Microcap Maximus Resources Ltd (ASX:MXR) has seen its share price push up more than 7% on news that its exploration work at the Hilditch Gold Project – close to Kambalda in Western Australia – has hit shallow gold grading 25.93 grams per tonne.
The company drilled 26 RC (reverse circulation) holes as part of an infill and resource extension program at the project, yielding intercepts such as 4 metres at 12.44 grams per tonne (g/t)of gold from 47 metres, including 1 metre at 25.93 g/t from 47 metres in one hole.
Another hole pulled up 3 metres at 3.77g/t of gold from 42 metres including 1 metre at 9.12g/t from 42 metres.
Hilditch – which is jointly owned by Maximus (90%) and Bullabulling Pty Ltd (10%) – holds a mineral resource estimate of 19,500 ounces of gold at 1.3 g/t, with this being built around shallow mineralisation starting at the surface.
The drilling is only one component of wider development work being done on the play, with Maximus also reporting completion of preliminary metallurgical testing which showed that gold recoveries of between 91.4% and 95.8% were possible.
And the company is continuing in this vein, with additional metallurgical testing being done to consider gravity recoveries, grind size and reagent consumption of the Hilditch mineralisation.
Managing Director Tim Wither said all of this was pushing the project closer to production.
“This completed RC program drilling aims to bring a significant portion of the Hilditch resource into the higher confidence JORC indicated category and additional metallurgical testing required for the completion of development studies,” he said.
“The latest results continue to enhance geological confidence at Hilditch and demonstrate the potential for further exploration to delineate and expand the resource.
“Hilditch’s shallow gold resource represents a potential near-term gold production opportunity for Maximus, located within a short trucking distance to several regional gold processing plants.
“The Company has completed internal studies to understand the pathways to production and has advanced preparations for the Mining Proposal and Mine Closure submission for open-pit mining operations across the Spargoville tenements.”
At 13:05 AEST, Maximus shares were trading at 3 cents, a rise of 7.14% since the market opened.