ANNUAL REPORT 2007
Corporate Directory
Maximus Resources Limited ABN 74 111 977 354
contents
Highlights
Chairman’s Report
Managing Director’s Report
Exploration Director’s Report
Tenement Schedule
Financial Report
Corporate Goverance Statement
Directors Report
Auditors Independence Declaration
Income Statement
Balance Sheet
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
Directors Declaration
Indepenent Audit Report
ASX Additional information
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Directors
robert Kennedy Non-executive Chairman
Kevin Wills
Managing Director
Gary Maddocks Exploration Director
ewan Vickery
Non-executive Director
coMpany secretary anD chief financial officer
richard Willson
reGistereD anD principal office
62 Beulah Road
Norwood South Australia 5067
contact Details
Phone +61 8 8132 7960
Fax +61 8 8132 7999
Email info@maximusresources.com
Website www.maximusresources.com
solicitor
DMaW lawyers
auDitors
Grant thornton
asX coDe: MXr
share reGistry
computershare investor services pty ltd
Level 5 115 Grenfell Street
Adelaide South Australia 5000
GPO Box 1903
Adelaide South Australia 5001
Enquiries within Australia
Enquiries outside Australia
Email web.queries@computershare.com.au
Website www.computershare.com
1300 556 161
61 3 9415 4000
Highlights
•
Over 36 kilometres length of
vanadium-bearing magnetite
iron horizons have been
sampled at the Canegrass and
Shephards Zones within the
Narndee Project — potential
magnetite rich rock to only
30 to 40 metres depth is
estimated at 160 to 200
million tonnes.
•
Testing of alluvial gold at
the Sellheim Project in
Queensland is gradually
building up a resource
inventory — alluvial gold
production could commence
as early as the first Quarter
of 2008.
EXpLORATIOn
•
The high grade gold
resource at Bird-in-Hand
in the Adelaide Hills has
been increased to 162,000
contained ounces — drilling
of lateral and deeper
extensions is expected to
further increase this resource
— additional resources at
Bird-in-Hand are expected to
lead to a pre-feasibility study
in early 2008.
•
Potentially economic
grades of calcrete uranium
mineralisation have been
intersected over an area
of about eight square
kilometres in the Windimurra
palaeochannel at the
Narndee Project, Western
Australia — this work is
expected to culminate in the
estimation of an inferred
uranium resource less than
six metres from surface.
•
Electromagnetic surveys
detected strong electrical
conductors leading to nickel
sulphide mineralisation at
the Milgoo prospect, Narndee
Project.
TEnEMEnT OwnERShIp InCREASES
CORpORATE
•
•
•
Maximus has successful negotiated 100% ownership positions
in its joint ventures at Bird-in-Hand and Narndee through
share considerations to its respective previous partners.
Maximus now holds outright the high grade gold resource at
Bird-in-Hand and the principal uranium, gold, nickel, iron and
vanadium potential at Narndee.
In separate negotiations, the company has added to its
previous Narndee JV tenement holdings and now controls
some 97% of the highly prospective mineral rich Narndee and
Windimurra layered igneous complexes.
•
•
•
During the year Maximus expended about $4.4 million on its
exploration activities and raised a total of $1.1 million through
a placement.
Maximus’ spinoff Eromanga Uranium Limited successfully listed
on the ASX on 31 October, raising $14.75 million — Maximus has
a 35.4% interest in Eromanga totalling 44.36 million shares.
On July 17 the Company completed a placement to raise $3.4
million. On 26 July the Company announced an underwritten
rights issue to raise $5.78 million. This issue raised only
$126,000 due to the July 2007 international share market
instability. A further rights issue is planned.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 1
Chairman’s Report
In terms of increases in tenement
holdings, the Company has significantly
strengthened is holding on the Windimurra
and Narndee Complexes in Western
Australia. At this time last year the
company had a joint venture with Apex
Minerals whereby Maximus was spending
$3 million to earn 70% equity in about 60%
of the geologically defined complexes. In
May, the Company announced that it had
terminated the joint venture and bought
out its co venturers. In addition three
new agreements enabled Maximus to gain
control of 90 to 100% equity in about 97%
of the geologically defined complexes.
The Company has also entered an option
agreement to purchase the Sellheim group
of tenements in the northern Drummond
Basin in Queensland with potential for
short term cash flow from alluvial gold
mining.
In order to gain additional exposure
through joint ventures, the Company has
farmed out the metalliferous mineral rights
at Kapunda in the northern Adelaide Hills
to Copper Range Limited. Two joint ventures
are also being negotiated to farm out the
Woolanga Project in the Strangways Ranges
of the Northern Territory. Maximus will also
receive 25% of any royalty from Talc mining
in a deal with Luzenac Australia Pty Ltd, the
100% owned talc production subsidiary of
Rio Tinto Limited.
Maximus’ 90% equity in the Yandal
Homestead Project, which did not fit well
with our exploration strategies, has been
sold to our co venturer Nemex Pty Ltd for
$135,000.
Earlier in the year, Maximus received a
very important asset, being the shares
and options in Eromanga Uranium Limited
(Eromanga) and joint venture interests in
two uranium exploration projects. Maximus
now owns 44.36 million shares or 35.4% of
the capital of Eromanga which has had an
implied value of between $7.5 million (at
$0.17) and $37.7 million (at $0.85) during
the year. The two uranium exploration
projects are the Eromanga Basin JV and the
Billa Kalina JV where Maximus will retain a
30% and 50% interest respectively.
Dear Fellow Shareholders
This is the first full-year annual repost since
Maximus listed on the Australian Stock
Exchange on 26 October, 2005. During
the year, great strides forward have been
made through increases in identified gold
resources, new expectations of resources
at three projects, increases in the area
and value of exploration tenements and
increases in the value of the Company’s
share portfolio. The net effect of these
increases is a significant increase in the
value of the Companies assets.
Maximus’ share of total identified inferred
gold resources is now 221,000 ounces from
the Bird-in Hand and Yandal prospects.
Increases are expected in the near future.
The Company has discovered mineralisation
at three locations where resources are
expected to be reported in the coming
months. These are at:
•
•
•
Windimurra Uranium Prospect in
Western Australia where an area of
about six square kilometres of calcrete
mineralisation has recently been drill
outlined
Sellheim gold prospect in Queensland
where an area has been located carrying
alluvial gold grades sufficient to plan
commencement of an alluvial operation
Canegrass and Shephards magnetite
iron ore prospects at the Narndee
project in Western Australia where
potential for 160 to 200 million
tonnes of magnetite iron ore has been
recognised to a depth of only 30 to 40
metres.
New exploration acreage has been added
to the Narndee Project in Western Australia
where Maximus now controls 97% of the
geologically defined Windimurra and
Narndee Complexes with multicommodity
mineral potential. The Narndee project has
an area of about 5,500 square kilometres
which is equivalent to owning the whole
of a greenstone belt in the Yilgarn Craton.
Additional exploration licences have been
acquired for gold and base metals in the
Adelaide Hills and an option to purchase
the Sellheim alluvial gold in Queensland
has been completed.
2 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Chairman’s Report
Since listing with about 65 million shares
Maximus has raised about $3.4 million
through a placement and also issued shares
to purchase 100% equity in the Bird-in
Hand project in South Australia and the
Windimurra/Narndee project in Western
Australia. The total number of ordinary
shares on issue is now, in mid-October,
about 95 million. On 13 July, Maximus
announced a 1 for 5 renounceable rights
issue to raise a total of $5.8 million. The
issue was later underwritten by Patersons
Securities Limited. Unfortunately, this
issue was impacted by the period of market
volatility in July and August 2007. Several
of the underwriting conditions were
breached and the underwriters withdrew. It
is expected that a new rights issue will be
undertaken later in 2007 to provide funds
for ongoing activities.
Turning to personnel issues, like other
companies Maximus has found it hard to
attract new staff during a period of buoyant
times in the mining industry. We have
carried out salary reviews and adjusted
pay scales to keep pace with a dramatic
increase in personnel remuneration. Apart
from financial issues we have attempted
to improve working relationships and
conditions and focussed on safety issues in
remote exploration. We are continually on
the lookout for ways to improve conditions
and safety in our operations.
Finally, I wish to thank Maximus’
stakeholders for their efforts towards
the Company’s continuing advancement.
This includes office based personnel,
field hands, geologists, management and
directors. Thanks also to our consultants,
accountants, lawyers, drillers, laboratories
and other service providers who have
combined to make Maximus a dynamic
Company, moving forward to meet its
objectives.
Bob Kennedy
Chairman
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 3
Yandal Gold
The Yandal gold project contains the
flushing Meadows gold prospect and is
located in the Yandal greenstone belt about
100 kilometres east of Wiluna in Western
Australia. An inferred resource of 59,000
ounces of gold was estimated from holes
drilled prior to Maximus’ involvement.
Additional RC drilling completed during
the year will allow the estimation of an
indicated resource and a probable reserve.
Maximus may decide to sell, farm out or
further explore this prospect area.
Sellheim Gold
The Sellheim gold project is located about
40 kilometres south of the Burdekin Dam
or 180 kilometres south-southeast of
Townsville in north Queensland. Maximus
has negotiated an option to purchase with
the vendors. Maximus’ main activities have
been to evaluate the alluvial and bedrock
gold potential of the area. To date over
70 test pits treating 5 loose cubic metre
samples have been run through a small
alluvial plant. Results are encouraging
with an expectation that an alluvial gold
operation can be developed early in 2008.
Sellhein gold.
Managing Director’s Report
InTRODUCTIOn
In Maximus’ IPO Prospectus it was noted
that the Company had acquired many
projects with known mineralisation and
drill targets and this meant the Company
had a good chance of rapidly defining
resources to add to its asset base. This
prediction has been realised with resources
expected to be located or upgraded at five
projects. They are Bird-in-Hand, Yandal and
Sellheim gold, Windimurra Uranium and
Windimurra iron ore. The situation at each
of these projects is summarised below:
Bird-in-hand Gold
The Bird-in Hand gold mine is located near
Woodside in the Adelaide Hills of South
Australia. A diamond drill rig was active
at Bird-in-Hand throughout most of the
year with 14 diamond drill holes totalling
3,500 metres being completed since the
last annual report. These holes extended
the known position of the main reef a
further 175 metres down plunge of the
lode – from about 100 to 375 metres below
the level of the old workings. The inferred
resource estimate carried out from this
drilling totalled 421,000 tonnes averaging
12.0 grams per tonne containing 162,000
ounces of gold. Further drilling since the
end of the reporting year has increased the
resource. It is anticipated that sufficient
resources to justify commencement of a
pre-feasibility study will be outlined by
early 2008.
Location of Resource Projects.
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4 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
windimurra Uranium
Windimurra uranium prospect is located
in the Windimurra complex near Mount
Magnet in Western Australia. An area
containing calcrete uranium mineralisation
was discovered by Western Mining
Corporation (WMC) in the 1970s. Maximus
has recently redrilled the mineralised area
on a 320 by 160 metre grid. An area of
over 8 square kilometres has been shown
to be variably mineralised to a depth
of only six metres. Intersections from
the surface vary up to 2.5 metres thick
averaging about 0.5 kg/t U3O8. Maximus
will estimate an inferred resource and then
conduct a scoping study to look at the
project’s viability with an objective of being
in a position to move quickly should the
WA Government change its policy on the
mining of uranium.
Windimurra uranium.
Managing Director’s Report
windimurra Iron Ore
The Windimurra iron ore project consists
of the Canegrass and Shephards prospects
located in the Windimurra complex near
Mount Magnet in Western Australia.
Maximus has recently recognised the
potential for large quantities of magnetite
iron ore with vanadium and titanium
credits. Magnetite concentrates can be
more easily produced from layered mafic
complex type deposits because they do not
need such fine grinding as banded iron
formation deposits. Maximus has outlined
about 36 strike kilometres of magnetite
zones on its tenements. The northern
end of the Shephards zone contains the
Windimurra Vanadium Mine, owned by
precious Metals Australia. PMA have
recently announced that they will develop
a new mine to produce about one million
tonnes of magnetite concentrate per year
from their resource of 148 million tonnes of
magnetite mineralisation.
Maximus has recently collected 505
rock chip samples from Canegrass and
Shephards which averaged 49 to 52% iron,
13% titanium dioxide and 1.2% vanadium
pentoxide. Previous metallurgical work by
WMC showed that a concentrate averaging
57% iron 13% titanium dioxide and 1%
vanadium pentoxide could be produced.
Maximus has estimated the tonnage
potential to 30 to 40 metres depth to be
in the order of 160 to 200 million tonnes.
A program of drill testing commencing in
October 2007 has been announced.
Windimurra iron ore.
COnCLUSIOnS
Clearly Maximus is moving towards a
portfolio with significant resources of gold,
uranium and iron ore - containing several
opportunities for development projects.
Maximus spent about $4.4 million on its
exploration activities in 2006/07 and is
likely to continue at this or a slightly higher
rate. The aim is to continue to focus on
those projects that can achieve a cash flow
in the near future. Short-term cash flow
(within a year) is possible from an alluvial
gold operation at Sellheim. Medium-term
cash flow (within 2 to 3 years) may be
developed from the Bird-in Hand and
Yandal prospects, while longer-term cash
flow is possible from Windimurra uranium
and iron ore projects.
Maximus’ activities are spread out over
distant parts of Australia, and the Company
has developed three groups of personnel
to carry out the work. Maximus’ shares
a head office in Adelaide with Flinders
Diamonds and Eromanga Uranium which
provides the base for its activities in the
Adelaide Hills. The Company has a small
office in Perth and has built a field base
at Sellheim in Queensland. Together with
directors, management and personnel
from FME Exploration services in Adelaide,
Maximus employs 8 persons full-time and
about another 20 persons part-time. Much
has been achieved in the past year and I
wish to thank everybody for their special
contribution.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 5
Exploration Director’s Report
Figure 1 Location of activities.
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REvIEw Of EXpLORATIOn
ACTIvITIES
ADELAIDE hILLS GOLD AnD BASE
METAL pROjECTS, SOUTh AUSTRALIA
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100% Maximus
Maximus Resources Limited (Maximus)
holds 100% equity in all metalliferous
minerals in seven exploration licences in
the Adelaide Hills through an agreement
with the primary tenement holder,
Flinders Diamonds Limited (Figures 1 & 2).
Maximus is also the 100% owner of another
exploration licence and applicant for three
additional exploration licences in the same
region. When all applications are granted,
the total tenement package will cover 3811
square kilometres.
In November 2006 Maximus, in conjunction
with Flinders Diamonds Limited, negotiated
the purchase of the remaining 25% interest
held by Indo Mines Limited and Statelink
Holdings Pty Ltd in the Lobethal joint
venture agreement. The consideration paid
included 1,350,000 Maximus shares to
Indo Mines Limited and 450,000 Maximus
shares to Statelink Holdings Pty Ltd. This
negotiation secured for Maximus 100%
ownership of the Bird-in-Hand gold mine
and other historic gold mines in the
Woodside goldfield (Figure 3).
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Figure 2 Adelaide Hills Goldfields
showing Bird-in-Hand location.
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6 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Exploration Director’s Report
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Figure 3 Location of Bird-in-Hand and
historic gold mines in the Woodside
Goldfield.
Drilling at Bird-in-Hand, Adelaide Hills,
September 2007.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 7
Exploration Director’s Report
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Bird-in-hand Gold Mine
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Core drilling has continued for most of
the reporting period with 8 holes for 2683
metres being completed to June 30, 2007.
A further 6 holes for 847 metres have been
completed during July-September, 2007
(Figure 4). All significant drill results from
this period of drilling are tabulated below
and include well mineralised intersections
to depths of 350 metres below surface
(Table 1). Assays for the last three holes
completed prior to September 30 are
awaited.
Drilling results have been used to
undertake an independent estimate of the
total inferred mineral resource available
from 100 metres below surface to a vertical
depth of 375 metres. The new estimate,
supervised by Consultant Geologist Mr
Douglas McLean, increased the 2006
resource estimate by a factor of three times
to a total of 421,000 tonnes at 12 grams
gold per tonne for 162,000 contained
ounces as detailed in Table 2.
The inferred resource remains untested
below 350 metres depth and drill testing
at greater depths is planned as part of an
ongoing program (Figure 5). It is expected
that the ongoing drilling program will
significantly increase the total inferred
resource.
Figure 4 Longitudinal projection of Bird-in-
Hand showing drill intersections.
8 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Exploration Director’s Report
Table 1
Mineralised Intersections for Maximus Drilling at Bird-in-hand Gold Mine, woodside, South Australia
from September 2006 to June 2007
Drill Hole No.
From (metres)
To (metres)
Interval
(metres)
Gold (grams/
tonne)
Silver (grams/
tonne)
including
including
including
including
including
including
including
including
BH-24
BH-25
BH-26
BH-27
BH-28
BH-28W
BH-29
BH-30
BH-31
BH-32
BH-33
BH-34
272.5
277.8
291.5
298.3
283.5
280.8
294.0
307.0
329.0
331.3
358.0
367.0
361.0
369.0
240.0
251.0
240.0
153.5
240.7
256.0
242.0
156.0
166.0
171.0
139.0
149.8
162.0
107.0
140.5
152.15
162.5
111.2
11.0
3.0
2.5
8.7
2.0
2.3
0.4
9.0
0.5
8.0
0.7
0.7
5.0
1.6
2.0
2.5
0.5
5.0
1.0
1.5
2.4
0.5
4.2
6.6
11.9
NSA
3.2
7.6
27.2
47.9
225.0
5.2
15.8
13.4
81.7
56.4
32.1
109.5
4.0
34.4
170.0
15.6
59.5
10.1
11.5
176.0
10.8
0.8
1.0
BD
7.36
32.0
17.8
77.0
BD
0.2
1.6
8.0
40.0
25.6
67.9
BD
7.6
38.0
11.0
42.0
0.7
24.0
59.0
7.5
Cu
%
<0.01
<0.01
Pb
%
0.02
0.02
Zn
%
0.01
<0.01
<0.01
<0.01
<0.01
0.03
0.13
0.02
0.11
<0.01
0.01
<0.01
<0.01
0.06
0.07
0.17
<0.01
<0.01
0.01
0.06
0.27
0.01
0.07
0.11
0.03
0.25
1.05
0.93
1.53
<0.01
<0.01
<0.01
0.01
1.77
1.86
1.96
0.03
0.10
0.45
0.64
2.42
0.37
0.80
0.42
0.62
0.09
0.33
0.36
1.46
<0.01
<0.01
<0.01
<0.01
0.63
1.09
0.13
0.05
0.10
0.32
0.15
0.37
0.16
0.16
0.99
0.11
Note: Blank in grade column means no significant value recorded. NSA - No significant assays BD - Below detection.
