Annual Report 2008
contents
Highlights
Chairman’s Report
Managing Director’s Report
Exploration Manager’s Report
Tenement Schedule
Financial Report
Corporate Governance Statement
Directors’ Report
Auditor’s 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
Glossary of Technical Terms
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Corporate Directory
Maximus Resources Limited ABN 74 111 977 354
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
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
asX coDe: MXr
Highlights
GOLD
RESOURCES
URANIUM
WINDIMURRA
y
Inferred Resource of 19 million
tonnes at 180 parts per million
U3O8, containing 3,400 tonnes or
7.5 million pounds of U3O8.
IRON ORE
CANEGRASS
y
Recognised Exploration Target*
of 1,980 to 3,500 million tonnes
of magnetite iron ore containing
20 to 40% iron, including
separate zones containing high
vanadium.
BASE METALS
NARNDEE
y
Major airborne EM (REPTEM)
survey has located numerous
conductive targets prospective
for nickel and copper–zinc
mineralisation.
y
Equity share of total inferred
Gold Resources now
326,000 ounces.
SELLHEIM
y
y
y
Inferred Alluvial Gold Resource of
16,000 ounces.
Pre and Trial Production giving
high alluvial gold grades of 1 to
1.5 grams per cubic metre.
Abundant gold nuggets for
separate marketing.
ADELAIDE HILLS
y
y
y
Bird in Hand Inferred Resource
now 589,000 tonnes at
12.3 grams per tonne, containing
237,000 ounces of gold.
Pre-feasibility study underway
to include drilling, metallurgy,
water pumping test and mining
studies.
Further exploration aspiration to
locate 1,000,000 ounces of gold
in the Adelaide Hills.
CORPORATE
CAPITAL
y
Maximus raised $14.5 million during the 2007–08 financial year
SHAREHOLDERS
y
Total number of shareholders increased from 1,300 in July 2007
to 2,500 in June 2008
* See page 5 for an explanation of Exploration Target.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
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Chairman’s Report
expended a total of $9 million on
exploration during the year and
at year’s end had available cash
of $4.2 million. The number of
shareholders in Maximus has nearly
doubled during the year, from
about 1,300 in July 2007 to about
2,500 in June 2008.
A significant asset purchased
during the year was the mining
property at Sellheim in north-
central Queensland. Maximus paid
$1.5 million to exercise an option
to purchase an area of about
75 square kilometres, containing
three granted gold mining leases
and two granted exploration
permits for minerals in the highly
prospective northern Drummond
basin of central Queensland. The
vendors had proven the widespread
presence of alluvial gold, rich
in nuggets of up to 36 ounces.
Maximus has undertaken a low cost
and systematic alluvial exploration
program over the last two years,
which has proven up a resource
containing at least 16,000 ounces
of gold and indicated the potential
for considerably more. Along with
the lease purchase, Maximus spent
$500,000 to purchase mining
equipment from the main vendor
and has since supplemented
this with a bulldozer. Maximus
now owns its own, albeit small
at present, earthmoving fleet for
alluvial gold mining. At the time of
writing, Sellheim is entering a phase
of trial mining which is expected to
lead on to commercial production
later this year.
Maximus’ other principal gold assets
are the Bird in Hand and Deloraine
Mines in the Adelaide Hills. These
are the two largest historical hard
rock producers in the Hills region.
Maximus has demonstrated that
significant potential remains below
the zone previously mined at
Bird in Hand by outlining an Inferred
Resource of 598,000 tonnes at
12.3 grams per tonne of gold. This is
a high grade gold resource and our
scoping study concluded that it was
justified to go into a pre-feasibility
study to examine the economics
and social impacts of mining.
Dear Fellow Shareholders
Maximus has grown and evolved
significantly during the 2007–08
financial year. The Company has
taken the opportunity provided
by the recent resources boom to
raise capital, and to spend it on
in-ground mineral exploration
activities aimed at achieving
profitable production. This has
resulted in increased resources,
currently totalling 326,000 ounces
of gold and 7.5 million pounds
of U3O8 – two valuable assets
which now provide development
opportunities. The Company’s
growth has been across the
board, with increased numbers
of geologists, support staff, office
space, exploration equipment, and
in-ground exploration expenditure.
This activity, and these results, have
been funded by equity raisings from
shareholders. Maximus raised a total
of $14.5 million during the year in
three tranches. Firstly, a placement
of 11 million shares on 17 July
2007 raised $3.4 million, secondly
an underwritten rights issue
completed on 4 December 2007
raised $9.5 million, and thirdly
8.1 million options were exercised
prior to 30 June 2008 which
raised $1.6 million. The Company
2
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MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Chairman’s Report
At the time of writing, the world
is going through severe financial
difficulties, the impact of which
for Maximus is currently uncertain.
I would like to thank our directors,
staff, service providers and our loyal
shareholders for supporting the
Company during this interesting
rollercoaster ride of a year, during
which much has been achieved
which would not have been
possible without the diligent efforts
of all concerned. Your efforts have
been much appreciated.
BoB Kennedy
Chairman
Maximus has engaged the local
Woodside community in quarterly
public meetings. These meetings
have shown that the mining issue
of most concern to the immediate
neighbours is any impacts on
groundwater. Maximus initially
proposed a reticulation scheme
to supply landowners with any
water they needed. However,
after this scheme was rejected by
landowners an alternative method
with no net taking of water was
developed. This involves managed
aquifer recharge (MAR), through
which water is injected back into
the ground to ensure that all but
a few bores will remain operative.
There is still further exploration
and development work to carry
out in the Hills. However, Maximus
is gradually moving towards a
development which we hope will
be able to re-establish significant
gold production in the Adelaide
Hills.
Maximus has also been conducting
an active exploration program
in Western Australia, particularly
over the Windimurra–Narndee
Complexes located just east of
Mount Magnet. A uranium resource
at Windimurra, which contains
7.5 million pounds of U3O8 which
is open in several directions, and
hence is likely to expand. It is also
able to be upgraded by selective
mining. In addition, Maximus
has outlined a huge deposit of
magnetite iron ore at Canegrass,
located only about 15 kilometres
from the uranium deposit. This
deposit requires more drilling
and metallurgical study but is a
potential large, long life source of
iron, titanium and vanadium. Our
search for base metal deposits
of nickel and copper–zinc has
commenced with the flying of a
high tech REPTEM survey over the
whole of the Windimurra–Narndee
Complexes. A number of interesting
conductive anomalies have been
located which require further
exploration.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
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Managing Director’s Report
In a very active year for a junior
company, Maximus continued
to add to its resource base and
commenced gold pre-production
activities at its Sellheim gold
mine in Queensland. Total
exploration expenditure for the
year was $9 million, which included
$2 million to purchase the Sellheim
leases and earthmoving plant.
Identified Mineral Resources
increased at four properties and
a large Exploration Target for
magnetite iron ore was outlined
at the Canegrass Prospect near
Mount Magnet in Western
Australia. Maximus’ equity
share of total contained gold in
Inferred Resources at Sellheim,
Bird in Hand and Yandal is now
326,000 ounces. At the Windimurra
Uranium Prospect, there are
7.5 million pounds of U3O8 in
the 19 million tonnes of Inferred
Resource. At Canegrass, two
Exploration Targets* totaling 1,980
to 3,500 million tonnes averaging 20
to 40% iron have been outlined.
At Sellheim in Central Queensland,
the project progressed from
exploration to development status.
Maximus entered an option to
purchase agreement in October
2006 and since then has been
engaged in both alluvial and
hardrock gold exploration. At the
beginning of the reported year,
alluvial exploration by test pitting
and treatment of five loose cubic
metre (lcm) samples was still
underway and continued until
December 2007. A period of data
assessment and interpretation
followed, culminating in the
announcement of an initial Inferred
Resource of one million bank cubic
metres (bcm) averaging 0.52 grams
per bcm, containing 16,000 ounces
of gold. Maximus then carried
out a feasibility study into alluvial
gold mining by an experienced
independent consultant from New
Zealand. This work concluded that
an alluvial operation would be
viable. So, in late June 2008, the
option to purchase was exercised
for $1.5 million. A variety of
earthmoving equipment, a house
and maintenance facilities were
also purchased for an additional
$0.5 million.
From July to September activities
then turned to pre-production
bulk sampling when much larger
samples were treated. This work
also gave encouraging results,
leading to the commencement
of trial mining and production on
1 October 2008. Trial production to
date has encountered high grades
for alluvial gold deposits in the
range of 1.0 to 1.5 grams per bcm,
and a high proportion between 40
and 50% of gold nuggets. Maximus
is anticipating being able to
commence commercial production
later in the December 2008 quarter.
In the Adelaide Hills, Maximus’
objective is to be able to
recommence gold mining at a
significant production level. Total
recorded historical production is
about 300,000 ounces of mostly
alluvial and some hardrock gold.
Since listing, Maximus has located
nearly as much gold as the total
Location of Maximus’ resource projects.
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MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Managing Director’s Report
historical production. Maximus’
exploration strategy is simply to
drill down plunge of the largest
previous gold mines in the Adelaide
Hills. Initial work at Bird in Hand
has located an Inferred Resource of
some 237,000 ounces, which is likely
to be increased as the orebody
remains open at depth. Maximus’
next main target is the historical
Deloraine Mine, which was the
largest previous gold producer in
the Hills, with production of about
50,000 tonnes at 20 grams per
tonne for about 30,000 ounces of
gold. Maximus anticipates a down
plunge extension at Deloraine as at
Bird in Hand and has recognised an
Exploration Target of between 0.8
and 1.1 million tonnes containing
15 to 20 grams of gold per tonne.
Gold identified at Bird in Hand
and targeted at Deloraine have
led to Maximus’ aspirational aim of
locating one million ounces of gold
in the Adelaide Hills.
In Western Australia, Maximus has
been exploring in two parts of the
highly prospective Yilgarn Craton.
These are the Windimurra–Narndee
Complexes east of Mount Magnet
and the Yandal Greenstone Belt
north of Leonora. At the Ironstone
Well project area, a number of
zones of gold mineralisation have
been identified – particularly
at Flushing Meadows where an
Indicated and Inferred Resource
of 1.55 million tonnes at a grade
of 1.6 grams per tonne containing
81,000 ounces of gold has been
identified. In the Windimurra–
Narndee Complexes, work has
focused of three opportunities:
calcrete uranium at Windimurra,
magnetite iron ore at Canegrass,
and base metal sulphide deposits
in the whole complexes. The
exploration for base metals and
uranium is described elsewhere in
this report.
At Canegrass, a zone with
dimensions of about 20 by
5 kilometres has been shown by
geophysical surveys and drilling
to contain significant quantities of
magnetite iron ore. Geologically
this zone is part of the largest
Archean layered mafic complex
in Australia and the magnetite
occurs with feldspar in layers
dipping at about 20 degrees to
the north. The low dip and high
density means that high tonnages
per vertical metre are present. The
magnetite mineralisation contains
iron, titanium and vanadium and
Davis Tube testwork has shown
that concentrates with grades
of commercial interest can be
produced by simple magnetic
separation. Maximus has carried out
reconnaissance drilling and the next
stage of work consists of resource
drilling and metallurgical testwork.
The mineralisation at Canegrass
represents a major deposit of iron,
titanium and vanadium on a world
scale which, if and when it becomes
possible to develop, could supply
these commodities for a very long
time.
Maximus’ immediate plans are
initially to establish Sellheim as a
profitable gold producer. There is
a potentially much larger alluvial
gold target which could provide
the resources for a medium sized
gold operation, and additional
exploration to outline the position
of this resource is necessary. Also
in gold, Maximus would like to
continue with its exploration
and development activities
in the Adelaide Hills with the
aim of becoming a significant
underground gold miner. In
Western Australia, our exploration
focus is on the Windimurra–
Narndee Complexes for economic
deposits of iron, titanium, vanadium,
nickel, copper, zinc, chromium and
platinum group metals.
Maximus is fortunate in having
a strong team of experienced
explorationists, backed up by
hard-working and enthusiastic
field hands and support staff. All
have worked hard to realise the
achievements documented during
the year. The combined efforts have
established a valuable portfolio of
mineral assets which could become
the basis for an established mining
company.
dr Kevin Wills
Managing Director
* Exploration Targets are reported according to Clause 18 of the JORC Code. This means that they are partly conceptual in nature and
that considerable further exploration, particularly drilling, is necessary before any Identified Mineral Resource can be reported. It is
uncertain if further exploration will lead to a larger, smaller or any mineral resource.
Note: Due to the changed financial climate since writing of the Review of Operations on
page 38, gold projects have become Maximus’ flagship projects.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
5
Exploration Manager’s Report
REvIEW OF ExPLORATION ACTIvITIES
WOOLANGA
COPPER GOLD
SELLHEIM
GOLD
YANDAL
GOLD
RANKIN
BASE METALS
Eromanga Basin
URANIUM
Eromanga Basin
CANEGRASS
IRON ORE
WINDIMURRA
URANIUM
Yilgarn
Craton
NARNDEE
NICKEL COPPER
PLATINUM GOLD
Figure 1
Figure 1 Location of activities.
Figure 1 Location of activities.
Figure 1 Location of activities.
Gawler
Craton
BILLA KALINA
URANIUM COPPER GOLD
ADELAIDE HILLS
GOLD
BIRD-IN-HAND
GOLD
SELLHEIM GOLD PROJECT,
QUEENSLAND
100% Maximus
The Sellheim project tenure covers
78 square kilometres and comprises three
granted mining leases enclosed within two
exploration permits, located 190 km south–
southeast of Townsville. A contiguous
application for an additional exploration
permit covering 39 square kilometres
extends northwards (Figure 2). The region
is an active and historic alluvial gold mining
centre, called Middle Camp, dating back
to 1867, and the underlying geology is
considered prospective
considered prospective
considered prospective
for the discovery of
for the discovery of
for the discovery of
hard rock gold and
hard rock gold and
hard rock gold and
copper
mineralisation.
mineralisation.
mineralisation.
-19º
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Collinsville
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SELLHEIM
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Figure 2
Figure 2 Location of Sellheim Project and tenement holdings.
Figure 2
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MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Sellheim Alluvial Gold
On 27 June 2008, after exploration
of the Sellheim alluvial gold
potential over a period of
12 months, Maximus announced
the exercising of its option
agreement to purchase 100%
ownership of the tenure from
vendors Alan Stiff, Colleen Budge
and Peter Harvey. The exercise price
totalled $1,500,000 in cash with the
vendors retaining a 1.5% net smelter
royalty on all gold production
from the tenements included in
the original option agreement.
In a separate agreement, mining
equipment and infrastructure was
purchased from Mr Alan Stiff for
$505,000. After arranging to hire
an interim processing plant from
Queensland Gold and Minerals
Limited, bulk sampling of the Jacks
Patch area commenced in late
June 2008.
Resource Estimation
During the reporting period,
Maximus completed test pit
sampling of the alluvial gold
potential. This resulted in the
excavation and processing of five
to six loose cubic metres (lcm) of
alluvial material from a total of
109 test pits, most of which were
excavated from the main mining
lease, ML10328 (Figure 3). Results
from the test pit investigation were
highly encouraging, with better
values including metal detected
nuggets of 18.7 grams per lcm and
27.2 grams per lcm from test pits
TT080 and TT089, respectively.
Using the test pit results, Maximus
obtained a resource estimate for
three sub-regions of specific interest
– Jacks Patch, Golden Triangle and
Boulder Run (Figure 3) – through
geological consultant, Peter
Hancock of Hancock Consultants.
Exploration Manager’s Report
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l
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Trench with slot samples
Exploration test pits
Inferred Mineral Resource Areas
Additional Exploration Target Areas
Figure 3 Location of test pitting and Inferred Mineral Resource at the Sellheim Gold Project.
Hancock estimated a total resource
of 1,000,000 bank cubic metres
(bcm) averaging 0.52 grams of gold
per bcm, containing 16,000 ounces
of gold (Table 1), and categorised
the resource as an Inferred Mineral
Resource under the Joint Ore
Reserves Committee (JORC) Code.
Bulk Sampling
Bulk sampling of the Jacks Patch
portion of the inferred resource
commenced in late June 2008 and
provided very encouraging results
with a relatively high abundance of
gold nuggets. A total of 1,357 bcm
of alluvial material and minor
quantities of weathered bedrock
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
7
Exploration Manager’s Report
Table 1 Inferred Mineral Resources ML 10328,
Sellheim Alluvial Gold Project, Queensland.
Field
Jacks Patch
Golden
Triangle
VolumeA
(bcm1)
253,468
453,832
Boulder Run
Total2
297,986
1,000,000
1 Bank Cubic Metres.
Grade
Total Ounces
(grams/bcm)
0.78
0.41
0.46
0.52
(per bcm
volume)
6,000
6,000
4,000
16,000
2 Totals for volumes and ounces rounded to nearest
hundred thousand and thousand, respectively.
were excavated from a trench and
processed to recover 681 grams
(21.9 ounces) of gold, giving an
average overall grade of 0.5 grams
per bcm. Approximately 36% of
the gold was recovered as gold
nuggets.
The bulk sampling investigation
has also demonstrated that,
overall, some 80% of the alluvial
gold is located within the “A”
horizon immediately overlying the
basement – a result which basically
confirmed the distribution of gold
previously noted in the test pit
results. Results for the bulk sampling
indicated the “A” horizon averaged
1.24 grams per bcm, whereas the
“B” horizon average grade was
0.18 grams per bcm.
Trial Production
A period of trial production
commenced on 1 October 2008 and
is expected to continue until a new
Plan of Operations is approved by
the Queensland mining authorities.
Initial results after the first week
have been highly encouraging,
with some 44 ounces of gold being
recovered from 962 bcm of alluvial
material mined from Jacks Patch.
Approximately 46% of this gold
was recovered as nuggets, some
of which are specimen quality.
The average grade for the material
mined and processed in this first
week of trial mining and production
was 1.42 grams per bcm.
Marketing of Sellheim Gold
Nuggets
Maximus is proposing to market
the better quality gold nuggets
recovered at Sellheim by using
its website to display specimens
selected for sale (see cover photo). It
is expected that this marketing will
commence early in November 2008.
Sellheim Hardrock Gold and
Copper Potential
Limited investigation of the
bedrock gold and copper potential
at Sellheim was undertaken
during 2008. Compilation of
previous exploration indicates
widespread metal occurrences
of gold, copper, lead and silver
in the tenure held. Geological
mapping has demonstrated that
structural controls are important
in the distribution of these metal
occurrences, which may represent
the upper levels of a larger
magmatic mineralised system.
Further investigations, including
electrical geophysics, are being
considered before bedrock drill
targets can be defined.
More recently, Maximus has
decided to focus on the alluvial
gold potential of the property and
to possibly offer the hardrock gold
and copper potential for farm out
to other explorers. Discussions with
several exploration companies have
commenced.
8
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
ADELAIDE HILLS GOLD AND BASE METAL
PROJECTS, SOUTH AUSTRALIA
100% Maximus
The Adelaide Hills project, located immediately
east of Adelaide, comprises some 3,800 square
kilometres of contiguous exploration licences
(eight) and applications (three) covering numerous
gold and base metal occurrences (Figure 4). The
Maximus tenure covers eight of the twelve known
goldfields that form the Adelaide Hills Gold Province
(AHGP) and all of the significant historic gold
producing hard rock mines.
During the year, Maximus lodged applications for
mineral claims over 196 hectares surrounding the
historic Bird in Hand gold mine, as a precursor to
a future mining lease application. Bird in Hand is
one of four historic gold mines enclosed within the
area of these mineral claim applications (Figure 4).
It is Maximus’ intention to explore each of these
mines and the rest of the application area for
gold mineralisation that could add to the gold
resource so far identified at Bird in Hand. Recently
the Adelaide Hills Council agreed to the inclusion
of roads to allow for the above applications to be
consolidated in a single mineral claim application.
Based on a recent review of all available data,
Maximus is of the opinion that further exploration
within the AHGP is likely to provide more
discoveries similar to that made at Bird in Hand.
