Maximus Resources Ltd (ASX:MXR) is trading higher after uncovering multiple occurrences of visible gold within the completed Western Australian Government Exploration Incentive Scheme (EIS) co-funded diamond drilling at Redback gold deposit.
The diamond drill holes and previous results demonstrate strong potential for high-grade gold mineralisation from surface to +500 metres vertical depth at Redback, 200 metres deeper than the Wattle Dam Mine.
Work has commenced on the second phase of the resource diamond drilling program targeting infill and resource extensions at the deposit.
Another high-grade gold mine?
Maximus managing director Tim Wither said: “It is fantastic to see this amount of visible gold in one of the completed WA co-funded EIS drill holes and broad zones of heavily altered ultramafic host rocks, 300 metres below the known Redback gold deposit.
“The observed alteration and mineralisation intersected are highly encouraging, being analogous with that observed at both Redback and Wattle Dam gold deposits.
“Our confidence continues to grow that Redback has the near-term potential to be developed into another high-grade gold mine in the Wattle Dam corridor.”
Shares were up as much as 23.3% to an intraday high of A$0.069.
Drill results
The Redback gold deposit is about 600 metres south-southeast of the previously mined high-grade Wattle Dam Gold Mine.
Previous high-grade results from Redback include:
➢ 16.3 metres at 9.3 g/t gold and 5.8 metres at 17.9 g/t;
➢ 6.0 metres at 9.4 g/t including 3.0 metres at 17.2 g/t;
➢ 10.0 metres at 4.6 g/t and 8.0 metres at 3.9 g/t;
➢ 7.3 metres at 2.7 g/t including 4.0 metres at 3.7 g/t; and
➢ 7.0 metres at 7.0 g/t including 1-metre at 10.2 g/t and 2.0 metres at 10.2 g/t.
Local geology at Redback is similar to that observed at the high-grade Wattle Dam Gold Mine with a high component of visible gold hosted within deformed ultramafic lithologies (komatiite).
Two diamond drill holes (RBDD008 and RBDD009) were completed, which were designed to test the down-dip plunge of known mineralisation at Redback deposit, with an EIS application for two 600-metre holes awarded and extended as determined by geological observations.
Next steps
The diamond drill core from the completed Redback EIS drill program is being submitted for assaying with results expected in the first quarter of 2022.
Planning is underway to drill test between the current Redback mineral resource and the completed EIS holes.
The company has two diamond drill rigs on site, drilling the second phase of infill and resource extension program at the Redback deposit until the end of year break, and are scheduled to recommence during the first week of 2022.