KIHABE KIHABE- -NXUU NXUU BOTSWANA Zinc Lead Project Zinc Lead - - PDF document

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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)

SLIDE 1

KIHABE KIHABE-

NXUU

NXUU

BOTSWANA

Zinc Lead Project Zinc Lead Project

January 2010

www.mountburgess.com www.mountburgess.com

SLIDE 2

Email: mtb@mountburgess.com Website: www.mountburgess.com

Company Details

(ACN: 009 067 476) Listed on the Australia Stock Exchange since 1985 Listing Code: MTB Local Asset status in Botswana granted: 31.10.2007 Issued Share Capital: 320,257,000 shares (CO.2007/375) C/o BDO Spencer Steward BDO House Kgale Mews, Kgale View PO Box 1839 Gabarone BOTSWANA

SLIDE 3

Company Operations

SLIDE 4

Kihabe Project Area

SLIDE 5

Resource Category Total Tonnes Kihabe Resource Nxuu Resource Indicated 16.4 million 16.4 million

Inferred

13.5 million 5.6 million 7.9 million Total 29.9 million * 22.0 million 7.9 million

Kihabe Project - Defined Resources

The above Kihabe resource statement was calculated by Ravensgate Pty Ltd, geological consultants on the 17th July 2008, on which date zinc and lead were trading at US$1810/t and US$1995/t respectively. The above Nxuu resource statement assumes a par value for both Zinc and Lead.

* Combined Resources of 29.9 million tonnes @ 2.62% zinc equivalent grade applying a 0.5% external cut

SLIDE 6

Kihabe Project - Lead Prices

Current Lead Price (January 2010) Project yields 26.6% IRR @ 30% equity with only 60% metal recovery. Recoveries now

ver 90%

10 Year Lead Price

*All Prices quoted from LME

SLIDE 7

Kihabe Project - Zinc Prices

Current Zinc Price (January 2010) Project yields 26.6% IRR @ 30% equity with only 60% metal recovery. Recoveries now

ver 90%

10 Year Zinc Price

*All Prices quoted from LME

SLIDE 8

2.4km

LEAD Looking NE (local grid) ZINC

Kihabe Mineralisation Boundaries

Looking NE (local grid)

SLIDE 9

Kihabe Zinc/Lead/Silver Resource - Facts

Sedex

Style open cut resource

Mineralisation occurs within a quartz wacke on an almost

vertical contact with a dolomite

Resource calculated from 19,300m drilling

(12,900m RC and 6,400m diamond core drilling)

Resource of 22 million tonnes, calculated to 175m depth

from surface, over a strike length of 2.4 km

Resource calculated by Ravensgate, Independent

Consultants

SLIDE 10

Nxuu Zinc/Lead Resource - Facts

Sedex

Style open cut resource

Mineralisation occurs within a flat lying quartz wacke on

the contact with a dolomite

Resource calculated from 1400m drilling

(500m RC and 900m of diamond core drilling)

Resource of 10.9 million tonnes

calculated to maximum 80m depth by Ben Mosigi, Technical Director (MSc., BSc., Member Geological Society South Africa)

SLIDE 11

Kihabe/Nxuu Resource Facts

Kihabe Resource 22 million tonnes @ 2.2% Zn/Pb 0.5% low cut

apply 1.4% low cut

14 million tonnes @ 2.77% Zn/Pb with 1.4% low cut

ProMet Engineers Scoping Study May 2009 Room for Improvement Updated/Subject to Change since Scoping Study

Nxuu Resource 5.4 million tonnes @ 2.81% Zn/Pb 0.5% low cut resource extended from recent drilling 10.9 million tonnes @ 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 $28.00

US $71.00

Mining Rate 2.5 million t.p.a.

Stripping Ratio

5.5-1 (40o slopes)

Geotechnical drilling required to

prove known competency of quartz wacke and dolomite. Possible 4.5-1 strip ratio achievable

RESOURCE MINING

SLIDE 12

Kihabe/Nxuu Resource Facts

Zinc 64%

Now tested to 97%*

ProMet Engineers Scoping Study May 2009 Room for Improvement Updated/Subject to Change since Scoping Study

Lead 67%

Now tested to 92%*

Mining US $ 2.20/t

Lower stripping ratio

will reduce mining costs Total Costs (Mine Gate) US $20.08/t

Will change subject to above

Ore Processing US $15.42/t Could increase with change in processing flow sheet to achieve higher metal recoveries Administration US $2.46/t RECOVERIES

COSTS

*Bulk testing required to confirm results

SLIDE 13

Kihabe/Nxuu Resource Facts

Float Concentrate 60% metal

Higher concentrates expected from

45% increase in metal recoveries

ProMet Engineers Scoping Study May 2009 Room for Improvement Updated/Subject to Change since Scoping Study

Concentrate costs (Transport) US $123/t

1. Higher concentrates expected

from 45% increase in metal recoveries

2. Less concentrates to be transported

as a result of onsite electrowinning of zinc metal from oxide ores Smelting US $182/t concentrate Variable according to smelter

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

res will increase Capex

IRR Based ONLY on metal recoveries of 64% Zinc 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

OTHER

SLIDE 14

Kihabe Project Ore Process

Kihabe Ore and Nxuu Ore Process Route

(provision for oxidised ore types)

SLIDE 15

SECTION 11800mE