The share price of microcap mineral explorer Mount Burgess Mining NL [ASX:MTB] has soared today on the back of some high-grade silver finds.
MTB shares have whipsawed around over the past few weeks with fresh updates from its troubled Kihabe-Nxuu project in Botswana.
Kihabe-Nxuu is a base metals project containing zinc, lead, silver, germanium and vanadium.
The project is located in Western Ngamiland, Botswana on the border with Namibia.
However, regulatory issues have hamstrung the progress of the project.
At time of writing the MTB share price is up 66.67%, trading at 1.5 cents per share.
The latest share price action brings MTB’s 12-month return to 650%.
Silver price spurs Mount Burgess Mining into action
Like gold, other precious metals including silver have had a recent price resurgence.
This is in large part thanks to the economic uncertainty caused by the coronavirus pandemic.
Over the past 12 months the silver price has surged close to 50%.
Bringing it to a level last seen in April 2013.
In a statement made today, MTB said they reviewed two high-grade silver zones at the Kihabe deposit because of the recent increase in the silver price.
The review was conducted to determine the potential for further silver mineralisation to be identified.
Significant results from these zones include:
- 2 grams of silver per tonnes (g/t) from 98 metres
- 318g/t from 73 metres
- 83g/t silver from 64 metres
So, what has MTB got?
The Kihabe resource estimated under the 2004 JORC code amounts to 14.4 million tonnes at a zinc-lead-silver equivalent grade of 2.84% for 259,000 tonnes of contained zinc and 114,000 tonnes of contained lead.
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This resource category is thought to contain about three million ounces of silver.
Vanadium and germanium also present were not included in this resource estimate.
However, that was by the old standard of reporting.
We now go by the JORC 2012 standard, meaning the estimate is out of date.
Though this isn’t much of an issue since the information hasn’t materially changed since it was last reported.
What to make of it all…
Earlier this month, MTB responded to requests to demonstrate more clearly the known mineralised domain and continuity of mineralisation — a rather peculiar thing to have to do in my opinion.
In today’s announcement, their directives are again ambiguous.
In response to the potential to identify further silver mineralisation, the company said ‘additional holes need to be drilled’.
Not that it plans to or will drill these further holes.
MTB’s project has potential, which it has demonstrated previously and the price of silver helps add its attractiveness.
However, the uncertainty and ambiguity that surrounds the project may contribute to the current volatility.
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