JOHANNESBURG (miningweekly.com) – ASX-listed gold miner Maximus Resources on Wednesday said it was aggressively pursuing further resource definition across the Spargoville gold project area, 70 km south of Kalgoorlie, in Western Australia’s eastern goldfields, while actively progressing the conversion of existing resources into mineable reserves.
With a current resource estimate totalling 112 000 oz of gold across five open deposits, the miner noted that several opportunities existed for further gold deposits across the 11 400 ha Spargoville holdings, which included the former high-grade Wattle Dam gold mine area.
“Success at Spargoville will result in the ability to easily monetise future exploration success here, in addition to providing toll-milling services now [that] the mill is operational. Maximus is currently reviewing additional project opportunities in close proximity to the Burbanks facility,” chairperson Robert Kennedy said in his address at the company’s general meeting.
The Wattle Dam had a historical production of 51 400 oz at 5 g/t, with Maximus noting that historical waste dumps and tailing dams now await potential retreatment, which could be feasible at current gold price. The option to toll treat or enter a joint venture at the project remains.
Meanwhile, Maximus identified the Redback tenement at Spargoville as the “next Wattle Dam”, with a mineral resource estimate currently 440 000 t at 3.02 g/t for 42 900 oz “with potential for significant grade improvement”.
However, there was currently insufficient drilling density to determine a Wattle Dam style main lode mineralisation, with significant depth extension potential remaining untested and mine access options under review.
Maximus further reported that the economic studies were progressing and permitting requirements were under way at Spargoville’s Eagles Nest deposit while further exploration potential to increase the resource base would be undertaken at Larkinville deposit.
At Spargoville’s 5B deposit, the company noted that further drilling was required to define high-grade transition zone and test down plunge strike extension potential.
At its recently acquired Burbanks project, which poured first gold in October, the company said that further toll milling discussions were under way with four additional producers in close proximity to the project.