Partial relinquishment report and operational update

Abstract

Flinders Diamonds Limited (FDL) initially applied for EL 23592 in the StrangwaysRange area to investigate discrete regional dipolar magnetic anomalies which mightbe indicative of kimberlitic or lamproitic diamondiferous intrusive pipes. The Teck Cominco-BHP Billiton Alliance entered into a joint venture with FDL to evaluate the base metal potential of EL 23592 and other project tenements. The exploration target was polymetallic massive sulphide deposits. With the exception of known base metal occurrences geochemical sampling by the Alliance in 2002 did not define any base metal anomalies that warranted follow-up. In 2005 FDL sold the non-diamond rights in EL23592 to Maximus Resources Limited (MXR). MXR was listed on the ASX on 26 October 2005. During 2006 MXR has undertaken geological reconnaissance on both a regional and prospect scale. In November 2006 MXR contracted GPX Airborne Pty Ltd to undertake a combined HOISTEM electromagnetic and magnetic survey over the Johnnies Reward prospect area. The survey totalling about 85 line km was flown in late November 2006. This has involved several field excursions during 2006 to allow project personnel to familiarise themselves with aspects of the regional geological setting and more specific prospect geology. In November 2006, MXR contracted Perth based GPX Airborne Pty Ltd to fly a combined HOISTEM electromagnetic survey and aeromagnetic survey of the environs of the Johnnies Reward prospect on EL23592 together with surveys over the Rankin (EL9529) and Gecko (EL22759) prospects about 20 km to the south southwest. In late November 2006 the survey was undertaken over EL23592 covering a total of 85 line km on 27 flight lines. Lines were flown in an east-west direction with a line spacing of 80m. The magnetometer sensor was at a nominal 50m terrain clearance with the EM transmitter loop and receiver at a nominal 35m terrain clearance. Data to be provided from the survey include conductivity depth images, DTM and total magnetic intensity. To date only preliminary electromagnetic and magnetic images have been provided by the contractor. Based on the preliminary electromagnetic and magnetic data received to date there appear to be some anomalous conductive features closely associated with the mineralised lode system at the Johnnies Reward prospect. More detailed interpretation will be undertaken on receipt of final, located conductivity depth images and total magnetic intensity images. Follow up RC / diamond drill testing of significant electromagnetic and / or magnetic features will be undertaken in 2007.