Gympie C,Yes, the warden's decision is expected soon and so is...

Gympie C,

Yes, the warden's decision is expected soon and so is an announcement on the progress at Selheim. To review where MXR is positioned with it's projects prior to the announcements, I have copied and pasted three posts into this one, the figures were based on a lower gold price than what it is currently ( currently US$1150/oz or AU $1,240/oz or AU$39.88 a gram). I also note that there are some more gold nuggets from Selheim for sale on the MXR website which could indicate the current development works at Selheim have produced some more gold nuggets ( one of the early finds in particular being a 5.68oz nugget ref number SN0069 is for sale at AU$12,066). It looks like there are 6 new nuggets, numbered 121 through to 126. Gold nuggets sell at a huge premium to the spot gold per oz price. http://www.maximusresources.com/sales.html

The three posts...

"At Selheim in QLD,(refer page 10 of annual report) with an exploration target from Dr Russell of 9.7m bcm ( bank cubic metres) to 13.2m bcm at a grade of between .3 to .5g/bcm and using the lower target of 9.7m bcm and the lower grade of .3 g/bcm for 2,910,000 grams of gold at AUS$38 per gram for a gross value of $110,580,000 or $56m after production costs less two thirds for capex ( probably a lot less capex as it's a different capex than the Adelaide Hills)....$18.6m"

Since then, gold has risen further, it just hit US$1,138 an oz. ( AUS$1,213 an oz).
The AUS$ gram price is approaching $39 ( currently $38.96, up AUS$560/kg to $38,960/kg ).
Reviewing the capex at Selheim, a figure of $100 an oz is more likely than the "two thirds". Once again, using the lower .3g/bcm and 2.9 million grams of gold and a gross value of $113.49m, less $21.16/gram for production costs ($600 an oz) and the revised figure of ($100/oz capex) $3.53 a gram for capex (1 oz = 28.3495g). This results in a combined capex and production cost of $24.69 a gram or a net profit figure of $14.31 per gram or $41,642,000 from Selheim.
Each increase in the gold price increases the profitability of Selheim Gold. Gold seems to have consolidated around the AUS$1,200 level and I'd expect that when the Aussie dollar reaches parity with the U.S. the Aussie dollar could stabilise at that level which would mean further increases in the gold price would increasingly benefit profitability for Maximus. If the Aussie dollar doesn't stabilise around parity and continues to increase over the U.S. $ then the benefit will be reduced.
Either way, the reduced capex figure sees the net profit from Selheim increase from the initial post, from $18.6m to $41.642m. Of course lot's of variables which can change the net profit but the use of lower grades and lower total volumes allows for a conservative estimate. Anything above the grades and volumes used in the estimates is a bonus.

Fluctuations in the live (dynamic) gold price can be viewed
at http://www.igmarkets.com.au/cfd/

With the price of gold having settled for the moment around US$1,080 an oz and looking like continuing up to $1,100 and higher in the near term, I have tried to get my head around what the increased value of MXR's gold might be at current prices.
Not knowing the capex or production costs I have taken a stab using a gold price of AUS1,200 an oz( current), a production cost of AUS$600 an oz and a net profit of AUS$600 an oz.

I have used the lower figure of grade and quantity for the exploration targets and the actuals currently known where they have a JORC (inferred or indicated).

There are several other gold projects but not enough known about them at the moment ( eg, Eromanga, Narndee, and maybe some of the other projects the subject of joint ventures)

The gold projects where information exists are...

Selheim
Ironstone Well and
Adelaide Hills

I have not included any potential value for the 7,500,000 lb inferred Uranium project or the Nickel,copper, platinum group metals at the large Milgoo prospect or the PGM, Au or Pb Zn large Narndee Project.
Also have not included the Joint Ventures or major shareholding in Eromanga Uranium (ERO).

Using a guesstimate of one third of the net profit after capex and production ( using two thirds of the net profit from production for capex) the selected gold projects have potential to generate the following revenue for MXR....

