Windimurra Uranium Prospect

Potential for calcrete uranium deposits in major paleodrainage systems

• Extensive network of paleodrainage channels.
• Carnotite uranium mineralisation located by previous exploration of up to 2.1 metres of 0.43 kg/t U3O8 in a channel 8 km north of Windimurra Homestead.
• Earning up to 70% equity in 13 exploration licences and 15 exploration licence applications covering a large project area of over 4,000 square kilometres that includes the Narndee nickel – copper – PGE and gold project.
• Program of follow-up drilling on known mineralisation and reconnaissance testing of new targets based on recent high resolution airborne radiometric survey.

Uranium mineralisation occurs as carnotite in calcrete deposits within major paleodrainage systems flanking the northern and eastern margins of the Windimurra Complex. In 1972, following the discovery of the Yeelirrie uranium deposit located about 200 km northeast of the project area, Western Mining Corporation (WMC), by following up airborne radiometric anomalies, discovered uranium mineralisation in two areas, Windimurra and Wondinong.

WMC carried out several shallow drilling programs resulting in numerous 1 to 3 metre intersections averaging over 0.1 kg/t U3O8 with the highest value being 0.43 kg/t U3O8 from the surface to 2.1 metres depth in hole MWMRC 270, located about 8 km north of Windimurra Homestead. Little uranium exploration has been carried out in the project area since the early 1970s and Maximus’ Directors believe the area is highly prospective for the location of further prospects and potential uranium deposits in the extensive paleodrainage systems contained within Maximus’ tenements. In particular, the recent reflying of the project area with high resolution airborne radiometrics offers scope for locating new uranium mineralisation, undetected by previous explorers.

Maximus intends to carry out a detailed assessment of the uranium channel data from recent radiometric surveys and, after field inspection of anomalies, to integrate the results with regolith geology. This will be followed by a two phase drilling program. The first phase consists of infill and follow-up drilling around previous uranium intersections, and the second phase consists of reconnaissance drilling targeting new radiometric uranium anomalies interpreted from the recent airborne surveys.

Bird-in-Hand Gold Prospect

Potential for high-grade gold mineralisation and early cashflow

• Numerous old gold workings at historic Woodside and Echunga Goldfields.
• Earning 75% equity in granted exploration licence 3215 that includes Bird-in-Hand gold mine and holding 100% equity in six adjacent granted exploration licences, together covering 2,939 square kilometres.
• Historic Bird-in-Hand mine shows high grade gold mineralisation to 6 metres at 14 g/t Au and widening with depth.
• Aim to define high-grade gold resources amenable to underground mining.

The Adelaide Hills Project area holds gold discovery potential through exploration of its areas including the historic Woodside and Echunga Goldfields which have together produced some 300,000 ounces of gold.
In conjunction with Flinders, and by way of joint venture agreement with AKD Limited and Statelink Holdings Pty Ltd, as summarised on pages 70 to 71 of this prospectus, Maximus is earning a 75% equity position in all metalliferous minerals contained within EL 3215. Maximus has 100% equity in all metalliferous minerals in the remaining six contiguous exploration licences.

The initial focus of exploration within the project area will be the historic Bird-in-Hand mine workings within EL 3215 from which miners of the 1880s are reported to have produced some 22,600 tonnes at an average grade of 12.65 g/t Au (approximately 9,200 ounces). In the 1930s, underground investigations by the South Australian Department of Mines demonstrated that significant high-grade gold mineralisation remained in the lower levels of the 128 metre deep mine. Two south dipping lode positions were recognised with grades exceeding 12 g/t Au over widths of one to two metres and strike lengths of 25 metres separated by material averaging about 6 g/t Au. During the investigation, a single diamond core hole drilled from surface intersected the reef at 175 metres depth, approximately 40 metres below the lowest mine working. The reef averaged 14.2 g/t Au over a 6.1 metre true width. In that period, these grades were not considered sufficient to warrant further exploration or reopening of the mine.

Exploration of the Bird-in-Hand mine remained dormant until 1997 when Capricorn Resources, in joint venture with Australian Kimberley Diamonds Limited and Statelink Holdings Pty Ltd, drilled several gold prospects in the Woodside Goldfield. As part of the program, four RC holes were drilled under the Bird-in-Hand mine workings to test the down dip extension of the high grade ore shoots identified in the 1934 assessment work. Both the previously recognised southern and northern shoots were intersected and respective intervals of 12.3 g/t Au over 5 metres from 143 metres (Drill hole 97RCBH#9) and 7.9 g/t Au over 13 metres from 171 metres (97RC BH#12) were recorded. It was also noted that the reef was widening with depth.

Maximus will undertake further exploratory drilling of the Bird-in-Hand ore shoots with the intention of testing these zones of mineralisation at depth and on spacings that could be used to estimate the gold potential remaining below the old workings. Success in this initial exploration could lead to an infill program of delineation drilling and resource estimation.

February 2006 drilling

Gold results for an additional two core drill holes continue to indicate potential for high grade gold mineralisation at the historic Bird-in-Hand Gold Mine near Woodside in the Adelaide Hills.

Hole BH-19, situated 40 metres north-northeast of previously reported drill hole BH-17, recorded 6 metres from 183 metres down hole averaging 23.5g/t gold (Estimated true width 4.2 metres). The intersection includes 1.5 metres of quartz reef averaging 78.2g/t Au in which a 0.45 metre section with abundant pyrite assayed 226g/t. No grade cut has been applied to the latter value in this early stage of the Bird-in-Hand investigation.

Hole BH-18 situated 20 metres south-southwest of BH-17 intersected 0.15 metres of reef quartz before traversing a 2.85 metre cavity thought to be due to solution of the carbonate rich footwall. While the missing core zone in a vital part of the hole was unfortunate, the recovered portion of oxidised reef graded 3.17g/t Au.  

Base metal assays for BH-18 and BH-19 are still to be received, but neither hole had sufficient visible base metal sulphides to suggest any significant values will be recorded.

BH-19, together with previous Maximus hole BH-17 and drilling by a previous explorer, has indicated high grade gold mineralisation is present over approximately 40 metres of lateral extent. The mineralisation remains open to the north and at depth. Even the failure of BH-18 to intersect a full thickness of reef suggests that an extension of the potentially mineralised reef structure may exist for an additional 20 metres laterally to the south of BH-17.