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Narndee

Maximus Resources Limited was registered with the Australian Securities and Investments Commission on 17 December 2004 and was officially listed on the Australian Securities Exchange (ASX) on 26 October 2005.

Maximus was conceived by the directors in late 2004 with the objective of creating early shareholder wealth through mineral discoveries and subsequent long term wealth through profitable mine development.

The company has a balanced portfolio of projects with potential for the discovery of gold, copper, nickel and platinum group element (PGE) deposits – thereby establishing Maximus as a polymetallic explorer.

In the first half of 2005, Maximus acquired five projects located across Western Australia, South Australia and Northern Territory.  Four of the five projects hosted known mineralisation requiring more advanced exploration and three of the five were located in well known mineral provinces of the Western Australian Yilgarn Craton and South Australian Gawler Craton.

Also in 2005, Maximus commenced additional exploration drilling on the historic Bird in Hand gold prospect, located in the Adelaide Hills area of South Australia. This work resulted in the identification of, and subsequent feasibility study on the mineral resource totalling 237,000 ounces.. In 2009, further exploration activity was suspended on the Bird in Hand project pending the outcome of a dewatering study and pumping test. In 2013, following an extensive review of the project and approvals timeframe, the Bird in Hand project was divested. Maximus received an upfront cash payment, plus ongoing contingent payments and a gold royalty for the tenement package, ensuring that shareholders continue to benefit from any future production from the project. Early funds received from the project sale allowed the company to continue its exploration program on the remaining portfolio of tenements.

In 2008, the company investigated and subsequently secured tenements located in the Drummond Basin region, south of Charters Towers in Queensland and continued mining an alluvial field on the Mining lease. Inconsistent recoveries and periods of significant adverse weather resulted in divestment of the project in August 2012.

In 2015, Maximus entered into a Farm-in Agreement Tychean Resources Ltd securing an immediate 25% equity in the significant Spargoville goldfields, south of Coolgardie in the Eastern Goldfields of Western Australia. The parcel encompasses in excess of 11,000 hectares in the highly prospective Spargoville area, including the former high grade Wattle Dam gold mine.

Western Australia
Maximus 51% up to 100%

In August 2015, Maximus signed a Farm-in Agreement with ASX listed Tychean Resources Ltd (TYK) to secure up to 90% of the Spargoville Gold Project. Spargoville is located 70 kilometres south of the regional mining centre of Kalgoorlie in Western Australia’s Eastern Goldfields.Maximus Resources acquired an initial 25% interest in the substantial exploration tenement package consisting of 27 granted mining leases, two granted exploration licences, five prospecting licences and two miscellaneous licences. The total exploration area is 11,440 ha.

In November 2015, Maximus achieved the Stage 1 earn-in commitment (further $200,000 exploration expenditure), increasing equity in the tenement package to 51% of TYK’s gold rights and various nickel rights over the tenements. Maximus continues to invest in exploration to achieve the Stage 2 earn-in milestone and achieve 90% equity in the TYK interest in the tenements. TYK retains 10% equity through to a decision to mine at which point it can contribute to ongoing costs, or dilute to a NSR royalty. Nickel rights on 10 tenements are held by a third party.

Gold has been mined in the Spargoville Region for over 70 years and yet despite its close proximity and ease of access to the major gold mining centres of Coolgardie, Kalgoorlie and Kambalda, it remains one of the under explored belts in the Western Australian Goldfields. Much of the historical exploration has been fragmented and quite cursory.

Maximus controls the gold rights to some 280km2 along more than 30km strike length covering the Kunanalling and Spargos Reward shears. A review of the significant database of information acquired in the Farm-in Agreement has highlights in excess of 60 targets that require follow-up investigations. In targeting gold, emphasis is placed on soil geochemistry in areas of residual soils and outcrop while in those areas concealed by transported overburden RAB drilling is used. These targets are generated using a combination of geological, regolith and structural interpretation coupled with the detailed aeromagnetic data, all from the Company’s data base.

Maximus has completed confirmation soil sampling programs to validate a selection of historic data collected, in some cases, two decades ago. In addition, lag samples and orientation soil samples were collected and reported. Infill soil sampling has also been completed over previously identified targets, were historic soil sampling is only reported on the broad 200 metre line spacing.
Maximus has completed two RC drilling program to-date on the Eagles Nest tenement to test for strike extensions and up-plunge extensions to the mineral inventory already reported on the tenement. Results reported to date confirm that Eagles Nest can add to the overall mineral inventory of the southern Spargoville tenement package currently under investigation.

