower and higher than a SG of 2.6, to develop a full UFDMS response curve.

The fact that the host rock Quartz Wacke is totally oxidised in the Nxuu Deposit, could likely mean that the oxidisation has caused a reduction in rock densities, due to porosity. This could mean that the SG of the oxidised barren Quartz Wacke is much lower than 2.6 (2.6 is the SG of non-oxidised Quartz Wacke) and could explain why the proportions of Zn, Ge and Ag mineralisation in the porous oxidised Quartz Wacke are included in the SG cut of 2.6.

By applying the HLS at a SG lower than 2.6 could result in greater separation of barren Quartz Wacke gangue into floats. This in turn could result in higher proportions of Zn, Ge and Ag then being separated into sinks. However, EXXARO concludes that more test work will be needed to refine the optimum processing size and SG cut point to be applied to the UFDMS, as well as define the potential yield envelope.

If the planned further test work shows that Zn, Ge and Ag doesn't respond to UFDMS, then the most likely process route will consist of a UFDMS concentration step, allowing for the Pb and V sinks (UFDMS Product) to go through to a recovery circuit. This in turn will then enable the Zn, Ge, Ag floats (UFDMS Tails) to go through to a separate recovery circuit.

TABLE 1 - SUMMARY OF SAMPLES SUBMITTED TO EXXARO

Hole	Intersection	Weight	Zn	Pb	Ag	Ge	V205
Number	(m)	(Grams)	(%)	(%)	(g/t)	(ppm)	(ppm)
NXDD030	3.00 - 4.00	400	0.39	1.91	5.2	5	7,336
	4.00 - 5.00	400	0.48	2.06	5.5	6	8,422
	5.00 - 6.00	400	0.12	1.48	3.6	5	4,861
	6.00 - 7.00	400	0.15	1.26	2.6	4	5,143
	7.00 - 7.45	400	0.24	1.21	1.8	3	4,921
Total		2,000
NXDD033	48.00 - 49.00	400	1.46	2.94	15.9	7	259
	49.00 - 50.00	667	1.30	0.42	4.0	5	1,382
	52.46 - 53.00	667	1.12	1.21	0.5	X	4,354
Total		1,734
NXDD039	49.07 - 50.00	667	2.43	0.36	3.6	3	264
	50.00 - 51.00	667	3.10	0.46	5.9	4	766
	51.00 - 51.62	667	2.52	0.76	5.7	5	2,774
Total		2,001
NXDD040 (a)	29.88 - 31.00	400	0.85	1.47	3.7	4	4,627
	31.00 - 31.50	400	0.89	2.90	1.8	3	10,598
	31.50 - 32.00	400	0.21	1.43	6.6	5	4,188
	32.00 - 32.61	400	0.19	1.06	5.8	4	3,495
	32.61 - 33.00	400	0.43	0.73	3.1	2	2,053
Total		2,000
NXDD040 (b)	37.00 - 37.98	1,000	0.43	0.56	0.9	1	2,294
	37.98 - 38.35	600	0.45	1.70	0.6	X	6,862
Total		1,600
Total Weight of Samples		9,355

Forward Looking Statement:

This report contains forward looking statements in respect of the projects being reported on by the Company. Forward looking statements are based on beliefs, opinions, assessments and estimates based on facts and information available to management and/or professional consultants at the time they are formed or made and are, in the opinion of management and/or consultants, applied as reasonably and responsibly as possible as at the time that they are applied.

Any statements in respect of Ore Reserves, Mineral Resources and zones of mineralisation may also be deemed to be forward looking statements in that they contain estimates that the Company believes have been based on reasonable assumptions with respect to the mineralisation that has been found thus far. Exploration targets are conceptual in nature and are formed from projection of the known resource dimensions along strike. The quantity and grade of an exploration target is insufficient to define a Mineral Resource. Forward looking statements are not statements of historical fact, they are based on reasonable projections and calculations, the ultimate results or outcomes of which may differ materially from those described or incorporated in the forward looking statements. Such differences or changes in circumstances to those described or incorporated in the forward looking statements may arise as a consequence of the variety of risks, uncertainties and other factors relative to the exploration and mining industry and the particular properties in which the Company has an interest.

Such risks, uncertainties and other factors could include but would not necessarily be limited to fluctuations in metals and minerals prices, fluctuations in rates of exchange, changes in government policy and political instability in the countries in which the Company operates.

Other important Information

Purpose of document: This document has been prepared by Mount Burgess Mining NL (MTB). It is intended only for the purpose of providing information on MTB, its project and its proposed operations. This document is neither of an investment advice, a prospectus nor a product disclosure statement. It does not represent an investment disclosure document. It does not purport to contain all the information that a prospective investor may require to make an evaluated investment decision. MTB does not purport to give financial or investment advice.

Professional advice: Recipients of this document should consider seeking appropriate professional advice in reviewing this document and should review any other information relative to MTB in the event of considering any investment decision.

Forward looking statements: This document contains forward looking statements which should be reviewed and considered as part of the overall disclosure relative to this report.

Disclaimer: Neither MTB nor any of its officers, employees or advisors make any warranty (express or implied) as to the accuracy, reliability and completeness of the information contained in this document. Nothing in this document can be relied upon as a promise, representation or warranty.

Proprietary information: This document and the information contained therein is proprietary to MTB.

Competent Person's Statement:

Mr Chris Campbell-Hicks, Metallurgist, FAusIMM (CP Metallurgy), MMICA, Non-Executive Director of the Company, who reviewed the content of the announcement, has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2102 Edition of the JORC Code and has consented to the inclusion in respect of the matters based on the information in the form and context in which it appears.

Mr Campbell-Hicks has for a number of years whilst working with Coffey Mining and other consultancies and companies made contributions to numerous Scoping Studies, Pre-feasibility Studies and Feasibility Studies under the 2004 JORC Code, the 2012 JORC Code and the Canadian National Instrument (NI 43-101). As such he qualifies as a Competent Person for reporting on matters pertaining to metallurgy, process engineering and interpretation of test work results and data for the establishment of Design Criteria for such studies.

ACN: 009 067 476 8/800 Albany Hwy, East Victoria Park, Western Australia 6101 Tel: [phone] Fax: [phone] [e-mail]