MAXIMUS RESOURCES LIMITED - ASX: MXR

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Description

Maximus is an innovative, energetic and professional mineral exploration and development team, with an Australian focus on a small suite of strategic commodities, that provides flexibility to adapt to changing markets. Maximus is currently developing an alluvial gold mine in Queensland and has defined resources for gold in Queensland, South Australia and Western Australia and for uranium in Western Australia. The company also holds extensive exploration tenements in Western Australia that are highly prospective for magnetite iron ore, nickel and base metals.

SELLHEIM GOLD PROJECT, Queensland

The Sellheim project tenure covers 78 square kilometres and comprises three granted mining leases enclosed within two exploration permits, located 190 km south–southeast of Townsville. A contiguous application for additional exploration permits covering 108 square kilometres extends northwards. The immediate district is an active and historic alluvial gold mining centre, called Middle Camp, dating back to 1867, and the underlying geology is considered prospective for the discovery of hard rock gold and copper mineralisation.

Regionally, Sellheim is in the highly fertile north Queensland gold belt which has past production plus resources of nearly 30 million ounces gold.

Maximus acquired the Sellheim gold project in mid-2008 after a period of exploration under an option to purchase agreement which commenced in October 2006. Following 100% acquisition of the Sellheim project, Maximus commenced bulk sampling, focusing on the Jacks Patch area utilising a hired processing plant. Maximus completed test pit sampling of the alluvial gold potential and then progressed to a trial production phase from early October 2008. The trial production was concluded in late March 2009 and the operation placed on care and maintenance pending a strategic review of the project, funding options and a decision on final plant configuration.

ADELAIDE HILLS GOLD AND BASE METAL PROJECTS, South Australia

The Adelaide Hills project, located immediately east of Adelaide, comprises some 3,800 square kilometres of contiguous exploration licences (eight) and applications (three) covering numerous gold and base metal occurrences. The Maximus tenure covers eight of the twelve known goldfields that form the Adelaide Hills Gold Province (AHGP) and all of the significant historic gold producing hard rock mines.

In 2008 Maximus lodged applications for mineral claims over 196 hectares surrounding the historic Bird in Hand gold mine, as a precursor to a future mining lease application. Bird in Hand is one of four historic gold mines enclosed within the area of these mineral claim applications (Figure 1). It is Maximus’ intention to explore each of these mines and the rest of the application area for gold mineralisation that could add to the gold resource so far identified at Bird in Hand. Recently the Adelaide Hills Council agreed to the inclusion of roads to allow for the above applications to be consolidated in a single mineral claim application. Based on a recent review of all available data, Maximus is of the opinion that further exploration within the AHGP is likely to provide more discoveries similar to that made at Bird in Hand.

A new Maximus AHGP strategy will be directed towards:

* Investigations that will support completion of pre-feasibility studies at Bird in Hand (BIH);
* Exploration drilling of targets in the mineral claim application area surrounding BIH to locate additional gold resources that could be developed concurrently with the BIH resource;
* Exploration drilling of new targets relating to known goldfields in the AHGP, commencing with the historic Deloraine and Eureka gold mines, to locate other gold resources of similar or greater tenor to that discovered at BIH.

Maximus has an aspirational aim of locating over one million ounces of recoverable gold in the Adelaide Hills. This strategy is based upon Maximus’ belief that a total Exploration Target of some 1,900,000 to 2,400,000 tonnes of gold mineralisation averaging 10 to 15 grams of gold per tonne can be discovered within the AHGP. This is in addition to the resource already defined at Bird in Hand. It is emphasised that this Exploration Target* is partly conceptual in nature and there is no certainty that further exploration will lead to the estimation of further Mineral Resources within the AHGP. However, the discovery of such a target could lead to the delineation of several gold resources that, when totalled, would serve as a basis for significant future Maximus gold production over a period of at least 10 years.

NARNDEE PROJECT, Western Australia

The project area is located in the Mt Magnet region of Western Australia and covers 5,500 square kilometres of the mineral rich Narndee and Windimurra layered mafic complexes.

The extensive Narndee–Windimurra layered intrusion complexes and associated volcanic units are considered to be highly prospective for the above commodities.

During the last quarter, further work on this component of the Narndee project was put on hold. Due to recent expenditure on the airborne EM survey, expenditure commitments for most of the tenements have been met. The potential for an alliance or joint venture to fund ongoing work on this large, strategic, long-term project is now being actively pursued.

WINDIMURRA URANIUM PROSPECT, Western Australia

The Windimurra Uranium Deposit forms part of the Narndee Project located in the Mt Magnet region of Western Australia. Tenements cover many square kilometres of the mineral rich Narndee and Windimurra mafic complexes.

On 20 December 2007, Maximus announced an Inferred Mineral Resource at the Windimurra Uranium Deposit of 19 million tonnes at an average grade of 180 parts per million (ppm). The estimate used a cut off grade of 100 ppm U3O8 for a U3O8 content of 3,400 tonnes (7.5 million pounds). This was located between the surface and a depth of 6.5 metres.

Resource boundaries were open in at least two directions, and heritage clearances had been completed for further drilling, when extension work was suspended due to the previous Western Australian Government’s policy against the mining of uranium. In September 2008, after the recent state election, the incoming Government clarified the situation on uranium mining such that Maximus decided to recommence evaluation of the Windimurra resource and the surrounding area. Work to advance the Inferred Resource to Indicated status, and commencement of a pre-feasibility study, will now proceed.

Newly-acquired airborne electro-magnetic data has complemented existing radiometric imagery to aid future drill targeting. Deeper paleochannels are indicated, with trends sub-parallel to those previously detected by radiometrics, which have not been tested by drilling to date.

Maximus is considering its approach to ongoing uranium exploration work, which may include continued independent exploration or a new joint venture arrangement.

Mine For

gold, uranium, iron ore, nickel, base metals

Location of operation(s)

South Australia, Queensland, Western Australia

Address

62 Beulah Road
NORWOOD, SA, AUSTRALIA

Phone

(08) 8132 7960

Email

Website

http://www.maximusresources.com

Last Updated

22/03/2011