Gold and base metals explorer Maximus Resources (ASX:MXR) has bolstered the Mineral Resource Estimate (MRE) for its Wattle Dam Gold Project in Western Australia, increasing its contained gold by 250%.
The $10.52 million market capitalisation company reports the MRE for Wattle Dam was prepared by Widenbar and Associates and includes the Redback, Golden Orb, Wattle Dam Stockwork, S5, 8500N, Huntsman, and Trapdoor deposits. The MRE for the project now stands at 5.4 million tonnes @ 1.45g/t Au for 251,500 ounces of gold.
Maximus notes that 61% of the updated Wattle Dam Gold Project resources are in the higher-confidence indicated category.
The updated MRE excludes the mineralisation contained within special prospecting licence P15/6390, in which Maximus has a tribute agreement with the holder for 10% of the first 500 ounces of gold recovered and 20% of gold thereafter.
With the mineralisation open in all directions across Wattle Dam, Maximus reports there is potential for ‘rapid’ resource growth, limited only by a lack of drilling. As a result, planning is underway to expand the resource with further infill and step-out drilling. The company says it is also finalising the next steps towards optimisation studies for ore reserve calculations within the granted mining leases.
Maximus reports a detailed geological and structural review of Wattle Dam was recently completed in collaboration with Widenbar and Associates, which provided ‘valuable’ geological insights towards the updated MRE and identified several additional gold targets within the project area across the Wattle Dam, Redback, Golden Orb, S5, 8500N, Huntsman, and Trapdoor deposits.
This updated MRE, in conjunction with the structural review recommendations, is currently guiding exploration planning to ensure ‘sufficient’ drill density in areas currently excluded from the resource and to expand the mineralised envelope.
Shares in Maximus Resources were up 15.2% to $0.038 at 2:45pm AEST.
Maximus reports it is awaiting assay results from the first phase drill program at Wattle Dam North, which aims to identify a potential structural offset of the ‘high-grade’ Wattle Dam Gold Mine.
The company says all completed drillholes intersected zones of intense biotite alteration, with a similar geological sequence as seen within the Wattle Dam main lode that lies about 200m away. Once these assays are received, Maximus will evaluate the potential for a second-phase drill program.
“Importantly, 61% of the updated Wattle Dam Gold Project resources are in the higher-confidence indicated category…”
Commenting on the updated MRE, Maximus Resources Managing Director Tim Wither says: “We are pleased to achieve 251,500 ounces of gold resources at our Wattle Dam Gold Project, which increases the company’s mineral resource base to 320,600 ounces. Importantly, 61% of the updated Wattle Dam Gold Project resources are in the higher-confidence indicated category, totalling 153,200 ounces of gold, providing a strong foundation for future development studies.
The updated MRE model has captured a significant amount of mineralisation previously unaccounted for, with a marginal decrease in grade, confirming a very large mineralised system. The model also highlights a number of high-grade shoots, which are open at depth and require drill testing.
As part of exploration planning, the recent structural review and updated MRE model are being used to target highly prospective zones that are currently excluded from this resource update, ensuring cost-effective drilling for rapid resource growth.
The updated MRE for the Wattle Dam Gold Project confirms Maximus’ strong resource base with high potential for further expansion and demonstrates Maximus’ capacity to consistently grow gold resources while pursuing exploration activities across several promising gold and nickel targets in the company’s exciting project portfolio.”
Maximus Resources is an Australian miner focused on exploring for ‘high-quality’ gold and base metal projects in Western Australia. These projects include the Wattle Dam Gold Project and the Spargoville Project.
As of 30 June 2023, the company had about $3.6 million cash at hand, according to its latest quarterly report published on 18 July 2023.
Write to Harry Mulholland at Mining.com.au
Images: Maximus Resources Ltd