A new Maximus AHGP strategy will be directed
towards:
y
y
y
Investigations that will support completion of
pre-feasibility studies at Bird in Hand (BIH);
Exploration drilling of targets in the mineral
claim application area surrounding BIH to
locate additional gold resources that could be
developed concurrently with the BIH resource;
Exploration drilling of new targets relating to
known goldfields in the AHGP, commencing
with the historic Deloraine and Eureka gold
mines, to locate other gold resources of similar
or greater tenor to that discovered at BIH.
Exploration Manager’s Report
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Gumeracha
(cid:67)
(cid:67)
Deloraine
(cid:67)
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
Para Wirra
(cid:67)
(cid:67)
Birdwood
(cid:67)(cid:67)
(cid:67) (cid:67)
(cid:67)(cid:67)(cid:67)(cid:67)(cid:67)
(cid:67)
(cid:67)
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
Scotts Reef
(cid:67)
Bird in Hand
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
Woodside
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
(cid:67)(cid:67)(cid:67)(cid:67)
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
New Era
(cid:67)
(cid:67)
(cid:12)
(cid:67)
(cid:67)
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
Eureka
ADELAIDE
Uraidla and
Forest Range
-35º
Echunga
(cid:67)
(cid:67)
Willunga
(cid:12)
Kanmantoo Copper
(Hillgrove)
(cid:67)
(cid:67)
Angas Lead/Zinc
(Terramin)
Figure 4 Location of Maximus’
exploration targets for gold and
Kapunda JV in the Adelaide Hills Gold
Province.
(cid:12)
(cid:67)
(cid:67)
Exploration Target
Resource
Mine
Historic hardrock gold mines
Goldfields
Gold Province
Maximus Resources Tenements
Kapunda JV (Copper Range Ltd)
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
9
Exploration Manager’s Report
BIRD IN HAND MINERAL CLAIM
– GOLD
At the Bird in Hand project, which
is now extended to exploration of
the mineral claim application area
(Figure 5), Maximus has continued
drilling through most of the year. Ten
holes were completed in and around
the main Bird in Hand resource
(Figure 6), for a total of 3,353 m and
an additional two exploratory holes
(307 m) were completed at the
nearby Ridge Mine, 400 m to the
southwest (Figure 5). Mineralised
intersections are summarised in
Table 2.
Through the year, Maximus has
progressively upgraded its estimated
Inferred Mineral Resource. The
latest resource estimate announced
in June consists of an Indicated
Resource from 340 to 220 metres
RL and an Inferred Resource from
220 to 20 metres RL, which totals
598,000 tonnes at an average
gold grade of 12.3 grams per tonne
(Table 3). The contained gold content
represented is 237,000 ounces,
which is 46% above the previously
released estimate of 421,000 tonnes at
12 grams per tonne (162,000 ounces of
contained gold). The components of
the resource are summarised in Table 3.
At the Ridge Mine (Figure 5), hole RDH1
traversed a wide zone of broken rock
containing some gold and an interval
of 0.8 metres assayed 2.8 grams of gold
per tonne. A second hole, RDH2, was
drilled as a vertical hole to follow up
the intersection made in RDH1. RDH2
intersected further breccia containing
some altered marble, without
significant gold, before finishing in
footwall siltstones at 159.6 metres total
depth.
Negotiations for access to complete
drilling at other historic mine sites
within the mineral claim application
area were progressed through the year,
but are yet to be finalised.
'
4
5
º
8
3
1
Eureka Mine
(cid:67)
'
5
5
º
8
3
1
Woodside
Blackbird Mine
(cid:67)
(cid:67)
Two In The Bush Mine
-34º57'
Bird In Hand Mine
16.2
Ridge Mine
(cid:67)
(cid:67)
BH43
BH42
BH44
RDH1 & RDH2
Resource Drillhole
Exploration Drillhole
Rockchip sample (Au ppm)
Historic minesite
Mineral Claim Application
(cid:67)
1.2
-34º58'
0
500 m
Figure 5 Mineral Claim Applications and recent drillholes, Bird in Hand Project.
Maximus has an aspirational aim of locating over
one million ounces of recoverable gold in the
Adelaide Hills. This strategy is based upon Maximus’
belief that a total Exploration Target of some
1,900,000 to 2,400,000 tonnes of gold mineralisation
averaging 10 to 15 grams of gold per tonne can
be discovered within the AHGP (Figure 4). This is in
addition to the resource already defined at Bird in
Hand. It is emphasised that this Exploration Target is
partly conceptual in nature and there is no certainty
that further exploration will lead to the estimation
of further Mineral Resources within the AHGP.
However, the discovery of such a target could lead
to the delineation of several gold resources that,
when totalled, would serve as a basis for significant
future Maximus gold production over a period of at
least 10 years.
10
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Exploration Manager’s Report
Table 2 Mineralised Intersections on Bird in Hand Mineral Claim, Woodside, South Australia from September 2007 to June 2008.
Drillhole No.
Collar Easting
Collar Northing
Collar Azimuth
/ Dip
Core Size
From
To
Interval
Gold
BH35
BH36
BH37
BH38
BH39
BH40
BH41
BH42
BH43*
BH 44
RDH1
RDH2
(MGA54 metres)
308952
(MGA54 metres)
6129717
308968
309032.2
6129736
6129703.5
309127
309070.0
309062.0
309020.0
309176
309119
309206
308894
308896
6129661.5
6129686.5
6129680.0
6129627.0
6129547.5
including
and
6129532
including
6129495.5
6129370
6129369
288/-90
290/-86
288/-90
288/-90
288/-90
250/-82
288/-90
360/-90
360/-90
360/-90
270/-75
090/-90
HQ
HQ
HQ
HQ
HQ
HQ
HQ
HQ
HQ
332.6
HQ
HQ
HQ
(metres)
102.7
117.5
208.6
-
-
223.0
207.2
375.0
380.0
385.9
331.3
333.9
413.2
116
-
(metres)
104.0
120.0
218.0
including
including
-
-
227.0
216.2
389.2
382.0
389.1
340.7
1.3
421
116.8
(metres)
1.3
2.5
9.4
0.4
3.15
-
-
4.0
9.0
14.2
2.0
3.2
9.4
87.4
7.8
0.8
(grams/tonne)
5.25
1.15
7.66
38.61
14.52
HA
NSA
7.21
8.01
15.5
28.0
38.0
15.1
5.3
2.8
NA
HA = Hole abandoned; NSA = No significant assays; NA = Assays not available; * = Includes 2.1 m section of core loss from 333.9 m at zero grade
Table 3 Mineral Resources, 100 to 430 metres vertical depth, Bird in Hand Gold
Mine, Woodside, South Australia. As at 1 August 2008.
Bulk
Density1
Average
Width2
(metres)
Tonnes
Grade
Gold
Contained
Gold
(g/t)
(ounces)
Classification
Indicated Main Reef
Inferred Main Reef
Inferred White Reef3
Total Mineral Resource4
2.78
2.78
2.78
6.65
7.48
2.44
160,000
406,000
32,000
598,000
13.6
11.7
13.6
12.3
70,000
153,000
14,000
237,000
1 Density value is based on the average of measurements taken through the mineralised
zone.
2 Horizon width based on lode dipping approximately 50 degrees to east.
3 Resource limited to between 125 to 220 metres below surface.
4 Totals rounded to nearest thousand (tonnage/contained ounces) or first decimal place
(grade).
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
11
Exploration Manager’s Report
350m RL
300m RL
250m RL
Historic
workings
4.2m@10.8g/t BH34
5m@12.3g/t BH9
9m@31.2g/t BH17
BH18
NSA
BH21
20.4m@18.6g/t
White
BH35
1.3m@5.3g/t
BH36
2.5m@1.2g/t
2.4m@11.5g/t
BH33
5m@15.6g/t
BH32
BH12 9m@10.3g/t
BH22
NSA
BH19
8.5m@14.4g/t
BH37
9.5m@7.7g/t
BH40 4m@7.2g/t
BH20
6.8m@20.3g/t
BH16
5.5m@3.6g/t
Reef
ef
e
R
9m@8.0g/t BH41
6.2m@7.4g/t BH29
598,000 tonnes
@ 12.3g/t
(237,000ozs)
200m RL
2m@4.0g/t BH31
BH25 NSA
BH30
5m@31.7g/t
BH24 11m@6.3g/t
BH23 3.8m@1.1g/t
BH39 NSA
150m RL
100m RL
BH27 3m@27.0g/t
4m@13.5g/t BH26
ain
M
BH28 9m@7.1g/t
BH43 9.4m@15.1g/t
50m RL
14.2m@15.5g/t BH42
25m
Community Consultation
Regular independently-chaired public meetings
have been held in Woodside at quarterly intervals,
to gain input from the community on concerns
about possible mine development and to provide
feedback on Maximus’ proposed responses to
these concerns. The main concerns expressed,
mainly through the local Woodside Ground Water
Focus Group, have been about the potential
effects of depressurisation of the aquifer at a
possible mine site. The concerns relate to the
possible deterioration of quantities and quality of
water used by nearby irrigators as a result of this
depressurisation. A proposed response to this issue
is outlined below.
Figure 6 Long projection showing
Bird in Hand resource status.
0m RL
BH44
7.8m@5.3g/t
Indicated Resource
Inferred Resource
Drillhole (Main Reef intersections only)
No Significant Assay
NSA
12
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Exploration Manager’s Report
Maximus is seeking a way to further
explore and resolve water and other
issues through the establishment
of a more formal, transparent
community engagement structure,
and this proposal will be progressed
at future meetings. Such processes
are recommended by PIRSA and
have been successful in guiding
other recent project developments
in the region, including the new
Angas Mine at Strathalbyn and the
recent mining lease approval at
Kanmantoo.
Mining Pre-feasibility Studies
After having completed a positive
scoping study during the year,
Maximus is now carrying out a pre-
feasibility study into the possible
redevelopment of the Bird in Hand
Mine.
At a recent public meeting, a
possible solution to community
concerns about depressurising
the aquifer in the mine area was
proposed. This involves injecting
groundwater under a Managed
Aquifer Recharge (MAR) process.
A water pumping test has been
proposed to test depressurisation
and recharge of the aquifer by the
MAR process. The MAR test would
reinject water pumped from the
mine area into the aquifer around
the mine, thereby returning all
water to the aquifer. If these tests
demonstrate the groundwater
aquifer can be depressurised with
minimal impact on its water quality
and quantity, then Maximus is of
the opinion that a “water neutral”
mining operation will be possible.
Applications have been prepared
for statutory approval for these
pumping and MAR tests to be
completed in early 2009 and their
submission to the Department
of Water, Land and Biodiversity
Conservation is imminent.
DELORAINE GOLD MINE
The historic Deloraine Gold Mine is
located 35 km northeast of Adelaide
and 10 km northwest of Birdwood.
Maximus has studied the geology
and mining history of the Deloraine
mine, which was the largest
historical gold producer in the
Adelaide Hills. Previous production
of about 50,000 tonnes at 20 grams
per tonne of gold for about
30,000 ounces was recorded.
In the Company’s June Quarterly
Report and an ASX release on
5 September 2008, Maximus
outlined an estimated Exploration
Target* at Deloraine based on
the assumption that similar
mineralisation to that already mined
may extend to about 500 metres
below the old workings. At average
true widths of 3 or 4 metres, this
target would amount to 0.8 to
1.1 million tonnes at a grade of 15
to 20 grams per tonne of gold.
* See page 5 for an explanation of Exploration Target.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
13
Exploration Manager’s Report
A recent Warden’s Court decision
has given Maximus approval to
commence drill testing at the
Deloraine Mine site, subject
to certain conditions and
compensation payments for
residents living near the old mine
area. Detailed planning of an initial
drilling program is progressing
while clarification of some aspects
of the conditions is being sought
from the Warden’s Court.
EUREkA MINE
During the year, an access
agreement was reached with
the landholder for initial drill
testing beneath old workings at
this prospect, which is located
two kilometres northwest of
Bird in Hand. This small drilling
program will be combined with the
proposed program at Deloraine as a
combined contract.
OTHER GOLD PROSPECTS
IN ADELAIDE HILLS GOLD
PROvINCE
kAPUNDA JOINT vENTURE
Maximus diluting to 75% subject to
the Kapunda Joint Venture Agreement
The Kapunda Joint Venture covers
the historic Kapunda copper mine
and surrounding areas in the
western part of EL3064 where Joint
Venture manager, Copper Range
Ltd, initially has a right to earn 51%
equity in metalliferous minerals
rights through expenditure of
$500,000 over five years.
In the current year, Copper Range
Ltd has reported completion of
a reappraisal of the project area,
including geological mapping at
mine sites, a review of previous
exploration data, re-logging and
re-assay of drillcore, and digital
conversion of data.
Field exploration has focused on
a possible extension to the south
of Kapunda and the Stephens
Mine area to the east, where
anomalies were defined by Induced
Polarisation (IP) geophysical surveys.
Testing of the Kapunda South
anomaly by a four-hole, 410 m RC
drilling program has confirmed the
presence of pyrite rich sulphide
mineralisation (to 30%) and quartz
veins similar to those which occur
in the Kapunda mine. Some visible
chalcopyrite can be seen in the
core, but no estimate of copper
content has been attempted.
A single drillhole near the Stephens
Mine intersected weaker pyrite
mineralisation and quartz veins
without obvious chalcopyrite.
Assays of drilling samples from both
areas are awaited.
14
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Exploration Manager’s Report
NARNDEE PROJECT, WESTERN
AUSTRALIA
Maximus 90% to 100%
A comprehensive package of
tenements has been acquired
through negotiation with other
parties, covering a total area of
5,500 square kilometres over the
Windimurra and Narndee intrusive
complexes in Western Australia.
The tenure includes 34 granted
exploration licences, 25 applications
for exploration licences,
22 prescribed prospecting licences,
and 42 applications for prescribed
prospecting licences (see Figure 7
and the tenement schedule on
page 29 for details).
During the current year, Maximus
purchased a further 15 small
tenements totalling 12.95 square
kilometres in area from
Mr J P Legendre, Mr B A Melville
and Legend Resources Pty Ltd.
Total consideration was $25,000 in
cash, one million ordinary Maximus
shares, and one million Maximus
options exercisable before 2 July
2012 at 50 cents each. Fourteen of
the tenements located in the area
of the Canegrass Iron Ore Prospect
(Figure 7) were acquired due to the
strategic and practical advantage
of holding all ground in an area
where mining operations may
be considered in future. The 15th
tenement is located in the Milgoo
area in the south of the project area
(Figure 7).
Significant mineral occurrences
identified in the project area to date,
and shown in Figure 7, include:
y
Vanadium-enriched magnetite
iron ore in the lower part of the
Canegrass Magnetic Zone (CMZ)
of the Windimurra Complex,
similar to the vanadium
mineralisation to be mined by
Windimurra Vanadium Limited
at their Windimurra vanadium
deposit.
y
Magnetite iron ore (low
vanadium) in the upper part of
the CMZ.
º
8
1
1
-28º
Mt Magnet
(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)
PGM
PbZn
Au
'
0
3
º
8
1
1
Au
Au
Au
Au
Au
Windimurra Uranium Deposit
Canegrass Iron Ore 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)
-28º30'
20 km
(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)
Windimurra
Vanadium Deposit
(non MXR asset)
PGM
PGM
CuZn
Ni PGM
(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
CuZn
-29º
Au
Ni PGM
CuZn
Maximus Tenement Area
Windimurra-Narndee Complex
Figure 7 Location of tenement holdings, main prospects and
known mineral occurrences at Narndee Project.
y
y
y
y
Nickel, copper and platinum
group metals (PGM) in the
layered mafic intrusive bodies
forming both the Narndee and
Windimurra complexes.
Calcrete-hosted uranium
mineralisation in Windimurra,
Wondinong and other
palaeochannels overlying the
older basement geology.
Copper, lead and zinc in both
felsic volcanic and structural
settings within the basement
geology.
Gold in structures within
the mafic complexes and in
peripheral contact zones of the
complexes.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
15
Exploration Manager’s Report
CANEGRASS PROSPECT –
MAGNETITE IRON
Scoping of Canegrass
Exploration Potential
Exploration at the Canegrass
Prospect has progressed to the
stage where preparations for a
first round of drilling to define
an inferred resource are nearing
completion. This follows a period of
systematic evaluation of the scope
of the project, which extends over a
length of 20 kilometres and a width
of up to three kilometres, and the
identification of areas where drilling
programs to establish a resource
should be focused.
Initial testing of the extent of
vanadium bearing magnetite in the
Canegrass area in late 2007 included
extensive rock chip sampling and
RC drilling (16 holes for 1,355 m) to
test targets selected using broad-
spaced airborne magnetic survey
information. Significant drilling
results are included in Table 4.
Encouraging results from this work
prompted a decision to conduct
high resolution airborne magnetic
surveys and gravity surveys over the
prospect in early 2008. Assessment
of the results of the above work
provided evidence for the scope
and very large scale of the potential
Exploration Target at Canegrass,
which was announced on 9 May
2008.
As a next step, concurrent RC
and diamond drilling programs
(Figure 8) were completed to
identify parts of the magnetite
rich layered sequence holding
the greatest potential for an iron
ore resource, possible variations
in the composition of magnetite
rich zones, and areas where
more detailed evaluation drilling
should be focused. The locations
of drill traverses were initially
guided by magnetic and gravity
interpretation and adjustments
to these locations were made as
information improved. The stronger
magnetite mineralised intersections
of significant drill width are
summarised in Table 4.
Diamond drilling of four holes for
a total of 2,126 m was completed
in an attempt to achieve coherent
intersections through the magnetite
mineralised sequence at three
locations, in Blocks 1 and 3 of the
Canegrass area (Figure 8). The aim
was to facilitate better interpretation
of the geological and geophysical
sequence, including variations in
the distribution and composition
16
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Exploration Manager’s Report
of magnetite rich zones, and to
provide material for metallurgical
assessment. Assay results from
significant magnetite rich intervals
are summarised in Table 4.
The reconnaissance RC drilling
program of 36 holes for 5,231
metres on widely spaced traverses
(Figure 8) was designed to test
the broad, extensive zone to
provide general information on
the distribution of magnetite and
identify those magnetic zones
where further work should be
focused. This drilling was designed
to cover a broad range of magnetic
units (including some that proved
not to be a priority for further work)
as well as testing specific targeted
horizons. Iron assay results from
four-metre composite samples that
average greater than 20% iron over
significant widths are summarised
in Table 4.
Results from both types of drilling
confirm the presence of three thick
(up to 50 metres) zones containing
abundant magnetite (designated
Zones 1, 3, and 5) that will provide
a focus for closer spaced RC
drilling to establish continuity of
magnetite rich zones and define
an inferred resource (Figures 8
and 9). A key finding from the
work is the relatively shallow dip of
target units of about 20 degrees,
which enhances the near-surface
tonnage potential per vertical
metre. Drillholes intersecting the
lower gabbro, Zone 4 and the
upper gabbro intersected generally
thinner, weaker or more widely
spaced magnetite horizons and
will not be targeted in any further
drilling. Some more magnetite rich
units in Zones 2 and 4 may be of
further interest where they are in
close proximity to Zones 1 or 3,
and Zone 5 respectively. Significant
intersections of each of these target
zones drilled during the past year
are included in Table 4.
'
0
2
º
8
1
1
Magnetic Zones
5
3
2
1
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
Block 7
-28º20'
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
MNDD2
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 4
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 6
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
Block 5
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
Block 3
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
MNDD4
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
Block 1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD1
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
MNDD3
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
Block 2
0
2 km
DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD
(See cross-section
in Figure 9)
Diamond drillhole
RC drillhole
Fault
Dyke
Figure 8 Canegrass Prospect area, showing fault blocks and
mineralised zones together with recent diamond and RC drillhole
locations and schematic section (Figure 9).
