Mount Burgess Mining (ASX:MTB) is exploring the potential for additional revenue as the new financial year gets underway following the discovery of gallium and germanium during Q4 FY22 at its Kihabe and Nxuu deposits in Western Ngamiland, Botswana.
The company says, as reported in its latest quarterly report released yesterday (31 July 2023), that gallium and germanium could represent ‘significant’ credits for potential additional revenue from the deposits.
Mount Burgess reports the confirmation of recoverability of both gallium and germanium could also ‘significantly’ reduce waste-to-ore ratios.
Kihabe has been independently estimated to contain a lower range of 75 million tonnes (Mt) @ 9 parts per million (ppm) gallium (Ga) and an upper range of 100Mt @ 12ppm Ga.
Meanwhile, at the Nxuu deposit, the company returned an average grade of 11.1 grams per tonne (g/t) gallium, as well as about 5.94m of Kalahari sand cover and 37.22m to base of zinc/lead/vanadium/germanium/gallium mineralised quartz wacke.
The discovery of germanium and gallium at both Kihabe and Nxuu also went hand-in-hand with China’s decision to restrict exports of these elements.
As a result, the price of these commodities reached up to $582/kg and $2,566/kg, respectively, on 27 July 2023, according to Canadian-based retailer and precious metal provider Kitco.
These events occurred at a time in which the company reported it was continuing its drive towards defining both a Prefeasibility (PFS) and Definitive Feasibility Study (DFS) for the greater Kihabe-Nxuu Polymetallic Project.
As stated by the company’s Chairman and Managing Director, Nigel Forrester, at the time: “Further, recent growth in demand has generated price increases in vanadium, germanium, and gallium, adding potential to the future of the Kihabe/Nxuu project.”
“recent growth in demand has generated price increases in vanadium, germanium, and gallium, adding potential to the future of the Kihabe/Nxuu project”
Mount Burgess confirmed the definition of a DFS at Nxuu would cost in the realm of $1 million and would occur following the completion of various activities in the area.
Following the end of the quarter, Mount Burgess announced it had assayed 32 of the 52 holes drilled into the main zone at Nxuu during 2 drilling programs completed in 2017 and 2021.
It was also around this time Mount Burgess announced it had received firm commitments from sophisticated and professional investors to raise $530,000 before costs to support ongoing work at both deposits.
Mount Burgess Mining is an ASX-listed explorer with interests in southern Africa. The company has tenements covering the Western Ngamiland region of Botswana, on the border with Namibia, about 700km northwest of the capital city of Gaborone and 350km by road from Maun.
Write to Adam Drought at Mining.com.au
Images: Mount Burgess Mining