Table 2
Inferred Mineral Resources, 100 to 375 metres vertical depth Bird-in-hand Gold Mine, woodside, South Australia
As at June 30, 2007.
Total Main Reef Zone
Total White Reef Zone3
Mineralisation remaining, Level 5 & 6 of Mine Workings
(1934 Estimate)
Total Inferred Mineral Resource4
Bulk
Density1
2.8
2.8
Average
Width2
(metres)
7.6
2.4
Tonnes
384,740
28,296
7,585
421,000
Grade
(g/t)
Gold
(ounces)
12.2
10.0
9.3
12.0
150,822
9,079
2,275
162,000
Density value is based on an average of measurements on up to 8 samples per mineralised intersection.
Horizontal width based on lode dipping approximately 50 degrees to east.
Resource estimate limited to between 100 and 200 metres below surface.
Totals rounded to nearest thousand (tonnage/ounces) and first decimal point (grade).
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 9
Exploration Director’s Report
woodside Goldfield
Gold mines relating to the Woodside
goldfield, centred to the east of the
township, extend over an area of
approximately five square kilometres
(Figure 3). Maximus has commenced
investigations around the Bird-in-Hand,
Ridge and Eureka mines using ground
geophysical surveys and is anticipating the
drilling of several targets once a suitable
contractor can be retained. Discovery of
additional gold lodes in the Woodside area
would significantly enhance the potential
viability of any future mining development
at the Bird-in-Hand gold prospect.
Adelaide hills Gold province
The Adelaide Hills Gold Province contains
twelve declared goldfields and extends
from Mt Compass in the south to north of
Truro (Figure 2). Maximus has commenced
ground geophysical and soil sampling
surveys in the Birdwood Cromer area and
at the Deloraine gold mine, which was the
largest historic producer in the Adelaide
Hills.
Ground results for magnetics and induced
polarisation at Cromer are anomalous and
warrant initial exploratory drilling as soon
as suitable contractor can be retained.
Initial exploration is also planned for other
historic goldfields as time and resources
permit.
Lansd surface
Old workings
-100 metre depth
Drill holes
Gold lode
Figure 5 Bird in Hand 3D model showing old
workings, completed and proposed drilling.
-375 metre depth
(approx.)
10 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Exploration Director’s Report
Adelaide hills Base Metal potential
While Maximus has remained focused on
gold mineralisation in the Adelaide Hills,
the base metals potential of this region
has been enhanced by commencement
of development of the Angas lead-zinc-
silver mine near Strathalbyn (Terramin
Resources) and the positive results of a
pre-feasibility study to mine copper at
Kanmantoo near Callington (Hillgrove
Minerals).
During the reporting period, Maximus
negotiated a farm out of the historic
Kapunda copper mine and surrounding
areas to Copper Range Limited (CRL).
CRL has the right to earn 51% equity of
the metalliferous minerals rights in the
northwest portion of EL3064 through the
expenditure of $500,000 in five years and
will expend a minimum of $100,000 in
the first eighteen months. When CRL has
completed $500,000 expenditure, Maximus
has a once only right to contribute to
ongoing exploration in proportion to its
49% interest or allow CRL to earn up to
75% equity for the expenditure of a further
$500,000 over five years. CRL are proposing
to review the remaining copper resource at
Kapunda and have commenced exploration
for further copper discoveries within the
joint venture area.
Maximus also holds the rights to several
of the Karinya lead-zinc occurrences
which have attracted interest from third
parties, and a number of other base metal
occurrences in Maximus’ Adelaide Hills
mining tenements.
Drilling at Bird-in-Hand, Adelaide Hills,
March 2007.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 11
Exploration Director’s Report
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Wondinong
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
E
m
0
0
0
0
5
6
E
m
0
0
0
0
0
6
(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23) Gold prospect
(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23) Nickel/PGM prospect
(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23) Copper/zinc prospect
(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23)(cid:23) Lead/zinc prospect
Maximus tenure area
nARnDEE jv pROjECT, wESTERn AUSTRALIA
6 900 000 mN
Maximus predominantly 100%,
The project area now comprises the original Apex Minerals
NL (Apex) joint venture area, adjacent tenements and
applications secured through negotiations with the Carson
and Meeline Syndicates, and several new applications for
exploration licences. The tenure covers an area of 5,474
square kilometres and consists of 33 granted exploration
licences, 27 applications for exploration licences, 16
prescribed prospecting licences and 39 applications for
prescribed prospecting licences (see Figure 6 and the
tenement schedule, page 23 for details).
Remaining interests in all tenements relating to the Apex
joint venture were secured through the issue of 3 million
Maximus shares and 2 million Maximus 50 cent options
to previous joint venture partners, Apex, Windimurra
Resources Pty Ltd and well known prospector/entrepreneur,
Mr Mark Creasy. A twelve month option for 100% interest for
$500,000 cash in the Meeline tenements and applications
was achieved through the cash payment of $100,000, and a
90% interest was secured with the cash payment of $150,000
and the issue of 3 million Maximus shares and 2 million
Maximus 50 cent options to Corporate Resource Consultants
Pty Ltd, Mr Bruce Legendre and T E Johnston & Associates.
Numerous mineral occurrences enclosed within the project
area include (Figure 6):
•
•
•
•
•
Calcrete hosted Uranium mineralisation in Windimurra
and Wondinong palaeochannels overlying the older
basement geology
Nickel, Copper and Platinum Group Metals [PGMs] in
the basement layered mafic intrusives forming both the
Narndee and Windimurra complexes
Vanadium-enriched magnetite iron in the Windimurra
complex similar to the vanadium mineralisation to be
mined by PMA at their Windimurra Vanadium deposit
Gold within the Windimurra complex and in peripheral
contact zones of both complexes
Copper, Lead and Zinc in both felsic volcanic and
structural settings within the basement geology
12 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
Windimurra Uranium Prospect
(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Windimurra
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Palaeochannel
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Windimurra Vanadium Deposit
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
Canegrass Vanadium Prospect
(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)
(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)
6 850 000 mN
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Shepards Iron Ore Zone
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Windim urra-Narndee
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
Com plex
(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)(cid:29)
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
Milgoo Nickel/PGM Prospect
6 800 000 mN
0
5
10 15 km
Figure 6 Location of Narndee JV Project area.
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Figure 7 Airbourne radiometric image over part of
the Narndee JV Project area.
E
m
0
0
0
5
4
6
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC548
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
MNAC529
(cid:13)
(cid:13)
(cid:13)
(cid:12)
(cid:13)
(cid:13)
(cid:13)
(cid:13)
(cid:13)
(cid:13)
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
MNAC513
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6875000 mN
Exploration licence
Calcrete (WMC drilling)
Area of WMC anomalous drilling
Windimurra palaeochannel
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Anomalous drillhole (>100ppm U3O8)
Drillhole (<100ppm U3O8)
1km
Figure 8 Windimurra Uranium Project - completed
aircore drilling and results.
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MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 13
Uranium
Maximus has undertaken a total of
3582 metres of shallow aircore drilling
through the Windimurra and Wondinong
Palaeochannels to further test airborne
radiometric anomalies previously drilled by
WMC Resources Limited (WMC) in the 1970s
(Figure 7 and 8).
The Maximus exploration drilling at
Windimurra was focused on an area of
elevated WMC drill results extending over
eight kilometres of the palaeochannel and
drilling on a 320 by 160 grid metre spacing
has confirmed that this area is of ongoing
interest (Figure 8). Downhole radiometric
probe results and drill analyses have
demonstrated the palaeochannel calcretes
contain U3O8 values to significant levels
and thicknesses over an area of potential
economic interest. Better values include
Hole MNAC126, 2.5 metres from surface at
0.49kg U3O8 (490ppm)
Hole MNAC157, 2 metres from surface at
0.48kg U3O8 (480ppm)
Hole MNAC240, 1 metre from 1 metre at
0.58kg U3O8 (580ppm)
Hole MNAC484, 1.5 metres from 0.5 metres
at 0.51kg U3O8 (510ppm)
Hole MNAC509, 1.5 metres from 0.5 metres
at 0.53kg U3O8 (530ppm)
Hole MNAC510, 1.5 metres from 1.5 metres
at 0.45kg U3O8 (450ppm)
Hole MNAC513, 2 metres from 1.5 metres at
0.41kg U3O8 (410ppm)
Hole MNAC529, 1.5 metres from surface at
0.52kg U3O8 (520ppm)
Hole MNAC548, 2.5 metres from 0.5 metres
at 0.43kg U3O8 (430ppm)
including 0.5 metres at 1.11kg U3O8
(1110ppm)
Exploration Director’s Report
Hole MNAC577, 2 metres from surface at
0.55kg U3O8 (550ppm)
It is anticipated that drill results at
Windimurra will lead to the estimation of
an inferred uranium resource during the
second half of 2007.
Broad spaced drill traverses along the
entire Wondinong palaeochannel were
less encouraging as U3O8 values were
generally low and aircore drilling was
difficult due to the presence of silcrete
layers in the calcrete. However, a strong
radiometrically anomalous area some 7 x 7
kilometres in size straddles the tenement
boundary of E58/294. Aura Energy Limited
who hold approximately two thirds of this
radoimetric anomaly is working towards
defining a uranium resource in their sector
by late 2007. The sector of the anomaly
located within E58/294 still remains to be
drill tested.
Windimurra Palaeochannel,
Western Australia
nickel/Copper/pGMs
The Milgoo area near Narndee has been
previously explored for nickel, copper
and PGMs but Maximus has been the first
company to test the area with a ground
based electromagnetic (EM) survey. The
survey covered only part of the Milgoo
area but it was successful in detecting two
conductive zones of potential interest; now
designated the Central and NW conductors
(Figure 9).
Exploratory drilling of these conductive
zones has indicated that their conductivity
is due to disseminated copper, iron and
nickel sulphide mineralisation within
ultramafic rocks and further drilling,
particularly on the 800 metre long Central
conductor, is warranted as soon as a
suitable drilling contractor can be secured.
Assays for intersections in each of the
conductors indicate nickel and associated
copper values with a best interval of
3 metres from 99 metres downhole at
0.43% nickel and 0.48% copper in hole
MNRC0002. This hole is one of two holes on
a single traverse at the shallower end of the
800 metre long Central conductor. Another
700 metres of strike along the Central
conductor remains to be drill tested. A
single hole on the NW conductor recorded
3 metres from 145 metres at 0.35% nickel
and 0.27% copper.
It is anticipated that further drilling of
each conductor will be undertaken as soon
as a suitable contractor is available. Results
to date, however, are considered highly
encouraging and have led to Maximus
planning airborne EM coverage of the entire
Windimurra/Narndee complex during 2008.
Additional PGM occurrences have been
identified in the western portion of the
Windimurra complex where Pancontinental
Mining Limited (Pancon) reported up
to 8.27 grams PGM per tonne in surface
sampling from a thin but discontinuous
chromite band. Unfortunately, exploratory
core drilling by Pancon failed to locate
significant PGMs at depth. Maximus intends
to re-examine the potential this region in
a collaborative study with the Australian
National University. The study with the
ANU will also cover many other aspects
of the geology and mineralisation of the
Windimurra and Narndee Complexes.
14 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Exploration Director’s Report
Figure 9 Milgoo Nickel Prospect
showing location of EM conductors.
Hole 19 (8m@0.5% Ni)
6808000 mN
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MNRC0001
MNRC0001
MNRC0001
MNRC0001
MNRC0001
MNRC0001
MNRC0001
MNRC0001
MNRC0001
MNRC0001
(3m@0.35% Ni and 0.27% Cu)
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
NW conductor
6806000 mN
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
plunge to the north
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
Central conductor
(3m@0.43% Ni and 0.48% Cu)
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0002
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
MNRC0003
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
Historic drilling
6804000 mN
E
m
0
0
0
6
0
6
500m
E
m
0
0
0
8
0
6
EM survey lines
EM survey lines
EM survey lines
EM survey lines
EM survey lines
EM survey lines
EM survey lines
EM survey lines
EM survey lines
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EM survey lines
EM survey lines
E
m
0
0
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1
6
Iron Ore/vanadium
Magnetite enrichment in magmatic horizons within the layered
gabbros of the Windimurra complex is considered to represent a
potential opportunity to locate abundant magnetite iron ore which
also hosts significant vanadium and titanium. The area is well located
with respect to infrastructure currently being developed to exploit the
extensive Mid West Iron Ore Province which encloses magnetite and
hematite iron ore deposits such as Karara and Jack Hills (Figure 10).
Maximus has undertaken surface sampling and mapping of extensive
linear magnetic horizons at the Canegrass prospect and along the
southern Shephards Zone. Average grades for 198 samples from
Canegrass over 18 kilometres of strike length amount to 54%
iron, 13% titanium and 1.2% vanadium pentoxide. The southern
Shephards Zone has averaged 48.6% iron, 12.7% titanium and 1.2%
vanadium pentoxide over an 18 kilometre strike length. The northern
Shephards Zone, which is one of the few portions of the Windimurra
complex not controlled by Maximus, hosts the Windimurra vanadium
deposit owned by Precious Metals Australia Limited and containing
proved and probable reserves of 98.2 million tonnes averaging 0.4%
vanadium pentoxide within a resource of 198 million tonnes.
Drilling MNRC0001 - July 2007.
Wiluna West
Jack Hills
Meekatharra
Weld Range
Maximus
Narndee Project
Windimurra
Iron ore projects
Cu-Zn deposit
Tallering Peak
Mount Magnet
GERALDTON
Golden Grove
Koolanooka
Blue Hills
Karara Iron Ore Project
Extension Hill
0
100 km
Figure 10 Location of iron ore projects in the
vicinity of Maximus Narndee tenements.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 15
Exploration Director’s Report
Gold
Copper/Lead/Zinc
During 2006, rotary air blast (RAB) drilling
along the Kiabye Greenstone Belt on the
western margin of the Narndee complex
indicated minor gold. However, follow up
exploration failed to locate any significant
area of gold mineralisation.
Exploration of the gold potential along
poorly exposed margins of the Narndee and
Windimurra complexes will continue and
further RAB drill testing of the southern
Wymandoo Shear is planned.
Historic exploration for massive sulphide
hosted copper, lead and zinc has occurred
in two areas of felsic volcanics and related
volcanoclastic sediments interpreted
by others to overly the Narndee and
Windimurra layered igneous complexes.
Significant copper-zinc deposits in felsic
volcanics are know from the Golden Grove
area located about 150 kilometres west
of Windimurra/Narndee (Figure 10). To
date, Maximus has not further investigated
the potential of these massive sulphide
occurrences to host a significant base
metal deposit but the airborne EM surveys
over the Windimurra/Narndee complexes
will cover the felsic volcanic terrain.
Bronzewing/Ironstone Well area
Canegrass ironstone outcrop - Narndee
Project Area
In the late 1970s/early 1980s WMC
Resources Limited (WMC) undertook
some drilling at Canegrass and made a
preliminary metallurgy assessment of
the magnetite. The drilling reported up
to 24.7 metres from 36 metres downhole
of 40.1% iron, 9.5% titanium and 0.8%
vanadium pentoxide (WMC drill hole CGD1).
The magnetite is coarse grained and does
not require fine grinding. Preliminary
metallurgical testing by WMC indicates the
magnetite can be separated magnetically
to produce a high grade concentrate
containing up to 57% iron with associated
titanium and vanadium.
Preliminary estimates of likely tonnages
of this iron ore based on the extent of
airborne magnetic anomalies and assuming
a minimum depth of 30 to 40 metres,
amount to 120 million tonnes at Canegrass
and 80 million tonnes in the southern
Shepherds Zone. Such iron ore is treatable
in technologically advanced blast furnaces
currently operating in China, Russia and
South Africa. Canegrass and Shepherds
Zone therefore warrant investigation as
sources of iron ore, titanium and vanadium.
Maximus is planning to undertake initial
drill traverses at each of these prospects
and undertake further metallurgical testing
during the December Quarter.
16 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Exploration Director’s Report
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Lake Dalrymple
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Burdekin Falls Dam
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0000000000000000000000000000000000000000000000000
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Figure 11 Location of Sellheim Project area - Queensland.
Test pitting operation at the Sellheim
Gold Project - October 2007.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 17
SELLhEIM GOLD pROjECT,
QUEEnSLAnD
Option for 100% Maximus
The Sellheim project area covers 78
square kilometres and comprises three
granted mining leases enclosed within an
exploration permit and application for an
exploration permit located 190 km south
southeast of Townsville (Figures 1 and 11).
The area is an active and historic alluvial
gold mining centre dating back to 1867
and the underlying bedrock is prospective
for the discovery of gold and base metal
mineralisation.
On 27 October 2006, Maximus announced
the terms of a three year option agreement
to purchase 100% ownership of the tenure
from vendors Alan Stiff, Colleen Budge
and Peter Harvey. These terms included an
initial option payment of $75,000 in cash
and the issue of 600,000 ordinary shares in
Maximus. The agreement allows for annual
extension of the option agreement for up
to three years through further payments of
$62,500 in cash and the issue of $75,000
in value of ordinary Maximus shares. The
option for 100% equity in the project area
may be exercised at any time after the
initial option payment for a cash amount of
$1,500,000. If the option is exercised, the
vendors retain rights to a 1.5% net smelter
return royalty on any mineral production
from the project area.
