Adelaide, Jan 31, 2006 AEST (ABN Newswire) - As pre-empted in the Maximus Resources Limited (ASX: MXR) announcement of January 19, the base metal results for the first two holes of an initial six hole program have now been received.
The second hole, BH-17, previously reported as having intersected a major quartz reef containing abundant coarse grained sulphides, has assayed 31.2 g/t gold, 58.3 g/t silver, 0.4 % copper, 5.8 % lead, and 4.6 % zinc over the 9.04 metre down hole interval from 158.5 metres (estimated true width 6.5 metres). The intersection includes an interval of 3.8 metre from 159 metres grading 46.8 g/t gold, 108.3 g/t silver, 0.8 % copper, 10.8 % lead, and 8.9 % zinc.
It is noted that the lack of significant base metals in hole BH-16 is considered to be due to weathering of original sulphide minerals to iron oxide and the resultant partial to total leaching away of the base metals.
These overall results are considered highly encouraging and reinforce the Company's view that the Bird-in-Hand gold mineralisation is increasing in width and grade with depth. Given the possibility to recover the coarse grained base metal sulphides observed in this intersection, at current metal prices, the inground value of the mineralisation is significantly increased over and above its gold value.
As previously advised, Maximus has completed two additional holes of the initial program for which assays are awaited. Drilling of the last two holes in this six hole program to explore the first tier of mineralisation below the old mine workings is expected to resume in early February and be completed by the end of February.
PACE Funding
During November, Maximus made a submission to Primary Industry and Resources South Australia (PIRSA) for funding under the State Government's "Plan for Accelerated Exploration" scheme (PACE) to support the drilling of 2 deeper exploration holes at Bird-in-Hand. These holes are designed to test for
- Extensions of the Bird-in-Hand gold and base metal mineralisation at some 250 metres down dip from the current drilling program.
- Additional reefs in the footwall, based on evidence for another reef at lower depths in the nearby Bird-in-Hand Extended workings.
The PACE funding, which is to a maximum of $30,000 towards the direct costs of drilling, has been approved. It is expected that this PACE supported drilling will proceed after Maximus has completed its current drilling strategy at shallower depths and has utilised downhole geophysics to assess the significance of the overall results. This will ensure optimisation of collar positions from which these PACE funded holes will be drilled. If successful in intersecting significant mineralisation, these deeper PACE holes could markedly increase the potential for a resource of high grade gold and possibly base metal mineralisation below the Bird-in-Hand mine workings.
Contact
Kevin Wills
TEL: +61 8 8132 7960
MOB: +61 419 850 997
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