ASX Announcement
22nd November 2016
Maiden Resource Estimate for 5B Project at Spargoville in Western Australia
HIGHLIGHTS
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Maiden Mineral Resource totalling 75,300 tonnes @ 3.07g/t for 7,700 Ozs at 5B Project
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Existing open pit and extensive underground workings provide development flexibility and early ore
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5B Project ore intended for processing through Maximus' newly acquired Burbanks gold treatment plant
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Total Spargoville gold Mineral Resource estimate currently exceeds 45,000 Ozs
Maximus Resources Limited (ASX:MXR) is pleased to update shareholders following calculation of the Company's third JORC 2012 compliant Mineral Resource estimate at Spargoville. Maximus confirms a Maiden Mineral Resource totalling 7,700 Ozs at the 5B Project (see Table 1 for details), which forms part of the high-grade Spargoville gold project south of Kalgoorlie in Western Australia.
|
Classification
|
Tonnes
|
Au g/t
|
Ozs
|
|
Inferred
|
75,300
|
3.07
|
7,700
|
|
Total
|
75,300
|
3.07
|
7,700
|
Table 1: 5B Mineral Resource estimate by classification (Au > 0 g/t).
The 5B Project is situated approximately 1,800 metres to the north-east of the high-grade Wattle Dam Gold mine, and occurs on a subsidiary parallel shear zone to that which hosted the high-grade mineralisation. The mineralisation at 5B occurs within a shear zone at the contact of a small dunite body located between a basalt footwall and an ultramafic unit in the hanging wall.
The deposit is located approximately 54km from Maximus' recently acquired Burbanks gold treatment plant (see Figure 2 for details). Burbanks has a capacity of 180,000 tonnes per annum and is currently being refurbished with an anticipated completion time of Q1 2017.
The resource is based on a total of 55 holes (22 RC and 8 diamond holes from surface and 25 underground diamond holes) as well as 7 channel samples collected from within the existing open pit. A number of drill holes that fall within the existing pit, which were used to define the previously mined resource were not included. The drillholes and channel samples were completed by Australian Selection
Pty Ltd, BP Minerals Australia, Spargoville Nickel Pty. Ltd, Amalg Resources N.L, Breakaway Resources Limited and Tychean Resources Limited. (See Appendix 1).
The 5B open pit was mined by Amalg Resources N.L in 1995 recovering 9,700 tonnes of ore at a recovered grade of 2.77g/t. Preliminary underground development was completed by Australian Selection in 1979, and includes a portal and decline, and underground development drives which provided underground exploration drilling locations.
The ore body strikes north-south and dips at 65-70 degrees to the west, extending over 80m in strike length to a current depth of 150m below surface (see Figure 1 for details). The ore body remains open along strike and at depth.
|
Category
|
Tonnes
|
Au (g/t)
|
Ozs
|
|
Oxide
|
14,800
|
4.84
|
2,306
|
|
Transition
|
18,000
|
3.88
|
2,250
|
|
Fresh
|
42,500
|
2.30
|
3,144
|
|
Total
|
75,300
|
3.07
|
7,700
|
Table 2: 5B Mineral Resource estimate by oxidation state (Au > 0 g/t).
Currently, approximately 70% of the current resource (4,500 Ozs) occurs within 40m vertically of the base of the current 5B pit (310mRL) at an average grade of 3.48g/t (see Table 3 for details).
|
Level (RL)
|
Tonnes
|
Cumulative Ave Au Grade (g/t)
|
Au (ozs)
|
|
301-320
|
1507
|
3.64
|
177
|
|
300-310
|
6619
|
5.27
|
1,123
|
|
290-300
|
8350
|
4.55
|
1,222
|
|
280-290
|
8181
|
4.50
|
1,184
|
|
270-280
|
6944
|
3.48
|
777
|
|
260-270
|
6438
|
2.42
|
501
|
|
250-260
|
6876
|
2.78
|
615
|
|
44,915
|
3.48
|
5,422
|
Table 3: 5B Mineral Resource estimate by RL accessible by open pit mining method. Base of current pit approximately 310m RL
The current defined Mineral Resource estimate is situated entirely on granted Mining Lease M15/395.
Figure 1: 5B Mineral Resource estimate - long section, looking west.
Figure 2: Location Map
Figure 3: 5B box cut and portal entrance to the decline
The 5B Mineral Resource estimate is in addition to the Company's recently announced maiden Mineral Resource estimates for both the Eagles Nest project (see ASX announcement 02/11/2016) and the Larkinville Project (see ASX announcement 09/11/2016).
The 5B resources grow the Company's resource base at Spargoville to a total of 45,100 ozs.
It is Maximus' intention to utilise the Burbanks mill to initially toll treat 3rdparty ore feed to generate maiden revenues whilst the Company defines and progresses its own gold resources through the feasibility, approval and production processes.
For further information, please contact:
Kevin Malaxos on (08) 7324 3172 Duncan Gordon, Adelaide Equity Partners [email protected] on (08) 8232 8800 or 0404 006 444
[email protected]
Further information relating to Maximus Resources Limited and its diversified exploration projects will be found on Maximus' website: www.maximusresources.com
The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Stephen Hogan who is a Member of the Australasian Institute of Mining and Metallurgy. The information in this report that relates to Mineral Resources or Ore Reserves is based on information compiled by Dr Graeme McDonald who is a Member of the Australasian Institute of Mining and Metallurgy. Both Mr Hogan and Dr McDonald have sufficient experience relevant to the style of mineralisation, the type of deposit under consideration, and the activities being undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves (the JORC Code). This report is issued in the form and c ontext in which it appears with the written consent of the Competent Persons.