Maximus commenced exploration
in November 2006 with the flying
of helicopter-borne high resolution
aeromagnetics and mapping of the alluvial
gold potential. In early 2007, a camp was
constructed and a small alluvial gold plant
was purchased from New Zealand. Test
pitting of the alluvial gold potential was
Exploration Director’s Report
underway in the second quarter of 2007
and bedrock geochemical drilling of the
main mining lease area commenced in May.
Despite field activities being seriously
hampered by unseasonal rains in Northern
Queensland through June-July, the
Maximus field staff has dug and processed
alluvial materials from over 70 test pits
and completed the bedrock drilling of 214
rotary air blast (RAB) holes and 11 reverse
circulation (RC) holes.
To date, a total of some 500 loose cubic
metres (lcm) of alluvial material has been
treated and the majority of results from
individual test pit have been encouraging
(Figure 12). Better values from the test
pits dug to the base of the alluvium have
included
2.24 grams gold per lcm (Pit TT047R)
1.66 grams gold per lcm (Pit TT026R)
1.51 grams gold per lcm (Pit TT002R)
1.39 grams gold per lcm (Pit TT024)
Figure 12 Location of alluvial gold areas and test pits at the Sellheim Project area - Queensland.
'
7
1
º
7
4
1
Boulder
Run
-20º56'
EPM13499
'
6
1
º
7
4
1
ML10328
TT024
TT047R
Jacks
Patch
Golden
Triangle
-20º57'
TT026R
ML10269
TT002R
Miers
Run
ML10270
Test pit
Ore zone
0
500 m
In several cases, gold nuggets have
been recovered by metal detecting the
weathered bedrock interface at the
bottom of the test pit. Given that such soft
weathered material could be excavated at
the time of a mining operation and passed
through the trommel section of an alluvial
plant, recovery of such nuggets in a full
scale alluvial mining operation can be
anticipated.
Geochemistry from RAB bedrock drilling
on a 160 by 80 metre pattern across the
mining leases has indicated anomalous
patterns in potential pathfinder elements
for gold such as arsenic and bismuth but,
in general, few anomalous gold values were
obtained.
Eleven RC holes were drilled to follow up
previously known targets such as Agnew’s
Hole on the smaller central mining
lease and the Margaretta copper mine
workings in the main northern mining
lease. At Agnew’s Hole, hole MQRC01
recorded 8 metres from 14 metres down
hole at 1.35 grams gold per tonne and
at Margaretta Extended, hole MQRC05
recorded 8 metres from 38 metres at
0.8 grams per tonne. Further investigation
of the bedrock gold and copper potential
throughout the tenement package will
continue during 2008.
18 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Exploration Director’s Report
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Figure 13 Location of the Yandal Gold Project
prospects in the Yandal Greenstone Belt -
Western Australia.
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YAnDAL GOLD pROjECT,
wESTERn AUSTRALIA
90% Maximus
The Yandal project area comprises two
separate tenement packages situated near
Wiluna (Figure 1) and located within the
highly prospective Yandal Greenstone Belt.
The Ironstone Well project contains two
granted exploration licences and several
prospecting licence applications covering
239 square kilometres and includes three
zones of known gold mineralisation
(Figure 14). The Yandal Homestead project
comprises five granted tenements and
five applications covering 56 square
kilometres and includes two zones of gold
mineralisation.
Ironstone well
Subsequent to the granting of most of the
tenements at Ironstone Well, Maximus
undertook 2331 metres of RC drilling for
31 holes on the Flushing Meadows inferred
mineral resource (Figure 13). Most of
this drilling was focused on confirming
the reliability of previous drilling data
used by Maximus to estimate an inferred
mineral resource of 1.1 million tonnes of
1.7 grams gold per tonne (59,000 ounces
of gold). The recent drilling will be used
to support the upgrading of part of the
inferred resource to an indicated resource
and probable reserve status. Maximus
believes that a grade of at least 2 grams
gold per tonne would be necessary for a
possible development. The estimate of a
probable reserve will be completed during
the December Quarter when Maximus will
consider its options to realise value for its
interest in the project.
Yandal homestead
Following receipt of modest gold results
for drilling completed in the previous
year, no further field activities have been
undertaken. The project has now been sold
to joint venture partner Nemex Pty Ltd for
a cash payment of $135,000 for Maximus’
90% interest in the Yandal Homestead
tenements.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 19
Exploration Director’s Report
wOOLAnGA GOLD AnD BASE METAL
pROjECT, nORThERn TERRITORY
100% Maximus
The Woolanga project area comprises five
exploration licences and one Authority
covering 1739 square kilometres and is
located 100 kms northeast of Alice Springs
(Figure 1). The tenement package includes
the Johnnies Reward ironstone hosted
copper-gold prospect for which previous
explorers have intersected up to 50 metres
averaging 1.8 grams gold per tonne from 75
metres (Alcoa hole DDH002). In addition,
vermiculite occurrences of potential
commercial grade, and similar to that
currently mined by Australian Vermiculite
at its nearby Mud Tank operation, occur
within the project area (Figure 14).
Field activities have included the
completion of a helicopter-borne
electromagnetic (EM) survey over the
Johnnies Reward prospect; data from which
indicated a modest anomaly in the area
of the historic drilling. Inspection of core
from this historic drilling failed to resolve
the EM anomaly. However, as a result of its
opportunities in other projects, Maximus
has decided to offer the project for farm
out. Maximus is currently negotiating
agreements that will result in joint venture
exploration of the Johnnies Reward
prospect and the completion of an airborne
geophysical survey over the remainder
of the Woolanga tenement package. It
is anticipated that this joint venture
exploration will be underway during the
December Quarter.
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Figure 14 Woolanga Project geology and prospects.
20 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Exploration Director’s Report
RAnkIn BASE METAL pROjECT,
nORThERn TERRITORY
BILLA kALInA pROjECT, SOUTh
AUSTRALIA
Maximus 95%
During the year, Maximus negotiated
an agreement with Tanami Exploration
NL (TENL) to secure 95% ownership of
exploration licences EL9529 and EL22759.
These ELs enclose the Rankin and Gecko
massive sulphide base metal prospects
situated less than 100 kilometres north of
Alice Springs (Figure 1). TENL will retain
a 5% interest in the joint venture carried
to the point of “decision to mine”. The
tenements cover 63 square kilometres and
are contiguous with Maximus’ Woolanga
project area.
Maximus has completed helicopter-borne
EM surveys over both the Rankin and
Gecko prospects with mixed results. Data
at Rankin indicate a modest EM response
immediately north of some historic drilling
but there was no significant EM anomaly
at Gecko. Maximus has decided to offer
the project for farm out, together with
the Woolanga project, to a third party who
is prepared to accept the 5% free carried
interest of TENL. Maximus is currently
negotiating an agreement that will result in
new joint venture exploration of both the
Rankin and Gecko prospects commencing in
the December Quarter.
Maximus diluting to 50% subject to Billa
Kalina JV Agreement
The Billa Kalina project area comprises
five exploration licences located 70km
northwest of the Olympic Dam copper-
uranium-gold deposit and 45 km east of
the Prominent Hill copper-gold deposit
(Figure 1). In 2006, a farm out agreement
involving the project resulted in Eromanga
Uranium Limited (ERO) taking over
management of ongoing exploration.
Through its wholly owned subsidiary,
Eromanga Uranium Resources Pty Ltd, ERO
must spend $3 million on exploration to
earn 50% interest in the project.
During mid 2007, ERO completed two drill
holes to approximately 600 metres depth
each on a gravity anomaly considered to
have potential for copper-uranium-gold
mineralisation of Olympic Dam style. Each
of the holes intersected basement geology
comprising mafic volcanics. While these
volcanics include quartz veining and some
disseminated pyritic zones, no alteration or
iron-oxide-copper-gold mineralisation was
observed. The gravity anomalies are now
thought to be due to buried topographic
relief in the basement.
ERO has advised that it will not immediately
be continuing to pursue bedrock
mineralisation within the Billa Kalina
project area, but they intend to focus
on the potential for sandstone hosted
uranium in the sediments overlying the
older crystalline basement rocks. In pursuit
of this latter target, ERO has recently
completed an airborne electromagnetic
survey of the project area. Data from this
survey remain to be interpreted.
Drilling BK 1 at BillaKalina - June 2007.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 21
Exploration Director’s Report
EROMAnGA BASIn SEDIMEnTARY
URAnIUM pROjECT, SOUTh AUSTRALIA
& nORThERn TERRITORY
Maximus diluting to 30% subject to
Eromanga JV Agreement
The Eromanga Sedimentary Uranium
Project comprises seventeen exploration
licences and one application in five
separate tenement packages covering
15,755 square kilometres of sedimentary
units overlying Precambrian basement
rocks on the margin of the Eromanga Basin
(Figure 1). Each of the tenement packages
is considered favourable for the discovery
of sedimentary uranium deposits.
Sedimentary uranium deposits are a
significant source of the World’s uranium
resources. Yet, despite Australia’s
Precambrian basement rocks hosting
approximately one third of the World’s low
cost uranium resources, and the existence
of ideal geological settings such as the
Eromanga Basin to concentrate uranium
weathered from basement, Australia is
under represented in such sedimentary
uranium deposits. Part of this deficiency
is considered to be due to a lack of
persistence exploration for this form of
uranium deposit and the Eromanga Basin
project represents an exciting opportunity
to discover one or more new sedimentary
uranium fields.
Joint venture partner and manager,
Eromanga Uranium Limited (ERO), has
elected to use cutting edge technology
by completing regional scale helicopter-
borne EM surveys over the Maree and
Abminga tenement packages. The objective
is to identify palaeochannels within the
Eromanga Basin Mesozoic sediments that
are likely to host uranium mineralisation.
The EM data at Maree have been
complimented by initial drill traverses to
assist in interpretation. Similar EM surveys
will be completed over the Kingoonya and
Ilowga tenements.
22 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
REPTEM Survey at Abminga Project area - June 2007.
Tenement schedule
For the year ended 30 June 2007
Tenement
Number
Tenement Name
Date Granted
/ Applied For
Expiry Date
Area Sq.
Km.
Registered Holder / Applicant
Related Agreement
Western Australia
Narndee Project
E58/232
Boulder Well
29/07/02
28/07/2007**
50 Windimurra Resources Pty Ltd
E58/235
Canegrass Well
29/07/02
28/07/2007**
50 Windimurra Resources Pty Ltd
E58/236
Challa
22/03/02
21/03/2007**
50 Windimurra Resources Pty Ltd
E58/237
Naluthanna Hill
22/03/02
21/03/2007**
50 Windimurra Resources Pty Ltd
E58/240
Windimurra
11/03/02
10/03/2007**
50
Bernfried Gunter Franz Wasse
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
E58/270
Wondinong Hill
28/10/05
27/10/10
196
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
132
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
196
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
E58/271
Gingier Pool
E58/273
Wagoo Hills
E58/274
Paynesville
7/11/05
4/05/07
5/03/03
6/11/10
3/05/12
4/03/08
E58/281
Boundary Well
28/06/06
27/06/11
E58/282
Honeypot
E58/294
Wondinong
E58/295
Windsor
3/05/07
7/06/06
7/06/06
2/05/12
6/06/11
6/06/11
98
42
25
Apex Minerals NL
Apex Minerals NL
87 Maximus Resources Ltd
6 Maximus Resources Ltd
E58/300
Kundingguari Hill
1/12/06
30/11/11
42 Henning Otto Hintze
E58/295
Windsor
7/06/06
6/06/11
6 Maximus Resources Ltd
E58/309
Brailia South
22/01/07
21/01/12
17 Maximus Resources Ltd
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Meeline Option Agreement
Apex Sale Agreement
Apex Sale Agreement
E59/908
Narndee
8/09/00
7/09/08
E59/1078
Tandy Bore
14/11/02
13/11/07
E59/1081
Dromedary Well
14/11/02
13/11/07
E59/1082
Warne River
14/11/02
13/11/07
98
59
54
42
Apex Minerals NL(80) Tyson Resources P/L(6) Wedgetail
Resources P/L(14)
Apex & Wedgetail Sale
Agreements
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
E59/1083
Narndee West
14/11/02
13/11/07
106
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
E59/1084
Moolyawarda Hill
14/11/02
13/11/07
E59/1085
Budnee
14/11/02
13/11/07
54
54
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
E59/1087
Bricky Bore
6/06/07
5/06/12
196
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
E59/1088
Dunns Tank
24/10/06
23/10/11
196
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Sale Agreement
E59/1111
Tootawarra Well
28/10/05
27/10/10
E59/1173
E59/1174
11/23/2006
22/11/11
11/23/2006
22/11/11
42
60
20
Kesli Chemicals Pty Ltd
Kesli Chemicals Pty Ltd
E59/1206
Tootawarra East
29/10/06
28/10/11
14 Maximus Resources Ltd
Wedgetail Sale Agreement
Wedgetail Sale Agreement
Apex Sale Agreement
CRC Group Sale Agreement
E59/1230
Narndee C1
2/8/2007
7/02/12
E59/1231
Boodanoo
2/8/2007
7/02/12
E59/1237
Boodanoo C1
1/25/2007
24/01/12
E59/1238
Boodanoo C2
1/22/2007
21/01/12
200
200
43
20
TE Johnston and Associates P/ L (40%), Corporate and
Resource Consultants P/L (60%)
TE Johnston and Associates P/ L (40%), Corporate and
Resource Consultants P/L (60%)
CRC Group Sale Agreement
TE Johnston and Associates P/ L (40%), Corporate and
Resource Consultants P/L (60%)
CRC Group Sale Agreement
TE Johnston and Associates P/ L (40%), Corporate and
Resource Consultants P/L (60%)
CRC Group Sale Agreement
E59/1252
Boodanoo Well
21/06/07
20/06/12
48 Maximus Resources Ltd
E58/244
Paynesville E1
7/10/99
E58/254
Paynesville E2
29/09/00
Apex Sale Agreement
Meeline Option Agreement
3
Christopher Richard Elkington (25%), Peter William Youngs
(50%), Darian Sampey (25%)
108
Alan Hunter Younger (25%), Christopher Richard Elkington
(25%), Peter William Youngs (25%), Roger Townend (25%)
Meeline Option Agreement
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 23
Tenement schedule
For the year ended 30 June 2007
Tenement
Number
Tenement Name
Date Granted
/ Applied For
Expiry Date
E58/257
Meeline E1
27/11/00
Area Sq.
Km.
183
Registered Holder / Applicant
Related Agreement
Raimunda Silva Townend (25%), Alan Hunter Younger (25%),
Christopher Richard Elkington (25%), Peter William Youngs
(25%)
Meeline Option Agreement
E59/1335
4 Corner Bore
5/02/07
50
Apex Minerals NL(80) Tyson Resources P/L(6) Wedgetail
Resources P/L(14)
Apex & Wedgetail Sale
Agreements
E59/1365
Narndee A
E59/1366
Wydgee A
E59/1367
Wydgee B
E59/1368
Wydgee C
E59/1370
Windimurra-
Warramboo
1/05/07
1/05/07
1/05/07
1/05/07
1/05/07
E59/1381
Boodanoo M1
5/22/2007
E59/1382
Narndee M3
5/22/2007
E59/1383
Yardiacco Hill
5/22/2007
E59/1384
Muleryon Hill
5/22/2007
6 Maximus Resources Ltd
49 Maximus Resources Ltd
9 Maximus Resources Ltd
3 Maximus Resources Ltd
3 Maximus Resources Ltd
21 Maximus Resources Ltd
99 Maximus Resources Ltd
200 Maximus Resources Ltd
192 Maximus Resources Ltd
Also includes 35 superceded EL applications, 14 superceded ML applications, 16 granted PL’s (18 sq km) and 15 pending PL’s (16 sq km)
Yandal Homestead Project
P37/6709
Withers 1
15/04/05
14/04/09
2 Maximus Resources Limited(90)Nemex Pty Ltd(10)
Nemex Agreement
P37/6710
Withers 2
15/04/05
14/04/09
2 Maximus Resources Limited(90)Nemex Pty Ltd(10)
Nemex Agreement
P37/6711
Withers 3
15/04/05
14/04/09
2 Maximus Resources Limited(90)Nemex Pty Ltd(10)
Nemex Agreement
P37/6712
Withers 4
15/04/05
14/04/09
2 Maximus Resources Limited(90)Nemex Pty Ltd(10)
Nemex Agreement
P37/6713
Withers 5
15/04/05
14/04/09
2 Maximus Resources Limited(90)Nemex Pty Ltd(10)
Nemex Agreement
E37/818
Yandal
Homestead
P37/7078
P37/7079
P37/7080
P37/7081
P37/7082
P37/7083
P37/7084
P37/7085
7/02/05
16/01/07
16/01/07
16/01/07
16/01/07
16/01/07
16/01/07
16/01/07
16/01/07
34
Nemex Pty Ltd
Nemex Agreement
2
1
1
2
2
2
2
2
Allied Technologies Group Ltd(33)Newmont Wiluna Gold
P/L(67)
Nemex Agreement
Allied Technologies Group Ltd(33)Newmont Wiluna Gold
P/L(67)
Nemex Agreement
Allied Technologies Group Ltd(33)Newmont Wiluna Gold
P/L(67)
Nemex Agreement
Allied Technologies Group Ltd(33)Newmont Wiluna Gold
P/L(67)
Nemex Agreement
Allied Technologies Group Ltd(33)Newmont Wiluna Gold
P/L(67)
Nemex Agreement
Allied Technologies Group Ltd(33)Newmont Wiluna Gold
P/L(67)
Nemex Agreement
Allied Technologies Group Ltd(33)Newmont Wiluna Gold
P/L(67)
Nemex Agreement
Allied Technologies Group Ltd(33)Newmont Wiluna Gold
P/L(67)
Nemex Agreement
Also includes 4 superceded ML applications
Duketon Project
E37/925
Woodarra
28/02/07
67 Maximus Resources Ltd
24 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Tenement schedule
For the year ended 30 June 2007
Tenement
Number
Tenement Name
Date Granted
/ Applied For
Expiry Date
Area Sq.
