Maximus Resources Ltd (ASX:MXR, OTC:MXRRF) is in receipt of some pleasing assay results from reverse circulation (RC) resource drilling at the Hilditch gold deposit, in which Maximus owns a controlling (90%) share.
A stone’s throw from processing plants
The deposit sits on a granted mining tenement 25 kilometres from Kambalda, Western Australia, adjacent to the Coolgardie-Norseman Highway and within short trucking distance of several toll-treating processing plants.
Thirteen RC holes (522 metres) were drilled at Hilditch ahead of the company’s mineral resource estimate (MRE) update and they have demonstrated more shallow high-grade gold mineralisation within an optimised open pit shell.
The holes target along strike from a recent high-grade intersection of 19 metres at 3.21 g/t gold from 16 metres including 6 metres at 5.64 g/t from 18 metres and 5 metres at 3.28 g/t from 30 metres.
Highlights
Significant new intersections include:
- 18 metres at 3.2 g/t gold from 13 metres including 6 metres at 3.67 g/t from 13 metres and 4 metres at 7.22 g/t from 26 metres;
- 4 metres at 6.02 g/t from 9 metres including 2 metres at 10.84 g/t from 9 metres;
- 3 metres at 6.13 g/t from 5 metres and 4 metres at 1.17 g/t from 15 metres; and
- 5 metres at 1.6 g/t from 11 metres and 6 metres at 2.58 g/t from 21 metres including 3 metres at 3.75 g/t from 22 metres.
All development studies for Hilditch have now been completed. The next steps will be to finalise open pit optimisations and pit designs with the aim of progressing mine approvals and discussions with potential mining and toll milling partners.
Maximus managing director Tim Wither said: “These additional 13 holes were designed to expand the recent high-grade intersections and add further geological confidence before we commence the mineral resource estimate update.
Successfully expanded outlook
“Drilling has successfully expanded the shallow high-grade zone, significantly improving the economic outlook for Hilditch.
“With development studies now completed, efforts are concentrated on advancing open pit operations to generate cash flow for the company, capitalising on the rising gold price environment.”
The Hilditch deposit hosts a 19,500-ounce gold resource at an average grade of 1.3 g/t gold.
The gold mineralisation begins at surface and extends over a 200-metre strike length. It also remains open at depth with significant potential for further extension along strike.
Geologically, Hilditch features an east-dipping ultramafic sequence in contact with felsic volcaniclastic rocks to the west.
Structurally controlled contacts between the ultramafics and an interflow sedimentary unit host the gold mineralisation, a setting comparable to the company’s Wattle Dam Gold Project.
Metallurgical testing has confirmed that the Hilditch gold resource is free milling, with gold recoveries ranging from 91.4% to 95.8%.
This indicates amenability to conventional Carbon in Leach (CIL) gold processing, a standard method in Western Australia’s Eastern Goldfields.
Additional metallurgical work is ongoing to simulate toll milling protocols under real-world conditions.