NORTH
BLOCK 3 NORTH
Outcrop
MNRC38
MNDD2
Upper Sequence
Gabbro
A
MNRC37
B
1.5km
C
BLOCK 3 SOUTH
MNDD4
MNRC19
SOUTH
MNRC16
Outcrop
D
surface
E 5
N
O
Z
EOH
120m
T
L
U
A
F
E 4
N
O
Z
EOH
132m
EOH
402m
100m
200m
300m
400m
500m
E 4
N
O
Z
E 3
N
O
Z
E 2
N
O
Z
E 1
N
O
Z
Lower Sequence
Gabbro
200m
Relative Magnetite vol% estimated from Magnetic Susceptibility
Drillhole
Proposed resource test drillhole
Figure 9 Schematic cross-section through holes MND2, RC38 and RC37 (A–B) at Block 3 North and MND4, RC19 and RC16 (C–D) at Block 3 South
at the Canegrass Prospect.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
17
Exploration Manager’s Report
Table 4a Summary of significant analytical results for diamond drilling, Canegrass Prospect, Narndee Project, year to June 2008.
Collar
Easting
(MGA94
metres)
633047
Collar
Northing
Collar
Azimuth / Dip
(MGA94
metres)
6858804
180/ -75
Drillhole No.
MNDD0001 Incl.
MNDD0001
MNDD0001
MNDD0001
MNDD0001 Incl.
MNDD0002
635803
6865002
120/ -75
633850
6857818
186
220
180/ -75
MNDD0002
MNDD0002
MNDD0003
MNDD0003 Incl.
MNDD0003 Incl.
MNDD0004 Incl.
637380
6862553
135/ -65
MNDD0004
MNDD0004
MNDD0004 Incl.
From
To
Interval
Iron
(metres)
(metres)
(metres)
(%)
356
386
402
410
474
490
504
554
554
560
570
78
192
228
262
288
296
432
458
50
50
122
174
300
300
322
430
416
416
416
480
496
512
574
558
566
574
140
6
8
278
302
302
482
482
72
62
130
182
332
312
332
74
30
14
6
6
6
8
20
4
6
4
64
32.4
26.2
16
14
6
50
24
22
12
8
8
32
12
10
17.7
21.5
22.8
27.9
23.2
19.5
20.1
17.5
20.1
20.8
21.4
35.1
3.42
5.09
20.5
21.3
26.6
22.4
26.1
23.4
24.5
27.1
21.0
20.3
27.6
20.1
TiO2
(%)
5.69
6.01
7.42
5.69
4.04
4.28
3.65
4.59
4.70
4.17
4.78
0.04
0.06
5.35
5.45
7.04
4.69
5.62
4.95
5.16
5.43
3.28
3.88
5.52
3.57
Block/
Zone
B1/Z3
Z2
Z2
Z2
Z2
B3
Z5
B1/
Z3
Z3
Z1-2
Z1
B3
Z3
Z2
Z2
Z1
V2O5
(%)
0.42
0.46
0.56
0.50
0.37
0.39
0.33
0.42
0.43
0.39
0.03
Z5
Z5
0.39
0.40
0.52
0.41
0.50
0.43
0.44
0.52
0.36
0.45
0.63
0.43
18
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Exploration Manager’s Report
Table 4b Canegrass reverse circulation drilling results.
Collar
Northing
Collar
Azimuth / Dip
From
To
Interval
Iron
TiO2
V2O5
Block/
Zone
Comments
Drillhole No.
MNRC0006
MNRC0007
MNRC0008
MNRC0013
MNRC0016
Incl
Collar
Easting
(MGA94
metres)
636000
635940
635000
634330
637860
(MGA94
metres)
6860030
6860030
6860030
6861290
6861810
090/ -60
090/ -60
180/ -60
180/ -60
135/ -60
MNRC0017
637820
6861850
135/ -60
637580
637547
637032
636836
636408
6862330
6864499
6864651
6864833
6864689
090/ -60
106/ -60
106/ -60
106/- 60
120/ -60
Incl
MNRC0018
MNRC0019
MNRC0033
MNRC0035
MNRC0036
MNRC0037
MNRC0038
MNRC0042
MNRC0044
Incl
MNRC0045
634726
6859852
165/ -60
Incl
MNRC0047
635036
6860145
165/ -60
Incl
MNRC0048
MNRC0049
MNRC0050
MNRC0052
MNRC0052
634495
638837
6857835
6869396
127/ -60
120/ -60
MNRC0053
638710
6869500
129/ -60
MNRC0053
MNRC0057
MNRC0057
MNRC0058
641068
6872335
091/ -60
MNRC0058
MNRC0059
641640
6870249
132/ -60
MNRC0060
MNRC0061
MNRC0062
640950
6870789
128/ -60
MNRC0062
MNRC0062
MNRC0063
MNRC0064
MNRC0066
MNRC0067
MNRC0067
637839
634874
634824
6861827
6859473
6859661
122/ -60
166/ -60
165/ -60
(metres)
(metres)
(metres)
(%)
(%)
(%)
20
48
69
0
0
7
16
20
20
44
36
0
4
0
42
140
72
72
12
24
108
108
64
136
0
24
64
44
80
20
92
16
64
60
32
88
0
32
100
68
4
0
20
84
29
61
81
12
36
24
36
28
32
52
48
16
24
44
114
156
96
84
52
48
156
124
104
148
36
44
92
64
100
32
124
32
100
72
60
116
20
68
116
84
36
20
36
102
9
13
12
12
36
17
20
8
12
8
12
16
20
44
72
13
24
12
40
24
48
16
40
12
36
20
28
20
20
12
32
16
36
12
28
28
20
36
16
16
32
20
16
20
28.5
26.9
23.6
27.4
33.3
44.1
32.1
39.4
24.5
29.5
23.4
21.0
25.7
21.7
34.1
22.4
20.4
23.0
22.1
22.9
20.6
21.0
22.2
22.4
22.0
24.4
20.6
25.4
20.0
22.2
21.5
28.8
20.2
22.8
23.0
21.7
31.6
21.4
21.2
21.5
32.2
23.1
25.0
20.9
5.97
5.68
6.57
3.54
7.94
11.62
6.38
7.78
5.23
6.47
6.41
5.28
3.99
3.31
5.85
6.06
5.36
6.32
5.90
6.16
5.86
5.86
5.97
6.34
5.96
5.45
3.39
4.66
3.00
3.27
7.34
6.48
3.39
5.50
7.45
6.67
4.68
3.30
7.26
5.91
6.43
1.84
4.89
4.02
0.53
0.52
0.47
0.13
0.84
1.18
0.73
0.88
0.47
0.58
0.23
0.05
0.05
0.04
0.02
0.45
0.37
0.44
0.42
0.45
0.39
0.39
0.42
0.45
0.42
0.03
0.03
0.03
0.03
0.03
0.14
0.04
0.03
0.31
0.14
0.13
0.09
0.04
0.07
0.42
0.67
0.18
0.41
0.36
B2/Z2
B2/Z2
B2/Z3-4
B3/Z4-5
B3/Z1
B3/Z1
B3/Z2
B3/Z2
B3/Z3
B3/Z4
B3/Z4-5
B3/Z4-5 High MgO
B3/Z5 High MgO
B2/Z3
B2/Z3
B2/Z3
Z3
B1/Z3
B4/Z5? High MgO
B4/Z5? High MgO
B4/Z5? High MgO
B4/Z5? High MgO
B7/Z3?
B7/Z5? High MgO
B7/Z5? High MgO
B6/Z2
B6/Z3
B6/Z3
B6/Z4
B6/Z4
B6/Z4
B3/Z3
B3/Z1
B2/Z1?
B2/Z2
B2/Z2
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
19
Exploration Manager’s Report
Preliminary Metallurgical Tests
Table 5 Preliminary Davis Tube separation results.
Drillhole
Interval
Downhole
% Magnetic
Fraction
% Fe
% TiO2
% V2O5
MNRC0007
MNRC0012
MNRC0012
MNRC0012
MNRC0012
MNRC0012
MNRC0016
MNRC0016
MNRC0016
MNRC0016
MNRC0017
MNRC0017
MNRC0017
MNRC0017
MNRC0042
MNRC0038
MNRC0038
MNRC0038
CGD-11
(metres)
56-57
64-65
65-66
66-67
67-68
68-69
16-17
17-18
18-19
19-20
24-25
25-26
26-27
27-28
140-160
44-62
67-78
88-109
46
54.20
14.35
55.30
43.05
47.65
37.15
44.00
43.90
38.85
48.30
43.75
48.80
44.60
45.15
23.45
29.37
40.27
23.39
NA2
(of magnetic
fraction)
57.37
(of magnetic
fraction)
13.23
(of magnetic
fraction)
1.33
55.82
54.33
53.76
55.65
54.43
58.25
58.38
58.50
58.87
59.35
59.35
58.92
58.01
52.02
54.85
49.46
49.87
57.2
18.26
19.19
19.24
18.93
19.34
12.87
12.99
12.74
12.51
11.52
11.50
11.67
11.60
16.28
16.52
10.58
13.55
12.6
0.80
0.65
0.73
0.65
0.72
1.46
1.45
1.44
1.46
1.47
1.50
1.54
1.50
0.07
0.08
0.04
0.13
1.05
1 Drillhole completed by WMC Resources Limited in 1980.
2 NA = Data not available.
Magnetic concentrates of over
50% iron were readily achieved
with preliminary, standard Davis
Tube tests. These were completed
on bulk samples containing 20 to
40% iron from Zone 1 in drillhole
RC16 (previously reported), Zone 3
in RC42, and Zone 5 in RC38. Best
recovery is achieved in bands
of fairly massive, coarse grained
magnetite (Table 5).
Lower recovery of magnetite in
standard tests may be due to
the presence of finer grained,
disseminated magnetite or locally
higher iron contents in silicate
minerals contained within the
gabbro. Evaluation of the effect
of such variations requires more
sophisticated magnetic separation
tests than have been completed
to date. Geological logging and
petrologic studies in progress at
the end of the year will provide
guidance for the design of these
tests.
Proposed Resource Evaluation
In August, plans to proceed to
resource evaluation drilling to
define inferred resources in parts
of Block 3 North and South were
announced. The first phase of this
resource drilling will focus on a
1.2 km length of Zone 1 in Block 3
South using a pattern of 200–400 m
spaced vertical RC drillholes to test
this target zone to a vertical depth
of 200 m. An exploration target of
between 50 and 100 million tonnes
potentially containing 30–40% iron
has been outlined in this smaller
area of the 20 kilometre long CMZ.
20
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Exploration Manager’s Report
This initial pattern will provide
valuable information on the
dip and lateral continuity of the
targeted zones, which will assist
in decisions on the spacing of
step-out drilling to test the broader
exploration target of between 280
and 500 million tonnes potentially
containing 30–40% iron in Block 3
South and Block 3 North (ASX
announcement 25 August 2008).
Note that these exploration targets
outlined in Block 3 are separate
from the Block 1 resource potential
which was estimated at 1.7 to
3.0 billion tonnes of magnetite
rich gabbro containing 20 to 35%
magnetite announced to the ASX
on 9 May 2008.
It is emphasised that the potential
quantity and grade of the
Block 3 North and Block 3 South
mineralisation and the global
potential announced on 9 May 2008
are partly conceptual in nature and
there has not yet been sufficient
exploration to define a Mineral
Resource. Furthermore, it is also
uncertain if further exploration
will result in the determination
of a larger, smaller or any Mineral
Resource.
Proposed Metallurgical Work
A program of more comprehensive
metallurgical tests is planned
to determine how extraction
of saleable products based on
the three valuable metals (iron,
vanadium, and titanium), which are
enriched to varying degrees in the
Canegrass magnetite zones, can
be achieved cost effectively. This
involves an assessment of current
and emerging markets for these
commodities and their various
combinations, as well as trialling of
technical options available for their
concentration and separation. This
work will go well beyond the basic
tests completed so far on magnetic
separation of magnetite from the
host rock.
SHEPHARDS PROSPECT –
MAGNETITE IRON ORE AND
vANADIUM
Preliminary RC drill traversing of that
portion of the Shephards magnetic
trend located within tenements
held by Maximus was undertaken
in the first half of the year. Six holes
in three traverses for 463 metres
of drilling were completed. Visual
logging of drill cuttings showed
variable percentages of magnetite
to 50%. However, from analyses
undertaken, the best intersection
was only four metres from
68 metres, averaging 39% iron
and 9.5% titanium oxide in hole
MNRC0021. Vanadium results were
generally less than 0.6%.
These results indicate that the
intersection widths are not
sufficiently encouraging to realise
the exploration target announced
in September 2007 and, as a
consequence, Maximus has focused
its ongoing exploration program
for magnetite iron ore on the
Canegrass prospect.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
21
Exploration Manager’s Report
WINDIMURRA URANIUM PROSPECT
The Windimurra Uranium Deposit is located about
15 km to the northeast of Maximus’ Canegrass iron
ore prospect (Figure 10).
On 20 December 2007, Maximus announced
an Inferred Mineral Resource at the Windimurra
Uranium Deposit, based on drilling completed last
year, of 19 million tonnes at an average grade of
180 parts per million U3O8 (Table 6). The estimate
used a cut off grade of 100 ppm U3O8 for a U3O8
content of 3,400 tonnes (7.5 million pounds). This
resource is located between the surface and a
depth of 6.5 metres.
Resource boundaries were open in at least two
directions, and heritage clearances had been
completed for further drilling, when extension
work was suspended due to the previous Western
Australian Government’s policy against the
mining of uranium. In September 2008, after the
recent state election, the incoming Government
clarified the situation on uranium mining such that
Maximus decided to recommence evaluation of
the Windimurra resource and the surrounding area.
Work to advance the Inferred Resource to Indicated
status, and commencement of a pre-feasibility
study, can now proceed.
Newly acquired regional airborne electro-magnetic
data has complemented existing radiometric
imagery to aid future drill targeting. Deeper
palaeochannels, which have not been tested by
drilling to date, and with trends sub-parallel to
those previously detected by radiometrics, are
indicated.
Maximus is currently considering its approach to
ongoing uranium exploration work, which may
include continued independent exploration or a
new joint venture arrangement.
0
5 km
E58/273
-28º10'
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
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Uranium
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Resource
Windimurra
Vanadium
Tenement
Area
Windimurra Vanadium Mine
(cid:67)
-28º20'
'
0
3
º
8
1
1
Win
di
m
u
rra P
ala
e
o
c
h
a
n
n
el
U Channel
response
High
Low
'
0
4
º
8
1
1
Figure 10 Location of radiometric anomalies and Inferred Mineral Resource defined to date at
the Windimurra Uranium Prospect.
Table 6 Estimated Inferred Mineral Resource of uranium oxide, Windimurra
Uranium Prospect.
Tonnes
(x106)
19
U3O8
(ppm)
180
Contained U3O8
Tonnes (x103)
3.4
Contained U3O8
Pounds (x106)
7.5
22
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
MILGOO PROSPECT – NICkEL,
COPPER, PLATINUM GROUP
METALS
The Milgoo area near Narndee
Homestead has been previously
explored for nickel, copper and
platinum group metals (PGM),
but Maximus has been the first
company to test the area with
modern airborne electromagnetic
(EM) surveys. A ground survey
completed late last year over part
of the Milgoo area was successful
in detecting two conductive zones
of potential interest, designated
the Central and NW conductors
(Figure 11).
Drilling of the two EM conductor
zones late last year confirmed the
presence of nickeliferous sulphide
mineralisation and anomalous
copper (Figure 11). Drilling of two
holes on the 800 metre long Central
Conductor recorded a best interval
in hole MNRC2 of three metres from
99 metres down hole averaging
0.4% nickel and 0.5% copper. The
350 metre long NW Conductor
was drilled by only one hole. This
hole intersected three metres from
Figure 11 Airborne magnetic image
with locations of drillholes, ground EM
targets, new airborne REPTEM targets, and
significant drillhole assay results in the
Milgoo Prospect area.
Exploration Manager’s Report
'
5
0
º
8
1
1
-28º50'
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(8m@0.5% Ni)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
MNRC19
MNRC26
MNRC27
MNRC01
NW
conductor
(3m@0.35% Ni and 0.27% Cu)
plunge to
the north
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
MNRC30
MNRC28
MNRC03
MNRC02
'
0
1
º
8
1
1
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
MNRC29
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(3m@0.43% Ni and 0.48% Cu)
-28º55'
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
Central conductor
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
0
1 km
Maximus RC drillhole
Historic drillhole
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
Airborne EM Targets
Ground EM survey lines
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
23
Exploration Manager’s Report
145 metres down hole averaging
0.35% nickel and 0.27% copper in a
sulphidic ultramafic unit.
Interpretation this year of down
hole electromagnetic probing
of the drillholes confirmed that
conductors were intersected, but
neither drill test has adequately
covered the potential strike length
of each target. Five RC holes were
drilled in March to further test the
mineralised zones intersected by
the above drillholes and a previous
Falconbridge drillhole intersection.
These intersected similar widths of
sulphides to those intersected in
the previous holes, but assay results
for nickel and copper, although
anomalous, were disappointing.
Interestingly, palladium levels were
elevated, reaching levels of over
0.2 grams per tonne in several holes.
Further downhole geophysical tests
and drilling of these conductors is
still required, but this work has been
deferred pending the results of
airborne EM surveys of the area and
the priority given to testing of the
Canegrass iron ore prospect.
During the year, as part of a regional
airborne EM survey (described
more fully below), closer spaced
(200 m or 100 m) lines were flown
over the Milgoo area. Preliminary
interpretation of Milgoo data has
already confirmed the presence of
at least 16 pronounced anomalies,
including the two previous ground
EM anomalies confirmed by drilling
to be due to nickel and copper
anomalous sulphides. Many of
the newly detected anomalies are
associated with linear magnetic
anomalies near the margins of what
is believed to be an olivine and
pyroxene rich (partly ultramafic)
lobe of the Narndee Complex.
Newly received regional gravity
data confirm the presence of a
pronounced gravity anomaly over
this interpreted lobe, which is
mostly covered by thin alluvium
or colluvium. Ground validation of
most of these anomalies is yet to be
completed, but these new results
have substantially upgraded the
exploration potential of the Milgoo
area for mafic intrusive associated
polymetallic deposits.
NARNDEE REGIONAL
GEOPHySICAL SURvEyS
During the year, Maximus
completed a helicopter-borne EM
survey of the total Narndee Project
tenement area (Figure 12). Prior
to undertaking the survey, the
instrumentation was successfully
trialled over the previously located
ground EM anomalies at Milgoo
and the Freddies Well zinc–copper
deposit at nearby Youanmi with
the permission of current owners,
Metals Australia Limited.
The Narndee airborne EM survey
was flown on 400 metre spaced
east-west lines for a total of
15,000 line kilometres of data
covering both the extensive
Narndee and Windimurra
layered mafic complexes and the
intervening metamorphic rocks
and shear structures. Preliminary
processed data have been received
and ten strong anomalies other
than those in the Milgoo area have
already been identified from initial
interpretation (Figure 12).
24
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
More detailed processing and
interpretation over the coming
months is likely to lead to
identification of many more
anomalies that could lead to
the identification of significant
nickel and/or copper–zinc
massive sulphide mineralisation.
Initial results from more detailed
assessment of the data from the
Milgoo area, as outlined above, are
particularly encouraging in this
regard.
Late in the year Maximus combined
with the Geological Survey of
Western Australia (GSWA) to fund
improved gravity coverage of the
entire Narndee project area through
a helicopter supported survey
at a station spacing of 1.8 km.
Preliminary data being received
are already providing valuable
information on the structure and
composition of the complex, as for
example in the Milgoo area outlined
above.
Exploration Manager’s Report
NARNDEE RESEARCH
Approval has recently been received
for Australian Research Council
(ARC) funding of a cooperative
research project involving the
Australian National University (ANU),
Maximus and GSWA. The project
leader will be Professor Richard
Arculus, specialist in magmatic
systems at ANU, and will apply the
research resources of ANU, detailed
data and sample material from
Maximus exploration, regional data
from Maximus surveys, and GSWA
mapping and research programs
to improving our understanding
of mineralisation and its controls
in the Narndee and Windimurra
complexes.