Km.
Registered Holder / Applicant
Related Agreement
Ironstone Well Project
P53/1209
Barwidgee
8/08/05
7/08/09
2
AM-Australian Minerals Exploration P/L
Nemex Agreement
E53/1223
Ironstone Well
25/01/07
24/01/12
188 Maximus Resources Limited(90)Nemex Pty Ltd(10)
Nemex Agreement
E53/1224
Flushing Meadows
25/01/07
24/01/12
56 Maximus Resources Limited(90)Nemex Pty Ltd(10)
Nemex Agreement
P53/1308
P53/1309
P53/1310
P53/1311
P53/1312
P53/1313
P53/1314
P53/1315
P53/1316
P53/1317
P53/1318
P53/1319
P53/1320
P53/1321
P53/1322
P53/1323
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
12/01/07
2 Mark Gareth Creasy(30)Newmont Yandal Operations P/L(70)
Nemex Agreement
2 Mark Gareth Creasy(30)Newmont Yandal Operations P/L(70)
Nemex Agreement
1 Mark Gareth Creasy(30)Newmont Yandal Operations P/L(70)
Nemex Agreement
1 Mark Gareth Creasy(30)Newmont Yandal Operations P/L(70)
Nemex Agreement
2
1
1
2
2
2
2
2
2
2
1
0
Australian Metals Corporation P/L(20)Eagle Mining P/L(51)
Hunter Resources P/L(29)
Nemex Agreement
Australian Metals Corporation P/L(20)Eagle Mining P/L(51)
Hunter Resources P/L(29)
Nemex Agreement
Australian Metals Corporation P/L(20)Eagle Mining P/L(51)
Hunter Resources P/L(29)
Nemex Agreement
Eagle Mining P/L(71)Hunter Resources P/L(29)
Eagle Mining P/L(71)Hunter Resources P/L(29)
Eagle Mining P/L(71)Hunter Resources P/L(29)
Eagle Mining P/L(71)Hunter Resources P/L(29)
Newmont Yandal Operations P/L
Newmont Yandal Operations P/L
Newmont Yandal Operations P/L
Newmont Yandal Operations P/L
Newmont Yandal Operations P/L
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Also includes 5 superceded ML applications
Kimberley Project
E80/3670
Police Valley
20/04/06
348
Flinders Diamonds Ltd (50) Maximus Resources Ltd (50)
South Australia
Adelaide Hills Project
EL 3215
Lobethal
24/06/04
23/06/08
341
Flinders Diamonds Limited
MC3783
Bird in Hand
23/04/07
22/04/08
Flinders Diamonds Limited
EL 3425
Echunga
19/10/05
18/10/07
253
Flinders Diamonds Limited
EL3534
Mt Pleasant
30/03/06
29/03/08
719
Flinders Diamonds Limited
EL 3057
Mt Barker
17/01/03
16/01/08
162
Flinders Diamonds Limited
EL 3064
Kapunda
12/03/03
11/03/08
746
Flinders Diamonds Limited
EL 3141
Brukunga
24/10/03
23/10/07
176
Flinders Diamonds Limited
EL 3239
Tarlee
10/09/04
9/09/07
533
Flinders Diamonds Limited
ELA 251/06 Mount Monster
16/05/06
575 Maximus Resources Limited
ELA252/06 Williamstown
16/05/06
44 Maximus Resources Limited
ELA106/07 Tepko
ELA170/07 Mount Rufus
5/03/07
4/04/07
160 Maximus Resources Limited
102 Maximus Resources Limited
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders & Copper Range
Agreements
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 25
Tenement schedule
For the year ended 30 June 2007
Tenement
Number
Tenement Name
Date Granted
/ Applied For
Expiry Date
Area Sq.
Km.
Registered Holder / Applicant
Related Agreement
Billa Kalina Project
EL 3526
Francis
23/02/06
22/02/08
734
Flinders Diamonds Limited
EL 3525
Margaret
23/02/06
22/02/08
771
Flinders Diamonds Limited
EL 3170
Billa Kalina
25/02/04
24/02/08
1,435
Flinders Diamonds Limited
EL 3337
Welcome Creek
19/05/05
18/05/08
373
Flinders Diamonds Limited
EL 3338
Millers Creek
19/05/05
18/05/08
771
Flinders Diamonds Limited
Eromanga Project
EL 3579
Calcutta
21/06/06
20/06/08
984 Maximus Resources Limited
EL3578
EL3577
EL3574
EL3575
Dalarinna Hill
21/06/06
20/06/08
1000 Maximus Resources Limited
Wilpoorina
21/06/06
20/06/08
962 Maximus Resources Limited
Mundowdna
21/06/06
20/06/08
963 Maximus Resources Limited
Marla
21/06/06
20/06/08
988 Maximus Resources Limited
EL3599
Alberga River
17/07/06
16/07/08
903 Maximus Resources Limited
EL 3600
Mt Weir
17/07/06
16/07/08
959 Maximus Resources Limited
EL 3601
Warrataddy Hill
17/07/06
16/07/08
963 Maximus Resources Limited
EL 3602
Mt Anthony
17/07/06
16/07/08
966 Maximus Resources Limited
EL3576
EL3573
Whymlet
21/06/06
20/06/08
973 Maximus Resources Limited
Haggard Hill
21/06/06
20/06/08
859 Maximus Resources Limited
EL 3590
Bon Bon
22/06/06
21/06/08
667 Maximus Resources Limited
EL3591
McDouall Peak
22/06/06
21/06/08
980 Maximus Resources Limited
EL 3613
Phar Lap
15/08/06
14/08/08
581 Maximus Resources Limited
Northern Territory
Woolanga Project
EL 23592
Johnnies Reward
12/2/03
11/02/09
A 23714
Mud Tank Reserve
11/11/04
10/11/10
49
28
Flinders Diamonds Limited
Flinders Diamonds Limited
SEL25055
Strangways
13/6/06
12/06/10
1118
Flinders Diamonds Limited
SEL25056
Mud Tank-Alcoota
13/6/06
12/06/10
520
Flinders Diamonds Limited
Rankin Project
EL9529
Rankin
5/14/2002
13/05/08
EL22759
Gecko
Eromanga Project
4/2/2002
1/04/08
47
16
Tanami Exploration NL
Tanami Exploration NL
EL25161
Illogwa Creek
1/24/2006
1117 Maximus Resources Limited
EL25162
Numery
11/22/2006
21/11/12
216 Maximus Resources Limited
EL25163
Mt Peterswald
11/22/2006
21/11/12
1130 Maximus Resources Limited
EL25166
Jenkins Bluff
11/22/2006
21/11/12
1005 Maximus Resources Limited
Queensland
Sellheim Project
ML10269
Slim Chance
11/13/2003
30/11/08
0.13
Peter Lawrence Harvey
ML10270
Next Chance
11/13/2003
30/11/08
0.50
Peter Lawrence Harvey
ML10328
Sellheim
12/1/2006
30/11/26
3.27
Alan Raney Stiff
EPM 13499 Mount Richardson
1/3/2004
28/02/09
11.00
Peter Lawrence Harvey
EPM 15778
Sellheim River
7/27/2006
63.00
Alan Raney Stiff and Colleen Margaret Budge
26 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
Tanami Agreement
Tanami Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Sellheim Agreement
Sellheim Agreement
Sellheim Agreement
Sellheim Agreement
Sellheim Agreement
Financial Report
For the year ended 30 June 2007
Maximus Resources Limited
ABN 74 111 977 354
INDEX
Corporate Governance Statement
Directors Report
Auditors Independence Declaration
Income Statement
Balance Sheet
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
Directors Declaration
Independent Audit Report
ASX Additional information
28
30
34
35
36
37
38
39
53
54
56
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 27
Corporate Governance Statement
The Board of Directors of Maximus
Resources Limited aims to achieve
the highest standards of corporate
governance and has established corporate
government policies and procedures,
where practicable, consistent with the ASX
Corporate Governance Council’s publication
“Principles of Good Corporate Governance
and Best Practice Recommendations”
(“ASXCGC”).
The Company to date has not adopted the
ASXCGC best practice recommendations
other than those specifically identified and
disclosed below as the Board believes that
it cannot justify the necessary cost in view
of the size and early stage of the entity’s
life as a listed exploration company.
This statement outlines the main corporate
governance practices of the Company
disclosed under the principles outlined in
the ASXCGC.
PrinciPle 1
LAY SOLID FOUNDATIONS FOR MANAGEMENT
AND OVERSIGHT
Role of the Board
The Board is governed by the Corporations
Act 2001, the Company’s formal
constitution and by the ASX Listing Rules.
The Board’s primary role is to set policy
regarding the affairs of the Company for
the protection and enhancement of long-
term shareholder value.
The Board takes responsibility for the
overall Corporate Governance of the
Company including its strategic direction,
management goal setting and monitoring,
internal control, risk management and
financial reporting.
Board processes and management
The Board has an established framework
for the management of the entity including
a system of internal control, a business
risk management process and appropriate
ethical standards.
The Board has appointed a Managing
Director responsible for the day to day
management of the Company including
management of financial, physical and
human resources, development and
implementation of risk management,
internal control and regulatory compliance
policies and procedures, recommending
strategic direction and planning for
the operations of the business and the
provision of relevant information to the
Board.
PrinciPle 2
STRUCTURE BOARD TO ADD VALUE
Composition of the Board
The Board comprises individuals with a
range of knowledge, skills and expertise
that are appropriate to its activities and
objectives.
The composition of the Board consists
of four directors. Two, including the
Chairman, are non-executives. Mr
Kennedy’s role as Chairman of the Board
is separate from those of the Managing
Director, Dr Wills who is responsible for the
day to day management of the Company.
This is in compliance with the ASXCGC best
practice recommendation.
The Company’s constitution specifies
the number of directors must be at least
three and at most ten. The Board may at
any time appoint a director to fill a casual
vacancy. Directors appointed by the Board
are subject to election by shareholders
at the following annual general meeting
and thereafter directors (other than
the Managing Director) are subject to
re-election at least every three years.
PrinciPle 3
PROMOTE ETHICAL AND RESPONSIBLE
DECISION MAKING
Ethical standards
The Company aims for a high standard of
corporate governance and ethical conduct
by directors and employees.
All directors are required to provide the
Company with details of all securities
registered in the director’s name or an
entity in which the director has a relevant
interest.
Directors are required to disclose to the
Board any material contract in which they
may have an interest. In accordance with
Section 195 of the Corporations Act 2001, a
director having a material personal interest
in any matter to be dealt with by the Board,
will not be present when that matter is
considered by the Board and will not vote
on that matter.
Trading in the Company’s Securities
Directors, officers and employees are not
permitted to trade in securities of the
Company at any time whilst in possession
of price sensitive information not readily
available to the market. The Corporations
Act also prohibits the acquisition and
disposal of securities where a person
possesses information that is not generally
available and which may reasonably be
expected to have a material effect on the
price of the securities if the information
was generally available.
PrinciPle 4
SAFEGUARD INTEGRITY IN FINANCIAL
REPORTING
Audit Committee
The Board has established an audit
committee. The primary role of the
committee is to monitor and review the
effectiveness of the control environment in
the Company and provide an independent
and objective review of financial and other
information prepared by management,
including overseeing the Company’s
discharge of its responsibilities with respect
to:
•
•
•
•
reviewing, assessing and making
recommendations to the Board on the
annual and half year financial reports
and all other financial information
published or released to the market by
the Company;
overseeing establishment, maintenance
and reviewing the effectiveness of
the Company's internal controls and
ensuring efficacy and efficiency of
operations, reliability of financial
reporting and compliance with
applicable Accounting Standards and
ASX Listing Rules;
liaising with and reviewing reports of
the external auditor; and
reviewing performance and
independence of the external
auditor and where necessary making
recommendations for appointment and
removal of the Company's auditor.
The Committee meets at least two times
per annum and reports to the Board. The
Managing Director, Company Secretary
and external auditor may by invitation
attend meetings at the discretion of the
Committee.
28 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Corporate Governance Statement
The remuneration of the Managing Director
is determined by the Board as part of the
terms and conditions of his employment
which are subject to review from time to
time. The remuneration of employees is
determined by the Managing Director
subject to the approval of the Board.
PrinciPle 10
RECOGNISE THE LEGITIMATE INTERESTS OF
STAKEHOLDERS
Code of Conduct
The Company requires all its directors
and employees to abide by the highest
standards of behaviour, business ethics and
in accordance with the law. In discharging
their duties, Directors of the Company are
required to:
•
•
•
•
•
•
•
•
act in good faith and in the best
interests of the Company;
exercise care and diligence that a
reasonable person in that role would
exercise;
exercise their powers in good faith for a
proper purpose and in the best interests
of the Company;
not improperly use their position or
information obtained through their
position to gain a personal advantage or
for the advantage of another person to
the detriment of the Company;
disclose material personal interests and
avoid actual or potential conflicts of
interests;
keep themselves informed of relevant
Company matters;
keep confidential the business of all
directors meetings; and
observe and support the Board's
Corporate Governance practices and
procedures.
PrinciPle 5
MAKING TIMELY AND BALANCED DISCLOSURE
Continuous Disclosure
The Company operates under the
continuous disclosure requirements of
the ASX Listing Rules and ensures that
all information which may be expected to
affect the value of the Company’s securities
or influence investment decisions is
released to the market in order that all
investors have equal and timely access
to material information concerning the
Company. This is made publicly available on
the Company’s web-site following release
to the ASX.
PrinciPle 6
RESPECT
The Role of Shareholders
The Board aims to ensure that shareholders
are informed of all major developments
affecting the Company’s state of affairs.
In accordance with the ASXCGC best
practice recommendations, information is
communicated to shareholders as follows:
•
the annual financial report which
includes relevant information about
the operations of the Company during
the year, changes in the state of affairs
of the entity and details of future
developments, in addition to the other
disclosures required by the Corporations
Act 2001; the half yearly financial
report lodged with the Australian Stock
Exchange and Australian Securities
and Investments Commission and sent
to all shareholders who request it;
notifications relating to any proposed
major changes in the Company which
may impact on share ownership
rights that are submitted to a vote of
shareholders;
•
notices of all meetings of shareholders;
•
•
publicly released documents including
full text of notices of meetings and
explanatory material made available on
the Company's web-site; and
disclosure of the Company's
Corporate Governance practices and
communications strategy on the entity's
web-site.
The Board encourages full participation of
shareholders at the Annual General Meeting
to ensure a high level of accountability
and identification with the Company’s
strategy and goals. The external auditor
of the Company is also invited to the
Annual General Meeting of shareholders
and is available to answer any questions
concerning the conduct, preparation and
content of the auditor’s report.
PrinciPle 7
RECOGNISE AND MANAGE RISKS
Risk Assessment and Management
The Board recognises that there are
inherent risks associated with the
Company’s operations including mineral
exploration and mining, environmental,
title and native title, legal and other
operational risks. The Board endeavours to
mitigate such risks by continually reviewing
the activities of the Company in order to
identify key business and operational risks
and ensuring that they are appropriately
assessed and managed.
PrinciPle 8
ENCOURAGE PERFORMANCE
Performance Evaluation
The Board evaluates the performance of
the Managing Director, other executive
directors and senior management on a
regular basis and encourages continuing
professional development at these levels.
PrinciPle 9
REMUNERATE FAIRLY AND RESPONSIBLY
Remuneration Policy
In view of the current size of the Board,
remuneration matters are monitored by
the entire board having regard for industry
practices and laws.
The Company’s Constitution specifies
that the total amount of remuneration
of non-executive directors shall be fixed
from time to time by the members in a
general meeting. Directors may apportion
any amount up to this maximum amount
amongst the non-executive directors
as they determine. Directors are also
entitled to be paid reasonable travelling,
accommodation and other expenses
incurred in performing their duties as
directors.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 29
Directors Report
Your directors present their report on the
Company and its controlled entities for the
financial year ended 30 June 2007.
Directors
The names of directors in office at any time
during or since the end of the year are:
Robert Michael Kennedy
Kevin John Anson Wills
Gary Eric Maddocks
Ewan John Vickery
Nick John Smart (alternate for E J Vickery)
Richard Walter Cumming Willson (alternate
for G E Maddocks, resigned 14 August 2007)
The directors have been in office since the
start of the financial year to the date of
this report unless otherwise stated.
Company Secretary
The following person held the position
of company secretary at the end of the
financial year:
Richard Walter Cumming Willson
B.Ac., CPA, GAICD
Bachelor of Accounting, CPA, Graduate
Member of the Australian Institute of
Company Directors. Mr Willson has had
more than 13 years experience. He has
worked in public practice and in various
financial management and company
secretarial roles within the Provimi
Australia group, BHP Billiton and the
Jumbuck Pastoral group. He has been the
Company Secretary since 1 March 2006 and
to the date of this report.
Principal Activities
The principal activity of the Company
during the financial year was gold, nickel,
uranium, copper, platinum and other
minerals exploration.
Operating Results
The consolidated net result of operations for
the financial year was a loss of $710,678.
Dividends
There were no dividends declared or paid
during the period.
Review of Operations
In the first full financial year since listing,
Maximus expended about $4.2 million on
multi-commodity mineral exploration. This
was divided between three main projects,
each in a different State. In South Australia
work focused on the Adelaide Hills and
particularly the Bird-in-Hand gold project.
In Western Australia, Maximus gained
control of 97% the entire Windimurra/
Narndee Complex which has potential for a
variety of commodities including iron ore,
gold, nickel and uranium. In Queensland
work focused on evaluation of the alluvial
and hard rock gold potential of the
Sellheim project.
In the Adelaide Hills Maximus is exploring
below several historic gold mines with
a view to their re-opening. The first of
these is the Bird-in Hand gold mine near
Woodside where continuity of a high grade
gold lode has been established during the
year. At the date of this report the inferred
mineral resource is approximately 412,000
tonnes averaging 12.0 grams per tonne
gold for a total of 162,000 ounces. In order
to commence pre feasibility the company
is targeting a resource of at least 250,000
ounces by the end of 2007.
