b075e1af-d321-415c-b64c-995d03436456.pdf
Quarterly Report
PERIOD ENDING 30 SEPTEMBER 2015
Maximus Resources Ltd ABN 74 111 977
SUMMARY
PROJECT EVALUATION
f Spargoville gold project - 25% equity acquired in August.
f Spargoville Farm-in Agreement signed with ability to increase equity to 90% in tenements.
f Analysis of projects for acquisition or joint venture continues.
WESTERN AUSTRALIA
NARNDEE PROJECT
f Review of past exploration activities shows EM conductors that require on- ground follow-up.
f Preparations commenced for ground EM survey on priority target.
f Evaluation of tenements contiguous to existing MXR ground undertaken, and subsequent applications submitted to secure position.
f Evaluation of northern gold tenements results in a decision to divest four tenements.
SOUTH AUSTRALIA
MILLERS CREEK PROJECT
f Tenement package posted on electronic notice board for potential joint venture.
Yilgarn Craton
YANDAL NARNDEE
Gawler Craton
Eromanga Basin
WELBOURN HILL MILLERS CREEK
f Options currently being reviewed, including joint venture considerations for tenement package following initial interest.
SPARGOVILLE
ADELAIDE HILLS
Maximus project locations
Figure 1 Location of Maximus Projects.
DEVELOPMENT AND EXPLORATION ACTIVITIES
WESTERN AUSTRALIA
SPARGOVILLE PROJECT
Maximus 25%
Upon completion of the Farm-in Agreement with Tychean Resources for the Spargoville gold tenement package (see figure 1) located 70 km south of Coolgardie in the Eastern Goldfields, Maximus had personnel on the ground on the date of settlement completing a site familiarisation visit in addition to collecting orientation soil and lag samples for analysis.
A total of 30 orientation soil samples and lag samples were collected across the Golden Orb and 8500N prospects to check the repeatability of historic soil samples collected in the 1990s. Results were received on 18 August and correlate very well with the earlier Resolute Resources and Ramelius Resources soil sample results.
In 2012, an independent geophysicist completed an evaluation of the Spargoville electromagnetic (EM) survey data commissioned by Ramelius Resources (RMS) and identified no less than 50 targets to be investigated as possible repeat Wattle Dam structures or other potential mineralised structures. Maximus understands that at the time the report was delivered, RMS was winding down Wattle Dam and focussing on optimising the recently acquired Mt Magnet project, thus no targets were investigated further by RMS.
Tychean Resources Limited (TYK) acquired the Spargoville tenement package from Ramelius in August 2013 and focussed its exploration efforts predominantly on two targets to the south of Wattle Dam, known as Golden Orb and Red back. Both of
these targets had been identified previously by Resolute Resources Ltd, but infill drilling by TYK failed to identify significant economic mineralisation.
As Maximus continued evaluating the wealth of data available, including historical soil sampling results, aerial EM data, rotary air blast (RAB) drilling data, aircore drill data, RC drill data and diamond drill data and associated assay data, several high potential targets were identified. These targets were the subject of further detailed soil sampling in August and September. It is envisaged that highly anomalous results from the early soil sampling programs will quickly lead to drilling programs.
A second round of infill soil and lag samples were collected in September, focussing on areas west and north of the original high grade Wattle Dam gold mine located on the Western shear. A total of 566 soil and 488 lag samples were collected on an 80 metre x 40 metre sample grid. The program was designed to test three priority targets (see figure 2), from a total of +60 targets identified, with all three
targets (S5, S8 and 8500N) returning results similar in magnitude to those which led to the discovery of the Wattle Dam gold mine.
The original soil sampling program completed by Resolute Mining during the 1990s was based on a
200 metre x 40 metre grid spacing. The reduced sample grid spacing was determined by Maximus, following analysis of existing exploration results, as presenting
a far greater potential to identify a repeat Wattle Dam sized project.
A third round of soil sampling commenced late in September with a further 1,100 samples collected and submitted for analysis. All primary soil and Lag samples collected during the Maximus exploration programs
are assayed for multi elements (a suite of 45 elements), including gold, silver, copper, nickel, lead, zinc and sulphides. Infill sampling on identified targets will focus on gold assay analysis only.
Figure 2 Soils and lag sample locations (yellow square) and assays of gold >50ppb. Number above the yellow square is soil gold (ppb), and below the yellow square lag gold (ppb). Historical soils results of >50ppb gold from 200m x 40m sampling shown as red text. Target 8500N is a historic target, Targets S8, S5 and S14 are currently the focus of an infill sampling program by MXR. Red crosses on Target S8 show locations of historical pits.