º
8
1
1
Completed Airborne EM survey lines
Airborne EM Target
PbZn
'
0
3
º
8
1
1
PGM
Au
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
Au
Au
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
-28º
(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)(cid:12)
Mount Magnet
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
Windimurra Uranium Prospect
Canegrass Iron Ore Prospect
-28º30'
Shepards Iron-Vanadium Prospect
PGM
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
Au
Au
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
Au
(cid:67)
Windimurra
Vanadium
Deposit
(non MXR)
PGM
CuZn
Ni PGM
Milgoo Nickel/PGM Prospect
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
CuZn
Ni PGM
Au
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)(cid:35)
-29º
CuZn
Figure 12 Narndee Project Area showing
extent of survey lines completed, Maximus
tenure and known mineral occurrences.
0
10 km
Maximus Tenement Area
Windimurra-Narndee Complex
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
25
Exploration Manager’s Report
IRONSTONE WELL GOLD
PROJECT, WESTERN AUSTRALIA
90% Maximus
The Ironstone Well project area
comprises a tenement package
situated 50 km southeast of
Wiluna and well positioned within
the highly prospective Yandal
Greenstone Belt (Figure 1). The
tenement package comprises two
granted exploration licences and
14 granted prospecting licences,
covering 239 square kilometres.
The project area includes three
zones of known gold mineralisation
and at least two other significant
prospects (Figure 13). Joint venture
partner Nemex Pty Ltd retains a 10%
interest in the project area carried to
the ‘decision to mine’.
In the March Quarter of 2007,
Maximus undertook 2,331 metres
of RC drilling for 31 holes on the
Flushing Meadows inferred mineral
resource, previously estimated at
1.1 million tonnes of 1.7 grams
gold per tonne (59,000 ounces
of contained gold) on the basis
of pre Maximus drilling. Most of
this new drilling was focused on
confirming the reliability of the pre
Maximus drilling and, in general,
the follow-up drilling supported
that drilling. As a consequence,
Maximus commissioned Runge
Limited (formerly Resource
Evaluations Pty Ltd) to undertake
a further resource estimate which
would include all drilling to date.
That estimate increased the overall
resource to 81,000 ounces of
contained gold and resulted in its
recategorisation as indicated and
inferred (Table 7). Maximus owns
90% or 73,000 ounces of the gold in
this resource.
Due to commitments elsewhere,
and despite interesting gold
occurrences at the Quarter Moon
and Oblique prospects (Figure 13),
Maximus has not undertaken
any additional drilling in the
Ironstone Well project area. Further
exploration has been limited
to data assessments and the
surface geological mapping of the
Flushing Meadows resource area.
Interpretation of the mapping has
confirmed that gold mineralisation
may be concentrated by north-
northwest structural trends. Several
surface rock chip samples collected
during the mapping included
significant gold: 0.85 to 4.7 grams of
gold per tonne (samples MXX163,
164 and 170), but each of the
anomalous samples were spatially
positioned over the known resource
area.
Maximus has decided to pursue
farming out of the Ironstone Well
project area to interested parties.
Further assessment of the Ironstone
Well gold occurrences will continue
after a suitable agreement can be
negotiated.
-26º40'
M
o
i
l
e
r
s
0
2 km
Atlanta
(cid:67)
T
h
r
u
s
t
Oblique
(cid:67)
Granitoids
Porphyry
Felsic volcanics
Sediments
Hornfelsed mafic
Mafic volcanics/dolerite
Chert
Schist
(cid:67)
Fault
Prospect
Granted Tenement
Tenement Application
Table 7 Flushing Meadows resource statement and
parameters.
Undiluted Mineral Resource
(1 g/t Au cut-off)
-26º50'
Class
Tonnes
Grade
(g/t)
Au
(ounces)
Measured
Indicated
Inferred
Total
815,000
734,000
1,549,000
1.7
1.5
1.6
45,000
36,000
81,000
'
0
4
º
0
2
1
(cid:67)
Quarter Moon
(cid:67)
Flushing Meadows
81,000oz Au
(cid:67)
Flinders Park
'
0
5
º
0
2
1
Figure 13 Location of the Ironstone Well Project prospects in the Yandal Greenstone Belt,
Western Australia.
26
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Exploration Manager’s Report
JOINT vENTURE PROJECTS,
SOUTH AUSTRALIA AND
NORTHERN TERRITORy
BILLA kALINA, SOUTH
AUSTRALIA
Maximus diluting to 50% subject to
Billa Kalina JV Agreement
The Billa Kalina project area
comprises five exploration licences
located 70 km northwest of the
Olympic Dam copper–uranium–
gold deposit and 45 km east of the
Prominent Hill copper-gold deposit
(Figure 1). The project is subject to a
50:50 joint venture with Eromanga
Uranium Limited (ERO), which
manages the joint venture.
Eromanga is exploring the Billa
Kalina project for IOCGU deposits
in the deeper basements rocks,
and sandstone-hosted uranium
mineralisation in the shallower
sedimentary cover sequences.
Drilling of the Billa Kalina gravity
anomaly in 2007 highlighted
the relatively shallow depths of
sedimentary cover in this region
and the project’s strategic position
between Olympic Dam and
Prominent Hill suggests that the
exploration potential remains
substantial.
During the year, Eromanga
completed an airborne EM survey
over the entire Billa Kalina project
area. The EM data are being used
with new detailed gravity data
(collected by PIRSA) and magnetics
to review the potential of the Billa
Kalina tenements to host IOCGU
mineralisation.
The EM data sets are also being
used to identify the development
of palaeodrainages in both the
Mesozoic and Permian cover
sequences that may be capable
of hosting secondary uranium
mineralisation. A coincident EM
conductor and gravity low was
drilled with three holes to test for
sedimentary uranium potential. A
minor radiometric anomaly was
found to be sourced by Permian
lignite and no further work is
proposed at this target.
EROMANGA BASIN, SOUTH
AUSTRALIA
Maximus diluting to 30% subject to
Eromanga JV Agreement
The Eromanga project areas comprise
a total of 14 exploration licences and
applications extending along the
margins of the Eromanga Basin in South
Australia and the Northern Territory
(Figure 1). The tenure is considered
highly prospective for sandstone hosted
uranium mineralisation. All tenements
are subject to a 30:70 joint venture
agreement with ERO, which manages
the joint venture.
Interpretation of EM data from helicopter
borne regional surveys completed
on the JV Abminga, Marree and
Kingoonya tenement packages at the
start of the year led to a number of
new palaeodrainages being identified.
Results of previously completed
rotary mud drilling at Marree and on
adjoining tenements have aided EM
data interpretation. Several broad
palaeochannel systems draining
potential uranium-bearing rocks have
been identified at both Abminga and
Marree.
At Abminga, drilling of two channels has
been completed, but to date no roll front
position has been located. Negotiations
continue for access to part of the JV area
in the Northern Territory. Drilling of 20
holes on four discrete channel systems is
expected in early 2009.
At Marree, drilling of three channels
failed to intersect significant thickness
of channel sands beneath conductive
Bulldog Shales. Several discrete
single flight line EM conductors that
may be caused by massive sulphide
accumulations within basement rocks
require ground verification, planned for
late 2008.
At Kingoonya, open file review, land
access negotiations and interpretation
continued.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
27
Exploration Manager’s Report
WOOLANGA GOLD AND BASE
METALS PROJECT, NORTHERN
TERRITORy
Maximus diluting to 51% and 75%
subject to separate joint venture
agreements
The Woolanga project area,
comprising five exploration licences
and one Authority covering 1,739
square kilometres, located 100 km
northeast of Alice Springs. Maximus
completed an agreement with
Flinders Mines Limited (formerly
Flinders Diamonds Limited) for the
right to all non-diamond minerals
within the tenement package prior
to listing on the Australian Stock
Exchange in October 2005.
The Woolanga tenement package
includes the Johnnies Reward
ironstone hosted copper–gold
prospect and vermiculite
occurrences of potential
commercial grade.
During the reporting period,
Maximus completed the farm-out of
non-diamond minerals rights in the
Woolanga project area under two
separate agreements with Minotaur
Exploration Limited (Minotaur)
and NuPower Resources Limited
(NuPower). Details of the farm-out
arrangements were included in a
Maximus announcement to the ASX
on 31 January 2008.
Field activities undertaken by
Minotaur have included the
completion of a ground based
electromagnetic (EM) survey over
the Johnnies Reward prospect. EM
modelling indicates that exploration
drilling by previous explorers
intersected an EM conductor body
located by the survey. Minotaur
has also contributed to a regional
gravity survey undertaken by the
Northern Territory Department
of Primary Industry, Fisheries and
Mines (DPIFM), for which data are
awaited.
Two RC/diamond holes at Johnnies
Reward are planned to test
down-dip extensions of copper–
gold mineralisation previously
intersected by Alcoa in DH2 (50 m
at 0.98 g/t gold and 0.2% copper)
and DH5 (21 m at 0.91 g/t gold and
0.49% Cu) in 1983 and 1984.
NuPower has conducted a
groundwater sampling program
and an airborne EM survey over
sections of the joint venture
tenements. Both the groundwater
sampling and the EM survey are
designed to detect palaeochannel
drainages prospective for
sandstone-hosted uranium.
NuPower also contributed to the
above mentioned DPIFM gravity
survey of tenements included
in the Strangway Joint Venture
Agreement. NuPower reports that
preliminary assessment of newly
received, partially processed EM
data indicates that the Ti Tree Basin
extends into the north of the area,
significantly enhancing potential for
sandstone-hosted uranium targets.
RANkIN BASE METALS
PROJECT, NORTHERN
TERRITORy
Maximus diluting to 70% and 75%
subject to the Woolanga–Rankin Joint
Venture Agreement
The Rankin Base Metal project area
comprises exploration licences
EL9529 and EL22759, which enclose
the Rankin and Gecko massive
sulphide base metal prospects.
The tenements cover 63 square
kilometres of terrain contiguous
with Maximus’ Woolanga project
area. Tanami Exploration NL retains
a 5% interest carried to the point of
‘decision to mine’ in the exploration
licences.
In the December 2007 quarter,
Maximus negotiated a sale
and purchase agreement with
Queensland Energy Resources
Limited (QER) for 100% ownership
of Mineral Claim South Number 38
(MCS38), a small tenement which
encloses the main gossan outcrop
at the Gecko prospect. Details
were included in a Maximus
announcement to the ASX on
31 January 2008.
On 23 January 2008, Maximus
completed the Woolanga–Rankin
option/farm-in agreement with
Minotaur as for the previously
mentioned Woolanga exploration
licences, as outlined in the
Woolanga Gold and Base Metals
Project section above.
Minotaur completed a ground EM
survey over the Rankin prospect
and has contributed to the DPIFM
gravity survey that recently covered
these tenements, for which data are
awaited. Some ground follow up
over the Rankin area has occurred.
28
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
E58/232
E58/235
E58/236
E58/237
E58/240
E58/270
E58/271
E58/273
E58/274
E58/281
E58/282
E58/294
E58/295
E58/300
E58/309
E59/908
E59/1078
E59/1081
E59/1083
E59/1084
E59/1085
E59/1087
E59/1088
E59/1111
E59/1173
E59/1174
E59/1206
E59/1230
E59/1252
E59/1335
P58/1139
Tenement schedule
For the year ended 30 June 2008
Tenement
Number
Tenement Name
Date
Granted /
Applied For
Expiry Date
Area
Registered Holder / Applicant
Related Agreement
(sq. km)
WESTERN AUSTRALIA
Narndee Project
E57/729
Youanmi Downs
4/04/08
3/04/13
75.0 Maximus Resources Ltd
Boulder Well
29/07/02
28/07/09
50.0 Windimurra Resources Pty Ltd
Canegrass Well
29/07/02
28/07/09
50.0 Windimurra Resources Pty Ltd
Challa
22/03/02
21/03/09
50.0 Windimurra Resources Pty Ltd
Naluthanna Hill
22/03/02
21/03/09
50.0 Windimurra Resources Pty Ltd
Windimurra
11/03/02
10/03/09
50.0
Bernfried Gunter Franz Wasse
Wondinong Hill
28/10/05
27/10/10
196.0
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Gingier Pool
Wagoo Hills
Paynesville
7/11/05
4/05/07
5/03/03
6/11/10
3/05/12
4/03/10
Boundary Well
28/06/06
27/06/11
Honeypot
Wondinong
Windsor
Kundingguari Hill
3/05/07
7/06/06
7/06/06
1/12/06
2/05/12
6/06/11
6/06/11
132.0
Apex Minerals NL(80)/Mark Gareth Creasy (20)
196.0
Apex Minerals NL(80)/Mark Gareth Creasy (20)
98.0
42.0
25.0
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Minerals NL
Apex Minerals NL
87.0 Maximus Resources Ltd
6.0
Maximus Resources Ltd
30/11/11
42.0
Henning Otto Hintze
Meeline Option Agreement
Brailia South
22/01/07
21/01/12
17.0 Maximus Resources Ltd
Narndee
8/09/00
7/09/08
98.0
Apex Minerals NL(80) Tyson Resources P/L(6) Wedgetail
Resources P/L(14)
Apex & Wedgetail Sale
Agreement
Tandy Bore
14/11/02
13/11/09
Dromedary Well
14/11/02
13/11/09
Narndee West
14/11/02
13/11/09
Moolyawarda Hill
14/11/02
13/11/09
14/11/02
13/11/09
59.0
54.0
53.0
54.0
54.0
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Minerals NL(80)/Mark Gareth Creasy (20)
6/06/07
5/06/12
196.0
Apex Minerals NL(80)/Mark Gareth Creasy (20)
24/10/06
23/10/11
196.0
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Apex Minerals NL(80)/Mark Gareth Creasy (20)
Budnee
Bricky Bore
Dunns Tank
Tootawarra Well
28/10/05
27/10/10
Narndee
Homestead
23/11/2006
22/11/2011
42.0
60.0
Mulermurra Well
23/11/2006
22/11/2011
20.0
Kesli Chemicals Pty Ltd
Tootawarra East
29/11/06
28/11/11
14.0 Maximus Resources Ltd
Dromedary Hills
8/02/2007
7/02/2012
200.0
E59/1231
Boodanoo
8/02/2007
7/02/2012
200.0
E59/1237
Yalanga Tank
25/01/2007
24/01/2012
43.0
E59/1238
Carwoola Dam
22/01/2007
21/01/2012
20.0
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%)
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%)
Kesli Chemicals Pty Ltd
Wedgetail Sale Agreement
Boodanoo Well
21/06/07
20/06/12
48.0 Maximus Resources Ltd
4 Corner Bore
17/04/08
16/04/13
50.0
Apex Minerals NL(80) Tyson Resources P/L(6) Wedgetail
Resources P/L(14)
Apex & Wedgetail Sale
Agreements
Mullybraya (John
Bore)
2/11/04
1/11/08
P58/1147
Challa E1
5/11/04
4/11/08
P58/1148
Challa E2
5/11/04
4/11/08
P58/1174
P58/1175
P58/1176
P58/1199
P58/1201
P58/1333
Windimurra W4
Windimurra W5
Windimurra W6
3/04/07
3/04/07
3/04/07
3/04/07
3/04/07
2/04/11
2/04/11
2/04/11
2/04/11
2/04/11
Brailia Southeast
18/09/06
17/09/10
0.8
2.0
2.0
1.5
1.0
1.5
0.7
0.2
1.3
Christopher Richard Elkington (25%), Peter William Youngs
(50%), Darian Sampey (25%)
Meeline Option Agreement
Alan Hunter Younger (25%), Christopher Richard Elkington
(25%), Peter William Youngs (25%), Roger Townend (25%)
Meeline Option Agreement
Raimunda Silva Townend (25%), Alan Hunter Younger (25%),
Christopher Richard Elkington (25%), Peter William Youngs (25%)
Meeline Option Agreement
Windimurra Resources Pty Ltd
Windimurra Resources Pty Ltd
Windimurra Resources Pty Ltd
Bernfried Gunter Franz Wasse
Bernfried Gunter Franz Wasse
Maximus Resources Ltd
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
29
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Wedgetail Sale Agreement
Apex Sale Agreement
CRC Group Sale Agreement
CRC Group Sale Agreement
CRC Group Sale Agreement
CRC Group Sale Agreement
Tenement schedule
For the year ended 30 June 2008
Tenement
Number
Tenement Name
Date
Granted /
Applied For
P58/1379
Milgoo E1
13/11/07
12/11/11
P58/1380
Milgoo E2
13/11/07
12/11/11
P58/1381
Mingyngura Hill
13/11/07
12/11/11
P58/1382
Nulyercarnyer Hill
13/11/07
12/11/11
P59/1563
P59/1565
P59/1566
P59/1616
P59/1619
P59/1757
P59/1811
Windimurra W1
16/12/04
15/12/08
Windimurra W2
16/12/04
15/12/08
Windimurra W3
16/12/04
15/12/08
3/04/07
2/04/11
3/04/07
2/04/11
Warnambar Soak
22/01/07
21/01/11
Corner Bore 1
28/12/07
27/12/11
P59/1812
Corner Bore 2
28/12/07
27/12/11
P59/1813
Corner Bore 3
28/12/07
27/12/11
E57/728
E58/244
Watson Well
Paynesville E1
22/05/07
7/10/99
E58/254
Sand Hill Well
29/09/00
E58/257
Yarrie Bore
27/11/00
Expiry Date
Area
Registered Holder / Applicant
Related Agreement
(sq. km)
0.9
1.2
2.0
2.0
1.3
0.2
0.5
1.3
0.4
0.4
1.5
1.0
1.0
Peter William Youngs (50%), Imtraud Margarete Ursula
Lachmund (50%)
Peter William Youngs (50%), Imtraud Margarete Ursula
Lachmund (50%)
Meeline Option Agreement
Meeline Option Agreement
Christopher Richard Elkington (25%), Peter William Youngs
(50%), Darian Sampey (25%)
Meeline Option Agreement
Peter William Youngs (50%), Imtraud Margarete Ursula
Lachmund (50%)
Meeline Option Agreement
Windimurra Resources Pty Ltd
Windimurra Resources Pty Ltd
Windimurra Resources Pty Ltd
Apex Sale Agreement
Apex Sale Agreement
Apex Sale Agreement
Bruce Robert Legendre(15), Voermans Geological Services Pty
Ltd (15) & Wedgetail Resources Pty Ltd (70)
Apex & Wedgetail Sale
Agreements
Bruce Robert Legendre(15), Voermans Geological Services Pty
Ltd (15) & Wedgetail Resources Pty Ltd (70)
Apex & Wedgetail Sale
Agreements
Maximus Resources Ltd
Apex Minerals NL(80) Tyson Resources P/L(6) Wedgetail
Resources P/L(14)
Apex & Wedgetail Sale
Agreements
Apex Minerals NL(80) Tyson Resources P/L(6) Wedgetail
Resources P/L(14)
Apex & Wedgetail Sale
Agreements
Apex Minerals NL(80) Tyson Resources P/L(6) Wedgetail
Resources P/L(14)
Apex & Wedgetail Sale
Agreements
200.0 Maximus Resources Ltd
3.0
108.0
183.0
Christopher Richard Elkington (25%), Peter William Youngs
(50%), Darian Sampey (25%)
Meeline Option Agreement
Alan Hunter Younger (25%), Christopher Richard Elkington
(25%), Peter William Youngs (25%), Roger Townend (25%)
Meeline Option Agreement
Raimunda Silva Townend (25%), Alan Hunter Younger (25%),
Christopher Richard Elkington (25%), Peter William Youngs
(25%)
Meeline Option Agreement
E58/356
E58/357
E58/358
E58/359
E58/360
E59/1365
E59/1366
E59/1367
E59/1368
E59/1370
E59/1381
E59/1383
E59/1384
E59/1412
E59/1413
E59/1414
E59/1415
E59/1416
E59/1417
E59/1418
E59/1419
P58/1403
P58/1404
Mount Ford
27/07/07
212.0 Maximus Resources Ltd
Kantie Murdana Hill
27/07/07
212.0 Maximus Resources Ltd
Pipeline
Bundy Well
Kyle Kyle Well
Kurrajong Bore
Doodhoowooroo
Rockhole
Wydgee B
Minjin Bore
Warramboo
27/07/07
27/07/07
27/07/07
1/05/07
1/05/07
1/05/07
1/05/07
1/05/07
157.0 Maximus Resources Ltd
211.0 Maximus Resources Ltd
211.0 Maximus Resources Ltd
6.0
Maximus Resources Ltd
49.0 Maximus Resources Ltd
9.0
3.0
3.0
Maximus Resources Ltd
Maximus Resources Ltd
Maximus Resources Ltd
Redhead Dam
22/05/2007
21.0 Maximus Resources Ltd
Yardiacco Hill
22/05/2007
200.0 Maximus Resources Ltd
Muleryon Hill
22/05/2007
192.0 Maximus Resources Ltd
Corner Well
27/07/2007
211.0 Maximus Resources Ltd
Pickleby Rockhole
27/07/2007
211.0 Maximus Resources Ltd
Pindarie Well
Milgoo Well
27/07/2007
27/07/2007
123.0 Maximus Resources Ltd
27.0 Maximus Resources Ltd
Tootawarra East
27/07/2007
18.0 Maximus Resources Ltd
Yarrambee Dam
27/07/2007
210.0 Maximus Resources Ltd
Thotowawardy
Well
27/07/2007
3.0
Maximus Resources Ltd
Pindabunna
27/07/2007
99.0 Maximus Resources Ltd
Challa A
Challa B
1/05/07
1/05/07
1.4
0.5
Maximus Resources Ltd
Maximus Resources Ltd
P58/1418-1443 Various PPLs (26)
21/09/07
Maximus Resources Ltd
30
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Tenement schedule
For the year ended 30 June 2008
Expiry Date
Area
Registered Holder / Applicant
Related Agreement
(sq. km)
Maximus Resources Ltd
Maximus Resources Ltd
Maximus Resources Ltd
0.2
Maximus Resources Ltd
Date
Granted /