In Western Australia, at the Windimurra/
Narndee project Maximus has made
several important advances during the
year. Maximus has purchased former
partners interests and now owns between
90 and 100% equity in 5,500 sq km which
represents 97% of the geologically mapped
area of the complex. There currently are
three prospects identified within the
complex where the results are highly
encouraging. These are the Windimurra
calcrete uranium project, the Milgoo nickel-
copper-PGM prospect, and the Windimurra
iron ore project.
At Sellheim in Queensland, Maximus has
an option to purchase an area of 75 sq km
with a history of alluvial gold production.
Maximus has set up a field camp, water
supply and alluvial testing plant where
testing commenced in late April. It is
expected that sufficient alluvial gold will be
located to commence an alluvial operation
in late 2007 or early 2008. The bedrock gold
potential is currently being evaluated by
drilling in this highly prospective part of
the northern Drummond Basin.
Maximus also has two important Joint
Ventures with Eromanga Uranium Limited.
In the Billa Kalina joint venture, Eromanga
has drill tested a gravity anomaly that
was prospective for iron-oxide-copper-
gold mineralisation. The anomaly was not
found to be caused by mineralisation and
additional work is necessary to define new
targets. As the project contains about
50 km strike length of ground between
Olympic Dam and Prominent Hill, further
work is justified. Eromanga has also been
exploring the margin of the Eromanga
Basin for sandstone uranium mineralisation
and has carried out major new airborne
electromagnetic surveys to locate
paleochannels during the year.
Financial Position
The net assets of the group have increased
by $16,009,074 during the financial
year from $8,123,591 at 30 June 2006 to
$24,132,665 at 30 June 2007. This increase
has largely resulted from the proceeds
from share issues raising $907,195 and
the listing of Eromanga Uranium Ltd. The
Company has been actively undertaking
exploration activities and has capitalised
$6,987,454 in exploration expenditure
during the current financial year.
The directors believe the Company is in
a strong and stable financial position to
continue its exploration activities.
After Balance Date Events
No circumstances have arisen since the end
of the financial year which significantly
affected or may significantly affect the
operations of the consolidated group, the
results of those operations, or the state of
affairs of the consolidated group in future
financial years.
Future Developments, Prospects and
Business Strategies
Maximus will continue pursuing its strategy
of locating resources with development
potential during the next financial year.
Work at Bird-in Hand will involve additional
drilling and subject to successful results the
commencement of a pre-feasibility study.
Drill testing of other old gold mines in the
Adelaide Hills is hoped to lead to additional
resources for development.
In Western Australia Maximus has a
strategy of focussing on the Windimurra/
Narndee Complex to locate deposits of
Uranium, nickel and iron ore. Uranium and
iron ore mineralisation has already been
located and it is intended to fly a major new
airborne electromagnetic survey to locate
additional nickel targets to explore in the
coming year.
At Sellheim, it is anticipated that alluvial
gold production will be possible after
further testwork. Recent work has focussed
on the granted Mining Lease and in future
the testing will be expanded to adjacent
areas. Work on the hard rock potential will
also continue.
Maximus maintains an active program
of project generation in its areas of
interest. The Company also actively seeks
joint venture participants for some of its
projects as a method of spreading risk and
increasing expenditure on its tenements.
30 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Directors Report
Nicholas John Smart
Alternate Director for E J Vickery (Non-
Executive)
An alternate director since 9 May 2005,
Mr Smart has held positions as a General
Manager in France and Australia in the
wool, textile, leather and meat industries.
Responsibilities included human resources,
factory operations, currency movements
and commodity trading. He was a full
Associate Member of the Sydney Futures
Exchange then became Managing Director
of D&D-Tolhurst Ltd (sharebrokers) as
a client advisor and in the corporate
area including capital raising. He has
been involved in start up companies in
technology development such as the laser
shearing of sheep skins, commercialisation
of the Synroc process for safe storage of
high level nuclear waste and controlled
temperature and atmosphere transport
systems. Mr Smart currently consults to
various public and private companies. Mr
Smart is a director of GTL Energy Limited.
Richard Walter Cumming Willson
Alternate Director for G E Maddocks
(Executive) - B.Ac., CPA, GAICD
Mr Willson has had more than 13 years
experience. He has worked in public
practice and in various financial
management and company secretarial
roles within the Provimi Australia group,
BHP Billiton and the Jumbuck Pastoral
group. Mr Willson is the Company Secretary
and Chief Financial Officer for Flinders
Diamonds Limited and Eromanga Uranium
Limited. He is also a director of Housing
Spectrum, a not for profit organisation that
provides disability housing. He has been an
alternate director since 18 May 2006 and
resigned 14 August 2007.
Environmental Issues
The consolidated group’s operations are
subject to significant environmental
regulation under both Commonwealth and
relevant State legislation in relation to
discharge of hazardous waste and materials
arising from any exploration or mining
activities and development conducted by
the Group on any of its tenements. The
Group believes it is not in breach of any
environmental obligation.
Information on Directors
Robert Michael Kennedy
Non-Executive Chairman - ASAIT, Grad, Dip
(Systems Analysis), FCA, ACIS, Life Member
AIM, FAICD
A Chartered Accountant and a consultant
to Kennedy & Co, Chartered Accountants,
a firm he founded. Mr Kennedy has been a
director since incorporation 17 December
2004. Mr Kennedy is the Chairman of Beach
Petroleum Limited (Director since 1991,
Chairman since 1995), Flinders Diamonds
Limited (since 2001), Monax Mining
Limited (since 2004), Ramelius Resources
Limited (since 1995) and Eromanga
Uranium Limited (since 2006).
Mr Kennedy brings to the Board his
expertise in finance and management
consultancy and extensive experience as
chairman and non-executive director of a
range of listed public companies.
Mr Kennedy is a member of the Audit
Committee.
Kevin John Anson Wills
Managing Director - ARSM, PhD, FAusIMM
A director since incorporation 17 December
2004. Dr Kevin Wills is a geologist with
32 years experience in multi commodity
mineral exploration including uranium
exploration, feasibility studies and mine
operations in Australasia. Dr Wills spent
seven years with CRA Exploration Pty Ltd,
the highlight of which was involvement
with the location and evaluation of the
Argyle Diamond Deposit. Later, with
Penarroya Australia Pty Ltd, his work led to
an expansion of reserves at Thalanga and
the discovery of the Waterloo base metals
deposit.
In the late 1980s, Dr Wills was exploration
manager with Metana Minerals NL. He
built up a successful exploration team
which extended known gold ore bodies
and made new discoveries. In the early
1990s Dr Wills was regional exploration
manager with Dominion Mining Ltd, based
in Adelaide. His work on the Gawler Craton
led to the development of a calcrete
sampling technique which, later on,
was instrumental in the Challenger gold
discovery.
Dr Wills is also managing director of
Flinders Diamonds Limited (since 2000)
and a Non-Executive Director of Eromanga
Uranium Limited (since 2006). He is a
recent past chairman of the Adelaide
Branch of the AusIMM and the Exploration
Committee at the South Australian Chamber
of Mines and Energy.
Ewan John Vickery
Non-Executive Director – L.LB
A director since incorporation 17
December 2004. Mr Vickery is a corporate
and business lawyer with over 30 years
experience in private practice in Adelaide.
He has acted as an advisor to companies
on a variety of corporate and business
issues including capital and corporate
restructuring, native title and land access
issues, and as lead native title advisor
and negotiator for numerous mining and
petroleum companies.
Mr Vickery is a Director of Flinders
Diamonds Limited (since 2001), Eromanga
Uranium Limited (since 2006) and member
of the Exploration Committee of the South
Australian Chamber of Mines and Energy
Inc, the International Bar Association
Energy and Resources Law Section, the
Financial Services Institute of Australasia,
the Australian Institute of Company
Directors and is a past national president
of Australian Mining and Petroleum Law
Association (AMPLA Limited).
Mr Vickery is the Chairman of the audit
committee.
Gary Eric Maddocks
Exploration Director (Executive) – M.Sc.
& App.Sc.(Geology), Dip.App.Chem., F
AusIMM(CP)
A director since incorporation 17 December
2004. Mr Maddocks has 37 years of
experience in mineral exploration for
gold, copper, lead/zinc, nickel and tin
throughout Australia. He has been involved
with exploration activities for gold and
copper in India, Indonesia and New
Zealand. He is principal of GEM Exploration
Management Services, a Chartered
Professional (Geology) and Fellow of
the Australian Institute of Mining and
Metallurgy.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 31
Directors Report
Significant changes in State of Affairs
The following significant changes in
the state of affairs of the parent entity
occurred during the financial year:
On 3 November 2006 600,000 shares
were issued as part consideration of the
acquisition of an option to acquire the
Selheim project.
On 29 November 2006 1,800,000 shares
were issued to acquire the remaining 25%
of the Lobethal project.
On 17 April 2007 7,346,666 shares were
placed to sophisticated investors at $0.15.
On 6 June 2007 67,500 shares were issued
as a result of the exercise of options.
Changes in controlled entities and
divisions
On 31 October 2006 Eromanga Uranium
Resources Pty Ltd was sold to Eromanga
Uranium Limited (Eromanga) for a
consideration of 44,357,143 shares in
Eromanga and 8,035,714 options to acquire
shares in Eromanga at $0.30 anytime
before 30 June 2011.
Directors and Executive Officers
Interests
The relevant interest of each director and
executive officer in the ordinary share
capital of the Company at the date of this
report is:
R M Kennedy
K J A Wills
G E Maddocks
E J Vickery
N J Smart
R W C Willson
Shares
Options
2,750,001(1)
3,150,001(1)
2,500,001(1)
2,672,501(1)
25,000
57,000(1)
1,375,000(1)
1,575,000(1)
1,250,000(1)
1,306,250(1)
512,500(1)
100,000(1)
(1) held by directors and entities in which directors
have a relevant interest.
Remuneration Report
This report details the nature and amount
of remuneration for each director of
Maximus Resources Limited.
The board of Maximus Resources Limited
believes the remuneration policy to be
appropriate and effective in its ability to
attract and retain the best executives and
directors to run and manage the Company,
as well as create goal congruence between
directors, executives and shareholders.
The board’s policy for determining the nature and amount of remuneration for board
members and senior executives of the Company is as follows:
• The remuneration policy, setting the terms and conditions for the executive directors and
other senior executives, was developed and approved by the board.
• Executives receive a base salary (which is based on factors such as length of service and
experience), and superannuation, or Consulting Fees.
• The board reviews executive packages annually by reference to the Company’s
performance, executive performance and comparable information from industry sectors.
The policy is designed to attract the highest calibre of executives and reward them for
performance that results in long-term growth in shareholder wealth.
Executives are also entitled to participate in the employee option arrangements.
The directors and executives remunerated by salary receive superannuation inclusive of the
superannuation guarantee contribution required by the government, which is currently 9%,
and do not receive any other retirement benefits.
Details of remuneration for year ended 30 June 2007
The remuneration for each director of the consolidated entity during the year was as follows:
Directors
Salary, Fees and
Commissions
Super-
annuation
Contribution
Share based
payments
Total
Consulting Fees
paid to entities
in which the
director has
a relevant
interest
$
R M Kennedy
73,395
K J A Wills
G E Maddocks
E J Vickery
N J Smart
R W C Willson(i)
-
-
-
-
-
$
6,605
-
-
-
-
-
$
-
166,126
209,379
45,000
-
-
73,395
6,605
420,505
$
80,000
166,126
209,379
45,000
-
6,100
506,605
-
-
-
-
-
6,100
6,100
(i) Richard W C Willson is employed by FME Exploration Services Pty Ltd. His services are provided as part
of the services agreement in place between FME Exploration Services Pty Ltd and Maximus Resources
Limited. The management fees paid by Maximus Resources Limited to FME Exploration Services are
outlined in Note 24. This agreement was formalised 3 August 2006.
Employment contracts of directors
The employment conditions of the managing director, Dr Wills and the exploration director,
Mr Maddocks are formalised in consultancy agreements. The agreements are for a fixed term
of three years from August 2005, after which the agreements continue on a monthly basis.
Meetings of Directors
During the financial year, 15 meetings of directors (including committees of directors) were
held. Attendances by each director during the year were as follows:
Directors Meetings
Audit Committee Meeting
Number eligible
to attend
Number
attended
Number eligible
to attend
Number
attended
13
13
13
13
13
13
13
13
13
13
2
2
1
2
2
2
2
1
2
2
R M Kennedy
K J A Wills
G E Maddocks
E J Vickery
R W C Willson
32 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Indemnifying Officers or Auditor
During or since the end of the financial year the Company has given an indemnity or entered
into an agreement to indemnify, or paid or agreed to pay insurance premiums as follows:
The Company has paid premiums to insure each of the following directors against liabilities
for costs and expenses incurred by them in defending any legal proceedings arising out of
their conduct while acting in the capacity of director of the Company, other than conduct
involving a willful breach of duty in relation to the Company. The amount of the premium was
$7,978 for each director named below and includes their alternate.
Mr R M Kennedy
Dr K J A Wills
Mr E J Vickery
Mr G E Maddocks
Options
At the date of this report, the unissued ordinary shares of Maximus Resources Limited under
option are as follows:
Grant Date
Date of Expiry
Exercise Price
Number under Option
1 April 2005
12 April 2005
29 July 2005
23 August 2005
20 October 2005
25 October 2005
30 January 2006
18 May 2006
10 April 2007
2 July 2007
2 July 2007
30 June 2008
12 April 2010
30 June 2008
30 June 2008
30 June 2008
30 June 2008
30 June 2008
30 June 2008
20 March 2012
2 July 2010
2 July 2012
$0.20
$0.20
$0.20
$0.20
$0.20
$0.20
$0.20
$0.20
$0.14
$0.50
$0.50
7,500,000
1,000,000
312,500
862,500
333,333
19,406,647
3,500,000
250,000
860,000
2,000,000
2,000,000
38,024,980
During the year ended 30 June 2007, the following ordinary shares in Maximus Resources
Limited were issued on the exercise of options granted under the Maximus Resources Limited
Employee Option Plan. No further shares have been issued since that date. No amounts are
unpaid on any of the shares.
Grant Date
Exercise Price
Number of shares issued
10 April 2007
$0.14
35,000
No person entitled to exercise an option had or has any right by virtue of the option to
participate in any share issue of any other body corporate.
Proceedings on Behalf of Company
No person has applied for leave of Court to bring proceedings on behalf of the Company
or intervene in any proceedings to which the Company is a party for the purpose of taking
responsibility on behalf of the Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the financial year.
Directors Report
Non-Audit Services
The board of directors, in accordance
with advice from the audit committee, is
satisfied that the provision of non-audit
services during the year is compatible with
the general standard of independence
for auditors imposed by the Corporations
Act 2001. The directors are satisfied
that the services disclosed below did
not compromise the external auditor’s
independence for the following reasons:
• all non-audit services are reviewed and
approved by the audit committee prior
to commencement to ensure they do
not adversely affect the integrity and
objectivity of the auditor; and
• the nature of the services provided do
not compromise the general principles
relating to auditor independence in
accordance with APES 110: Code of
Ethics for Professional Accountants
set by the Accounting Professional and
Ethical Standards Board.
The following fees for non-audit services
were paid/payable to the external auditors
during the year ended 30 June 2007:
Preparation of Independent Accountants
Report for Eromanga Uranium Limited
Prospectus $10,000.
Auditor’s Independence Declaration
The lead auditor’s independence
declaration for the year ended 30 June
2007 has been received and can be found
on page 8 of the directors’ report.
Dated at Adelaide this 28th day of
September 2007 and signed in accordance
with a resolution of the directors.
Robert M Kennedy
Chairman
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 33
Auditors Independence Declaration
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF MAXIMUS RESOURCES LIMITED
In accordance with the requirements of section 307C of the Corporations Act 2001, as
auditor for the audit of Maximus Resources Limited for the year ended 30 June 2007, I
declare that, to the best of my knowledge and belief, there have been:
(a)
(b)
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
GRANT THORNTON
South Australian Partnership
Chartered Accountants
S J GRAY
Partner
Signed at Wayville this 28 day of September 2007
34 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Income Statement
For the year ended 30 June 2007
Note
Consolidated Group
Parent Entity
2007
$
2006
S
2007
$
2006
$
2
3
3
4
7
7
756,512
205,784
9,701,027
205,784
280,213
800,245
456,986
1,885
94,159
442,852
98,581
1,428
115,211
264,349
386,632
637
94,159
442,852
98,581
1,428
(782,817)
(431,236)
8,934,198
(431,236)
29,355
227,792
2,566,397
227,792
(812,172)
(659,028)
6,367,801
(659,028)
101,494
-
-
-
(710,678)
(659,028)
6,367,801
(659,028)
(1.046)
(1.046)
(1.351)
(1.351)
9.376
6.222
(1.351)
(1.351)
Revenue
Marketing expenses
Administrative expense
Exploration expenses
Finance costs
Profit/(Loss) before income tax
Income tax expense
Profit/(Loss) for the year
(Profit)/Loss attributable to outside equity interest
Profit/(Loss) attributable to members of the parent
company
Basic earnings/(loss) per share (cents)
Diluted earnings/(loss) per share (cents)
The accompanying notes form part of these financial statements.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 35
Balance Sheet
As at 30 June 2007
Current assets
Cash and cash equivalents
Trade & other receivables
Other current assets
Total current assets
Non-current assets
Property, Plant & Equipment
Exploration, & Evaluation, Expenditure
Financial assets
Investments accounted for using the equity method
Total non-current assets
Total assets
Current liabilities
Trade & other payables
Provisions
Deferred tax liability
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Parent interest
Outside equity interest
Total equity
The accompanying notes form part of these financial statements.
