KIHABE KIHABE- -NXUU NXUU BOTSWANA Zinc Lead Project Zinc Lead Project January 2010 www.mountburgess.com www.mountburgess.com
Email: C/o BDO Spencer Steward Gabarone PO Box 1839 View Mews, Kgale Kgale BDO House (CO.2007/375) mtb@mountburgess.com Issued Share Capital: 320,257,000 shares Local Asset status in Botswana granted: 31.10.2007 Listing Code: MTB Listed on the Australia Stock Exchange since 1985 (ACN: 009 067 476) Company Details www.mountburgess.com Website: BOTSWANA
Company Operations
Kihabe Project Area
Resource Total Combined Resources of 29.9 million tonnes @ 2.62% * Lead. were trading at US$1810/t and US$1995/t respectively. Defined Resources Project - Kihabe 7.9 million 22.0 million Category 29.9 million * 7.9 million 5.6 million Total Tonnes Kihabe Resource Nxuu zinc equivalent grade applying a 0.5% external cut Resource Indicated 16.4 million 16.4 million - Inferred 13.5 million � The above Kihabe resource statement was calculated by Ravensgate Pty Ltd, geological consultants on the 17 th July 2008, on which date zinc and lead � The above Nxuu resource statement assumes a par value for both Zinc and
Kihabe Project - Lead Prices Current Lead Price (January 2010) Project yields 26.6% IRR @ 30% equity with only 60% metal recovery. Recoveries now over 90% 10 Year Lead Price *All Prices quoted from LME
Kihabe Project - Zinc Prices Current Zinc Price (January 2010) Project yields 26.6% IRR @ 30% equity with only 60% metal recovery. Recoveries now over 90% 10 Year Zinc Price *All Prices quoted from LME
Looking NE (local grid) Kihabe Mineralisation Boundaries Looking NE (local grid) LEAD 2.4km ZINC
Kihabe from surface, over a strike length of 2.4 km (12,900m RC and 6,400m diamond core drilling) vertical contact with a dolomite Style open cut resource Facts Zinc/Lead/Silver Resource - Consultants • Sedex • Mineralisation occurs within a quartz wacke on an almost • Resource calculated from 19,300m drilling • Resource of 22 million tonnes, calculated to 175m depth • Resource calculated by Ravensgate, Independent
Nxuu depth by Ben Mosigi, Technical Director (MSc., BSc., 80m calculated to maximum (500m RC and 900m of diamond core drilling) Member Geological Society South Africa) the contact with a dolomite Style open cut resource Facts Zinc/Lead Resource - • Sedex • Mineralisation occurs within a flat lying quartz wacke on • Resource calculated from 1400m drilling • Resource of 10.9 million tonnes
Kihabe/Nxuu US $28.00 @ 3.2% Zn/Pb with 0.3% low cut Total Resource 27.4 million tonnes @ 2.32% Zn/Pb 25.1 million tonnes @ 2.98% Zn/Pb In ground Value /tonne US $71.00 from recent drilling Mining Rate 2.5 million t.p.a. - Stripping Ratio 5.5-1 (40 o slopes) Geotechnical drilling required to prove known competency of quartz wacke and dolomite. Possible 4.5-1 strip ratio achievable RESOURCE 10.9 million tonnes MINING 22 million tonnes Resource 0.5% low cut apply 1.4% low cut 14 million tonnes Kihabe @ 2.77% Zn/Pb with 1.4% low cut 0.5% low cut @ 2.2% Zn/Pb Nxuu Resource Facts Resource 5.4 million tonnes @ 2.81% Zn/Pb ProMet Engineers Room for Updated/Subject to Scoping Study Improvement Change since May 2009 Scoping Study � � resource extended � � � �
Kihabe/Nxuu Ore Processing Lower stripping ratio will reduce mining costs Total Costs (Mine Gate) US $20.08/t Will change subject to above US $15.42/t Could increase with change in processing flow sheet to achieve higher metal recoveries Administration US $2.46/t RECOVERIES COSTS US $ 2.20/t Mining Now tested to 92%* Now tested to 97%* Resource Facts Zinc 64% *Bulk testing required to confirm results Lead 67% ProMet Engineers Room for Updated/Subject to Scoping Study Improvement Change since May 2009 Scoping Study � � � �
Kihabe/Nxuu recoveries of 64% Zinc demand. Chinese smelters currently around US$190/t concentrate Capex US $217 million Change in process flow sheet : on-site electro-winning of metal from oxide ores will increase Capex IRR Based ONLY on metal and 67% lead, project was estimated to yield IRR of 26% @ 30% equity, with metal prices @US$2,400/t 45% increase in metal recoveries, 20% increase in grade, 10% increase in resource & on-site electrowinning should increase IRR significantly, subject to additional Capex. Updated Scoping Study will reflect this CONCENTRATE Variable according to smelter US $182/t concentrate Smelting Concentrate costs Resource Facts Float Concentrate 60% metal Higher concentrates expected from 45% increase in metal recoveries zinc metal from oxide ores OTHER (Transport) US $123/t as a result of onsite electrowinning of 2. Less concentrates to be transported from 45% increase in metal recoveries 1. Higher concentrates expected ProMet Engineers Room for Updated/Subject to Scoping Study Improvement Change since May 2009 Scoping Study � � � �
Kihabe Project Ore Process Kihabe Ore and Nxuu Ore Process Route (provision for oxidised ore types)
Kihabe Project Concentrator Process
Zinc Model Lead Model Kihabe Resource Sections SECTION 9900mE
Zinc Model Lead Model Kihabe Resource Sections SECTION 10000mE
Zinc Model Lead Model Kihabe Resource Sections SECTION 10100mE
Zinc Model Lead Model Kihabe Resource Sections SECTION 10400mE
Zinc Model Lead Model Kihabe Resource Sections SECTION 11500mE
Zinc Model Lead Model Kihabe Resource Sections SECTION 11600mE
Zinc Model Lead Model Kihabe Resource Sections SECTION 11700mE
Zinc Model Lead Model Kihabe Resource Sections SECTION 11800mE
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