At Ironstone Well in W.A. (refer page 21 of recent Annual Report), MXR owns 73,000oz of gold (indicated and inferred) 73,000 oz ........$15m

At Adelaide Hills in S.A., (refer page 12 of recent Annual Report) with an exploration target of 1.9m t to 2.4mt @ 10 to 15 grams of gold per tonne and using the lower target of 1.9m t and the lower grade of 10 grams per tonne for 19m grams at AUS$38 per gram (current AUS$ price per gram) for a gross value of $722m or $361m after production costs less two thirds for capex.....$120m

At Selheim in QLD,(refer page 10 of annual report) with an exploration target from Dr Russell of 9.7m bcm ( bank cubic metres) to 13.2m bcm at a grade of between .3 to .5g/bcm and using the lower target of 9.7m bcm and the lower grade of .3 g/bcm for 2,910,000 grams of gold at AUS$38 per gram for a gross value of $110,580,000 or $56m after production costs less two thirds for capex ( probably a lot less capex as it's a different capex than the Adelaide Hills)....$18.6m

An estimate of forward potential net profit is AUS $150m from the three gold projects.

Of course the gold price can be higher or lower, the targets could end up being higher or lower and the production and capex costs are an unknown but using the lower grades and target estimates gives something to think about in terms of forward value per share for just the gold projects.

With the Indian purchase of 200m t of gold reported last night at market rates, the bullish sentiment for gold could realise higher net profit or sale prices for MXR's gold projects.

What might be the value of the MXR gold projects at a gold price of AUS$1,300 an oz? They are certainly higher than when gold was at AUS$900 an oz.

As Maximus resources progresses the gold projects through the various stages of JORC announcements, the share price will become increasingly sensitive to movements in the price of gold.


At Adelaide Hills ....
the combined exploration target now stands at 1.9 to 2.4 million tonnes at a grade range of 10 to 15 g/t gold. ( includes all the MXR historic gold mines/ tenements in the Adelaide Hills, eg Eureka, BIH and Deloraine)

details... http://www.maximusresources.com/asx_projects/2008/mxr_asx20080905.pdf

The Deloraine prospect has an Exploration Target* of 800,000 to 1,100,000 tonnes at grades of 15 to 20 g/t Au. Between 1909 and 1941, the Deloraine and Deloraine Queen mines produced 30,500 ounces gold from 48,700 tonnes at a grade of approximately 20 g/t Au.

The Eureka prospect, located less than two kilometres from the Bird in Hand prospect, has an Exploration Target* of 160,000 to 240,000 tonnes at grades of 10 to 15 g/t Au.

At Bird in Hand ......
the revised resource estimate of 598,000 tonnes
(438,000 inferred and 160,000 indicated) at 12.3 g/t gold
announced on 8 August 2008,

At Selheim.....

the estimated Indicated and Inferred Mineral Resource for Sellheim totalled 452,000 bcm averaging 0.86 grams gold per
bcm - 12,500 ounces of contained gold. Sellheim also has hardrock Gold and Copper potential.Compilation of previous exploration indicates widespread metal occurrences of gold, copper, lead and silver in the tenure held. Geological mapping has demonstrated that structural controls are important in the distribution of these metal occurrences, which may represent the upper levels of a larger magmatic mineralised system. Exploration Target for alluvials totals 9.7 to 13.2 million bcm at 0.3 to 0.5 gm/bcm gold

At Windimurra Uranium deposit.........

An Inferred Mineral Resource of 19 million tonnes at an average grade of 180 parts per million (ppm). The estimate used a cut off grade of 100 ppm U3O8 for a U3O8 content of 3,400 tonnes (7.5 million pounds). This was located between the surface and a depth of 6.5 metres.
Resource boundaries were open in at least two directions, and heritage clearances had been completed for further drilling, Deeper paleochannels are indicated, with trends sub-parallel to those previously detected by radiometrics, which have not been tested by drilling to date.

At the Narndee project........

Nickel, Platinum Group, Base-metal and Gold Exploration
The extensive Narndee Windimurra layered intrusion complexes and associated volcanic units are considered to be highly prospective for the above commodities, close spaced AEM infill lines flown over the Milgoo area near Narndee Homestead have confirmed the presence of 16 pronounced anomalies with more yet to be tested.

At Ironstone Well (Flushing Meadows), Yandal Belt: Indicated & Inferred 73,000 ounces gold (MXR 90% share)

Major shareholding in ERO ( Gold and Uranium exposure price sensitive announcements upside)44.35 million ERO shares , plus 8.03 million ERO 30c Options (unlisted)

Joint Ventures or royalty agreement with several ASX listed companies

New CEO with large gold company experience

http://www.maximusresources.com/news/presentations/2009/mxr_20090908_sb.pdf "