Mount Burgess, Botala negotiate energy deal
Mount Burgess Mining, the developers of Kihabe- Nxuu deposit rich in various metals which include lead, silver, zinc, gallium and germanium has initiated energy deal negotiations with developers of coal bed methane ( CBM) gas project in the Serowe District.
Situated right up against the Namibian border in Western Ngamiland, Kihabe- Nxuu project, is sitting on prospecting license PL43/ 2016, which covers an area of 1,000 sq/ km.
According to deal highlights, Botala, an energy company solution consisting of solar or battery hybrid potentially backed by Liquified Natural Gas ( LNG), will supply energy in the event the deal is sealed.
Mount Burgess has highlighted that discussions have commenced for the purpose of achieving a mutually beneficial solution.
“However, neither parties have determined a time frame for the production or supply of LNG, the quantity of LNG required for the Kihabe- Nxuu Project and a price for the supply of LNG for the Kihabe- Nxuu Project,” said Mount Burgess Chief Executive Officer, Nigel Forrester.
Mount Burgess is currently awaiting assay results from recent drilling conducted at its shallow basin shaped, totally oxidised Nxuu Deposit. Some further 1,500m of drilling is required to then enable the company to quote an indicated or measured resource compliant with the 2012 JORC Code, whereupon it can then proceed to a pre- feasibility study. And once having evaluated a commercial power supply, Mount Burgess can then proceed to a definitive feasibility study.
Botala is the operator with prospecting Licences PL2018/ 16, PL2018/ 18, PL2018/ 19, PL2018/ 356, PL2018/ 357 and PL2018/ 400. The company owns 49 percent of the project as part of a $ 6.1m farm- in agreement with Pure Hydrogen Corporation owning the remaining 51 percent.
In addition, Botala has the right to earn up to 70 percent upon listing on the Australian Stock Exchange. The Serowe project covers an area of 413,080 hectares and its prospecting licenses cover the right to explore for coal bed methane ( CBM) gas.