JOHANNESBURG (miningweekly.com) – Australian diamond and metals explorer Mount Burgess Mining on Wednesday reported that its Kihabe zinc/lead/silver project, in Botswana would be “economically attractive”, under current metal prices and production process steps, as identified in its scoping study.

However, the technical concepts for the ore processing, recovery of the metals, and the production of saleable products required additional work to substantiate the indicative results obtained to date.

The scoping study would also require ‘major revision’ not only to incorporate these concepts, but also to acknowledge the recent positive resource estimate of the Nxuu deposit and the current metal prices.

The Kihabe scoping study was revised during late 2009, and Mount Burgess found that subject to achieving satisfactory results from the future test work programme, and the continued improvement in base metal prices, the Kihabe project had the potential to form the basis for an economically attractive business venture.

Between the end of 2009, and mid-January, project management firm ProMet reported that significant progress had been made on the project, and lead and zinc recoveries of greater than 90% have been achieved in recent test work, a significant improvement over the previous recoveries of 67% and 64%, respectively.

Process steps have also been identified to enable the production of metal cathode, which will eliminate fees paid to external smelters and boost the project margins.

The revised scoping study allowed for a proposed ten-year mine life at a potential mining rate of 2,5-million tons a year.

Meanwhile, Mount Burgess has reported that the inferred resource for the Nxuu deposit has now been upgraded from the previously estimated 5,4-million tons at 2,81% zinc/lead applying a 0,5% external cut.

The combined opencut resources at both the Kihabe and the Nxuu deposits applying a 0,5% external cut now stand at 29,9-million tons at 2,62% zinc equivalent grade.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.