Maximus Resources Reveals High-Grade Gold Potential at 8500N Paleochannel
MXR (MXR) Share Update December 2024 Tuesday 17th
Maximus Resources Unveils Promising High-Grade Gold Findings at 8500N Paleochannel
Maximus Resources Limited (ASX: MXR) has announced encouraging assay results from its 8500N Paleochannel drill program, highlighting significant high-grade gold mineralization.
Instant Summary:
- Final assay results from 56 holes confirm high-grade gold mineralization.
- Notable results include 2m @ 28.63g/t Au and 1m @ 56.54g/t Au.
- Shallow mineralization at 5 to 20 meters below surface.
- Potential for low-cost, low-risk production due to shallow, free-digging qualities.
- Environmental studies on track for early 2025 mining proposal submission.
Drill Program and Results
Maximus Resources has completed its first phase of reverse circulation (RC) drilling at the 8500N Paleochannel, located near Kambalda, Western Australia. The program aimed to verify legacy drilling results and explore potential extensions of the mineralization. The final assay results from 56 holes have confirmed the presence of high-grade gold mineralization, with notable intersections such as 2 meters at 28.63g/t Au from 6 meters, including 1 meter at 56.54g/t Au from 7 meters.
The 8500N Paleochannel is characterized by shallow, high-grade gold mineralization, sitting just 5 to 20 meters below the surface. The mineralization extends over a strike length of approximately 450 meters, offering significant economic potential for Maximus Resources.
Significance of the Paleochannel
The 8500N Paleochannel forms part of the Lefroy Paleodrainage System, a notable ancient river network known for hosting high-grade gold deposits. The shallow and free-digging nature of the paleochannel gravels presents a low-cost, low-risk production opportunity for the company. The drill results have also revealed thicker zones of mineralization compared to previous findings, enhancing the project's economic prospects.
Future Plans and Environmental Considerations
Maximus is progressing with geological modeling and metallurgical test work to determine the viability of mining operations. Representative ore-grade intervals have been submitted for testing under real-world toll milling protocols, with results expected in early 2025. The company is also conducting environmental studies, including surface hydrological assessments, to support the submission of a mining proposal in early 2025.
The announcement of high-grade gold results is likely to positively impact Maximus Resources' stock, as investors recognize the potential for profitable mining operations. The shallow nature of the mineralization reduces extraction costs, making the project economically attractive. The company's proactive approach to environmental and metallurgical studies further supports its readiness for future production.
Investor Reaction:
Analysts are expected to react positively to the high-grade gold findings, given the potential for low-cost production and the strategic location within the Lefroy Paleodrainage System. However, the absence of JORC-compliant resources may temper some investor enthusiasm until further resource estimation is completed.
Conclusion:
Maximus Resources' latest drill results underscore the significant potential of the 8500N Paleochannel project. Investors should watch for upcoming metallurgical test results and the submission of the mining proposal in early 2025, which will be key milestones in the project's development.