Mount Burgess Mining Unveils Strategic Metals Boost at Nxuu Deposit

Strategic Metals Elevate Nxuu Deposit Profile

Mount Burgess Mining NL (ASX: MTB) has released its quarterly report for the period ending 31 December 2024, spotlighting a transformative update on its Nxuu Deposit in Botswana. Traditionally viewed as a zinc, lead, and silver resource, the deposit now boasts substantial contributions from strategic metals Gallium, Germanium, and Vanadium Pentoxide, reshaping the project's economic potential.

The company’s data from 40 drill holes, totaling 1,711.7 metres, indicates that 70% of the drilled lengths contain mineralisation above low-cut grades when considering all six metals. Notably, Gallium mineralisation extends over 1,004.7 metres at an average grade of 11.07 g/t, more than double the mineralised length of zinc, which itself covers 497.73 metres at 1.8%. Germanium and Vanadium Pentoxide also feature prominently, with mineralised lengths nearly matching and reaching 78.3% of zinc’s respectively.

Robust Metallurgical Recoveries and Processing Advances

Mount Burgess has reported encouraging metallurgical test results, with recoveries of 93% for both zinc and lead, 82% for vanadium pentoxide, and 84% for silver from the oxide deposit. These figures underscore the deposit’s amenability to on-site processing, including solvent extraction, electro-winning, gravity separation, and flotation techniques. Ongoing test work aims to refine leaching kinetics and develop marketable gallium compounds such as Gallium Nitride (GaN) and Gallium Arsenide (GaAs), critical for high-tech applications.

Strategic Metals in Modern Technology

The report highlights the growing demand for Gallium, Germanium, and Vanadium Pentoxide, driven by their roles in cutting-edge technologies. Gallium is essential in semiconductors, 5G/6G communications, LEDs, and military applications. Germanium’s uses span aircraft alloys, infrared optics, fiber optics, and solar panels, with forecasts predicting demand to outstrip supply sixfold by 2030. Vanadium Pentoxide is pivotal in vanadium redox flow batteries, offering superior power storage stability compared to lithium-ion alternatives.

Corporate Developments and Future Outlook

On the corporate front, the Botswana Department of Environmental Affairs approved an Environmental Impact Assessment in October 2024, greenlighting a further 2,600 metres of diamond core infill drilling. This is expected to upgrade the current Indicated/Inferred Mineral Resource Estimate to Measured/Indicated status, paving the way for pre-feasibility and definitive feasibility studies.

Additionally, Mount Burgess consolidated its issued share capital on a 1-for-4 basis, reducing the total shares to 339.5 million, and secured a two-year extension to its prospecting licence PL43/2016, covering nearly 1,000 square kilometres along the Botswana-Namibia border. This licence encompasses the polymetallic Kihabe-Nxuu project, reinforcing the company’s regional footprint.

Financial Position and Funding Strategy

The company’s cash flow report reveals a cautious expenditure profile, with operating and exploration costs carefully managed. Cash and equivalents stood at A$134,000 at quarter-end, with available funding estimated to sustain operations for approximately 1.7 quarters. Directors and associated entities have committed to supporting the company’s financial position, and Mount Burgess retains capacity to raise additional funds through equity placements under ASX rules.

Mount Burgess Mining’s latest disclosures underscore a pivotal phase for the Nxuu Deposit, where the integration of strategic metals into the resource base could materially enhance project economics and investor appeal. The upcoming drilling results and feasibility studies will be critical in validating this expanded resource potential.