The tenements are considered highly prospective and include advanced exploration projects which encompass the previously mined, high grade Wattle Dam gold deposit. Results to-date indicate that several targets tested display similar course gold properties to the now completed Wattle Dam mine. The company continues to test the oxide portion of these projects to identify if a significant course gold fraction exists, similar to the course gold component of the Wattle Dam mine.

Wattle Dam mine produced 880,000 t @ 10.1 g/t Au for 286,000 ozs. The influence of the course gold fraction during production is evidenced by the breakdown below;

  • Stage 1 open pit, March 2006 to October 2006
      • Optimised ore – 73,000 tonnes at 5.86g/t Au for 13,750oz
      • Ore processed – ~162,000 tonnes at 6.62g/t Au for 34,480oz
  • Stage 2 open pit (cutback), June 2008 to April 2009
      • Optimised ore – ~76,000 tonnes at 2.30g/t Au for 5,620oz
      • Ore processed – ~158,035 tonnes at 3.34g/t Au for 16,972oz
  • Underground mining, September 2009 to October 2012
      • 2010 underground resource – 226,500 tonnes at 18.0g/t Au for 130,900oz
      • Total underground production – 438,000 tonnes at 14.9g/t Au for ~210,000oz

Note: tonnes, grades and recovery sourced from TYK data

The second priority area currently being advanced is the Redback project, located 700 metres south of Wattle Dam.

Between December 2013 and July 2015, 1 RAB, 2 Aircore, 5 RC and one diamond drilling programs were completed at the Redback Prospect. These drill programs were designed as a staged approach to test the previous explorer’s strategy based on the nearby Wattle Dam gold mine model. The relatively small, high grade, nuggetty nature of the gold mineralisation at Wattle Dam highlighted the need for close spaced drilling in order to effectively test the potential of the ground.

Drilling to date has identified 3 high grade, north plunging, zones of gold mineralisation (the Eastern, Central and Western zones) over a collective strike extent of 180m, which remain open in several directions. The gold mineralisation lies within north east trending ultramafic lithologies of the Kambalda Komatiite unit which is bounded to the west and east by intrusive granitoids.

The eastern zone of the Redback Prospect to the south of Wattle Dam is interpreted to display geological, structural and grade characteristics comparable to that of the high grade Eastern Zone mined at the Wattle Dam Gold Mine, located 700 metres to the northwest.  To date, high grade Eastern Zone mineralisation in the south, has been defined over a strike length of 60 metres and maximum dip extent of 60 metres and remains open at depth and along an interpreted northerly plunge to the north (Figure 4).

The current drill spacing testing the Eastern zone in the south has been completed to a 10m x 20m drill spacing (~20m x 20m intersection separation) and the extensional drilling at 20m x 20m (~40m x 20m intersection separation). In comparison a drill spacing of 10m x 10m was required in order to intersect the outstanding intersections within exploration drilling within the Wattle Dam Eastern Zone mineralisation including (but not limited to) 16 metres at 482g/t Au from 123 metres including 1 metre at 6,770g/t Au from 129 metres*.  The drill spacing at Wattle Dam was required due to the high grade mineralisation’s limited strike length (minimum 40 metres) and nuggetty and variable nature, as identified at the Redback Prospect.

A long section of the Wattle Dam Gold Mine Eastern Zone mineralisation (Figure 3) highlights the restricted and high grade nature of the deposit.  Wattle Dam surface exploration drilling only has been used to generate the long section, so that comparisons can be made with the mineralised zones at the Redback Prospect currently defined by exploration drilling.
Significant intersections returned from the eastern zone to date include:

  • 16m @ 6.00g/t Au from 118m, including 4m @ 15.3g/t Au from 121m
  • 9m @ 9.98g/t Au from 109m, including 2m @ 18.5g/t Au from 109m and 1m @ 19.4g/t Au from 114m
  • 8m @ 9.29g/t Au from 208m, including 2m @ 10.7g/t Au from 208m and 2m @ 20.1g/t Au from 214m
  • 5m @ 8.96g/t Au from 186m, including 1m @ 15.7g/t Au from 186m and 1m @ 20.2g/t Au from 190m
  • 7m @ 6.46g/t Au from 138m, including 2m @ 14.3g/t Au from 139m
  • 3m @ 17.5g/t Au from 95m, including 1m @ 33.5g/t Au from 96m
  • 3m @ 14.9g/t Au from 132m, including 1m @ 38.0g/t Au from 132m
  • 13m @ 4.22g/t Au from 89m, including 2m @ 16.8g/t Au from 92m

Maximus Resources is currently analysing the near surface, oxide database to identify potential openpitable material.