Applied For
15/10/07
10/06/08
21/09/07
10/06/08
23/04/08
22/04/13
67.0 Maximus Resources Ltd
25/01/07
24/01/12
188.0 Maximus Resources Limited(90)Nemex Pty Ltd(10)
Nemex Agreement
Tenement
Number
Tenement Name
P58/1444-1445 Various PPLs (2)
P58/1449-1450 Various PPLs (2)
P59/1865-1873 Various PPLs (9)
P59/1900
Duketon Project
E37/925
Woodarra
Ironstone Well Project
E53/1223
Ironstone Well
Flushing Meadows
25/01/07
24/01/12
56.0 Maximus Resources Limited(90)Nemex Pty Ltd(10)
Nemex Agreement
E53/1224
P53/1209
P53/1308
P53/1309
P53/1310
P53/1311
P53/1312
Barwidgee
8/08/05
7/08/09
Outcamp Well 1
12/06/08
11/06/12
Outcamp Well 2
12/06/08
11/06/12
Outcamp Well 3
12/06/08
11/06/12
Outcamp Well 4
12/06/08
11/06/12
Outcamp Well 5
12/01/07
P53/1313
Outcamp Well 6
12/01/07
P53/1314
Outcamp Well 7
12/01/07
P53/1315
P53/1316
P53/1317
P53/1318
P53/1319
P53/1320
P53/1321
P53/1322
P53/1323
M53/858
Outcamp Well 8
12/06/08
11/06/12
Outcamp Well 9
12/06/08
11/06/12
Outcamp Well 10
12/06/08
11/06/12
Outcamp Well 11
12/06/08
11/06/12
Outcamp Well 12
12/06/08
11/06/12
Outcamp Well 13
12/06/08
11/06/12
Outcamp Well 14
12/06/08
11/06/12
Outcamp Well 15
12/06/08
11/06/12
Outcamp Well 16
12/06/08
11/06/12
Doublehole Well
15/01/99
Police Valley Project
E80/3670
Police Valley
SOUTH AUSTRALIA
Adelaide Hills Project
Lobethal
EL 3215
1.7
1.8
1.8
1.4
1.0
1.8
1.3
1.0
1.9
1.8
1.8
1.9
1.7
1.6
1.9
1.4
0.3
AM-Australian Minerals Exploration P/L
Nemex Agreement
Mark Gareth Creasy(30)Newmont Yandal Operations P/L(70)
Nemex Agreement
Mark Gareth Creasy(30)Newmont Yandal Operations P/L(70)
Nemex Agreement
Mark Gareth Creasy(30)Newmont Yandal Operations P/L(70)
Nemex Agreement
Mark Gareth Creasy(30)Newmont Yandal Operations P/L(70)
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
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
Australian Metals Corporation P/L(20)Eagle Mining P/L(51)
Hunter Resources P/L(29)
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
Nemex Agreement
20/04/06
348.0
Flinders Diamonds Ltd(50)Maximus Resources Ltd(50)
24/06/04
23/06/09
EL 3425
Echunga
19/10/05
EL 3534
Mt Pleasant
30/03/06
18/10/2007
Extn pending
29/03/2008
Extn pending
341
253
Flinders Mines Limited
Flinders Mines Limited
719
Flinders Mines Limited
EL 4091
EL 4131
Mt Barker
Kapunda
25/02/08
24/02/09
28/04/08
27/04/09
162
746
Flinders Mines Limited
Flinders Mines Limited
EL 3141
Brukunga
24/10/03
EL 3239
Tarlee
10/09/04
23/10/2007
Extn pending
09/09/2007
Extn pending
176
Flinders Mines Limited
533
Flinders Mines Limited
ELA 251/06
Mount Monster
ELA 252/06
Williamstown
ELA 106/07
Tepko
EL 3920
Mount Rufus
16/05/06
16/05/06
5/03/07
3/09/07
575 Maximus Resources Limited
44
Maximus Resources Limited
160 Maximus Resources Limited
2/09/08
102 Maximus Resources Limited
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders & Copper Range
Agreements
Flinders Agreements
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
Flinders Agreement
Billa Kalina Project
Francis
EL 3526
23/02/06
22/02/2008
Extn pending
734
Flinders Mines Limited
Flinders Agreement
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
31
Tenement schedule
For the year ended 30 June 2008
Expiry Date
Area
Registered Holder / Applicant
Related Agreement
Tenement
Number
Tenement Name
Date
Granted /
Applied For
EL 3525
Margaret
23/02/06
EL 3170
Billa Kalina
25/02/04
EL 3337
Welcome Creek
19/05/05
EL 3338
Millers Creek
19/05/05
(sq. km)
771
Flinders Mines Limited
1,435
Flinders Mines Limited
373
Flinders Mines Limited
771
Flinders Mines Limited
22/02/2008
Extn pending
22/02/2008
Extn pending
18/05/2008
Extn pending
18/05/2008
Extn pending
Eromanga Project
EL 3579
Calcutta
21/06/06
20/06/09
984 Maximus Resources Limited
EL3578
EL3577
EL3574
EL3575
EL3599
EL 3600
EL 3601
EL 3602
EL3576
EL3573
EL 3590
EL3591
EL 3613
Dalarinna Hill
21/06/06
20/06/09
1000 Maximus Resources Limited
Wilpoorina
21/06/06
20/06/09
962 Maximus Resources Limited
Mundowdna
21/06/06
20/06/09
963 Maximus Resources Limited
Marla
21/06/06
20/06/2008
Extn pending
988 Maximus Resources Limited
Alberga River
17/07/06
16/07/08
903 Maximus Resources Limited
Mt Weir
17/07/06
16/07/08
959 Maximus Resources Limited
Warrataddy Hill
17/07/06
16/07/08
963 Maximus Resources Limited
Mt Anthony
17/07/06
16/07/08
966 Maximus Resources Limited
Whymlet
21/06/06
20/06/09
973 Maximus Resources Limited
Haggard Hill
21/06/06
20/06/09
859 Maximus Resources Limited
Bon Bon
22/06/06
21/06/09
667 Maximus Resources Limited
McDouall Peak
22/06/06
21/06/09
980 Maximus Resources Limited
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
48.0
Flinders Diamonds Limited
A 23714
Mud Tank Reserve
11/11/04
10/11/10
27.9
Flinders Diamonds Limited
SEL25055
Strangways
13/6/06
12/06/10
1118.0 Flinders Diamonds Limited
SEL25056
Mud Tank-Alcoota
13/6/06
12/06/10
520.0
Flinders Diamonds Limited
EL26440
Laughlen
14/4/08
13/04/14
25.0 Maximus Resources Limited
Rankin Project
EL9529
Rankin
14/05/2002
13/05/10
47.0 Maximus Resources Ltd (95%) Tanami Exploration NL (5%)
EL22759
Gecko
2/04/2002
1/04/10
16.0
Maximus Resources Ltd (95%) Tanami Exploration NL (5%)
MCS38
Little Gecko
22/03/1984
31/12/09
0.3
Maximus Resources Limited
Eromanga Project
EL25161
Illogwa Creek
24/01/2006
1117.0 Maximus Resources Limited
EL25162
EL25163
EL25166
Numery
16/11/2006
15/11/12
216.0
Maximus Resources Limited
Mt Peterswald
16/11/2006
15/11/12
1130.0 Maximus Resources Limited
Jenkins Bluff
16/11/2006
15/11/12
1005.0 Maximus Resources Limited
QUEENSLAND
Sellheim Project
ML10269
Slim Chance
13/11/2003
30/11/2008
0.13
Peter Lawrence Harvey
Next Chance
13/11/2003
30/11/2008
0.50
Peter Lawrence Harvey
ML10270
ML10328
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 &
Minotaur Option
Flinders Agreement
Flinders & NuPower
Agreements
Flinders & NuPower
Agreements
Tanami Agreement &
Minotaur Option
Tanami Agreement &
Minotaur Option
Minotaur Option
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Eromanga Agreement
Sellheim Option Exercised
Sellheim Option Exercised
Sellheim
1/12/2006
30/11/2026
3.27
Alan Raney Stiff and Colleen Margaret Budge
Sellheim Option Exercised
EPM 13499
Mount Richardson
1/03/2004
28/02/2009
11.00
Peter Harvey
Sellheim Option Exercised
EPM 15778
Sellheim River
19/12/2007
18/12/2012
63.00
Alan Raney Stiff and Colleen Margaret Budge
Sellheim Option Exercised
EPM 17573
Douglas Creek
21/04/2008
Maximus Resources Limited
32
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Financial Report
For the year ended 30 June 2008
Table of ConTenTs
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
Glossary of Technical Terms
MaxiMus ResouRCes liMiTed
ABN 74 111 977 354
34
38
43
44
45
46
47
48
62
63
66
67
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
33
Corporate Governance Statement
The Board of Directors of Maximus
Resources Limited has established
corporate governance policies and
procedures, where practicable, consistent
with the revised Corporate Governance
Principles and Recommendations issued
by the ASX Corporate Governance Council
(“ASX Recommendations”).
The following statement sets out a
summary of the Company’s corporate
governance practices that were in
place during the financial year and how
those practices relate to the revised
Corporate Governance Principles and
Recommendations issued by the Australian
Stock Exchange Corporate Governance
Council (“ASX Recommendations”). The
Company has elected to undergo an
early transition to the revised Principles
and Recommendations and as such has
reported against these for the financial year
ending 30 June 2008.
These recommendations are not intended
to be prescriptions to be followed by all
ASX listed companies, but rather guidelines
designed to produce an effective, quality
and integrity outcome. The Corporate
Governance Council has recognised that
a “one size fits all” approach to Corporate
Governance is not required. Instead, it states
aspirations of best practice for optimising
corporate performance and accountability
in the interests of shareholders and the
broader economy. A company may
consider that a recommendation is
inappropriate to its particular circumstances
and has flexibility not to adopt it and
explain why.
The Board has included in its corporate
governance policies those matters
contained in the ASX Recommendations
where applicable. However, the Board
also recognises that full adoption of the
above ASX Recommendations may not
be practical nor provide the optimal result
given the particular circumstances and
structure of the Company. The Board is,
nevertheless, committed to ensuring
that appropriate Corporate Governance
practices are in place for the proper
direction and management of the
Company. This statement outlines the main
Corporate Governance practices of the
Company.
PrinciPle 1
lay solid foundations
for management and
oversight
Recommendation 1.1 –
Recommendation followed
The Board is governed by the Corporations
Act 2001, ASX Listing Rules and a formal
constitution adopted by the Company in
2006.
The role of the Board is to provide
leadership and direction to management
and to agree with management the aims,
strategies and policies 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.
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. In fulfilling its
responsibilities, the Board is supported by
an Audit Committee to deal with internal
control, ethical standards and financial
reporting.
The Board appoints 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.
The Board has not adopted a formal
statement of matters reserved to it or
a formal board charter that details its
functions and responsibilities nor a
formal statement of the areas of authority
delegated to senior executives.
Recommendation 1.2 –
Recommendation followed
The Board takes responsibility for
monitoring the composition of the Board
and reviewing the performance and
compensation of the Company’s Executive
Directors and senior management with
the overall objective of motivating and
appropriately rewarding performance.
The Board considers the Company’s present
circumstances and goals ensure maximum
shareholder benefits from the attraction
and retention of a high quality Board and
senior management team. The Board on a
regular basis reviews the performance of
and remuneration for Executive Director’s
and senior management including any
equity participation by such Executive
Directors and senior management. The
Board evaluates the performance of
the Managing Director and Company
Secretary on a regular basis and encourages
continuing professional development.
Recommendation 1.3 –
Recommendation followed
During the period the Board undertook a
performance evaluation of the Managing
Director, Company Secretary and senior
management. The evaluation was in
accordance with the Company’s process for
evaluation of senior executives.
PrinciPle 2
structure the board to
add value
Recommendation 2.1 –
Recommendation not followed
The composition of the Board consists of
four directors of whom two, including the
Chairman, are Independent Directors.
The Audit Committee currently consists of
two Independent directors.
Recommendation 2.2 –
Recommendation followed
The Chairman, Mr Kennedy is an
Independent Director
Recommendation 2.3 –
Recommendation followed
Mr Kennedy’s role as Chairman of the Board
is separate from that of the Managing
Director, Dr Wills who is responsible for the
day to day management of the Company
and is in compliance with the ASX
Recommendation that these roles not be
exercised by the same individual.
Recommendation 2.4 –
Recommendation not followed
The Board believes that given the size of
the Company and the stage of the entity’s
life as a publicly listed junior exploration
company that the cost of establishing a
Nomination Committee in line with ASX
Recommendation 2.4 and establishing a
formal charter as recommended by ASX
Recommendation 2.4 cannot be justified by
the perceived benefits of so doing.
34
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Corporate Governance Statement
Recommendation 2.5 –
Recommendation not followed
The Board recognises that as a result
of the Company’s size and the stage of
the entity’s life as a publicly listed junior
exploration company, the assessment of
the Board’s overall performance and its
own succession plan is conducted on an
informal basis. Whilst this is at variance with
the ASX Recommendation 2.5, the Directors
consider that at the date of this report an
appropriate and adequate process for the
evaluation of Directors is in place.
Recommendation 2.6 –
Recommendation followed
The names of the directors of the
Company and terms in office at the date
of this Statement together with their skills,
experience, expertise and financial interests
in the Company are set out in the Directors’
Report section of this report.
Messrs Kennedy and Vickery are considered
to be independent.
The Company has no relationships with
any of the independent directors which the
Company believes would compromise the
independence of these directors.
All directors are entitled to take such legal
advice as they require at any time and from
time to time on any matter concerning
or in relation to their rights, duties and
obligations as directors in relation to the
affairs of the Company at the expense of
the Company upon seeking permission and
being granted it by the Chairman.
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. The
tenure for executive directors is linked to
their holding of executive office.
As the board does not have a Nomination
Committee, the functions of this Committee
in its absence are dealt with by the Board
as a whole.
An assessment of the Board’s overall
performance and its own succession plan
is conducted on an informal basis and was
done so during the year by the Chairman.
PrinciPle 3
comPanies should actively
Promote ethical and
resPonsible decision
making
Recommendation 3.1 –
Recommendation not followed
While the Company does not have a formal
code of conduct, as the Board believes that
given the size of the Company and the
stage of the entity’s life as a publicly listed
junior exploration company that the cost of
establishing and managing a formal code of
conduct cannot be justified, the Company
requires all its directors and employees to
abide by the standards of behaviour and
business ethics in accordance with the law.
In discharging their duties, Directors of the
Company are required to:
y
y
y
y
y
y
y
y
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.
Directors are also 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 within the meaning of section 9 of
the Corporations Act 2001 and details of all
contracts, other than contracts to which the
Company is a party to which the director
is a party or under which the director is
entitled to a benefit, and that confer a right
to call for or deliver shares in the Company
and the nature of the director’s interest
under the contract.
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 (unless requested by the
Board to be present) when that matter is
considered by the Board and will not vote
on that matter.
Recommendation 3.2 –
Recommendation followed
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. Section 1043A of
the Corporations Act 2001 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.
This securities trading policy has been
established by the Board and all employees
and Directors are obliged to comply.
All directors have signed agreements
with the Company which require them 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 within the meaning of
section 9 of the Corporations Act 2001 and
details of all contracts, other than contracts
to which the Company is a party to which
the director is a party or under which the
director is entitled to a benefit, and that
confer a right to call for or deliver shares
in the Company and the nature of the
director’s interest under the contract.
Recommendation 3.3 –
Recommendation followed
The Company’s Trading Policy can be
found at www.maximusresources.com/
governance
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
35
Corporate Governance Statement
PrinciPle 4
safeguard integrity in
financial rePorting
Recommendation 4.1 –
Recommendation followed
The Company was not a company required
by ASX Listing Rule 12.7 to have an Audit
Committee during the year although it is
an ASX Recommendation. Notwithstanding
the Listing Rule requirement, an Audit
Committee has been established to
oversee corporate governance over
internal controls, ethical standards, financial
reporting, and external accounting and
compliance procedures.
The main responsibilities of the Audit and
Corporate Governance Committee include:
y
y
y
y
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 control 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.
Recommendation 4.2 –
Recommendation not followed
The Audit Committee consists of two non
executive, independent Board directors,
Messrs Vickery and Kennedy, and is chaired
by Mr Vickery.
The Board believes that given the size of the
Company and the stage of the entity’s life as
a publicly listed junior exploration company
that the cost of establishing an audit
committee with at least three members in
line with ASX Recommendation 4.2 cannot
be justified by the perceived benefits of
so doing. The existing composition of
the Audit Committee is such that review
and authorisation of the integrity of the
Company’s financial reporting and the
independence of the external auditor is via
the exercise of independent and informed
judgement.
Recommendation 4.3 –
Recommendation not followed
The Board believes that given the size of the
Company and the stage of the entity’s life as
a publicly listed junior exploration company
that the cost of establishing a formal
audit committee charter in line with ASX
Recommendation 4.3 cannot be justified by
the perceived benefits of so doing.
Recommendation 4.4 –
Recommendation followed
Mr Kennedy is a qualified Chartered
Accountant. Details of the Audit Committee
member’s qualifications and attendance at
meetings are set out in the Directors’ Report
section of this report.
The Committee meets at least twice 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.
PrinciPle 5
make timely and balanced
disclosure
Recommendation 5.1 and 5.2 –
Recommendations not followed
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. The information is made publicly
available on the Company’s website
following release to the ASX.
Due to the size of the Company and the
stage of life of the entity as a publicly listed
junior exploration company, the Board does
not believe a formal policy for continuous
disclosure is required. However, the above
policy describing how the Company will
ensure its compliance with continuous
disclosure requirements is posted on the
Company’s website,
www.maximusresources.com/governance
PrinciPle 6
resPect the rights of
shareholders
Recommendation 6.1 and 6.2 –
Recommendations not followed
The Board aims to ensure that
shareholders are informed of all major
developments affecting the Company’s
state of affairs. In accordance with the
ASX Recommendations, information is
communicated to shareholders as follows:
y
y
y
y
y
y
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 website; and
disclosure of the Company’s
Corporate Governance practices and
communications strategy on the entity’s
website,
www.maximusresources.com/
governance.
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. Important issues are presented
to the shareholders as single resolutions.