36 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Note
Consolidated Group
Parent Entity
2007
$
2006
$
2007
$
2006
$
8
9
14
15
10
16
17
4
12,354,511
4,089,053
633,010
36,000
222,010
-
313,373
207,270
36,000
4,089,052
222,010
-
13,023,521
4,311,063
556,643
4,311,062
674,444
119,169
314,210
119,169
11,085,151
4,097,697
8,499,156
4,097,697
-
2
-
1
9,579,500
1
1
1
11,759,597
4,216,867
18,392,867
4,216,868
24,783,118
8,527,930
18,949,510
8,527,930
632,076
18,377
-
650,453
650,453
404,339
423,422
404,339
-
-
6,019
2,537,042
-
-
404,339
2,966,483
404,339
2,966,483
404,339
404,339
24,132,665
8,123,591
15,983,027
8,123,591
18
10,133,983
8,699,079
10,133,983
8,699,079
156,408
83,667
140,397
83,667
(1,369,832)
(659,155)
5,708,647
(659,155)
8,920,559
8,123,591
15,983,027
8,123,591
15,212,106
-
-
-
24,132,665
8,123,591
15,983,027
8,123,591
Statement Of Changes In Equity
For the year ended 30 June 2007
Issued Capital
Share Option
Reserve
Retained Earnings
Outside equity
interest
$
$
$
$
Consolidated group
Balance at 1st July 2005
Loss for the period
Shares issued during the period
Transaction costs (net of tax)
Options issued during the period
Balance at 30th June 2006
Initial outside equity interest
Loss for the period
Loss attributed to outside equity interest
75,004
-
9,155,588
(531,513)
-
8,699,079
-
-
-
Shares issued during the period
1,503,400
Options issued during the period
Outside equity interest in options reserve
-
-
Transaction costs (net of tax)
(68,496)
-
-
-
-
83,667
83,667
-
-
-
-
72,741
-
-
Total
$
74,877
(659,028)
9,155,588
(531,513)
83,667
8,123,591
(127)
(659,028)
-
-
-
(659,155)
-
-
-
-
-
-
-
15,284,332
15,284,332
(710,678)
-
(710,678)
-
-
-
-
-
(101,494)
(101,494)
-
-
29,268
1,503,400
72,741
29,268
-
(68,496)
Balance at 30 June 2007
10,133,983
156,408
(1,369,832)
15,212,106
24,132,665
Parent entity
Balance at 1st July 2005
Loss for the period
Shares issued during the period
Transaction costs (net of tax)
Options issued during the period
Balance at 30th June 2006
Profit for the period
Shares issued during the period
75,004
-
9,155,588
(531,513)
-
8,699,079
-
1,503,400
-
-
-
-
83,667
83,667
-
-
Options issued during the period
-
56,730
Transaction costs (net of tax)
(68,496)
-
(127)
(659,028)
-
-
-
(659,155)
6,367,801
-
-
-
Balance at 30 June 2007
10,133,983
140,397
5,708,646
The accompanying notes form part of these financial statements.
-
-
-
-
-
-
-
-
-
-
-
74,877
(659,028)
9,155,588
(531,513)
83,667
8,123,591
6,367,801
1,503,400
56,730
(68,496)
15,983,026
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 37
Cash Flow Statement
For the year ended 30 June 2007
Note
Economic Entity
Parent Entity
2007
$
2006
$
2007
$
2006
$
Cash flows from operating activities
Interest received
453,633
223,978
141,002
223,978
Payments to suppliers and employees
(1,349,291)
(419,505)
(688,241)
(419,505)
Net cash provided by (used in) operating activities
21
(895,658)
(195,527)
(547,239)
(195,527)
Cash flows from investing activities
Purchase of property, plant and equipment
(599,934)
(123,932)
(223,424)
(123,932)
Purchase of investments
-
(1)
-
(1)
Payment for exploration activities
(4,989,702)
(2,366,029)
(3,992,376)
(2,366,029)
Loans to related entities
Payment of security bonds
Payments for subsidiaries net of cash acquired
(90,380)
(36,000)
14,692,735
-
-
-
27,310
(36,000)
(19,500)
-
-
-
Net cash provided by (used in) investing activities
8,976,719
(2,489,962)
(4,243,990)
(2,489,962)
Cash flows from financing activities
Proceeds from issue of shares
Net cash provided by (used in) financing activities
184,397
184,397
6,773,286
1,015,549
6,773,286
6,773,286
1,015,549
6,773,286
Net increase in cash held
8,265,458
4,087,797
(3,775,680)
4,087,797
Cash at beginning of financial year
4,089,053
1,256
4,089,053
1,255
Cash at end of financial year
8
12,354,511
4,089,053
313,373
4,089,052
The accompanying notes form part of these financial statements.
38 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Notes to the Financial Statements
For the year ended 30 June 2007
b) Income Tax
The charge for income tax expense is based on the profit for the year adjusted for any non-
assessable or disallowed items. It is calculated using the tax rates that have been enacted or are
substantially enacted by the balance date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts in
the financial statements. No deferred income tax will be recognised from the initial recognition of
an asset or liability, excluding a business combination, where there is no effect on accounting or
taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset
is realised or liability is settled. Deferred tax is credited in the income statement except where it
relates to items that may be credited directly to equity, in which case the deferred tax is adjusted
directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will
be available against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation
that the consolidated group will derive sufficient future assessable income to enable the benefit to
be realised and comply with the conditions of deductibility imposed by the law.
c) Plant and Equipment
Each class of plant and equipment is carried at cost or fair value less, where applicable, any
accumulated depreciation and impairment losses.
Plant and Equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in
excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis
of the expected net cash flows that will be received from the assets’ employment and subsequent
disposal. The expected net cash flows have been discounted to their present values in determining
recoverable amounts.
Subsequent costs are included in the assets’ carrying amount or recognised as separate assets,
as appropriate, only when it is probable that future economic benefits associated with the item
will flow to the group and the cost of the item can be measured reliably. All other repairs and
maintenance are charged to the income statement during the financial period in which are they are
incurred.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight-line basis over their useful
lives to the consolidated group commencing from the time the asset is held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Non Current Asset
Depreciation Rate
Basis of Depreciation
Plant and equipment
12.5 - 40%
Straight line
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each
balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined in comparing proceeds with the carrying amount.
These gains and losses are included in the income statement. When re-valued assets are sold,
amounts included in the revaluation reserve relating to that asset are transferred to retained
earnings.
d) Exploration Expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area
of interest. These costs are only carried forward to the extent that they are expected to be recouped
through the successful development of the area or where activities in the area have not yet reached
a stage that permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year
in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised
over the life of the area according to the rate of depletion of the economically recoverable reserves.
NOTE 1. STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES
The financial report is a general purpose
financial report that has been prepared
in accordance with Australian Accounting
Standards, including Australian Accounting
Interpretations, other authoritative
pronouncements of the Australian Accounting
Standards Board and the Corporations Act 2001.
The financial report covers the consolidated
group of Maximus Resources Limited and
controlled entities, and Maximus Resources
Limited as an individual parent entity. Maximus
Resources Limited is a listed public company,
incorporated and domiciled in Australia.
Compliance with IFRS
Australian Accounting Standards include
Australian equivalents to International Financial
Reporting Standards (AIFRS). Compliance with
AIFRS ensures that the consolidated financial
statements and notes of Maximus Resources
Limited comply with International Financial
Reporting Standards (IFRS).
The following is a summary of the material
accounting policies adopted by the consolidated
group in the preparation of the financial report.
The accounting policies have been consistently
applied, unless otherwise stated.
Basis of Preparation
The accounting policies set out below have been
consistently applied to all years presented.
Reporting Basis and Conventions
The financial report has been prepared on
an accruals basis and is based on historical
costs modified by the revaluation of selected
non-current assets, and financial assets and
financial liabilities for which the fair value basis
of accounting has been applied.
Accounting Policies
a) Principles of Consolidation
A controlled entity is any entity Maximus
Resources Limited has the power to control
the financial and operating policies of so as
to obtain benefits from its activities.
A list of controlled entities is contained in
Note 13 to the financial statements. All
controlled entities have a June financial
year-end.
All inter-company balances and transactions
between entities in the consolidated group,
including any unrealised profits or losses,
have been eliminated on consolidation.
Accounting policies of subsidiaries have
been changed where necessary to ensure
consistencies with those policies applied by
the parent entity.
Where controlled entities have entered or
left the consolidated group during the year,
their operating results have been included/
excluded from the date control was obtained
or until the date control ceased.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 39
Notes to the Financial Statements
continued
A regular review is undertaken of each area of
interest to determine the appropriateness of
continuing to carry forward costs in relation
to that area of interest.
Costs of site restoration are provided over
the life of the facility from when exploration
commences and are included in the costs of
that stage. Site restoration costs include
the dismantling and removal of mining
plant, equipment and building structures,
waste removal, and rehabilitation of the site
in accordance with clauses of the mining
permits. Such costs have been determined
using estimates of future costs, current
legal requirements and technology on an
undiscounted basis.
Any changes in the estimates for the costs
are accounted on a prospective basis. In
determining the costs of site restoration,
there is uncertainty regarding the nature and
extent of the restoration due to community
expectations and future legislation.
Accordingly the costs have been determined
on the basis that the restoration will be
completed within one year of abandoning
the site.
e) Financial Instruments
Recognition
Financial instruments are initially measured
at cost on trade date, which includes
transaction costs, when the related
contractual rights or obligations exist.
Subsequent to initial recognition these
instruments are measured as set out below.
Loans and receivables
Loans and receivables are non-derivative
financial assets with fixed or determinable
payments that are not quoted in an active
market and are stated at amortised cost using
the effective interest rate method.
Available-for-sale financial assets
Available-for-sale financial assets are
reflected at fair value. Unrealised gains and
losses arising from changes in fair value are
taken directly to equity.
Fair value
Fair value is determined based on current bid
prices for all quoted investments. Valuation
techniques are applied to determine the fair
value for all unlisted securities, including
recent arm’s length transactions, reference
to similar instruments and option pricing
models.
Impairment
At each reporting date, the group assesses
whether there is objective evidence that
a financial instrument has been impaired.
In the case of available-for-sale financial
instruments, a prolonged decline in the
value of the instrument is considered to
determine whether an impairment has arisen.
Impairment losses are recognised in the
income statement.
f) Impairment of Assets
j) Cash and Cash Equivalents
At each reporting date, the group reviews
the carrying values of its tangible and
intangible assets to determine whether there
is any indication that those assets have been
impaired. If such an indication exists, the
recoverable amount of the asset, being the
higher of the asset’s fair value less costs
to sell and value in use, is compared to the
assets carrying value. Any excess of the
assets carrying value over its recoverable
amount is expensed to the income statement.
Where it is not possible to estimate the
recoverable amount of an individual asset,
the group estimates the recoverable amount
of the cash-generating unit to which the
asset belongs.
g) Investments in Associates
Investments in associate companies are
recognised in the financial statements by
applying the equity method of accounting.
The equity method of accounting recognised
the group’s share of post-acquisition reserves
of its associates.
h) Interests in Joint Ventures
The consolidated group’s share of the
assets, liabilities, revenue and expenses
of joint venture operations are included in
the appropriate items of the consolidated
financial statements. Details of the
consolidated group’s interests are shown at
Note 11.
The consolidated group’s interests in joint
venture entities are brought to account
using the equity method of accounting in
the consolidated financial statements. The
parent entity’s interests in joint venture
entities are brought to account using the cost
method.
i) Employee Benefits
Provision is made for the group’s liability
for employee benefits arising from services
rendered by employees to balance date.
Employee benefits that are expected to be
settled within one year have been measured
at the amounts expected to be paid when
the liability is settled, plus related on-costs.
Employee benefits payable later than one
year have been measured at the present value
of the estimated future cash outflows to be
made for those benefits.
Equity-settled compensation
The cost of equity-settled transactions is
measured by the fair value at the date at
which the equity instruments are granted.
The fair value is determined using the Black-
Scholes pricing model. The cost is recognised
as an expense in the income statement with
a corresponding increase in the share option
reserve or issued capital when the options or
shares are issued.
Cash and cash equivalents include cash on
hand, deposits held at call with banks, other
short-term highly liquid investments with
original maturities of three months or less,
and bank overdrafts.
k) Revenue
Interest revenue is recognised on a
proportional basis taking into account the
interest rates applicable to the financial
assets.
l) Goods and Services Tax (GST)
Revenues, expenses and assets are
recognised net of the amount of GST, except
where the amount of GST incurred is not
recoverable from the Australian Taxation
Office. In these circumstances the GST is
recognised as part of the cost of acquisition
of the asset or as part of an item of expense.
Receivables and payables in the balance
sheet are shown inclusive of GST.
Cash flows are presented in the cash flow
statement on a gross basis, except for the
GST component of investing and financing
activities, which are disclosed as operating
cash flows.
m) Comparative Figures
When required by Accounting Standards,
comparative figures have been adjusted to
conform to changes in presentation for the
current financial year.
Critical Accounting Estimates and
Judgments
The Directors evaluate estimates and judgments
incorporated into the financial report based on
historical knowledge and best available current
information. Estimates assume a reasonable
expectation of future events and are based on
current trends and economic data, obtained both
externally and within the group.
Key Estimates — Exploration and
evaluation
The group’s policy for exploration and evaluation
is discussed in note 1(d). The application
of this policy requires management to make
certain assumptions as to future events and
circumstances. Any such estimates and
assumptions may change as new information
becomes available. If, after having capitalised
exploration and evaluation expenditure,
management concludes that the capitalised
expenditure is unlikely to be recovered by future
sale or exploration, then the relevant capitalised
amount will be written off through the income
statements.
40 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Notes to the Financial Statements
continued
Consolidated Group
Parent Entity
2007
$
2006
S
2007
$
2006
$
NOTE 2. REVENUE
Operating activities
- Interest received from other persons
756,512
205,784
141,028
205,784
- Profit on sale of subsidiary
-
-
9,559,999
-
756,512
205,784
9,701,027
205,784
NOTE 3. LOSS FOR THE YEAR
Marketing Expenses
Company Promotion
Subscriptions
Public Relations
Conferences
Other
Administration Expenses
Accounting Services
Legal Fees
Management Fees
Corporate Consulting
ASX Fees
Employee Benefits Expense
Depreciation
Other
Exploration Expenses
Exploration Expenditure Written off
Consolidated Group
Parent Entity
2007
$
152,363
24,840
18,122
23,201
61,687
280,213
9,220
25,471
205,570
55,120
65,070
329,295
44,659
65,840
2006
S
14,849
1,679
11,109
32,948
33,574
94,159
52,189
89,103
99,000
153,552
17,872
14,317
4,762
12,057
2007
$
11,131
24,840
4,139
7,207
67,894
115,211
3,379
3,554
102,785
86,633
10,795
20,141
28,383
8,679
2006
$
14,849
1,679
11,109
32,948
33,574
94,159
52,189
89,103
99,000
153,552
17,872
14,317
4,762
12,057
800,245
442,852
264,349
442,852
456,986
456,986
98,581
98,581
386,632
386,632
98,581
98,581
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 41
Notes to the Financial Statements
continued
NOTE 4.
Deferred tax assets have not been recognised in respect of the following items:
INCOME TAX EXPENSE
Consolidated Group
Parent Entity
2007
$
-
29,355
29,355
2006
S
2007
$
2006
$
-
(1,284,914)
227,792
227,792
3,851,311
2,566,397
-
227,792
227,792
a.
The components of tax expense comprise:
Current tax
Deferred tax
b.
The prima facie tax on profit from ordinary activities
before income tax is reconciled to the income tax as
follows:
Prima facie tax payable on profit from ordinary
activities before income tax at 30% (2006: 30%)
- consolidated group
(234,845)
(129,371)
-
-
- parent entity
Add:
Tax effect of:
- non deductible entertainment expenses
- employee share based payments
- deferred tax asset not brought to account
- previously unrecognised tax losses of parent entity
-
1,998
17,019
29,355
-
-
-
-
-
-
2,680,259
(129,371)
1,290
17,019
-
(869,306)
-
-
-
-
- current year tax losses not brought to account
215,828
129,371
-
129,371
- previously unrecognised temporary differences
- deferred tax asset arising from transaction costs not
brought to account
-
-
Income tax attributable to entity
29,355
-
737,135
-
227,792
227,792
-
2,566,397
227,792
227,792
c. Deferred tax liability
The balance of deferred tax liabilities comprises
temporary differences attributable to:
Deferred capital gain on sale of subsidiary
Capitalised exploration expenditure
Other
Carried forward tax losses
Provisions
Deferred tax liability
-
-
-
-
-
-
-
-
-
-
-
-
2,661,000
2,067,340
(27,806)
(2,154,220)
(9,272)
2,537,042
-
-
-
-
-
-
Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be
available against which the consolidated group can utilise the benefits from them.
NOTE 5. KEY MANAGEMENT PERSONNEL COMPENSATION
a. Names and positions held of consolidated group and parent entity key management personnel in office at
any time during the financial year are:
Key Management Person
Position
R M Kennedy
K J A Wills
G E Maddocks
E J Vickery
R W C Willson
Non-Executive Chairman
Managing Director
Executive Director
Non-Executive Director
Chief Financial Officer & Company Secretary
42 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Notes to the Financial Statements
continued
NOTE 5. KEY MANAGEMENT PERSONNEL COMPENSATION continued
Directors
Salary, Fees and
Commissions
Super-
annuation
Contribution
R M Kennedy
K J A Wills
G E Maddocks
E J Vickery
N J Smart
R W C Willson(i)
$
73,395
$
6,605
-
-
-
-
-
-
-
-
-
-
Consulting Fees
paid to entities
in which the
director has
a relevant
interest
$
-
166,126
209,379
45,000
-
-
73,395
6,605
420,505
Share based
payments
Total
-
-
-
-
-
6,100
6,100
$
80,000
166,126
209,379
45,000
-
6,100
506,605
(i) Richard W C Willson is employed by FME Exploration Services Pty Ltd. His services are provided as part of the services agreement in
place between FME Exploration Services Pty Ltd and Maximus Resources Limited. The management fees paid by Maximus Resources
Limited to FME Exploration Services are outlined in Note 24. This agreement was formalised 3 August 2006.
b. Options and Rights Holdings
Number of options held by key management personnel.
