Maximus Resources Ltd (ASX:MXR) has delivered a 78% gold resource increase to 1.24 million tonnes at 1.6 g/t for 76,500 ounces in a mineral resource estimate (MRE) for the Redback Deposit with the Wattle Dam Gold Project in Western Australia.
The MRE produced an upgrade in confidence levels, with 24% of the Redback resource ounces reported in the indicated category.
This MRE takes the overall Spargoville global gold resource to 169,000 ounces.
Interestingly, Wattle Dam was one of Australia’s highest-grade gold mines producing around 286,000 ounces at 10.1 g/t gold, highlighting the high-grade discovery potential within the company’s 108 square kilometre Spargoville tenements.
Moving forward, Redback represents a near-term gold production opportunity for Maximus, strategically located within a short trucking distance from several regional gold processing plants.
“Solid outcome”
Maximus managing director Tim Wither said: “The updated MRE for the Redback Gold Project is a solid outcome for the company.
“The focus of the completed drill programs was to expand the near-surface resources and increase confidence levels from inferred to indicated resources, which successfully resulted in 24% of resource gold ounces now being in the indicated mineral resource category, the majority contained within an optimised open-pit resource.”
“The new MRE has highlighted an excellent opportunity to continue to grow gold resources across the Spargoville tenements, building towards the evaluation of near-term development opportunities, while exploring the next Wattle Dam.
“The focus will be on high-grade zones as they emerge.”
MRE summary
The updated mineral resource is based on an additional 13,500 metres of diamond and reverse circulation (RC) drilling completed in 2021-2022, which expanded the near-surface gold resources and increased resource confidence.
The completed drill programs and MRE update have provided the Maximus technical team with an increased understanding of the geological controls for mineralisation across the Redback and Golden Orb trends and demonstrated the opportunities for further growth across the Wattle Dam area and along strike to the south.
Redback has high potential to be part of a much larger interconnecting mineralised system that remains open at depth and along strike to the south.
Forward plan
Maximus is preparing drill programs intended to be completed during 2023.
The company has also kicked off metallurgical test-work on representative composite samples from the Redback deposit and Wattle Dam Stockwork, with a focus to replicate gold processing conditions experienced at several nearby gold processing plants.
Results from the metallurgical test-work will assist in the potential negotiation of toll-treating agreements.