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ASX ANNOUNCEMENT
RESOURCE ESTIMATION COMMENCED AT SELLHIEM GOLD PROJECT
13 November 2007
The Manager
SELLHEIM GOLD PROJECT
QUEENSLAND
Maximus option for 100%
Alluvial Test Pitting
Test sampling of the alluvial cover in the main granted
mining lease ML10328 at the Sellheim gold project
now exceeds 90 pits. Five loose cubic metres (lcm) of
the material overlying weathered bedrock has been
taken from each pit and processed through a small
alluvial gold plant (Figures 1 & 2). In addition, the soft
weathered bedrock floor of the pit has been scanned
with a metal detector to determine whether the
bedrock contains gold nuggets.
The result of this comprehensive procedure has been
the recovery of potential economic values of gold
within the alluvial cover and the occasional detection
of significant bedrock-hosted gold nuggets (Figures 3
& 4). Some nuggets have reached 36 grams in weight
and accounted for a significant proportion of the
recovered gold. It is anticipated that, during alluvial gold
production, the upper half metre of soft weathered
bedrock will be easily excavated with the alluvium and
HIGHLIGHTS
• Alluvial testing results show significant areas of potentially economic plus 0.3 grams gold per
loose cubic metre (lcm)
• Numerous samples include nuggets with overall grades of plus 1 gram gold per lcm and up
to 19 grams per lcm
• Initial alluvial gold resource estimate underway with gold production expected to commence
in New Year
• Expectation of additional alluvial resources by testing in adjacent tenements
• Maximus is targeting annual gold production of 10,000 to 15,000 ounces
Figure 2 Test pit in ML 10328 - October 2007.
Figure 1 Alluvial plant in operation - May 2007.
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Figure 5 Location and distribution of overall results for samples from the 90 test pits
Figure 3 Test pit - September 2007.
processed to recover gold in much the same way as
from the overlying alluvial materials.
Results
The distribution of overall results for samples from the
90 test pits completed to date is shown in Figure 5.
Results with grades of plus 0.3 grams gold per lcm, and
numerous pits indicating in excess of 1 gram per lcm,
are sufficiently robust within at least three sites, Golden
Triangle, Jack’s Patch and Boulder Run, for Maximus
to have carried an initial estimate of the inferred
gold resource. This estimate requires a review by an
experienced independent consultant and is expected
to be finalised in December. After further consultation
with an independent mining engineer, consideration
will be given to commencing bulk testing and full
production during the first quarter of 2008. As the
gold mineralisation has been delineated on granted
Mining Lease ML 10328, Maximus is able to commence
production when a suitable processing plant has been
acquired.
Maximus is targeting an annual production of 10,000
to 15,000 ounces of gold. This objective requires
confirmation after the resource estimate and feasibility
Figure 4 Bedrock hosted gold nugget in test pit TT026. study work are complete in early 2008.
Sellheim is not the only area with alluvial gold potential
in the Sellheim project area (Figure 6). After obtaining
the necessary regulatory permission, the company is
planning to extend its test pit sampling program into
the surrounding tenements where historical alluvial
production from areas such as Miers Run has remained
untouched by recent prospectors and explorers. It
is anticipated that such exploration will continue to
define further alluvial gold resources while alluvial gold
production commences from the main mining lease.