Balance
1.7.2006
Issued as
remuneration
Net change
other*
Balance
Total vested
Total
exercisable
Total
unexercisable
30.6.2007
30.6.2007
30.6.2007
30.6.2007
R M Kennedy
1,375,000
K J A Wills
1,575,000
G E Maddocks
1,250,000
E J Vickery
N J Smart
1,462,500
512,500
-
-
-
-
-
R W C Willson
-
100,000
-
-
-
1,375,000
1,375,000
1,375,000
1,575,000
1,575,000
1,575,000
1,250,000
1,250,000
1,250,000
(156,250)
1,306,250
1,306,250
1,306,250
-
-
512,500
100,000
512,500
100,000
512,500
100,000
6,175,000
100,000
(156,250)
6,118,750
6,118,750
6,118,750
-
-
-
-
-
-
-
c. Share Holdings
Number of shares held by key management personnel.
`
R M Kennedy
K J A Wills
G E Maddocks
E J Vickery
N J Smart
R W C Willson
Balance
1.7.2006
2,750,001
3,150,001
2,500,001
2,985,001
25,000
57,000
11,467,004
* Net change other refers to shares purchased or sold during the financial year.
Received as
compensation
Net change
other*
Balance
30.6.2007
2,750,001
3,150,001
2,500,001
-
-
-
(312,500)
2,672,501
-
-
25,000
57,000
(312,500)
11,154,504
-
-
-
-
-
-
-
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 43
Notes to the Financial Statements
continued
NOTE 6. AUDITORS REMUNERATION
Remuneration of the auditor of the Company for:
- Auditing or reviewing the financial report
- Independent Report for Prospectus
NOTE 7.
EARNINGS PER SHARE
Consolidated Group
Parent Entity
2007
$
44,034
10,000
54,034
2006
S
8,300
6,000
14,300
2007
$
20,105
-
20,105
2006
$
8,300
6,000
14,300
Earnings used to calculate basic & dilutive EPS
Earnings used to calculate basic & dilutive EPS from continuing operations
2007
$
2006
$
(710,678)
(659,028)
(710,678)
(659,028)
Weighted average number of ordinary shares outstanding during the year used to calculate
basic EPS
67,915,108
48,787,703
Weighted average number of options outstanding during the year used to calculate dilutive EPS
-
-
Weighted average number of ordinary shares outstanding during the year used to calculate
dilutive EPS
67,915,108
48,787,703
The weighted average number of options on issue at 30 June 2007 was 34,424,028 (2006 2,571,233). They were not used in the earnings per
share calculation as they were anti dilutive.
NOTE 8. CASH AND CASH EQUIVALENTS
Consolidated Group
Parent Entity
2007
$
1,404,511
2006
S
20,053
10,950,000
4,069,000
12,354,511
4,089,053
2007
$
263,373
50,000
313,373
2006
$
20,052
4,069,000
4,089,052
Cash at bank and in hand
Short-term bank deposits
The effective interest rate on short-term bank deposits
was 6.5% (2006 - 4.9%) These deposits have an average
maturity of 53 days.
Reconciliation of cash
Cash at the end of the financial year as shown in the cash
flow statement is reconciled to items in the balance sheet
as follows:
Cash and cash equivalents
12,354,511
4,089,053
313,373
4,089,052
NOTE 9.
TRADE AND OTHER RECEIVABLES
Note
Consolidated Group
Parent Entity
2007
$
2006
S
2007
$
2006
$
Current
Interest receivable
Receivable from FME Exploration Services Pty Ltd
9a
Other receivable
302,880
235,380
94,750
633,010
18,195
149,527
54,288
222,010
26
117,690
89,554
207,270
18,195
149,527
54,288
222,010
9a The entity advanced this amount to assist in the funding of working capital. The parent entity provides support to the associated company to
ensure it can pay its debts as and when they fall due and payable.
This receivable from the associated company has no fixed date for repayment and is non interest bearing. The parent entity will not seek
repayment where such repayments would prejudice the associated company’s ability to meet any obligations as and when they fall due.
44 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Notes to the Financial Statements
continued
NOTE 10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
Interests are held in the following associated companies.
Name
Principal Activities
Country of
Incorporation
Shares
Ownership
Interest
Carrying
amount of
investment
2007
%
2006
%
2007
$
2006
$
Unlisted:
FME Exploration Services Pty Ltd
Administration Services
Australia
Ord
66.6
50
2
1
a. Summarised presentation of aggregate assets, liabilities and performance of associates.
Current assets
Non current assets
Total assets
Current liabilities
Total liabilities
Net assets
Share of associate’s profit after tax
Consolidated Group
Parent Entity
2007
114,142
321,184
435,326
435,323
435,323
3
-
2006
-
-
-
-
-
-
-
2007
114,142
321,184
435,326
435,323
435,323
3
-
2006
-
-
-
-
-
-
-
NOTE 11. JOINT VENTURES
The Consolidated group has the following interests in Joint Ventures:
No.
State
Agreement Name
Parties
Summary
1
2
3
5
7
WA
SA &
NT
SA
SA
NT
Nemex
Agreement
Eromanga
Basin Joint
Venture
Billa Kalina
Joint Venture
Kapunda Joint
Venture
Maximus Resources Ltd (MXR)
and Nemex Pty Ltd
MXR purchased a 90% interest in the Nemex Yandal
Homestead and Ironstone Lagoon project tenements
Eromanga Uranium Ltd (ERO)
and Maximus Resources Ltd
ERO can a 70% interest in MXR’s Eromanga Basin project
tenements in SA and the NT by spending $7,000,000 on the
tenements within 6 years
Eromanga Uranium Ltd (ERO)
and Maximus Resources Ltd
(MXR)
ERO can earn a 50% interest in the non-diamond mineral
rights of MXR’s Billa Kalina project tenements by spending
$3,000,000 on the tenements within 6 years
Flinders Diamonds Limited
(FDL) and Maximus Resources
Ltd (MXR) and Copper Range
(SA) Pty Ltd
Copper Range can earn a 51% interest in MXR’s rights to
base and precious metals in EL3064 by spending $500,000
over 5 years with an option to earn a 75% interest by further
expenditure of $500,000
Rankin/Gecko
Agreement
Maximus Resources Ltd (MXR)
and Tanami Gold NL (TGL)
TGL has transferred a 95% interest in the project tenements
for $1 plus the undertaking that MXR will meet future
exploration and tenement expenditure while the tenements
remain in force
NOTE 12 FINANCIAL ASSETS
Note
Consolidated Group
Parent Entity
Available for sale financial assets
13a
a Available for sale financial assets comprise
Listed investments at fair value
- Shares in listed corporations
Total available for sale financial assets
2007
$
2006
S
-
-
-
-
-
-
2007
$
9,579,500
2006
$
9,579,500
9,579,500
-
-
-
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 45
Notes to the Financial Statements
continued
NOTE 13. CONTROLLED ENTITIES
a. Controlled entities consolidated
Parent Entity
Maximus Resources Limited
Subsidiaries of Maximus Resources Limited
Eromanga Uranium Resources Pty Ltd
Eromanga Uranium Limited
b Sale of subsidiary
Country of Incorporation
Percentage Owned (%)
2007
2006
Australia
Australia
Australia
-
35.4
100
-
Pursuant to a contract between the Company and Eromanga Uranium Limited (Eromanga), and with the satisfaction of the
conditions within the contract, on 31 October 2006 the Company sold 100% of the issued capital in Eromanga Uranium Resources
Pty Ltd to Eromanga in exchange for shares and options in Eromanga. Eromanga Uranium Resources Pty Ltd holds interests in Joint
Ventures in Uranium exploration tenements.
The sale had the following effect on the Company:
Sales Consideration
No. of shares
Fair Value
$
Ordinary shares in Eromanga
Options in Eromanga
44,357,143
8,035,714
$0.20
$0.09
Assets disposed of:
- Shares in Eromanga Uranium Resources Pty Ltd
Profit on disposal
c Business combinations
8,870,000
690,000
9,560,000
1
9,559,999
Through the transaction identified in Note 13b above, the Company holds 35.36% of the issued capital of Eromanga. Additionally,
three of the Company’s directors have been appointed to the board of Eromanga. Therefore, Eromanga has been consolidated for
the purposes of this financial report.
Details of the fair value of assets and liabilities acquired from Eromanga as at 31 October 2006 are as follows:
Cash and cash equivalents
Trade and other receivables
Exploration and evaluation expenditure
Trade and other payables
Net assets
Outside equity interest
Net identifiable assets acquired
Represented by the following purchase consideration:
- Fair value of tenement rights
- Associated transaction costs
$
14,712,235
42,733
10,926,654
(817,790)
24,863,832
(15,284,332)
9,579,500
9,560,000
19,500
9,579,500
46 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Notes to the Financial Statements
continued
Consolidated Group
Parent Entity
2007
$
723,866
(49,422)
674,444
2006
$
123,932
(4,763)
119,169
2007
$
347,356
(33,146)
314,210
2006
$
123,932
(4,763)
119,169
nOTE 14. pLAnT AnD EQUIpMEnT
Plant and equipment at cost
Accumulated depreciation
Total Plant and Equipment
a) Movements in carrying amounts:
Movements in the carrying amounts for each class of plant and equipment between the beginning and the end of the current
financial year.
Balance at 1 July 2006
Additions
Depreciation
Balance at 30 June 2007
Consolidated Group
Parent Entity
Plant and
Equipment
119,169
599,934
(44,659)
674,444
Total
119,169
599,934
(44,659)
674,444
Plant and
Equipment
119,169
223,424
(28,383)
314,210
Total
119,169
223,424
(28,383)
314,210
NOTE 15. CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation expenditure capitalised
- Exploration and evaluation phases – 100% owned
tenements
Consolidated Group
Parent Entity
2007
$
2006
$
2007
$
2006
$
88,304
78,501
-
78,501
- Exploration and evaluation phases – Joint Ventures
10,996,847
4,019,196
8,499,156
4,019,196
Total exploration and evaluation expenditure
11,085,151
4,097,697
8,499,156
4,097,697
Movements in carrying amounts:
Exploration and evaluation
Balance at the beginning of the year
Amounts capitalised during the year
Reductions through write off
4,097,697
9,603
4,097,697
9,603
6,987,454
4,186,675
4,401,459
4,186,675
-
(98,581)
-
(98,581)
Carrying amount at the end of year
11,085,151
4,097,697
8,499,156
4,097,697
NOTE 16. TRADE AND OTHER PAYABLES
Unsecured
Trade payables
Sundry payables and accrued expenses
Amounts payable to associated companies for management
services
Consolidated Group
Parent Entity
2007
$
2006
$
2007
$
2006
$
517,842
72,466
41,768
632,076
202,208
103,131
99,000
404,339
382,258
20,280
20,884
423,422
202,208
103,131
99,000
404,339
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 47
Notes to the Financial Statements
continued
NOTE 17. SHORT-TERM PROVISIONS
Employee entitlements
Opening balance at 1 July 2006
Additional provisions
Amounts used
Balance at 30 June 2007
NOTE 18. ISSUED CAPITAL
Consolidated Group
Parent Entity
2007
$
18,377
-
34,054
(15,677)
18,377
2006
$
-
-
-
-
-
2007
$
6,019
-
8,635
(2,616)
6,019
2006
$
-
-
-
-
-
Consolidated Group
Parent Entity
2007
$
2006
$
2007
$
2006
$
74,792,087 (2006: 64,977,921) fully paid ordinary shares
10,133,983
8,699,079
10,133,983
8,699,079
a) Ordinary Shares
At the beginning of the period
Shares issued during the year
- 29 July 2005
- 23 August 2005
- 17 October 2005
- 21 October 2005
- 31 October 2005
- 30 November 2005
- 20 December 2005
- 3 November 2006 (i)
- 29 November 2006 (ii)
- 17 April 2007(iii)
- 6 June 2007(iv)
At reporting date
Number
Number
Number
Number
64,977,921
15,600,004
64,977,921
15,600,004
1,250,000
3,450,000
2,000,000
666,667
35,000,000
7,000,000
11,250
1,250,000
3,450,000
2,000,000
666,667
35,000,000
7,000,000
11,250
600,000
1,800,000
7,346,666
67,500
600,000
1,800,000
7,346,666
67,500
74,792,087
64,977,921
74,792,087
64,977,921
i) On 3 November 2006 600,000 shares were issued at 17 cents as part consideration for the purchase of an option to acquire the Selheim
project.
ii) On 29 November 2006 1,800,000 shares were issued at 16 cents as consideration for the purchase of the 25% of the Lobethal Joint
Venture that was not already owned.
iii) On 17 April 2007 7,346,666 shares were placed to sophisticated investors at $0.15.
iv) On 6 June 2007 35,000 shares were issued at 14 cents and 32,500 shares were issued at 20 cents upon the exercise of options.
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares
held. At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has
one vote on a show of hands.
b) Options
For information relating to the Maximus Resources Limited Employee option plan including details of options issued and exercised
during the financial year and the options outstanding at year end refer to Note 22 Share Based Payments.
48 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Notes to the Financial Statements
continued
NOTE 19. RESERVES
Share Option Reserve
The Share Option Reserve records items recognised as expenses on valuation of employee options and options issued to external
parties in consideration for goods and services rendered.
NOTE 20. COMMITMENTS FOR EXPENDITURE
Exploration Licences
In order to maintain current rights of tenure to exploration tenements the group will be required to outlay in the year ending 30 June
2008 amounts of approximately $1,786,000 in respect of tenement lease rentals and to meet minimum expenditure requirements
pursuant to various joint venture requirements.
NOTE 21. CASH FLOW INFORMATION
Reconciliation of cash flow from operations with loss after income tax.
Profit/(Loss) after tax
Non-cash flows in loss
Depreciation
Issue of options to employees
Deferred tax asset written off
Sale of subsidiary
Exploration expenditure written off
Changes in operating assets and liabilities
Consolidated Group
Parent Entity
2007
2006
2007
2006
(812,172)
(659,027)
6,367,801
(659,027)
44,659
102,009
29,355
-
-
4,763
70,000
227,792
28,383
56,730
-
-
(9,559,999)
4,763
70,000
227,792
-
98,581
-
98,581
Decrease/(Increase) in trade and other receivables
(277,887)
(216,577)
(12,570)
(216,577)
Increase/(Decrease) in trade and other payables
-
278,941
-
278,941
Increase/(Decrease) in provisions
18,378
-
2,572,416
-
Net cash provided by operating activities
(895,658)
(195,527)
(547,239)
(195,527)
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 49
Notes to the Financial Statements
continued
NOTE 22. SHARE-BASED PAYMENTS
The following share-based payment arrangement existed at 30 June 2007:
The Maximus Resources Limited Employee Share Option Plan enables the board, at its discretion, to issue options to employees
of the Company or its associated companies. Each option will have a life of five years and be exercisable at a price determined
by the board. This price will not be below the market price of a share at the time of issue.
On 10 April 2007 930,000 options were issued to employees under the Company’s employee option plan. The options are exercisable at
14 cents on or before 30 March 2012. The options hold no voting or dividend rights.
Consolidated Group
Parent Entity
2007
2006
2007
2006
Number of
Options
Weighted
average
Exercise Price
Cents
Number of
Options
Weighted
average
Exercise Price
Cents
Number of
Options
Weighted
average
Exercise Price
Cents
Number of
Options
Weighted
average
Exercise Price
Cents
34,222,083
930,000
(67,500)
20.0
14.0
16.8
5,000,000
29,233,333
(11,250)
20.0
20.0
20.0
34,222,083
930,000
(67,500)
20.0
14.0
16.8
5,000,000
29,233,333
(11,250)
20.0
20.0
20.0
35,084,583
19.8
34,222,083
20.0
35,084,583
19.8
34,222,083
20.0
35,084,583
19.8
34,222,083
20.0
35,084,583
19.8
34,222,083
20.0
Outstanding at the
beginning of the year
Granted
Exercised
Outstanding at the
end of the year
Exercisable at year
end
The options outstanding at 30 June 2007 had a weighted average exercise price of 19.8 cents and a weighted average remaining
contractual life of 18 months. Exercise prices range from $0.14 to $0.20 in respect of options outstanding at 30 June 2007.
The weighted average fair value of the options granted during the year was $0.154.
This price was calculated by using a Black Scholes option pricing model applying the following inputs:
Weighted average exercise price
Weighted average life of the option
Underlying share price
Expected share price volatility
Risk free interest rate
$0.14
5.0 years
$0.16
19.7%
6.03%
Historical volatility has been the basis for determining expected share price volatility as it is assumed that this is indicative of future
trends, which may not eventuate. The life of the options is based on the historical exercise patterns, which may not eventuate in
the future. Included under “Administrative Expense” in the income statement is $56,730 (2006: $nil) which relates to share-based
payments in accordance with the Company Employee Share Option Plan.
NOTE 23. EVENTS AFTER THE BALANCE SHEET DATE
No circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations
of the consolidated group, the results of those operations, or the state of affairs of the consolidated group in future financial years.
50 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Notes to the Financial Statements
continued
NOTE 24. RELATED PARTY TRANSACTIONS
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other
parties unless otherwise stated.
Associated companies
•
Administrative services were provided by FME Exploration Services Pty Ltd to Maximus Resources Limited for $373,015.
•
Maximus Resources Limited advanced FME Exploration Services Pty Ltd $117,690 to fund working capital.
Other Related Parties
•
Payments during the period to Flinders Diamonds Limited for expenses incurred on behalf of Maximus Resources Limited totalled
$12,214.
•
Receipts from Flinders Diamonds Limited during the period for expenses incurred on their behalf totalled $250.
NOTE 25. SEGMENT INFORMATION
The entity operates predominately in the mining industry, in Australia and as such has no material reportable segments.