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. Pursuant to section 249K of the
Corporations Act 2001 the external auditor
is provided with a copy of the notice of
meeting and related communications
received by shareholders.
Due to the size of the Company and the
stage of life of the entity as a publicly listed
junior exploration company, the Board does
not believe a formal policy for shareholder
communication is required. However,
this policy describing how the Company
will communicate with its shareholders is
posted on the Company’s website,
www.maximusresources.com/governance
36
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Corporate Governance Statement
PrinciPle 7
recognise and manage
risk
Recommendation 7.1, 7.2 and 7.4 –
Recommendations not followed
PrinciPle 8
remunerate fairly and
resPonsibly
Recommendation 8.1 –
Recommendation not followed
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. No formal report
in relation to the Company’s management
of its material business risk is presented to
the Board.
Due to the size of the Company and the
stage of life of the entity as a publicly
listed junior exploration company, and
the inherent risks associated with the
industry it operates in, the Board does
not believe formal policies for oversight
and management of risk is required
nor a mechanism for formal review be
established. The policy describing how
the Company manages risk by procedures
established at Board and executive level
can be found posted on the Company’s
website,
www.maximusresources.com/governance
Recommendation 7.3 –
Recommendation followed
In accordance with ASX Recommendation
7.3 the Managing Director and Chief
Financial Officer have provided assurances
that the written declarations under s295A
of the Corporations Act are founded on
a sound system of risk management and
internal control and that the system is
operating effectively in all material respects
in relation to financial reporting risks. Both
the Managing Director and Chief Financial
Officer provided said assurances at the time
the s295A declarations were provided to
the Board.
The Board believes that given the size of the
Company and the stage of the entity’s life as
a publicly listed junior exploration company
that the cost of establishing a formal
remuneration committee in line with ASX
Recommendation 8.1 cannot be justified by
the perceived benefits of so doing.
The Board takes responsibility for
monitoring the composition of the Board
and reviewing the compensation of the
Company’s Executive Directors and senior
management with the overall objective of
motivating and appropriately rewarding
performance.
Recommendation 8.2 and 8.3 –
Recommendations followed
In accordance with ASX Recommendation
8.2 the Company’s remuneration practices
are set out as follows.
The Company’s Constitution specifies that
the total amount of remuneration of non
executive directors shall be fixed from time
to time by a general meeting. The current
maximum aggregate remuneration of non
executive directors has been set at $300,000
per annum. 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.
Non-executive director remuneration is by
way of fees and statutory superannuation
contributions. Non-executive directors do
not participate in schemes designed for
remuneration of executives nor do they
receive options or bonus payments and
are not provided with retirement benefits
other than salary sacrifice and statutory
superannuation.
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.
The Company’s remuneration structure is
based on a number of factors including the
particular experience and performance of
the individual in meeting key objectives
of the Company. The Board is responsible
for assessing relevant employment market
conditions and achieving the overall, long
term objective of maximising shareholder
benefits, through the retention of high
quality personnel.
The Company does not presently
emphasise payment for results through
the provision of cash bonus schemes or
other incentive payments based on key
performance indicators of the Company
given the nature of the Company’s
business as a recently listed junior mineral
exploration entity and the current status
of its activities. However the Board may
approve the payment of cash bonuses from
time to time in order to reward individual
executive performance in achieving key
objectives as considered appropriate by the
Board.
The Company also has an Employee Share
Option Plan approved by shareholders
that enables the Board to offer eligible
employees options to ordinary fully paid
shares in the Company. Under the terms
of the Plan, options to ordinary fully paid
shares may be offered to the Company’s
eligible employees at no cost in accordance
with the terms and conditions of the Plan.
The objective of the Plan is to align the
interests of employees and shareholders
by providing employees of the Company
with the opportunity to participate in the
equity of the Company as an incentive to
achieve greater success and profitability
for the Company and to maximise the long
term performance of the Company. The
non-executive directors are not eligible to
participate in the Plan.
The employment conditions of the
Managing Director are formalised in a
contract of employment. The Managing
Director’s contract may be terminated at
any time by mutual agreement or without
notice in serious instances of misconduct.
Further details of director’s remuneration,
superannuation and retirement payments
are set out in the Remuneration Report
section of the Directors’ Report.
The Company’s Corporate Governance
Policies can be found at
www.maximusresources.com/governance
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
37
Directors’ Report
Your directors present their report on the
Company and its controlled entities for the
financial year ended 30 June 2008.
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 14 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
$1,175,994.
dividends
There were no dividends declared or paid
during the period.
Review of oPeRaTions
The 2007–08 financial year was one of rapid
growth in activities and results for Maximus
Resources. Exploration expenditure
more than doubled from $4.2 million in
2006–07 to about $9.0 million in 2007–08.
Identified gold resources increased by 52%
to 326,000 ounces, a uranium resource
containing 7.5 million pounds of U3O8
was located and an exploration target
for iron ore containing 1.7 to 3.0 billion
tonnes of magnetite rich gabbro with
20 to 35% magnetite was outlined (ASX
Announcement 9 May 2008). In short, the
company has five possible development
projects in its portfolio. These are
Bird in Hand, Yandal and Sellheim Gold,
Windimurra Uranium and Canegrass Iron
Ore Projects. This growth was built on
the firm foundation of prospective land
acquired in the IPO and the exploration
activities carried out and acquisitions made
after listing.
Maximus’ flagship project is now the
Canegrass Iron Ore Project located about
65 kilometres east-southeast of Mount
Magnet in Western Australia. The iron ore
potential of the Canegrass project was first
reported by Maximus on 27 September
2007, with encouraging assays in surface
rock samples for iron and vanadium. After
encouraging results from RC drilling in
December 2007, Maximus embarked upon
a program of detailed airborne magnetics
and ground gravity to assist in delineation
of the best potential iron ore. This resulted
in the outlining of the 1.7 to 3.0 billion
tonne iron ore target* and follow up
diamond and RC drilling in June and July
2008. The best intersection returned was 72
metres of 34.2% iron. Maximus has planned
a follow up resource drilling program for
October 2008 which is designed to lead
to the estimation of an initial Inferred
Resource.
The Windimurra Uranium deposit is located
about 20 kilometres northeast of Canegrass.
Calcrete uranium mineralisation had been
discovered by WMC in the 1970s. During
the first half of the 2007–08 financial year,
Maximus drilled out the deposit to JORC
compliant status with the reporting on 20
December 2007 of an Inferred Resource
of 19 million tonnes averaging180 ppm
U3O8 containing 7.5 million pounds of
uranium oxide. The deposit is located in a
present day channel over an area of about
eight square kilometres and to a depth
of six metres. Given the recent change of
government in Western Australia, Maximus
will recommenced work on Windimurra
Uranium and is actively looking for a JV
partner to take the project through to
development.
In the Adelaide Hills, Maximus has been
exploring beneath the old workings at the
Bird in Hand gold mine near Woodside
since commencing drilling just after listing
in November 2005. The Exploration Target*
predicted in Maximus’ prospectus has
gradually been defined by drilling such that
a total tonnage of 598,000 tonnes averaging
12.3 grams gold per tonne and containing
237,000 ounces of gold has been located
(as announced on 8 August 2008).
A scoping study was undertaken which led
to a positive result and the commencement
of a pre-feasibility due for completion at
the end of June 2009. Maximus is currently
targeting a decision to mine at Bird in Hand
in about December 2009.
The Sellheim alluvial gold project is located
about 200 kilometres south of Townsville
in central Queensland. Maximus has been
exploring for alluvial gold since about
May 2007 and on 2 April 2008, announced
an initial Inferred Resource of 1 million bank
cubic metres (bcm) of alluvials averaging
0.52 gm/bcm for a contained 16,000 ounces
of gold. In recent months Maximus has
carried out bulk sampling which has
confirmed the gold grades located during
the exploration phase. Maximus is planning
to start trial production in October 2008.
finanCial PosiTion
The net assets of the group have increased
by $16,913,454 during the financial year
from $24,132,665 at 30 June 2007 to
$41,046,119 at 30 June 2008. This increase
has largely resulted from the proceeds
from share issues raising $14,499,932. The
Company has been actively undertaking
exploration activities and has capitalised
$18,392,671 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.
signifiCanT Changes in sTaTe of
affaiRs
There have been no significant changes
in the state of affairs of the parent entity
during the financial year.
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.
* See page 5 for an explanation of Exploration Target.
38
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
fuTuRe develoPMenTs, PRosPeCTs
and business sTRaTegies
In the 2008–09 financial year, Maximus
plans to establish profitable gold
production at Sellheim, to advance the
Bird in Hand project to a final feasibility
study and to build up a significant resource
of Magnetite Iron Ore at Canegrass. The
Company will also continue to test targets
outlined by its airborne EM survey at the
Narndee Project near Mount Magnet
in Western Australia in the search for
economic deposits of nickel-copper-
platinum and copper-zinc.
At Sellheim, if profitable production
can be demonstrated during late 2008,
attention will turn to outlining additional
alluvial resources which can be developed
into larger operations with larger mobile
plants treating ore at up to 100 bcm/hr.
The project area is heavily mineralised
with widespread alluvial gold. In addition
a partner to carry out hard-rock gold and
base-metal exploration of the basement
rocks in search of primary gold and copper
mineralisation will be sought.
In the Adelaide Hills, Maximus has also
targeted the old Deloraine gold mine
located about 25 kilometres north of
Bird in Hand and representing a very
similar geological situation to the latter
project. Maximus has established an
Exploration Target at Deloraine of between
1.3 and 1.5 million tonnes at a grade
of 10 to 15 grams per tonne gold (ASX
Announcement 5 September 2008).
Maximus is due to commence exploration
at Deloraine later in 2008. If the Exploration
Target* can be realised, Maximus may
be in a position to re-develop two old
underground gold mines in the Adelaide
Hills.
Maximus’ main focus, however, will be on
advanced exploration and development
studies at the Canegrass project. Maximus
believes there is potential at Canegrass to
develop a mine supplying both iron rich
and vanadium rich magnetite products.
After further resource drilling, it is intended
to carry out a metallurgical program to
define which concentrates can be profitably
produced and so develop a more detailed
drilling and sampling program. Maximus
believes that the size of the Exploration
Target* at Canegrass is sufficiently large
to create a significant long-life magnetite
mining operation that will secure the
company’s long term future.
The rate at which the company is able
to progress future exploration and
development plans will depend on the
availability of capital in its various forms.
* See page 5 for an explanation of Exploration Target.
Directors’ Report
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.
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
Mines Limited (since 2000) and a Non-
Executive Director of Eromanga Uranium
Limited (since 2006). He is a past chairman
of the Adelaide Branch of the AusIMM and
the Exploration Committee at the South
Australian Chamber of Mines and Energy.
infoRMaTion on diReCToRs
ewan John vickery
Robert Michael Kennedy
Non-Executive Director – L.LB
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 Mines
Limited (since 2001), Monax Mining Limited
(since 2004), Marmota Energy Limited (since
2006), 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
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 Mines
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 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.
Managing Director – ARSM, PhD, FAusIMM
gary eric Maddocks
Exploration Director (Executive) – M.Sc. and
App.Sc.(Geology), Dip.App.Chem.,
FAusIMM(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.
A director since incorporation 17 December
2004. Dr Kevin Wills is a geologist with
33 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.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
39
Directors’ Report
nicholas John smart
ReMuneRaTion RePoRT (audiTed)
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 14
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 Mines Limited
and Eromanga Uranium Limited. He is also
a director of Housing Spectrum and Unity
Housing Limited, not for profit organisations
that provide disability housing. He has been
an alternate director since 18 May 2006 and
resigned 14 August 2007.
Remuneration of directors and key management personnel
This report details the nature and amount of remuneration for each key management person
of the Company and for the executives receiving the highest remuneration.
a) directors and key management personnel
The names and positions held by Directors and key management personnel of the
Company during the financial year are:
name
Position
Mr R M Kennedy Chairman – Non-executive
Mr E J Vickery
Director – Non-executive
Dr K J A Wills
Managing Director – Executive
Mr G E Maddocks Executive Director
Mr N J Smart
Alternate Director
Mr R W C Willson Chief Financial Officer / Company Secretary
Mr R Barratt
Exploration Manager
b) directors and key management personnel remuneration
2008 Primary Benefits
Directors
Directors
fees
Salary
Non
cash
items
Cash
bonus
$
$
$
Mr R M Kennedy
Mr E J Vickery*
Dr K J A Wills
Mr G E Maddocks***
Mr N J Smart
Mr R W C Willson**
Mr R Barratt
$
77,981
50,000
-
-
-
-
-
-
-
124,231
250,222
-
197,432
35,655
127,981
607,540
2007 Primary Benefits
Directors
Directors
fees
Salary
Non
cash
items
Cash
bonus
$
$
$
Mr R M Kennedy
Mr E J Vickery*
Dr K J A Wills****
Mr G E Maddocks***
Mr N J Smart
Mr R W C Willson**
$
73,395
45,000
-
-
-
-
-
-
166,126
209,379
-
155,768
118,395
531,273
Super
contri-
butions
$
7,019
-
10,321
-
-
Options
Total
$
$
85,000
50,000
134,552
250,222
-
-
-
-
-
-
16,325
8,659
222,416
3,209
30,925
69,789
36,874
39,584
811,979
Super
contri-
butions
$
6,605
-
-
-
-
Options
Total
$
$
80,000
45,000
166,126
209,379
-
-
-
-
-
-
14,019
20,624
6,100
6,100
175,887
676,392
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
* Director’s fees for Mr Vickery are paid to a related entity of the Director
** Mr 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 Ltd. The management fees paid by Maximus Resources Ltd are outlined in Note 24.
This agreement was formalised 3 August 2006.
*** Mr Maddocks remuneration is paid to a related entity of the Director.
**** Dr Wills 2007 remuneration was paid to a related entity of the Director.
The Directors conclude that there are no other executives requiring disclosure other than
those listed.
40
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Directors’ Report
do not participate in schemes designed for remuneration of executives nor do they receive
options or bonus payments and are not provided with retirement benefits other than salary
sacrifice and statutory superannuation.
The Company’s remuneration structure is based on a number of factors including the
particular experience and performance of the individual in meeting key objectives of the
Company. The Board is responsible for assessing relevant employment market conditions and
achieving the overall, long term objective of maximising shareholder benefits, through the
retention of high quality personnel.
The Company does not presently emphasize payment for results through the provision of
cash bonus schemes or other incentive payments based on key performance indicators of
the Company given the nature of the Company’s business as a recently listed junior mineral
exploration entity and the current status of its activities. However the Board may approve
the payment of cash bonuses from time to time in order to reward individual executive
performance in achieving key objectives as considered appropriate by the Board.
The Company also has an Employee Share Option Plan approved by shareholders that
enables the Board to offer eligible employees options to acquire ordinary fully paid shares
in the Company. Under the terms of the Plan, options for ordinary fully paid shares may be
offered to the Company’s eligible employees at no cost unless otherwise determined by
the Board in accordance with the terms and conditions of the Plan. The objective of the
Plan is to align the interests of employees and shareholders by providing employees of the
Company with the opportunity to participate in the equity of the Company as an incentive
to achieve greater success and profitability for the Company and to maximise the long term
performance of the Company.
The employment conditions of the Managing Director, Dr Wills are formalised in a contract
of employment. The base salary as set out in the employment contract is reviewed annually.
The Managing Directors’ contract may be terminated at any time by mutual agreement. The
Company may terminate this contract without notice in serious instances of misconduct.
options granted as remuneration
Apart from the options granted under the Company’s Employee Share Option Plan as
detailed above, no other options were granted to Directors or key management personnel of
the Company during the financial year.
shares issued on exercise of remuneration options
No shares were issued to Directors as a result of the exercise of remuneration options during
the financial year.
directors’ interests in shares and options
Directors’ relevant interests in shares and options of the Company are disclosed in note 5 to
the accounts.
MeeTings of diReCToRs
During the financial year, 22 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
20
19
19
20
20
1
20
19
19
20
20
1
2
1
2
1
2
-
2
1
2
1
2
-
R M Kennedy
K J A Wills
E J Vickery
G E Maddocks
R W C Willson
N J Smart
c) service agreements
During the financial year, the Company
reviewed the employment agreement
of Dr Wills in respect of his services as
Managing Director. There were neither
post employment retirement benefits
previously approved by members of
the Company in a general meeting nor
any paid to Directors of the Company.
There were no post employment
retirement benefits paid or payable to
key management personnel.
employee share option Plan
The Company has an Employee Share
Option Plan approved by shareholders
that enables the Board to offer eligible
employees options to acquire ordinary
fully paid shares in the Company. Under
the terms of the Plan, options to acquire
ordinary fully paid shares may be offered
to the Company’s eligible employees at
no cost unless otherwise determined by
the Board in accordance with the terms
and conditions of the Plan. During the
year 890,000 options with a fair value of
$110,093 were issued to employees at no
cost. No employee share options were
issued to the Directors during the year.
Remuneration Practices
The Company’s policy for determining
the nature and amounts of emoluments
of board members and senior executive
officers of the Company is as follows.
The Company’s Constitution specifies
that the total amount of remuneration of
Non-executive Directors shall be fixed from
time to time by a general meeting. The
current maximum aggregate remuneration
of Non-executive Directors has been set
at $300,000 per annum. 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. The remuneration of
the Managing Director is determined by
the Non-executive Directors on the Board
as part of the terms and conditions of his
employment which are subject to review
from time to time. The remuneration of
other executive officers and employees
is determined by the Managing Director
subject to the approval of the Board.
Non-executive Director remuneration is by
way of fees and statutory superannuation
contributions. Non-executive Directors
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
41
Directors’ Report
indeMnifiC aTion and insuRanCe of offiCeRs
indemnification
The Company is required to indemnify the Directors and other officers of the company
against any liabilities incurred by the Directors and officers that may arise from their position
as Directors and officers of the Company. No costs were incurred during the year pursuant to
this indemnity.
The Company has entered into deeds of indemnity with each Director whereby, to the extent
permitted by the Corporations Act 2001, the Company agreed to indemnify each Director
against all loss and liability incurred as an officer of the Company, including all liability in
defending any relevant proceedings.
insurance premiums
Since the end of the previous year the Company has paid insurance premiums in respect of
Directors’ and officers’ liability and legal expenses’ insurance contracts.
oPTions
Since the end of the financial year shares were issued as a result of the exercise of options as
follows. There were no amounts unpaid on shares issued.
Date
Number of shares
Exercise Price
4 July 2008
5 July 2008
18 July 2008
14 August 2008
27 August 2008
23 September 2008
8,156,869
13,832
524,456
46,928
15,188
1,316
20 cents
20 cents
20 cents
20 cents
20 cents
20 cents
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
01 August 2008
14 February 2008
21 October 2005
02 July 2007
10 April 2007
17 March 2008
02 July 2007
10 July 2008
30 June 2009
30 June 2009
20 April 2010
02 July 2010
20 March 2012
02 July 2012
02 July 2012
02 July 2012
$0.20
$0.20
$0.20
$0.50
$0.14
$0.18
$0.50
$0.50
38,241,869
28,007,744
1,000,000
2,000,000
770,000
890,000
2,000,000
1,000,000
73,909,613
During the year ended 30 June 2008, 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
2 November 2007
31 January 2008
$0.14
$0.14
$0.14
35,000
50,000
40,000
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.
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:
y
y
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.
There were no fees for non-audit services
paid/payable to the external auditors
during the year ended 30 June 2008.
audiToR’s indePendenCe
deClaR aTion
The lead auditor’s independence
declaration for the year ended 30 June 2008
has been received and can be found on
page 43 of the directors’ report.
Dated at Adelaide this 30th day of
September 2008 and signed in accordance
with a resolution of the directors.
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.
