Funding Crunch Looms as Mount Burgess Advances Nxuu Metallurgy and Prepares Scoping Study

Encouraging Metallurgical Progress at Nxuu Deposit

Mount Burgess Mining NL (ASX: MTB) has reported significant advancements in its metallurgical test work on the Nxuu polymetallic deposit, located in north-western Botswana. The latest hydrometallurgical test results reveal impressive recovery rates for key metals, including zinc (>96%), vanadium (91.1%), and lead (79.4%). Additionally, the company achieved notable extraction percentages for rare earth elements (REEs) such as lanthanum (69.1%), neodymium (68%), praseodymium (70.1%), cerium (63.3%), samarium (63.6%), and europium (90.3%). These outcomes underscore the deposit's polymetallic potential beyond traditional base metals.

The test work involved a dual leaching process combining alkaline and acid pressure leach stages, with varying parameters of pH, temperature, and pressure to optimize metal dissolution. This approach has improved upon previous flotation recoveries, particularly for lead, which had a 93% recovery in concentrate but now shows 79.4% recovery via hydrometallurgical methods, indicating complementary processing routes. The company continues to refine recovery techniques for gallium, germanium, and REEs, aiming to maximize on-site mineral extraction.

Comprehensive Sampling and Resource Modelling

The metallurgical test samples were composited from multiple drill holes across the Nxuu deposit, with detailed geological logging and assay verification ensuring representative sampling. The deposit's mineralisation is sub-horizontal, facilitating vertical drilling and robust resource modelling. Mount Burgess Mining employed Ordinary Kriging estimation techniques, supported by extensive infill drilling, to classify mineral resources into Indicated and Inferred categories under the JORC Code standards.

Bulk density measurements and mineralogical studies have informed the modelling assumptions, with the company considering open-pit mining scenarios for the Nxuu deposit. The polymetallic nature, including vanadium, gallium, germanium, and REEs, positions the project as a diversified source of strategic metals, aligning with growing market demand for critical minerals.

Financial Position and Capital Strategy

On the corporate front, Mount Burgess Mining received a $47,465 R&D tax incentive rebate in January 2025 and successfully raised $54,744 through a share placement to sophisticated and professional investors in April 2025. The newly issued shares were listed on the ASX on 24 April 2025. These funds are earmarked for advancing project development, including further metallurgical test work and general working capital needs.

The company's cash flow statements indicate ongoing expenditure on exploration and evaluation activities, with a cash balance of $66,000 at the end of the quarter. Available funding is estimated to cover approximately 0.9 quarters of operations, prompting the board to confirm ongoing support and readiness to pursue additional equity raisings under existing ASX placement capacities if required. Directors have also implemented cost reduction strategies to align spending with available resources.

Looking Ahead: Scoping Study and Project Advancement

Mount Burgess Mining plans to incorporate these promising metallurgical results into a scoping study scheduled for later in 2025. This study will evaluate the economic viability of the Nxuu deposit, considering the improved recoveries and polymetallic nature of the resource. The company’s methodical approach to resource definition, metallurgical optimisation, and capital management reflects a cautious but optimistic pathway toward potential development.

While the current financial runway is limited, the company’s ability to raise capital and the technical progress at Nxuu provide a foundation for future growth. Investors will be watching closely for the outcomes of the scoping study and any updates on further test work or resource upgrades.