NOTE 26. FINANCIAL INSTRUMENTS
a. Financial Risk Management
The group’s financial instruments consist mainly of deposits with banks, accounts receivable and payable, and loans to
subsidiaries.
i Treasury Risk Management
The senior executives of the group regularly analyse interest rate exposure and evaluate treasury management strategies in the
context of the most recent economic conditions and forecasts.
ii Financial Risks
The main risk the group is exposed to through its financial instruments is liquidity risk.
Liquidity risk
The group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate funds are available to meet the
cash demands.
b. Financial Instruments
i) Interest Rate Risk
The consolidated group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a
result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and
financial liabilities, is as follows:
Financial Assets
Cash and cash equivalents
Receivables
Total Financial Assets
Financial Liabilities
Payables
Total Financial Liabilities
ii) Net Fair Values
Weighted
Average
Effective
Interest Rate
Floating
Interest Rate
Non-interest
Bearing
Total
6.5
-
-
12,354,511
-
12,354,511
-
633,010
633,010
12,354,511
633,010
12,987,521
-
-
632,076
632,076
632,076
632,076
The Company’s financial assets and liabilities are included in the balance sheet at amounts that approximate net fair value.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 51
Notes to the Financial Statements
continued
NOTE 27. ECONOMIC DEPENDENCY
As a junior explorer the Company has only sufficient funds on hand to meet its ongoing corporate and exploration commitments for
the next six months. As a consequence the directors are considering the following activities:
- negotiations to farm out the Company’s surplus exploration commitments;
- steps to identify sources of additional capital; and
- reduction of rate of expenditure.
The Company is economically dependent on the achievement of one or all of the above options.
At the date of this report the Company has not yet secured the farm out arrangements or additional capital.
NOTE 28. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
The following Australian Accounting Standards have been issued or amended and are applicable to the parent and consolidated group
but are not yet effective. They have not been adopted in the preparation of the financial statements at reporting date.
AASB No.
Title
Issue Date
Operative
Date (Annual
reporting
periods
beginning on or
after)
7
8
101
123
2007-4
Financial Instruments: Disclosure
Operating segments
Presentation of Financial Statements (Amended)
Borrowing costs (Amended)
Amendments to Australian Accounting Standards arising from ED 151 and
Other Amendments [AASB 1, 2, 3, 4, 5, 6, 7, 102, 107, 108, 110, 112, 114,
116, 117, 118, 119, 120, 121, 127, 128, 129, 130, 131, 132, 133, 134, 136,
137, 138, 139, 141, 1023, &1038]
Aug 2005
1 Jan 2007
Feb 2007
Oct 2006
1 Jan 2009
1 Jan 2007
June 2007
1 Jan 2009
April 2007
1 July 2007
NOTE 29. COMPANY DETAILS
The principal place of business and registered office is:
Maximus Resources Limited
62 Beulah Road
Norwood
South Australia 5067
52 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Directors Declaration
The directors of the Company declare that :
1 the financial statements and notes, as set out on pages 9 to 24 are in accordance with
the Corporation Act 2001 and:
a comply with Accounting Standards and the Corporations Regulations 2001; and
b give a true and fair view of the financial position as at 30 June 2007 and of the
performance for the year ended on that date of the Company and consolidated group;
2 the Managing Director and Chief Finance Officer have each declared that:
a the financial records of the Company for the financial year have been properly
maintained in accordance with section 286 of the Corporations Act 2001;
b the financial statements and notes for the financial year comply with the Accounting
Standards; and
c the financial statements and notes for the financial year give a true and fair view
3 In the directors’ opinion there are reasonable grounds to believe that the Company will
be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Robert M Kennedy
Director
Dated this 28 day of September 2007
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 53
Independent Audit Report
Chartered Accountants and Business Advisers
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF MAXIMUS RESOURCES LIMITED
ABN 46 091 118 044
Report on the financial report
We have audited the accompanying financial report of Maximus Resources Limited, which
comprises the balance sheet as at 30 June 2007, and the income statement, statement of
changes in equity and cash flow statement for the year ended on that date, a summary of
significant accounting policies and other explanatory notes and the directors’ declaration of
the consolidated entity comprising the Company and the entities it controlled at the year’s
end or from time to time during the financial year.
Directors’ responsibility for the financial report
The directors of the Company are responsible for the preparation and fair presentation of
the financial report in accordance with Australian Accounting Standards (including the
Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility
includes establishing and maintaining internal controls relevant to the preparation and fair
presentation of the financial report that is free from material misstatement, whether due to
fraud or error; selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances. In Note 1 the Directors also
state, in accordance with Accounting Standard AASB 101: Presentation of Financial
Statements, that compliance with the Australian equivalents to International Financial
Reporting Standards ensures that the financial report, comprising the financial statements
and notes, complies with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We
conducted our audit in accordance with Australian Auditing Standards, which require us to
comply with relevant ethical requirements relating to audit engagements and plan and
perform the audit to obtain reasonable assurance as to whether the financial report is free
of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial report in order to design audit procedures that are appropriate in the
circumstance, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by the
directors, as well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Independence
In conducting our audit, we complied with the independence requirements of the
Corporations Act 2001.
Level 1
67Greenhill Road
Wayville SA 5034
GPO Box 1270
Adelaide SA 5001
DX 275 Adelaide
T (08) 8372 6666
F (08) 8372 6677
E info@gtsa.com.au
W www.grantthornton.com.au
Grant Thornton South Australian Partnership ABN 27 244 906 724
An independent South Australian partnership entitled to trade under the name Grant Thornton.
Grant Thornton is a trademark owned by Grant Thornton International and used under licence by independent firms and entities throughout the world.
54 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Independent Audit Report
Auditor’s opinion
In our opinion:
(a)
The financial report of Maximus Resources Limited is in accordance with the
Corporations Act 2001, including:
i.
ii.
Giving a true and fair view of the company’s and consolidated entity’s financial
position as at 30 June 2007 and of their performance for the year ended on
that date; and
Complying with Australian Accounting Standards (including the Australian
Accounting Interpretations) and the Corporations Regulations 2001; and
(b)
The financial report also complies with International Financial Reporting Standards
as disclosed in Note 1.
Emphasis of Matter – Economic Dependency
Without qualification to the audit opinion expressed above, attention is drawn to the
following matter. As described in Note 27 to the financial statements, the company is
economically dependent on the outcomes of some future events.
GRANT THORNTON
South Australian Partnership
Chartered Accountants
S J GRAY
Partner
Signed at Wayville this 28 day of September 2007
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007 55
ASX Additional Information
Additional information required by the Australian
Stock Exchange and not shown elsewhere in this
report is as follows.
The information is current as of 20 September 2007.
Distribution of equity securities
Ordinary share capital
Fully paid ordinary shares are held by 1,541
individual shareholders. All issued ordinary shares
carry one vote per share.
Restricted securities
There are 22,225,000 shares and 12,612,500 options
held in escrow until 25 October 2007.
Options
Options are held by 603 individual option holders.
The number of shareholders, by size of holding, in
each class are:
Fully paid
ordinary shares
Options
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Holdings of less than a
marketable parcel
Substantial shareholders
41
239
381
769
111
1,541
106
2
203
111
232
55
603
221
Fully Paid Ordinary
Shares
Number
%
Flinders Diamonds
Limited
7,000,000
Yandal Investments
5,946,666
Mr Bruce Robert
Legendre
5,725,000
7.42
6.30
6.07
Twenty largest shareholders
Fully Paid Ordinary Shares
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Flinders Diamonds Limited
Mr Bruce Robert Legendre
KJ Exploration Pty Ltd
Chaffey Consulting Pty Ltd
Mr Gary Eric Maddocks + Ms Paula Maddocks
Apex Minerals Nl
Triple Eight Gold Pty Ltd
Merrill Lynch (Australia) Nominees Pty Limited
Carmant Pty Ltd
Mr Jun Luo
Mr Arnold Olschyna
Yandal Investments Pty Ltd
Mr Nicholas Charles Richards
Mr Richard Victor Heymann
Akd Limited
Baracus Pty Ltd
RMK Super Pty Ltd
Clodene Pty Ltd
Baracus Pty Ltd
Westtin Pty Ltd
Number
7,000,000
5,000,000
3,000,000
2,537,500
2,500,000
2,000,000
1,990,000
1,555,345
1,350,890
1,100,000
1,010,000
1,000,000
648,530
574,100
500,000
500,000
497,500
444,588
440,000
400,000
%
10.77
7.69
4.62
3.91
3.85
3.08
3.06
2.39
2.08
1.69
1.55
1.54
1.00
0.88
0.77
0.77
0.77
0.68
0.68
0.62
Twenty largest optionholders
34,048,453
52.40
Options
Flinders Diamonds Limited
Mr Bruce Robert Legendre
KJ Exploration Pty Ltd
Chaffey Consulting Pty Ltd
Mr Gary Eric Maddocks + Ms Paula Maddocks
Rundle Capital Partners Limited
Triple Eight Gold Pty Ltd
Clodene Pty Ltd
Merrill Lynch (Australia) Nominees Pty Limited
Mr Nicholas John Smart
Yandal Investments Pty Ltd
Analystics Pty Ltd
Kroy Investments Pty Ltd
Mr Nicholas Charles Richards
Analystics Pty Ltd
Carojon Pty Ltd
Mr Chee Chin
Mrs Ivanka Stoevova-millen
Mr Carsten Hans Huebner + Mrs Fiona Louise
Huebner
Lawrence Crowe Consulting Pty Ltd
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Number
3,500,000
2,500,000
1,500,000
1,268,750
1,250,000
1,000,000
995,000
848,230
578,900
500,000
500,000
400,000
400,000
358,150
300,000
300,000
291,400
284,200
258,000
256,689
17,289,319
%
10.54
7.53
4.52
3.82
3.76
3.01
2.99
2.55
1.74
1.51
1.51
1.20
1.20
1.08
0.90
0.90
0.88
0.86
0.78
0.77
52.00
56 MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2007
Glossary of Technical Terms
aircore A method of rotary drilling whereby rock chips are recovered by
compressed air flow returning inside the rods.
anomaly A value or group of values different from the expected norm.
anticline A fold in rock strata that is convex upward with a core of older rocks.
Archaean The oldest rocks of the Precambrian era, older than about 2,500
million years.
assay Method of geochemical analysis generally referring to measurement
of precious metal contents in a rock.
base metal Referring to the transition elements, including copper, zinc and
lead.
basement The igneous and metamorphic crust of the earth, underlying
sedimentary deposits.
bedrock Solid rock underlying surficial deposits.
carbonate A compound containing the radical CO3; commonly calcium
carbonate or calcium-magnesium carbonate.
calcite A mineral composed of calcium and carbonate.
calcrete Calcium carbonate, dissolved and redeposited as surficial limestone.
chert Fine grained sedimentary rock composed of cryptocrystalline silica.
complex(es) In the geological sense meaning an area of general complexity.
contact zone With reference to the contact between an intrusive igneous rock and
surrounding intruded rocks.
core drilling A rotary drilling technique in which a stick of rock is cut from the
underlying geological sequence.
craton Large, and usually ancient, stable mass of the earth’s crust.
deformation A general term for the process of folding, faulting, shearing,
compression or extension of rocks as a result of stress.
diamond drilling A method of obtaining a cylindrical core of rock by drilling with a
diamond impregnated bit.
drill traverses Reference to a line of drill holes.
electrical geophysics Geophysical survey techniques involving the use and measurement
of electrical currents.
extension drilling Reference to extending the drilling pattern generally along the
projected strike or direction of a mineralised zone.
fault A fracture in rock along which there has been relative displacement
of the two sides either vertically or horizontally.
farm-in Reference to dealing on opportunities through earning an equity in
a new project through joint venture or purchase
farm-out Reference to dealing on opportunities through earning an equity
in an existing project through joint venture or sale of equity in a
project
felsic Descriptive of light coloured rocks containing an abundance of
feldspars and quartz.
g/t Au Grams gold per tonne
geochemistry The study of the abundance and distribution of elements in rocks, or
their weathering products, by chemical methods.
gneiss A foliated rock formed by regional metamorphism.
grams per tonne Unit of measurement often used for the number of grams of precious
metal (gold, silver or PGMs) in a tonne of rock.
granite A coarse-grained igneous rock containing mainly quartz and
feldspar minerals and subordinate micas.
granitoid A field term for a coarse grained felsic rock resembling granite.
gravity The force due to a body’s attraction to the centre of the earth; also
descriptive of a geophysical survey method which measures gravity
responses.
greywacke Type of sandstone composed of quartz, feldspar and clays.
greenstone A term commonly applied to low metamorphic grade rocks of basic
composition and comprised of the minerals chlorite and amphibole.
Commonly applied to Archaean rock sequences dominated by these
rock types (also referred to as “greenstone belts”).
Heritage clearance Reference to a clearance survey undertaken to ensure exploration
activities do not encroach on sites of indigenous heritage.
igneous Rocks that have solidified from molten rock (magma).
inferred (mineral) resource Mineralisation sufficiently assessed by drilling to allow an estimate
of its tonnage and grade parameters under guidelines of the
Australian Joint Ore Reserves Committee code.
iron oxide Reference to a style of copper-gold-uranium mineralization that is
hosted in rocks containing dominant iron oxide minerals such as
magnetite and/or hematite.
infill drilling Rrilling that infills a pattern of previous drilling.
intersection General reference to encountering an interval of mineralisation in a
drill hole.
intrusive A mass of rock formed by magma cooling beneath the earth’s
surface.
layered Meaning the rock units are layered as in a cake.
limestone Rock composed of calcium carbonate (calcite)
lineament A significant linear feature of the earth’s crust, usually related to a
major fault or shear structure.
lode A tabular or vein-like deposit of valuable mineral between well
defined walls.
mafic Descriptive of rocks composed dominantly of magnesium, iron and
calcium-rich rock-forming silicates.
U
magnetic anomaly Zone where the magnitude and orientation of the earth’s magnetic
field differs from adjacent areas.
Mesozoic Era of geological time from about 235 million years ago to 65 million
years ago.
metalliferous as referencing minerals in which the metal content is of potentially
extractable and, therefore, of potential economic significance.
metamorphosed A rock that has been modified by the effects of pressure, heat and
fluids within the earth’s crust.
mineralisation A concentration of metals and their chemical compounds within
a body of rock.
marble A metamorphic rock composed of calcite or dolomite.
Native Title Reference to indigenous landownership
non-diamond All minerals other than diamonds.
occurrence A location generally marking the presence of abnormal or
anomalous quantities of a naturally occurring material.
oxidation Near surface decomposition by exposure to the atmosphere and
ground water.
PACE Program of Accelerated Exploration – a South Australian
Government initiative.
palaeochannel Ancient river channel that may or may not reflect the present day
drainage pattern.
Paleozoic Era of geological time between the Precambrian and Mesozoic
and Eras, from about 545 million years ago to 235 million years
ago.
PGE An abbreviation for the platinum group elements, referring to
ruthenium, rhodium, palladium, osmium, iridium and platinum.
porphyry A rock with conspicuous crystals in a fine grained ground mass.
ppb or ppm Parts per billion or parts per million.
potentially economic Tonnage and grade of mineralisation is within range of other past
and present mining operations but additional mining factors
have not been assessed.
Precambrian Part of geological time prior to about 545 million years ago and
including both the Archaean and Proterozoic eras.
precollared Generally referencing cored drill holes for which the upper
start of the hole has been drilled by other techniques such as
percussion or rotary mud drilling.
primary mineralization Refers to mineralisation that remains in its original form within
unweathered rocks.
Proterozoic The younger part of the Precambrian Era, being between 545 and
2,500 million years ago.
pyrite An iron sulphide mineral.
quartz A mineral composed of silicon dioxide.
quartzite A metamorphosed sandstone composed of quartz.
radiometrics Here refers to radiometric measurements for uranium.
reconnaissance A general examination or survey of a region with reference to its
main features, usually preliminary to a more detailed survey.
reef Mining term generally referring to a thick vein of quartz.
regional exploration Exploration undertaken over a wide area.
regolith Upper layer of rocks comprising weathered and extraneous
materials that may cover the basement geology.
resource In-situ mineral occurrence from which valuable or useful
minerals may be recovered.
RAB drilling Rotary airblast drilling; a rotary drilling technique in which
sample is returned to surface outside of the drill rod string by
compressed air.
RC drilling Reverse circulation drilling; A method of drilling whereby rock
chips are recovered by airflow returning inside the drill rods
rather than outside, thereby (usually) providing more reliable
samples.
sandstone Sediment composed of sand size particles – generally quartz
sand.
saprolite A soft, earthy clay-rich, thoroughly decomposed rock formed in
place by chemical weathering of rocks.
schist A metamorphic rock with a platy or foliated texture.
sediment Rocks formed by the deposition of solids from water.
sedimentary Formed or existing within a sediment.
serpentinised Hydrothermally altered magnesium rich rock dominated by
serpentine minerals.
sphalerite A sulphide mineral of zinc and iron.
shear A planar zone of dislocation in rock similar to a fault.
siltstone A very fine grained consolidated clastic rock composed
predominantly of silt.
soil sampling Systematic collection of samples of soil at a series of locations in
order to study the distribution of geochemical values in the soil.
stratigraphy Composition, sequence and correlation of stratified rock in the
earth’s crust.
structural Pertaining to geological structure.
sulphide A mineral compound characterised by the linkage of sulphur and
a metal
supergene A term to describe a mineral deposit or enrichment formed near
the surface generally by descending groundwater.
syncline A fold in rock strata that is concave upward with a core of
younger rocks
ultramafic Igneous rocks consisting essentially of ferromagnesian minerals
with trace quartz and feldspar.
underground workings General reference to underground mine workings that include
vertical shafts and horizontal tunnels beneath the natural
surface.
3O8 Chemical formula for an oxide of uranium.
vein A thin sheet-like intrusion into a fissure or crack, commonly
bearing quartz.
vermiculite A platy micaceous mineral used in insulation and for its
absorption properties.
volcanic Descriptive of rocks originating from extrusive igneous activity.
weathering The group of processes that change the character and
composition of rocks by decay.