ASX Announcement
25 August 2016
Spargoville Resource Definition Drilling Delivers Further High Grade Gold Results
HIGHLIGHTS
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Significant, shallow gold intersections reported in several holes including high grade inclusions
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12m @ 2.62g/t in hole MXENRC29
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9m @ 2.56g/t in hole MXENRC023, including 1m @ 11.7g/t
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Drilling, sampling and assay protocols to JORC 2012 standard
Maximus Resources Limited (ASX:MXR) is pleased to update shareholders following completion of a Reverse Circulation drilling program on the Eagles Nest project in July 2016.
A total of 8 holes were completed for a total of 540 metres infilling significant results returned from previous explorers work and drilling undertaken by MXR reported to the ASX on the 28th of January 2016, "Spargoville Drilling Delivers High Grade Results.
Significant mineralised intersections recorded in this earlier program include 24m @ 3.05g/t from 19m, including 8m @ 4.0 g/t from 35m in hole MXENRC004, 7m @ 4.0 g/t from 33m, including 1m @ 14.7g/t from 34m in hole MXENRC005, 6m @ 1.98g/t from 81m, including 1m @ 5.3g/t from 81m in hole MXENRC07
The recent drill program was designed to infill to a drill density of approximately 20m x 20m over a strike extent of 80m in preparation for a resource estimation. Refer to Table 1.
The Eagles Nest Project is located on the Spargoville shear approximately 8km south of the previously mined high grade Wattle Dam gold mine. The Eagles Nest Project is approximately 55km by road to the company's Gold Processing Facility at Burbanks. It is the company's intention to utilise the mill for third party toll treatment options whilst it defines and progresses its own gold ore bodies to production.
The drill results at the Eagles Nest Project demonstrate the potential for similar high grade gold mines away from Wattle Dam, within the prospective Spargoville Shear Zone. Evaluation of all drill data at Eagles Nest indicate a mineralized body dipping steeply to the east, and plunging to the north is present at Eagles Nest. The mineralised body remains open to the north, down plunge, and to the south.
Alteration assemblages included biotite, pyrrhotite, pyrite, arsenopyrite and chalcopyrite and are typical in areas of stronger gold mineralisation.
Figure 1: Map showing southern portion of Spargoville project including main targets over TMI background
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Hole ID
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East
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North
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RL
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From(m)
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To(m)
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Intersection
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Comments
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MXENRC023
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357437
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65207740
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357
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19
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28
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9m @ 2.56g/t
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Including 1m @ 11.7g/t from 26m
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MXENRC024
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357458
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65207740
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356
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39
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45
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6m @ 2.60g/t
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MXENRC025
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357472
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65207740
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355
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50
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52
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2m @ 2.32g/t
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MXENRC027
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357447
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65207780
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357
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15
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22
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7m @ 2.74
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MXENRC028
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357467
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65207780
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355
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39
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41
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2m @ 2.40g/t
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MXENRC029
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357482
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65207780
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354
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52
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64
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12m @ 2.62g/t
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MXENRC030
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357452
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65207820
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357
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No Significant Result
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MXENRC031
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357471
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65207820
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355
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48
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51
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3m @ 1.7g/t
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MXENRC032
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357486
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65207820
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355
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64
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65
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1m @ 2.20g/t
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Table 1: Eagles Nest RC Drilling Results July 2016
MXR plans to conduct 3D modelling of the mineralised body to confirm the initial interpretation, which indicates the mineralised zone consists of several north plunging zones that persist at depths of up to 300m below surface.
MXR is now sufficiently encouraged to complete preliminary resource calculations and commence preliminary mining studies for internal use only.
For further information 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, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Stephen Hogan who is a Member of the Australasian Institute of Mining and Metallurgy, and who has 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 context in which it appears with the written consent of the Competent Person.
JORC Code, 2012 Edition - Table 1 report template
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
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Criteria
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JORC Code explanation
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Commentary
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Sampling techniques
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Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
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The sampling has been carried out using Reverse Circulation (RC) Drilling. Nine holes were drilled in this reported programme. All drill holes had samples collected on the drilling rig via a mounted cyclone intervals of every one metre.
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Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
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Sampling was carried out under Maximus' protocols and QAQC procedures as per industry best practice. See further details below.
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Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
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RC holes were drilled with a 4.75 inch face-sampling bit, 1m samples collected through a cyclone and splitter, to form a 2-3kg sample. For mineralised samples the entire 1m sample was sent to the laboratory for analysis. All samples were fully pulverised at the lab to-75um, to produce a 50g charge for Fire Assay with ICP-OES finish.
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Drilling techniques
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Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of Diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
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An RC drilling rig, owned and operated by Kennedy Drilling, was used to collect the samples. The face-sampling RC bit has a diameter of 4.75 inches (12.1 cm).
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Drill sample recovery
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Method of recording and assessing core and chip sample recoveries and results assessed.
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All samples were dry with no significant ground water encountered during drilling and no water egress into holes recorded. Samples recoveries were estimated for each metre of sample based upon a expected volume of sample recovered. All recovery estimates are noted in the logs. Samples recoveries were >90%.
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Measures taken to maximise sample recovery and ensure representative nature of the samples.
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RC face-sample bits and dust suppression were used to minimise sample loss. RC samples are collected through a cyclone and cone splitter, the rejects deposited in a plastic bag, and the lab samples up to 3kg collected, to enable a full sample pulverisation.
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Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of
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All RC samples were dry with no significant water encountered. No sample bias or material loss was observed to have taken place during
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