Maximus Resources (ASX:MXR) has upgraded the gold resource at the Larkinville prospect within the company’s Spargoville gold project to 11,600 ounces of gold.
Spargoville is located 70 kilometres south of the regional mining centre of Kalgoorlie in Western Australia’s Eastern Goldfields.
The Larkinville deposit is situated within the Kunanalling Shear, 5 kilometres southwest of the previously mined high grade Wattle Dam gold mine, now owned by Maximus.
The updated resource of 119,700 tonnes at 3.02 g/t gold for 11,600 ounces of gold is based on 36 drill-holes completed by previous explorers and 13 drill-holes completed by Maximus in November 2016.
Last month, Maximus had updated the gold resource at the Eagles Nest deposit, also located on the Spargoville project.
The updated resource totalling 679,900 tonnes at 1.95 g/t gold for 42,600 ounces of gold represents an increase of 59% over the previous resource estimate.
The Spargoville project is about 60 kilometres south of Maximus‘ recently acquired Burbanks gold treatment plant.
Burbanks has a capacity of 180,000 tonnes per annum and is currently being refurbished with an anticipated completion time of Q1 2017.
Maximus is aiming to utilise the Burbanks mill to initially toll treat third-party ore feed to generate revenues whilst it defines and progresses its own gold resources.
The company had a cash balance of circa $1.4 million as at 31 December 2016.