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Mount Burgess Mining raises A$219,000, renews focus on base metals exploration in Africa

Mount Burgess Mining (ASX: MTB) will raise $219,000 through a placement of 36.5 million shares at $0.006 for ongoing exploration at the company's Tsumkwe Base Metals Project in Namibia and the Kihabe-Nxuu Project in Botswana.

The placement will cover a shortfall of $70,000 from a previous capital raising, and raise an additional $149,000.

On 16 September 2011 the company reached agreements to raise $211,000 by placing 26,375,000 shares at 0.008 per share with professional investors. The company received $141,000 from the placement representing 17,625,000 shares.

Listing of these shares was applied for on 1st November 2011 and official quotation was granted from 4 November, leaving the shortfall of $70,000, representing 8.75 million shares.

Mount Burgess will also allot a further 5,875,000 shares, pro-rata to those investors disadvantaged by the delay in closing the initial placement, to align the overall issues at $0.006.

Tsumkwe Base Metals Project in Namibia

Mount Burgess plans to conduct further exploration at a recently discovered iron/magnetite target at its Tsumkwe Base Metals Project.

The company recently received XRF analytical results containing up to 61.79% iron from two drill holes drilled into a strong magnetic high anomaly.

Ten of twelve holes drilled into Target 1 have been logged as containing significant quantities of magnetite and eight of these holes are awaiting assaying. All holes drilled into Targets 2, 3 and 4 contained magnetite and are awaiting assaying.

The Davis Tube Recovery (DTR) tests conducted on the holes returned high magnetite recoveries. The DTR concentrate's composition is comparable to commercially traded iron ores. An initial thin section petrographic analysis of drill chips from 45–46 metres depth show the dominant iron mineral is magnetite.

Two sub parallel linear magnetic high anomalies (Targets 5 and 6) with a combined length of over 6 kilometres have previously been interpreted as two limbs of a fold.

With the confirmation of previous drilling results and the knowledge that the southern linear magnetic high anomaly hosts hematite/magnetite breccia, the company believes that this structure and the parallel structure to the north have the potential to host a worthwhile iron ore target.

The company is planning an initial drilling program designed to test the two linear magnetic anomalies (Targets 5 and 6).

Rare Earths

During the September quarter five vertical open hole percussion drill holes were drilled into the company’s rare earth elements (NYSEMKT:REE) target at Tsumkwe.

Only portions from three of these holes have so far been submitted for assaying. All portions submitted returned elevated total rare earth oxide (TREO) grades.

The main host mineral of the REEs is synchysite. The synchysite particles on average are over 100 microns which should allow for easy extraction.

Additionally, synchysite is low in both thorium and uranium, thereby reducing complications during the process of extraction of the REEs through concentration and separation. Thorium grades from the above assays averaged 29.4 parts per million (ppm) and uranium grades averaged 4.8ppm.

Kihabe-Nxuu Project in Botswana

At the Kihabe-Nxuu zinc/lead/silver project in Botswana, assays from close-spaced geochemical soil sampling have generated five significant zinc/lead soil geochemical anomalies and one significant copper/cobalt soil geochemical anomaly.

Significantly, these anomolies have potential to increase the company’s resource base.

The company is continuing with soil geochemical sampling over several other prospective areas within its 100%-owned 3,000 square kilometre neo-Proterozoic belt, which spans the border between Namibia and Botswana.

The project has vast potential, with the company previously eyeing development into a mining operation.

Earlier in the year 25 million tonnes at 3% zinc metal equivalent was selected for a Scoping Study, which included 750,000 zinc equivalent metal tonnes and a 2.5 million mining rate over 10 years.

The current resources include 3.3 million ounces of silver with potential for copper, vanadium, gallium and germanium credits.

Another plus at the project is low strip ratios and high zinc metal recoveries of 93%.