RobeRt M Kennedy
Chairman
42
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Auditor’s Independence Declaration
Grant Thornton South Australian
Partnership
ABN 27 244 906 724
Level 1,
67 Greenhill Rd
Wayville SA 5034
GPO Box 1270
Adelaide SA 5001
DX 275 Adelaide
T 61 8 8372 6666
F 61 8 8372 6677
E info@gtsa.com.au
W www.grantthornton.com.au
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
43
Income Statement
For the year ended 30 June 2008
Revenue
Marketing expenses
Administrative expense
Exploration expenses
Finance costs
Other
Note
Consolidated Group
Parent Entity
2008
$
2007
$
2008
$
2007
$
2
3
3
1,007,504
756,512
359,540
9,701,027
283,469
966,874
632,912
1,914
703
280,213
800,245
456,986
1,885
-
234,897
628,133
459,172
1,540
-
115,211
264,349
386,632
637
-
Profit/(Loss) before income tax
(878,368)
(782,817)
(964,202)
8,934,198
Income tax expense
Profit/(Loss) for the year
4
242,143
29,355
269,137
(1,120,511)
(812,172)
(1,233,339)
2,566,397
6,367,801
(Profit)/Loss attributable to outside equity interest
(55,483)
101,494
-
-
Profit/(Loss) attributable to members of the parent company
(1,175,994)
(710,678)
(1,233,339)
6,367,801
Basic earnings/(loss) per share (cents)
Diluted earnings/(loss) per share (cents)
7
7
(0.970)
(0.970)
(1.046)
(1.046)
The accompanying notes form part of these financial statements.
44
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Balance Sheet
As at 30 June 2008
CuRRenT asseTs
Cash and cash equivalents
Trade and other receivables
Other current assets
ToTal CuRRenT asseTs
non-CuRRenT asseTs
Property, plant and equipment
Exploration and evaluation expenditure
Financial assets
Investments accounted for using the equity method
ToTal non-CuRRenT asseTs
ToTal asseTs
CuRRenT liabiliTies
Trade and 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.
Note
Consolidated Group
Parent Entity
2008
$
2007
$
2008
$
2007
$
8
9
14
15
10
16
17
4
10,732,827
12,354,511
4,193,772
1,089,747
38,500
633,010
36,000
620,484
38,500
11,861,074
13,023,521
4,852,756
1,346,717
674,444
948,790
29,477,882
11,085,151
20,960,076
-
2
-
2
3,992,643
1
313,373
207,270
36,000
556,643
314,210
8,499,156
9,579,500
1
30,824,541
11,759,597
25,901,510
18,392,867
42,685,615
24,783,118
30,754,266
18,949,510
1,591,539
47,957
-
1,639,496
1,639,496
632,076
18,377
-
650,453
650,453
1,076,721
23,764
887,979
1,988,464
1,988,464
423,422
6,019
2,537,042
2,966,483
2,966,483
41,046,119
24,132,665
28,765,802
15,983,027
18
27,046,405
10,133,983
27,046,405
10,133,983
1,208,755
156,408
(2,755,910)
140,397
(2,545,827)
(1,369,832)
4,475,307
5,708,647
25,709,333
8,920,559
28,765,802
15,983,027
15,336,786
15,212,106
-
-
41,046,119
24,132,665
28,765,802
15,983,027
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
45
Statement Of Changes In Equity
For the year ended 30 June 2008
Issued Capital
Share Option
Reserve
Available For
Sale Reserve
Retained
Earnings
Outside equity
interest
$
$
$
$
Total
$
ConsolidaTed gRouP
balance at 1st July 2006
Initial outside equity interest
Loss for the period
Loss attributed to outside equity interest
8,699,079
83,667
-
-
-
-
-
-
-
72,741
-
-
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)
balance at 30th June 2007
10,133,983
156,408
Loss for the period
Gain attributed to outside equity interest
-
-
Shares issued during the period
17,477,423
Options issued during the period
Outside equity interest in options reserve
-
-
Transaction costs (net of tax)
(565,001)
-
-
-
1,052,347
-
-
balance at 30 June 2008
27,046,405
1,208,755
PaRenT enTiTy
balance at 1st July 2006
Profit for the period
Shares issued during the period
8,699,079
83,667
-
1,503,400
-
-
Options issued during the period
-
56,730
Transaction costs (net of tax)
(68,496)
-
balance at 30th June 2007
10,133,983
140,397
Profit for the period
-
Shares issued during the period
17,477,423
Decline in value of available for sale financial
assets
Options issued during the period
-
-
-
-
-
1,014,493
Transaction costs (net of tax)
(565,001)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,910,800)
-
-
(659,154)
-
8,123,592
-
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)
(1,369,832)
15,212,106
24,132,665
(1,175,995)
-
(1,175,995)
-
-
-
-
-
55,482
55,482
-
-
17,477,423
1,052,347
69,198
69,198
-
(565,001)
(2,545,827)
15,336,786
41,046,119
(659,155)
6,367,801
-
-
-
5,708,646
(1,233,339)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,123,591
6,367,801
1,503,400
56,730
(68,496)
15,983,026
(1,233,339)
17,477,423
(3,910,800)
1,014,493
(565,001)
28,765,802
balance at 30 June 2008
27,046,405
1,154,890
(3,910,800)
4,475,307
The accompanying notes form part of these financial statements.
46
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Cash Flow Statement
For the year ended 30 June 2008
Note
Economic Entity
Parent Entity
2008
$
2007
$
2008
$
2007
$
Cash flows fRoM oPeRaTing aCTiviTies
Interest received
1,177,742
453,633
347,854
141,002
Payments to suppliers and employees
(500,641)
(1,349,291)
(288,480)
Net cash provided by (used in) operating activities
21
677,101
(895,658)
59,374
(688,241)
(547,239)
Cash flows fRoM invesTing aCTiviTies
Purchase of property, plant and equipment
(792,355)
(599,934)
(698,753)
(223,424)
Proceeds from sale of tenements
Payment for exploration activities
Loans to related entities
Payment of security bonds
135,000
-
135,000
-
(15,067,089)
(4,989,702)
(9,173,191)
(3,992,376)
(264,620)
(2,500)
(90,380)
(36,000)
(132,310)
(2,500)
27,310
(36,000)
(19,500)
Payments for subsidiaries net of cash acquired
-
14,692,735
-
Net cash provided by (used in) investing activities
(15,991,564)
8,976,719
(9,871,754)
(4,243,990)
Cash flows fRoM finanCing aCTiviTies
Proceeds from issue of shares
Net cash provided by (used in) financing activities
Net increase in cash held
Cash at beginning of financial year
Cash at end of financial year
The accompanying notes form part of these financial statements.
13,692,779
13,692,779
(1,621,684)
12,354,511
184,397
184,397
8,265,458
4,089,053
13,692,779
13,692,779
1,015,549
1,015,549
3,880,399
(3,775,680)
313,373
4,089,053
8
10,732,827
12,354,511
4,193,772
313,373
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
47
Notes to the Financial Statements
For the year ended 30 June 2008
noTe 1
suMMaRy of signifiCanT aCCounTing PoliCies
The principal accounting policies adopted
in the preparation of the financial report
are set out below. These policies have
been consistently applied to all the years
presented, unless otherwise stated. The
financial report includes separate financial
statements for Maximus Resources Limited
as an individual entity and the consolidated
entity consisting of Maximus Resources
Limited and its subsidiaries.
basis of PRePaRaTion
This general purpose financial report
has been prepared in accordance with
Australian Accounting Standards, other
authoritative pronouncements of the
Australian Accounting standards board,
Urgent Issues group Interpretations and
corporations Act 2001.
Compliance with ifRs
Australian Accounting Standards include
Australian equivalents to International
Financial Reporting Standards (AIFRS).
Compliance with AIFRS ensures that the
financial report of Maximus Resources
Limited complies with International Financial
Reporting Standards. (IFRS).
historical cost convention
This financial report has been prepared on
an accruals basis and is based on historical
costs, modified, where applicable, by the
measurement at fair value of selected non-
current assets, financial assets and financial
liabilities.
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.
b) income tax
The income tax expense (revenue) for
the year comprises current income
tax expense (income) and deferred tax
expense (income).
Current income tax expense charged
to the profit or loss is the tax payable
on taxable income calculated using
applicable income tax rates enacted, or
substantially enacted, as at reporting
date. Current tax liabilities (assets) are
therefore measured at the amounts
expected to be paid to (recovered from)
the relevant taxation authority.
Deferred income tax expense reflects
movements in deferred tax asset and
deferred tax liability balances during the
year as well unused tax losses.
Current and deferred income tax
expense (income) is charged or credited
directly to equity instead of the profit
or loss when the tax relates to items
that are credited or charged directly to
equity.
Deferred tax assets and liabilities are
ascertained based on temporary
differences arising between the tax
bases of assets and liabilities and their
carrying amounts in the financial
statements. Deferred tax assets also
result where amounts have been fully
expensed but future tax deductions are
available. 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 assets and liabilities are
calculated at the tax rates that are
expected to apply to the period when
the asset is realised or the liability is
settled, based on tax rates enacted or
substantively enacted at reporting date.
Their measurement also reflects the
manner in which management expects
to recover or settle the carrying amount
of the related asset or liability.
Deferred tax assets relating to temporary
differences and unused tax losses are
recognised only to the extent that it is
probable that future taxable profit will
be available against which the benefits
of the deferred tax asset can be utilised.
Where temporary differences exist in
relation to investments in subsidiaries,
branches, associates, and joint ventures,
deferred tax assets and liabilities are
not recognised where the timing of the
reversal of the temporary difference can
be controlled and it is not probable that
the reversal will occur in the foreseeable
future.
Current tax assets and liabilities are
offset where a legally enforceable
right of set-off exists and it is intended
that net settlement or simultaneous
realisation and settlement of the
respective asset and liability will occur.
Deferred tax assets and liabilities are
offset where a legally enforceable right
of set-off exists, the deferred tax assets
and liabilities relate to income taxes
levied by the same taxation authority
on either the same taxable entity
or different taxable entities where it
is intended that net settlement or
simultaneous realisation and settlement
of the respective asset and liability
will occur in future periods in which
significant amounts of deferred tax
assets or liabilities are expected to be
recovered or settled.
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.
48
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Notes to the Financial Statements
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.
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 and initial measurement
Financial instruments, incorporation
financial assets and financial liabilities,
are recognised when the entity becomes
a party to the contractual provisions of
the instrument. Trade date accounting
is adopted for financial assets that are
delivered within timeframes established
by marketplace convention.
Financial instruments are initially
measured at fair value plus transactions
costs where the instrument is not
classified as at fair value through profit
or loss. Transaction costs related to
instruments classified as at fair value
through profit or loss are expensed to
profit or loss immediately. Financial
instruments are classified and measured
as set out below.
Derecognition
Financial assets are derecognised
where the contractual rights to receipt
of cash flows expires or the asset is
transferred to another party whereby
the entity no longer has any significant
continuing involvement in the risks
and benefits associated with the asset.
Financial liabilities are derecognised
where the related obligations are either
discharged, cancelled or expire. The
difference between the carrying value
of the financial liability extinguished or
transferred to another party and the fair
value of consideration paid, including
the transfer of non-cash assets or
liabilities assumed, is recognised in profit
or loss.
Classification and subsequent
measurement
i) 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 subsequently measured at
amortised cost using the effective
interest rate method.
ii) Available-for-sale financial assets
Available-for-sale financial assets
are non-derivative financial assets
that are either designated as such
or that are not classified in any of
the other categories. They comprise
investments in the equity of other
entities where there is neither a fixed
maturity nor fixed or determinable
payments.
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
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.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
49
Notes to the Financial Statements
noTe 1
suMMaRy of signifiCanT aCCounTing PoliCies CONTINUED
g) investments in associates
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.
CRiTiC al aCCounTing esTiM aTes
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 — impairment
The group assesses impairment at each
reporting date by evaluating conditions
specific to the group that may lead to
impairment of assets. Where an impairment
trigger exists, the recoverable amount of the
asset is determined. Value-in-use calculations
performed in assessing recoverable amounts
incorporate a number of key estimates.
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.
j) Cash and cash equivalents
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.
50
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
noTe 2 Revenue
operating activities
Notes to the Financial Statements
Consolidated Group
Parent Entity
2008
$
2007
$
2008
$
2007
$
– Interest received from other persons
1,007,504
756,512
359,540
– Profit on sale of subsidiary
-
-
-
1,007,504
756,512
359,540
141,028
9,559,999
9,701,027
noTe 3
loss foR The yeaR
Marketing expenses
Company Promotion
Subscriptions
Public Relations
Conferences
Other
administration expenses
Accounting Services
Audit Fees
Legal Fees
Management Fees
Corporate Consulting
ASX Fees
Employee Benefits Expense
Depreciation
Other
exploration expenses
Exploration Expenditure Written off
Consolidated Group
Parent Entity
2008
$
14,758
12,358
9,782
36,425
210,145
283,469
5,164
44,500
7,184
298,825
-
62,234
273,902
12,402
262,663
966,874
632,912
632,912
2007
$
152,363
24,840
18,122
23,201
61,687
280,213
9,220
44,034
25,471
205,570
55,120
65,070
329,295
44,659
21,806
800,245
456,986
456,986
2008
$
12,775
2,009
9,266
30,310
180,536
234,897
3,394
23,500
7,184
191,517
-
54,756
159,281
11,705
176,796
628,133
459,172
459,172
2007
$
11,131
24,840
4,139
7,207
67,894
115,211
3,379
20,105
3,554
82,680
86,633
10,795
20,141
28,383
8,679
264,349
386,632
386,632
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
51
Notes to the Financial Statements
noTe 4
inCoMe Tax exPense
a) The components of tax expense comprise:
Current tax
Underprovision for prior years
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% (2007: 30%)
– consolidated group
– parent entity
Add:
Tax effect of:
Consolidated Group
Parent Entity
2008
$
2007
$
2008
$
2007
$
242,143
-
-
242,143
-
-
29,355
29,355
242,143
281,706
(254,712)
269,137
(1,284,914)
-
3,851,311
2,566,397
(263,510)
(234,845)
(289,261)
2,680,259
– non-allowable items
– share options expensed during year
– share placement issue costs
– previously unrecognised temporary differences
13,855
65,144
242,143
-
1,998
17,019
-
-
1,520
33,028
242,143
-
– deferred tax asset not brought to account
184,511
245,183
281,707
1,290
17,019
-
737,135
-
Recoupement of prior year tax losses not brought to
account
-
-
-
(869,306)
Income tax attributable to entity
242,143
29,355
269,137
2,566,397
Deferred tax assets on the timing differences have not
been recognised as they do not meet the recognition
criteria as outlined in Note 1(b) to the financial
statement.
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
-
-
-
-
-
-
-
-
-
-
-
-
984,943
6,234,214
2,661,000
2,067,340
(77,261)
(27,806)
(6,246,788)
(2,154,220)
(7,129)
887,979
(9,272)
2,537,042
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
R Barratt
Non-Executive Chairman
Managing Director
Executive Director
Non-Executive Director
Chief Financial Officer and Company Secretary
Exploration Manager
Key management personnel remuneration has been included in the Remuneration Report section of the Directors Report
52
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
-
-
-
-
-
-
-
-
Balance
30.6.2008
4,945,000
3,250,001
2,550,001
529,639
-
Notes to the Financial Statements
noTe 5 Key ManageMenT PeRsonnel CoMPensaTion ConTinued
b) Options and Rights Holdings
Number of options held by key management personnel.
Issued as
remuneration
Net change
other
Balance
Total vested
Total
exercisable
Total
unexercisable
30.6.2008
30.6.2008
30.6.2008
30.6.2008
R M Kennedy*
K J A Wills*
G E Maddocks
E J Vickery*
N J Smart
R W C Willson*
R Barratt
Balance
1.7.2007
1,375,000
1,575,000
1,250,000
1,306,250
512,500
100,000
-
6,118,750
-
-
-
-
-
70,000
250,000
320,000
(684,999)
(924,999)
(739,999)
(1,226,316)
(512,500)
36,900
-
690,001
650,001
510,001
79,934
-
206,900
250,000
690,001
650,001
510,001
79,934
-
206,900
250,000
690,001
650,001
510,001
79,934
-
206,900
250,000
(4,051,913)
2,386,837
2,386,837
2,386,837
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*
R Barratt
Balance
1.7.2007
2,750,001
3,150,001
2,500,001
2,672,501
-
57,000
-
11,129,504
Received as
compensation
Net change
other
2,194,999
100,000
50,000
(2,142,862)
-
-
-
-
-
-
-
-
-
25,000
82,000
-
-
227,137
11,356,641
* Held by Directors and entities in which Directors have a relevant interest.
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
2008
$
44,500
-
44,500
2007
$
44,034
10,000
54,034
2008
$
2007
$
23,500
20,105
-
-
23,500
20,105
Earnings used to calculate basic and dilutive EPS
Earnings used to calculate basic and dilutive EPS from continuing operations
2008
$
(1,175,994)
(1,175,994)
2007
$
(710,678)
(710,678)
Weighted average number of ordinary shares outstanding during the year used to calculate
basic EPS
121,177,911
67,915,108
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
121,177,911
67,915,108
The weighted average number of options on issue at 30 June 2008 was 48,531,383 (2007 34,424,028). They were not used in the earnings per
share calculation as they were anti dilutive.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
53
Notes to the Financial Statements
noTe 8 Cash and Cash equivalenTs
Cash at bank and in hand
Short-term bank deposits
The effective interest rate on short-term bank deposits was 7.9% (2007 -
6.5%) 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:
Consolidated Group
Parent Entity
2008
$
1,582,827
9,150,000
10,732,827
2007
$
1,404,511
10,950,000
12,354,511
2008
$
1,143,772
3,050,000
4,193,772
2007
$
263,373
50,000
313,373
Cash and cash equivalents
10,732,827
12,354,511
4,193,772
313,373
noTe 9
TRade and oTheR ReCeivables
CuRRenT
Interest receivable
Receivable from FME Exploration Services Pty Ltd*
Other receivable
Consolidated Group
Parent Entity
2008
$
109,720
500,000
480,027
1,089,747
2007
$
2008
$
2007
$
302,880
235,380
94,750
633,010
11,712
250,000
358,772
620,484
26
117,690
89,554
207,270
* The entity advanced this amount to assist in the funding of working capital. The Group 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 is repayable at call and interest at market rates can be charged at the discretion of the Directors. 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.
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
2008
%
2007
%
Carrying amount of
investment
2008
$
2007
$
unlisted:
FME Exploration Services Pty Ltd
Administration Services
Australia
Ord
66.6
66.6
2
2
a) summarised presentation of aggregate assets, liabilities and performance of associate.
Current assets
Non current assets
Total assets
Current liabilities
Total liabilities
Net assets
Share of associate’s profit after tax
Consolidated Group
Parent Entity
2008
732,860
956,366
1,689,226
1,689,220
1,689,220
6
-
2007
114,142
321,184
435,326
435,323
435,323
3
-
2008
366,430
478,183
844,613
844,610
844,610
3
-
2007
114,142
321,184
435,326
435,323
435,323
3
-
54
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
1
2
3
4
5
6
7
8
9
Notes to the Financial Statements
noTe 11 JoinT venTuRes
The Consolidated group has the following interests in Joint Ventures:
No.
State
Agreement Name
Parties
Summary
WA
Nemex
Agreement
Maximus Resources Ltd (MXR) and
Nemex Pty Ltd (Nemex)
MXR purchased a 90% interest in the Nemex Ironstone Well project
tenements
SA and
NT
Eromanga Basin
Joint Venture
Eromanga Uranium Ltd (ERO)and MXR
SA
SA
Billa Kalina Joint
Venture
ERO and MXR
Kapunda Joint
Venture
Flinders Mines Limited and MXR and
Copper Range (SA) Pty Ltd (CRJ)
WA
Meeline Option
to Purchase
Rankin / Gecko
Agreement
MXR and Christopher Richard Elkington
and Peter William Youngs and Darian
Sampey and Allan Hunter Younger and
Roger Townend and Raimunda Silva
Townend and Henning Otto Hintze
MXR and Tanami Gold NL (TGL)
Woolanga-Rankin
Agreement
MXR and Minotaur Exploration Ltd
(Minotaur)
Strangway
Agreement
MXR and NuPower Resources Ltd
(NuPower)
NT
NT
NT
ERO can earn 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
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
CRJ 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
MXR has a 2 year option to purchase a 100% interest in all the
tenements in this agreement for $500000
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
Minotaur to spend a minimum $200 000 on exploration within the
first 12 months. If Minotaur elects to proceed with a JV agreement it
may earn 51% by expenditure of $1 million over 3 years and 75% by
expenditure of a further $1 million over 2 years
NuPower to expend a minimum of $200 000 in the first 12 months.
