Botswana’s Ministry of Minerals, Energy and Water Resources (MMEWR) has granted metals mining company Mount Burgess Botswana (MBB) – a wholly owned subsidiary of Australian-listed resource development company Mount Burgess Mining (MBM) – a new prospecting licence (PL) over the Kihabe zinc/lead/silver project in Western Ngamiland, Botswana.

PL 043/2016, which was granted on January 25, is MBB’s previously explored PL 69/2003, which comprises an inferred resource of 25- million tons at 3% zinc/lead, with 3.3-million ounces of silver present in the Kihabe and Nxuu deposits.

An application for the extension of PL 69/2003, was rejected by MMEWR in May 2013, as MBB had not completed a feasibility study on the project by June 30, 2012, as it said it would.

MBB’s assertion to complete a feasibility study was based on assurances that grid power would be available in the project area by the end of 2012. MBM states that, through no fault of its own, MMEWR or the Botswana Power Corporation (BPC), the provision of grid power in the project area did not transpire.

Following the granting of PL 043/2016, MBB will withdraw from litigation with respect to the rejection of the application for the extension of PL 69/2003, which has been ongoing since September 2013.

Mineralisation at both the Kihabe and Nxuu deposits has been described as sedimentary exhalative – mineral-rich ore deposits known to comprise zinc, silver and barite. Through soil geochemical sampling, MBB has found six additional zinc/lead anomalies and one copper/cobalt anomaly.

MBM believes that all these anomalies warrant drill testing. One such anomaly is 4.2 km long, indicating that any further discoveries could significantly improve the project’s resource base.

Further metallurgical testwork has been planned to conduct alternative recovery processes to reduce potential power consumption if the project requires on-site power generation. Further metallurgical testwork also needs to be conducted on the potential to recover silver on site.

MBM is confident that the project is progressing well, noting that recent projections released by both MMEWR and BPC show that Botswana’s power issues should be resolved before 2018.

Moreover, MBM has been approached and has agreed to participate in a proposal relating to beneficiation within Botswana of all local base metals production. This proposal is currently being assessed by business advisory Advisian South Africa – a subsidiary of project development consultant WorleyParsons.

Finally, both the Kihabe and Nxuu deposits show potential for additional minerals, such as copper, vanadium, gallium and germanium. Although, MBB notes, that this has yet to be verified by metallurgical testwork.