GOLD

BURBANKS TREATMENT PLANT

The Burbanks Treatment Plant is located in the Eastern Goldfields region of Western Australia, 8 km south of the town of Coolgardie and 46 km west of Kalgoorlie. The plant was purchased by Maximus in August 2016 and refurbished in early 2017.

 

The mill is a conventional CIL circuit, with two-stage crushing, ball mill, gravity circuit and leach tanks. The mill has a capacity to treat up to 180,000 tonnes of material per annum and is particularly suited to higher grade coarse/free gold ore.

Burbanks has historically processed ore from Wattle Dam and Coogee gold mines and has also undertaken a number of toll milling parcels.

Burbanks was placed on care and maintenance in December 2014, prior to its purchase and refurbishment by Maximus.

 

Burbanks Treatment Plant

LITHIUM

Maximus commenced a review of the extensive Spargoville database and has highlighted the potential for Lithium mineralization within its tenement boundaries at the Lefroy and Landor prospects. The Lefroy prospect appears to be situated within a similar structural setting to that hosting the Neometals Mt Marion Lithium project.

The Lefroy prospect was first investigated by Ramelius Resources (ASX:RMS) in 2006 as mining commenced at the Wattle Dam gold mine. The prospect was identified from a routine 200m x 40m gold and nickel exploration auger drilling program. Multi element assays from this auger program returned approximately 100 times background results for Tantalum and Niobium, along with elevated Lithium values.

A further 313 auger holes were completed by RMS to follow up these early encouraging results. In addition, outcropping pegmatites were recorded.

RMS concluded that rock chip sampling, and if appropriate RAB drilling was warranted to further advance this prospect. (Refer to RMS- 2006 Annual Report). However this further work was not undertaken.

Maximus has identified further areas of pegmatites on its tenements that Geological Survey of WA geologists mapped and consider similar to those hosting the Mt Marion Lithium project (see figure 2). These pegmatites have yet to be tested by drilling for Lithium.

 

Maximus subsequently announced it had discovered a significant Lithium bearing Pegmatite at Target 1 on the Lefroy Prospect. The discovery was made during the Company’s first dedicated Lithium exploration field program designed to test a series of targets generated from auger drill results by previous explorers, detailed aerial photography interpretations and geophysical imaging. The discovery at Target 1 (See Figure 1) shows Lithium bearing mica (lepidolite) over a strike length of 200m with results averaging 3.55% Li20, and a peak value of 4.97% Li20.

The Lithium bearing pegmatite is hosted within a mafic-ultramafic complex has not previously been drill tested.

Further east of Target 1, high Lithium values of up to 1.74% Li20 have been returned from re-sampling of historical RC holes where pegmatite was intersected and logged during nickel and gold exploration programs.

XRD analysis was then conducted on a series of samples of pegmatite drilled during previous gold and nickel exploration programs. The samples analysed were taken from representative chip trays collected during the drilling programs and securely stored at Wattle Dam. The pegmatite intervals noted in the drill logs and in the chip trays report pegmatite thicknesses ranging between 6m and 13m.

The results of the XRD analysis confirm that spodumene is present in these drillholes.

The spodumene bearing pegmatite confirmed by these XRD results is located approximately 750m south-east of the lithium rich pegmatite discovered at Target 1.

Recent field work has identified lithium bearing pegmatite at Target 3, some 150m north of Target 1, and initial sampling results are awaited.

The company is highly encouraged by the confirmation of spodumene as well as lepidolite returned from earlier sampling over a wide area. There is no doubt that the Lefroy Prospect contains highly sought after LCT pegmatite’s and lies along strike to the south of the Mt Marion Lithium Deposits, demonstrating the location’s prospectivity.

Narndee

Western Australia
Maximus 90% to 100%

The project area is located in the Mt Magnet region of Western Australia and covers 1,000 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 Nickel, Platinum Group, Base-metal and Gold mineralisation.

During 2008, Maximus completed helicopter-borne EM survey (REPTEM) coverage of the total Windimurra-Narndee Project area on 400 metre spaced east-west lines for a total of 15,000 line kilometres. More detailed (100–200 m spaced) infill lines were also completed over four areas of known ultramafic rocks. Progress reviewing the enormous dataset was slow, ultimately being completed in mid-2011 with 18 high priority targets being identified. These 18 targets consisted of 14 individual and 4 broad zone targets warranting further on-ground exploration.