NuPower may then earn 51% interest in ‘energy minerals’ by
expenditure of $3 million from commencement over 4 years and 70%
by expenditure of a further $2 million over 2 years
SA
Option Agreement
ML5023
MXR and Christopher Wells
MXR has purchased the rights to explore the property for a 2 year
period and has an option to purchase during that period
10
WA
Narndee -
Corporate Group
Agreement
MXR and Corporate Resource
Consultants Pty Ltd and Bruce Robert
Legendre and TE Johnston and
Associates Pty Ltd
MXR has purchased a 90% interest in an exploration licence package
in the Narndee-Windimurra region
noTe 12 finanCial asseTs
Available for sale financial assets
Available for sale financial assets comprise
Listed investments at fair value
– Shares in listed corporations
Total available for sale financial assets
Consolidated Group
Parent Entity
2008
$
2007
$
2008
$
2007
$
-
-
-
-
-
-
-
3,992,643
9,579,500
3,992,643
3,992,643
9,579,500
9,579,500
At 29th September 2008, the market value of Eromanga Uranium Limited shares was $0.045 per share.
Maximus Resources limited holds 44,357,143 shares in Eromanga Uranium Limited.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
55
Notes to the Financial Statements
noTe 13 ConTRolled enTiTies
Controlled entities consolidated
Parent Entity
Maximus Resources Limited
Subsidiaries of Maximus Resources Limited
Eromanga Uranium Limited
Country of Incorporation
Percentage Owned (%)
2008
2007
Australia
Australia
35.4
35.4
Maximus Resources Limited holds 35.4 % of the Issued Capital of Eromanga Uranium Limited. Additionally, three of the Directors of Maximus
Resources Limited are also Directors of Eromanga Uranium Limited. As a result, Eromanga Uranium Limited has been consolidated with
Maximus Resources Limited for the purposes of this financial report.
noTe 14 PlanT and equiPMenT
Plant and equipment at cost
Accumulated depreciation
Total Plant and Equipment
Movements in carrying amounts:
Consolidated Group
Parent Entity
2008
$
1,516,220
(169,503)
1,346,717
2007
$
723,866
(49,422)
674,444
2008
$
1,046,109
(97,318)
948,790
2007
$
347,356
(33,146)
314,210
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 2007
Additions
Depreciation
Balance at 30 June 2008
Consolidated Group
Parent Entity
Plant and
Equipment
674,444
792,354
(120,081)
1,346,717
Total
674,444
792,354
(120,081)
1,346,717
Plant and
Equipment
314,210
698,753
(64,172)
948,790
noTe 15 CaPiTalised exPloRaTion and evaluaTion exPendiTuRe
Exploration and evaluation expenditure capitalised
– Exploration and evaluation phases – 100% owned tenements
– Exploration and evaluation phases – Joint Ventures
Total exploration and evaluation expenditure
12,791,471
16,686,351
29,477,822
88,304
10,996,847
11,085,151
12,791,471
8,168,605
20,960,076
Consolidated Group
Parent Entity
2008
$
2007
$
2008
$
Total
314,210
698,753
(64,172)
948,791
2007
$
-
8,499,156
8,499,156
Movements in carrying amounts:
Exploration and evaluation
Balance at the beginning of the year
Amounts capitalised during the year
Reductions through write off
Carrying amount at the end of year
11,085,151
18,565,289
(172,618)
4,097,697
6,987,454
-
8,499,156
12,633,538
(172,618)
4,097,697
4,401,459
-
29,477,822
11,085,151
20,960,076
8,499,156
The ultimate recoupment of costs carried forward for exploration phase is dependent on the successful development and commercial
exploitation or sale of the respective areas.
56
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
noTe 16 TRade and oTheR Payables
unsecured
Trade payables
Sundry payables and accrued expenses
Amounts payable to associated companies for management services
noTe 17 shoRT-TeRM PRovisions
Employee entitlements
Opening balance at 1 July 2007
Additional provisions
Amounts used
Balance at 30 June 2008
noTe 18
issued CaPiTal
143,840,792 (2007: 74,792,087) fully paid ordinary shares
ordinary shares
At the beginning of the period
Shares issued during the year
3 November 2006
29 November 2006
17 April 2007
6 June 2007
02 July 2007
12 July 2007
25 July 2007
26 July 2007
31 July 2007
14 August 2007
20 September 2007
03 October 2007
02 November 2007
09 November 2007
07 December 2007
11 December 2007
31 January 2008
31 March 2008
10 April 2008
29 May 2008
10 June 2008
17 June 2008
24 June 2008
At reporting date
Notes to the Financial Statements
Consolidated Group
Parent Entity
2008
$
1,528,414
63,125
-
1,591,539
2007
$
517,842
72,466
41,768
632,076
2008
$
1,028,596
48,125
-
1,076,721
Consolidated Group
Parent Entity
2008
$
47,957
18,377
97,640
(68,060)
47,957
2007
$
18,377
-
34,054
(15,677)
18,377
2008
$
23,764
6,019
40,130
(22,385)
23,764
2007
$
382,258
20,280
20,884
423,422
2007
$
6,019
-
8,635
(2,616)
6,019
Consolidated Group
Parent Entity
2008
$
27,046,405
2007
$
10,133,983
2008
$
27,046,405
2007
$
10,133,983
Number
74,792,087
Number
64,977,921
Number
74,792,087
Number
64,977,921
600,000
1,800,000
7,346,666
67,500
600,000
1,800,000
7,346,666
67,500
7,500,000
31,400
11,000,000
31,250
554,300
442,650
406,674
5,000
333,019
530,500
7,500,000
31,400
11,000,000
31,250
554,300
442,650
406,674
5,000
333,019
530,500
47,381,681
47,381,681
190,000
155,400
15,125
4,550
5,000
48,900
95,706
317,550
190,000
155,400
15,125
4,550
5,000
48,900
95,706
317,550
143,840,792
74,792,087
143,840,792
74,792,087
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.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
57
Notes to the Financial Statements
noTe 18
issued CaPiTal CONTINUED
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.
Outstanding at the beginning of the year
Granted
Exercised
Expired
Outstanding at the end of the year
Exercisable at year end
Capital Management
Consolidated Group
Parent Entity
2008
2007
2008
2007
Number of Options
35,084,583
Number of Options
34,222,083
Number of Options
35,084,583
Number of Options
34,222,083
33,456,230
(10,634,200)
(22,700,578)
35,206,035
930,000
(67,500)
-
35,084,583
33,456,230
(10,634,200)
(22,700,578)
35,206,035
930,000
(67,500)
-
35,084,583
35,206,035
35,084,583
35,206,035
35,084,583
Management controls the capital of the group in order to maintain a good debt to equity ratio, provide the shareholders with adequate
returns and ensure that the group can fund its operations and continue as a going concern.
The group’s debt and capital includes ordinary share capital, supported by financial assets.
There are no externally imposed capital requirements.
Management effectively manages the group’s capital by assessing the group’s financial risks and adjusting its capital structure in response to
changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share
issues.
There have been no changes in the strategy adopted by management to control the capital of the group since the prior year. This strategy is
to ensure that the group has no debt The gearing ratio’s for the year ended 30 June 2008 and 30 June 2007 are in line with policy:
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 2009
amounts of approximately $2,890,000 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
Income tax expense
Changes in operating assets and liabilities
Decrease/(Increase) in trade and other receivables
Increase/(Decrease) in trade and other payables
Increase/(Decrease) in provisions
Net cash provided by operating activities
Consolidated Group
Parent Entity
2008
$
2007
$
2008
$
2007
$
(1,120,511)
(812,172)
(1,233,339)
6,367,801
120,081
179,290
-
-
459,172
242,143
44,659
102,009
29,355
-
-
-
(192,117)
(277,887)
959,463
29,580
677,101
-
18,378
(895,658)
64,172
110,093
-
-
459,172
269,137
(280,905)
653,299
17,745
59,374
28,383
56,730
-
(9,559,999)
-
-
(12,570)
-
2,572,416
(547,239)
58
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
-
14.0
14.0
-
14.0
14.0
Notes to the Financial Statements
noTe 22 shaRe-based PayMenTs
The following share-based payment arrangement existed at 30 June 2008:
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 17 March 2008 890,000 options were issued to employees under the Company’s employee option plan. The options are exercisable at 18
cents on or before 17 March 2013. The options hold no voting or dividend rights.
Consolidated Group
Parent Entity
2008
2007
2008
2007
Weighted
average
Exercise Price
Cents
Number of
Options
Weighted
average
Exercise Price
Cents
Weighted
average
Exercise Price
Cents
Number of
Options
Weighted
average Exercise
Price
Cents
Outstanding at the
beginning of the year
Granted
Exercised
Expired
Outstanding at the
end of the year
Number of
Options
895,000
890,000
(125,000)
-
1,660,000
-
930,000
(35,000)
-
-
14.0
14.0
-
14.0
18.0
14.0
-
16.1
Number of
Options
895,000
890,000
(125,000)
-
14.0
18.0
14.0
-
-
930,000
(35,000)
-
895,000
14.0
1,660,000
16.1
895,000
Exercisable at year end
1,660,000
16.1
895,000
14.0
1,660,000
16.1
895,000
The options outstanding at 30 June 2008 had a weighted average exercise price of 16.1 cents and a weighted average remaining contractual
life of 55 months. Exercise prices range from $0.14 to $0.18 in respect of options outstanding at 30 June 2008.
The weighted average fair value of the options granted during the year was $0.124.
This price was calculated by using a Black Scholes option pricing model applying the following inputs:
Weighted average exercise price
$0.18
Weighted average life of the option
Underlying share price
Expected share price volatility
Risk free interest rate
5 years
$0.18
81.9%
8.0%
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 $110,093 (2007: $56,730) 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.
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
y
y
Administrative services were provided by FME Exploration Services Pty Ltd to Maximus Resources Limited for $871,180.
Maximus Resources Limited advanced FME Exploration Services Pty Ltd $264,620 to fund working capital.
other Related Parties
y
y
y
Payments during the period to Flinders Mines Limited for expenses incurred on behalf of Maximus Resources Limited totalled $14,968.
Receipts from Flinders Mines Limited during the period for expenses incurred on their behalf totalled $3,130.
Flinders Mines limited exercised 3,500,000, 20 cent options in Maximus Resources Limited for a total value of $700,000.
noTe 25 segMenT infoRMaTion
The entity operates predominately in the mining industry, in Australia and as such has no material reportable segments.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
59
Notes to the Financial Statements
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:
Weighted Average
Effective Interest
Rate
Floating Interest
Rate
Non-interest
Bearing
Total
2008
financial assets
Cash and cash equivalents
Receivables
Total financial assets
financial liabilities
Payables
Total financial liabilities
2007
financial assets
Cash and cash equivalents
Receivables
Total financial assets
financial liabilities
Payables
Total financial liabilities
ii) Net Fair Values
7.9
-
-
6.5
-
-
10,732,827
-
10,732,827
-
1,089,747
1,089,747
10,732,827
1,089,747
11,813,574
-
-
1,591,539
1,591,539
1,591,539
1,591,539
12,354,511
-
12,354,511
-
12,354,511
633,010
633,010
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.
iii) Sensitivity analysis
Interest rate risk
The group has performed a sensitivity analysis relating to its exposure to interest rate risk, at balance date. This sensitivity analysis
demonstrates the effect on the current year results and equity which could result from a change in these risks.
60
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Notes to the Financial Statements
noTe 26 finanCial insTRuMenTs ConTinued
Interest rate sensitivity analysis
At 30 June 2008, the effect on profit and equity as a result of changes in the interest rate, with all other variables remaining constant
would be as follows:
Change in profit
Increase in interest rate by 2%
Decrease in interest rate by 2%
Change in equity
Increase in interest rate by 2%
Decrease in interest rate by 2%
Consolidated Group
Parent Entity
2008
$
214,656
(214,656)
214,656
(214,656)
2007
$
247,090
(247,090)
247,090
(247,090)
2008
$
2007
$
83,875
(83,875)
83,875
(83,875)
6,267
(6,267)
6,267
(6,267)
noTe 27 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 Amendment
Standards Affected
Outline of Amendment
AASB 2007–3
Amendments to
Australian Accounting
Standards
AASB 6
Exploration for and
Evaluation of Mineral
AASB 107
Cash Flow Statements
AASB 119
Employee Benefits
AASB 127
Consolidated and Separate
Financial Statements
AASB 134
Interim Financial Reporting
AASB 136
Impairment of Assets
The disclosure requirements of AASB
114: Segment Reporting have been
replaced due to the issuing of AASB 8:
Operating Segments in February 2007.
These amendments will involve changes
to segment reporting disclosures within
the financial report. However, it is
anticipated there will be no direct impact
on recognition and measurement criteria
amounts included in the financial report
Application
Date of
Standard
Application
Date for Group
1.1.2009
1.7.2009
AASB 114
Segment Reporting
As above
1.1.2009
1.7.2009
AASB 8 Operating
Segments
AASB 2007–6
Amendments to
Australian Accounting
Standards
AASB 101
Presentation of Financial
Statements
AASB 107
Cash Flow Statements
AASB 116
Property, Plant and
Equipment
The revised AASB 123: Borrowing Costs
issued in June 2007 has removed the
option to expense all borrowing costs. This
amendment will require the capitalisation
of all borrowing costs directly attributable
to the acquisition, construction or
production of a qualifying asset. However,
there will be no direct impact to the
amounts included in the financial group
as they already capitalise borrowing costs
related to qualifying assets.
The revised AASB 101: Presentation of
Financial Statements issued in September
2007 requires the presentation of a
statement of comprehensive income.
1.1.2009
1.1.2009
1.1.2009
1.7.2009
1.1.2009
1.7.2009
AASB 2007–8
Amendments to
Australian Accounting
Standards
AASB 101
Presentation of Financial
Statements
AASB 101
AASB 101
Presentation of Financial
Statements
As above
noTe 28 CoMPany deTails
The principal place of business and registered office is:
Maximus Resources Limited
62 Beulah Road
Norwood
South Australia 5067
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
61
Directors’ Declaration
The directors of the Company declare that:
1) The financial statements and notes, as set out on pages 48 to 61 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 2008 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 30th day of September 2008
62
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Independent Audit Report
Grant Thornton South Australian
Partnership
ABN 27 244 906 724
Level 1,
67 Greenhill Rd
Wayville SA 5034
GPO Box 1270
Adelaide SA 5001
DX 275 Adelaide
T 61 8 8372 6666
F 61 8 8372 6677
E info@gtsa.com.au
W www.grantthornton.com.au
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
63
Independent Audit Report
64
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
Independent Audit Report
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
65
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 October 2008.
disTRibuTion of equiT y seCuRiTies
ordinary share capital
Fully paid ordinary shares are held by 2,555
individual shareholders. All issued ordinary shares
carry one vote per share.
options
Options are held by 2,689 individual option holders.
The number of shareholders, by size of holding, in
each class are:
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Fully paid
ordinary
shares
Options
92
400
502
1,339
222
2,555
275
1,041
516
776
81
2,689
Holdings of less than
a marketable parcel
378
2,187
TwenTy laRgesT shaReholdeRs
Fully Paid Ordinary Shares
1
2
3
4
5
6
7
8
9
Flinders Mines Limited
Yandal Investments Pty Ltd
Triple Eight Gold Pty Ltd
Chaffey Consulting Pty Ltd
KJ Exploration Pty Ltd
Zero Nominees Pty Ltd
Mr Gary Eric Maddocks and Ms Paula Maddocks
Apex Minerals NL
Mr Bruce Robert Legendre
10 Mr Shay Shimon Hazan
11
Indo Mines Limited
12 Mr John Henry Philp
13
Finance Associates Pty Ltd
14 Mark Gareth Creasy
15 Mr Stephen Smith
16
17
Ladnay Pty Ltd
Forbar Custodians Limited
Number
10,500,000
5,946,666
3,995,000
3,166,951
3,100,000
2,664,495
2,550,000
2,000,000
1,945,000
1,940,000
1,850,000
1,700,000
1,350,000
1,342,500
1,320,000
1,300,000
1,182,052
18 Mr Alan Raney Stiff and Ms Colleen Margaret Budge
1,043,773
19 Mr Robert Hastings Smythe
20 Mr Brian Lesleigh Williams and Mrs Valerie Ruby
Dawn Williams
1,000,000
1,000,000
%
6.83
3.87
2.60
2.06
2.02
1.73
1.66
1.30
1.27
1.26
1.20
1.11
0.88
0.87
0.86
0.85
0.77
0.68
0.65
0.65
subsTanTial shaReholdeRs
TwenTy laRgesT oPTionholdeRs
Fully Paid Ordinary
Shares
Number
%
Yandal Investments
11,253,661
Flinders Mines Limited
10,500,000
7.32
6.73
Options
Flinders Mines Limited
Yandal Investments Pty Ltd
Triple Eight Gold Pty Ltd
KJ Exploration Pty Ltd
Chaffey Consulting Pty Ltd
Mr Brian Lesleigh Williams and Mrs Valerie Ruby
Dawn Williams
Zero Nominees Pty Ltd
Mr John Henry Philp
Mr Gary Eric Maddocks and Ms Paula Maddocks
1
2
3
4
5
6
7
8
9
10 Mr Robert Foster Colefax and Mrs Irene Louise
Colefax
11 Apex Minerals NL
12 Mr Bruce Robert Legendre
13 Mr Shane Francis Kennedy
14
15
16
17
Indo Mines Limited
Finance Associates Pty Ltd
Carojon Pty Ltd
Forbar Custodians Limited
18 Mark Gareth Creasy
19
Ladnay Pty Ltd
20 Mrs Razieh Moheiman
66
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
50,896,437
33.12
Number
4,025,000
2,676,001
1,498,750
1,395,000
1,255,129
1,250,000
1,199,023
1,150,837
1,147,500
1,000,000
900,000
886,250
862,728
832,500
800,000
708,800
613,400
604,125
585,000
568,400
%
6.08
4.04
2.26
2.11
1.89
1.89
1.81
1.74
1.73
1.51
1.36
1.34
1.30
1.26
1.21
1.07
0.93
0.91
0.88
0.86
23,958,443
36.18
Glossary of Technical Terms
aircore
A method of rotary drilling whereby rock chips are
recovered by compressed air flow returning inside the
rods.
geochemistry
The study of the abundance and distribution of elements
in rocks, or their weathering products, by chemical
methods.
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.
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.
basement
The igneous and metamorphic crust of the earth,
underlying sedimentary deposits.
greywacke
Type of sandstone composed of quartz, feldspar and
clays.
bedrock
Solid rock underlying surficial deposits.
greenstone
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.
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.
diamond drilling
A method of obtaining a cylindrical core of rock by
drilling with a diamond impregnated bit.
intrusive
A mass of rock formed by magma cooling beneath the
earth’s surface.
drill traverses
Reference to a line of drill holes.
layered
Meaning the rock units are layered as in a cake.
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.
Exploration Target
Exploration Targets are reported according to Clause
18 of the JORC Code. This means that they are partly
conceptual in nature and that considerable further
exploration, particularly drilling, is necessary before
any Identified Mineral Resource can be reported. It is
uncertain if further exploration will lead to a larger,
smaller or any mineral resource.
fault
A fracture in rock along which there has been relative
displacement of the two sides either vertically or
horizontally.
farm-in
farm-out
Reference to dealing on opportunities through earning
an equity in a new project through joint venture or
purchase.
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.
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.
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.
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008
67
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
vein
Chemical formula for an oxide of uranium.
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.
Glossary of Technical Terms
occurrence
A location generally marking the presence of abnormal or
anomalous quantities of a naturally occurring material.
RC drilling
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 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 mineralisation 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.
U
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.
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MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2008