Annual technical report for SEL 25056 'Mud Tank', for the period 13 June 2006 to 12 June 2007

Abstract

Flinders Diamonds Limited (FDL) applied for SEL 25056 in the Strangways Range area to further investigate the region for the presence of kimberlitic or lamproitic diamondiferous intrusive bodies. In 2005 FDL sold the non-diamond rights in its Strangways Project tenements to Maximus Resources Limited (MXR). SEL 25056 is included in this agreement. During the 12 month period ended 12 June 2007 MXR has undertaken geological reconnaissance on both a regional and prospect scale over SEL 25056. EL 9529 and EL 22759 together with EL 23592 host known copper-gold mineralisation. MXR therefore decided that as a first phase in a revised regional exploration program trial airborne EM surveys would be flown over this known mineralisation. These surveys were flown in November 2006 and preliminary results are reasonably encouraging although drill testing of anomalous EM features is yet to be undertaken. MXR proposes to undertake wide spaced EM surveys over much of SEL 25055 and SEL 25056 as the next phase of its regional exploration program. In the first half of 2007 MXR failed to engage a suitable airborne EM survey contractor to undertake this program. A contractor should be available later in 2007.