360,000mE 370,000mE
360 000 E
370 000 E
KAMBALDA WEST
M1M5/1175061976
6,540,000mN
6,540,000mN
,540,000 mN
M15/132M3 1501323
M 1501770
M15/1770
M 1501776 M15/1776
P15/59P112505912
E 1500967
E15/0967
M 1501448
M15/1448
M1M5/11750713773
M 150177 M15/1338
M15/1774
M15/1771
P 1504884
P15/4884P15/4885
M15/07L 013500128
M15/1772
L15/0128
P15/4M9613501772
M15/1771
E 1501434
P15/586P0 150586
MM 1155/011777755
6,530,000mN
,530,000 mN
P15/5953
EE1155/000996688
M15/1263
M 1501263
L15/0255
L 1500255
6,530,000mN
E 1501249
P 1505953
E15/0968
M15/1474 M 1501474
MM11550/0033995
M1M5/1115001110 M 1501264 M15/1264
M15/0097
M 1500097
E 1501399
M15/06M513500653
MM1155/011444499
MM151050/0090999
6,520,000mN
M15/14M751501475
6,520,000mN
E 1501438
,520,000 mN
M 1500100
M15/0100
M15/0101
M 150010
MM151/510217271
M 1500102
M15/0102
Exploration Licence - Maximus
6,510,000mN
0 2.5 5
kilometres
, ,
6,510,000mN
WESTERN AUSTRALIA
SPARGOVILLE PROJECT
Tenure
21 September 2015
360,000mE 370,000mE
Figure 1 Spargoville tenements - Maximus 25% equity.
Spargoville_01
NARNDEE PROJECT
Maximus 100%
The review of past and recent exploration programs on Narndee, commenced during the previous quarter has highlighted electromagnetic (EM) conductors that warrant on-ground follow-up. Further analysis by an independent geophysicist has confirmed a priority target located adjacent to an area previously evaluated by Maximus. The renewed focus on the area and the early identification of a significant anomaly justifies the company's persistence on the tenement package.
Maximus is also evaluating surrounding tenements to secure our position, and thus secure future potential in the southern portion of the tenement package (Milgoo project area). Applications to secure addition tenements were prepared and submitted subsequent to the end of the quarter to strengthen the ground holding in the region.
The company also reviewed the northern tenement package located east of Mt Magnet held for its gold potential, where little success has resulted from early attempts to identify a gold resource. Expenditure commitments on these tenements are increasing, and with the focus moving to the Spargoville gold tenements near Coolgardie in the Eastern Goldfields acquired during the quarter, maintaining these northern tenements is difficult to justify in the current environment.
Opportunities to JV or divest the tenements will be pursued.
YANDAL PROJECT
Maximus 20%, 100% iron ore rights
A verbal agreement was reached with Orex Mining Pty Ltd following negotiations through an intermediary to reclaim control of the Yandal project (also known as Ironstone Well) and reclaim 100% of the gold rights of the project for a nominal charge. However, a significant delay of several months occurred before receipt
of documentation including the tenement transfer notice, by which time Maximus had secured the highly prospective Spargoville gold tenements from Tychean Resources, and focus had shifted to these southern
tenements. A review of tenement transfer documentation also revealed that the Flushing Meadows gold resource was not included in the revised tenement boundary being offered for sale, thus a decision not to acquire the tenement was confirmed.
SOUTH AUSTRALIA
MILLERS CREEK COPPER, GOLD PROJECT
Maximus 100%
The company has completed a review of the geophysical data to determine the presence of any IOCG targets
and maintains that the tenement holding remains highly prospective for IOCG mineralisation.
However, with the current focus of the company towards gold projects and base metal projects in Western Australia, the company listed the tenement package on an online platform to solicit offers for a Joint Venture on the expanded Millers Creek project.
ADELAIDE HILLS PROJECT
100% Maximus
A review of the available data on the four remaining Adelaide Hills tenements was completed during the quarter with little scope identified for a significant discovery. We continue to discuss possible JV or sale opportunities, however one tenement was relinquished during the quarter to conserve funds for on-ground exploration programs.
NORTHERN GAWLER CRATON PROJECT
WELBOURN HILL
Maximus 100%
The Northern Gawler Craton Project consists of a single granted tenement, Welbourn Hill (EL 5248) located along the northern margins of the Gawler Craton in the Marla region of South Australia covering an area totalling 439 km2.
Following the airborne magnetic survey completed during March 2015, the Geophysicist completed some preliminary imagery. This data shows a detailed picture of the magnetics, which suggests that basement rocks are the source of the magnetic anomaly, and the mineralisation is associated with magnetite depletion.
The company continues to promote this project to prospective Joint Venture parties as one with potential to host a significant copper target within the basement structure.