This work has been progressing steadily with the highest priority targets addressed in 2012/13. Further investigations of these new anomalies identified by both the regional and detailed components of the AEM survey was undertaken resulting in several high priority targets confirmed. The next phase of exploratory work on these targets includes ground EM surveys to further validate each target and assist in targeting drill collar locations.

In 2015, RC drilling was undertaken on gold targets located in the northern tenements, considered prospective for gold mineralisation. These programs did not return significant assay results and the northern tenements were divested to allow focus and funds to be concentrated on the southern tenements.

Billa

South Australia
Maximus 100%

The Millers Creek project is located northwest of Lake Torrens in the Eromanga Basin within the Woomera Prohibited Area (WPA) in central South Australia.
               
The Millers Creek project area comprises four exploration licences covering approximately 1,922 square kilometres of highly prospective ground located 70 km northwest of the Olympic Dam iron oxide–copper–gold–uranium (IOCGU) mine and 45 km east of the Prominent Hill copper–gold deposit.

In November 2013 Maximus finalised a Memorandum of Understanding (MoU) with Monax Alliance Pty Ltd (Alliance) a subsidiary of Monax Mining Ltd allowing Alliance to conduct Due Diligence and preliminary exploration work on the four Millers Creek tenements for a period of six months. Alliance can then elect to enter into a Farm-in and Joint Venture Agreement with Maximus for a period of up to 3 years by committing to a minimum of US$3 million expenditure.

During the same period as the Alliance MoU, the Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) completed an extensive aerial gravity survey across the Woomera Prohibited Area (WPA) including the Millers Creek tenements, the first such survey targeting IOCGU deposits within the area for over 30 years.

Following completion of a review of all documentation and analysis of data received following the SA government (DMITRE) aerial gravity survey completed in 2013, Alliance identified seven target zones across the four tenements warranting further investigation. Alliance completed a ground gravity survey in February 2014 covering the broad target zones within each tenement and the results confirmed that three priority iron oxide copper gold (IOCG) targets and multiple lesser ranked individual targets exist. The gravity survey was completed on a 250m x 250m grid over the target areas.

Following analysis of the ground gravity results, Alliance proposed a heli-bourne magnetic survey be completed in H1 2014 to assist with modelling depth to basement and provide better quality magnetic data to assist with locating potential drillhole positions. The heli-mag survey was completed in early April 2014 and analysis of the survey data confirms the existence of the three priority targets.

Prior to undertaking drilling on the Maximus tenements, Maximus and Monax Alliance entered into a Farm-in Joint Venture agreement in February 2015 for a period of up to 3 years and expenditure commitment of US$3 million.

Alliance commended drilling a single diamond drillhole in March 2015 to test the Oliffes Dam Iron Oxide copper-gold (IOCG) target. The hole was completed in April to a depth of 911.3 metres. A review by Alliance technical committee of the data recorded determined that further drilling was not warranted. This decision coincided with a near total withdrawal from exploration in Australia by Alliance’s international partner.

Maximus is confident that the Millers Creek tenements remain highly prospective for IOCG deposits and continues to seek interest from other parties to explore this under-explored section of the Gawler Craton.

bih

South Australia
Maximus - Royalty + Contingent Milestone Payment

Maximus has finalised a Sales Agreement with Terramin Exploration Pty Ltd, a subsidiary of ASX listed Terramin Australia (Terramin) Ltd to purchase the Bird in Hand project and five adjoining tenements in July 2013. Maximus can receive upto $3.5 million, 25 million FPO shares in Terramin plus a royalty for gold production from the Bird in Hand project.

Location
The Bird in Hand resource is located 25 km east of Adelaide and three kilometres east of the Adelaide Hills township of Woodside.

Mineralisation
Bird in Hand gold mineralisation primarily occurs within two quartz vein systems that are sub-parallel to each other. An upper White Reef Zone and a lower Main Reef Zone (see Figure 2).

The White Reef varies in true thickness from 1.1 to 2.6 m. It is relatively continuous in the upper parts of the deposit (above 240 m RL) but becomes more inconsistent with depth.

The Main Reef averages approximately 5.4 m true thickness and appears to be relatively continuous over the whole deposit. Higher grades are encountered in the Main Reef.

Bird in Hand was mined in the 1880s to a vertical depth of 128 metres. Historical reports state that during this period the operation produced 22,600 tonnes at an average grade of 12.65 g/t Au. Operations ceased in 1889 when the underground workings flooded.

Resource
The resource estimate consists of an Indicated Resource from 340 to 220 metres RL and an Inferred Resource from 220 to 20 metres RL and totals 598,000 tonnes at an average gold grade of 12.3 g/t for a contained 237,000 ounces.