Mount Burgess Mining hits cobalt in first hole on anomaly at Tsumkwe Project in Namibia

Mount Burgess Mining (ASX: MTB) has intersected significant cobalt from drilling on a strong magnetic dipole anomaly at its 90%-owned Tsumkwe Base Metals Project in Namibia.

Significantly, the anomaly is 1.5 kilometres northeast of Makuri Vlei, an area where a copper/cobalt soil geochemical anomaly was recently delineated.

The first open percussion hole into the magnetic anomaly, drilled to a total depth of 110 metres, intersected two highly mineralised zones containing pyrite, chalcopyrite and iron sulphides.

Drill chips from this hole have been analysed by the company’s XRF analyser and have produced results including 71 metres at 0.38 cobalt (Co) from 10 metres, and 14 metres at 43.22% iron (FE) from 47 metres.

The first intersection was a 10 metre zone from 27 metres to 37 metres, and the second zone was 14 metres from 47 metres to 61 metres. The results need to be verified by independent laboratory testing which the company estimates will take up to six weeks.

Step-out holes 100 metres from this drill hole are currently being drilled to determine the extent of the mineralisation of the magnetic anomaly.

The company believes that the magnetic anomaly could be a hydrothermal deposit, possibly a VMS (volcanogenic massive sulphide) deposit. Further drilling, mineralogical and petrographic analysis will be required.

The current LME cobalt price is around US$36,350 per tonne (US$16.50 per pound) and demand is estimated to increase by 10% per annum through to 2015. Cobalt is commonly used in re-chargeable batteries used in hybrid electric vehicles.

The company has also drill tested its rare earth element (REE) target at  Tsumkwe with four vertical open hole percussion holes drilled into the REE target. Samples from these holes will be submitted for assaying.

On May 16 Mount Burgess established that the predominant mineral that hosts the rare earth elements (REEs) at the company's REE target at Tsumkwe is synchysite, potentially making the extraction of REEs through concentration and separation less complex.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18014/mount-burgess-mining-hits-cobalt-in-first-hole-on-anomaly-at-tsumkwe-project-in-namibia-18014.html