Nov 11, 2024

Maximus Resources Hits 5m @ 1.81% Li2O at Bird Rock Lithium Project, Western Australia

Introduction:

Maximus Resources Limited (ASX:MXR) (Market Cap: $18M | Last Close: $0.041 | Cash: $3M) has reported high-grade lithium results from its maiden drilling program at the Bird Rock Lithium Prospect and follow-up drilling at the Kandui Lithium Prospect, both part of the KOMIR Lefroy Lithium Joint Venture in Western Australia. The results are highlighted by 5m @ 1.81% Li2O from 101m, including 3m @ 2.33% Li2O from 102m at Bird Rock.

Drill Results:

5m @ 1.81% Li2O from 101m, including 3m @ 2.33% Li2O from 102m (BRRC009)
5m @ 1.45% Li₂O from 95m, including 1m @ 1.8% Li₂O from 96m and 2m @ 2.19% Li₂O from 98m (BRRC010)
6m @ 1.14% Li₂O from 17m, including 2m @ 1.69% Li₂O from 18m (BRRC003)
5m @ 0.74% Li₂O from 7m, including 1m @ 1.29% Li₂O from 9m and 1m @ 1.17% Li₂O from 11m (BRRC005)
5m @ 0.91% Li₂O from 12m, including 3m @ 1.04% Li₂O from 12m (BRRC006)‍
6m @ 2.23% Li₂O from 26m, including 4m @ 2.88% Li2O from 27m at Kandui (MKRC048)

Project Overview:

The Lefroy Lithium Project is located 25km from Kambalda in Western Australia's Eastern Goldfields Lithium-Cesium-Tantalum (LCT) Province. The project is situated near Mineral Resources Limited's Mt Marion Lithium mine and processing facilities. The Bird Rock and Kandui prospects are part of Maximus' 100% owned Lefroy Lithium Project, which is subject to a joint venture with the Korean government mining agency KOMIR.

The project area covers granted mining tenements in a highly prospective region for lithium exploration. KOMIR has the option to acquire up to a 30% interest in Lefroy by investing US$3 million, with Maximus as the project manager.

Program Details:

The recent drilling program comprised approximately 1,500m of Reverse Circulation (RC) drilling across multiple targets. At Bird Rock, a maiden 10-hole (700m) program was completed to establish the primary geological orientation of the pegmatite. At Kandui, a third-phase 5-hole (800m) program targeted areas highlighted by refined geological modelling. The drilling confirmed shallow high-grade spodumene mineralization at Bird Rock and identified new high-grade pegmatites at Kandui, validating the effectiveness of soil geochemistry sampling and geological interpretations.

Understanding These Results:

The Bird Rock results reveal a sub-vertical, northeast striking pegmatite hosted within volcaniclastics of the Black Flag Group. The spodumene-bearing pegmatite maintains a relatively uniform grade and thickness across all drill holes, with a true thickness of up to 5m. The pegmatite remains open at depth and along strike to the southwest.

At Kandui, drilling intersected multiple shallow-dipping (~10 to 30 degrees to the southeast) pegmatites with variable thickness up to 18m. The high-grade intersection in MKRC048 confirms the fertility of the Kandui pegmatites and validates the geological model targeting demagnetized zones as indicators of potential pegmatite thickening.

Management Commentary:

Tim Wither, Managing Director of Maximus Resources, stated:

“The discovery of spodumene-bearing pegmatites at Bird Rock highlights the fertility of Maximus’ tenements and importantly the effectiveness of the completed soil geochemistry sampling program. The systematic approach to defining drill targets has been a success and will be applied to numerous other targets within the Lefroy Lithium Project area.

“The drill results from our maiden drill program at Bird Rock have shown a vertically plunging pegmatite, which is different to shallow dipping stacked pegmatites discovered at Kandui. The vertical component of the Bird Rock pegmatite has similar vertical geometry to that observed at Mt Marion ~16km to the north which lies on the same Spargoville Shear zone structure, reinforcing the potential of the surrounding geology. Bird Rock remains open at depth and down dip, with additional drilling required to identify areas where the pegmatite may be thicker or where blind pegmatites may be present. A close space aero-magnetic survey is being planned to assist in identifying potential drill target areas.

“The third-phase drilling at Kandui continues to validate our advanced geological modelling and as more data is acquired, further targets of the area where the pegmatites may be thicker evolves. The intersected pegmatites in the third round are our best to date confirming the fertility of the Kandui pegmatites with 6m @ 2.23% Li₂O from 26m, incl. 4m @ 2.88% Li₂O (MKRC048). The Kandui target is a very large area covering more than ~2km x ~1.5km, with plenty of room for an economical deposit to be found. Modelling from the latest results has identified an updated target area and a plan forward. We look forward to drilling again with our lithium partners KOMIR.”

Next Steps & Catalysts:

Maximus is planning a follow-up drill program at both the Bird Rock and Kandui Lithium Prospects. The company will leverage its comprehensive geochemical and geological datasets to target concealed spodumene-bearing pegmatites by integrating these datasets to identify structurally favorable zones and areas with potential for grade and thickness enhancement along fractionation trends.

Additionally, targets will be further refined by incorporating close-spaced aeromagnetic data to identify demagnetized zones, offering a more precise and targeted exploration strategy. Under the joint venture agreement, KOMIR is committed to funding USD$3m (~A$4.6m) on lithium exploration activities to earn a 30% interest in lithium mineral rights across the Lefroy tenements.

Commodity Outlook:

Lithium remains a critical mineral for the global transition to clean energy, with demand driven by the electric vehicle and energy storage sectors. Western Australia is a world-leading jurisdiction for lithium production, benefiting from established infrastructure and a supportive regulatory environment. The Lefroy Project's proximity to existing lithium operations enhances its strategic value in the growing lithium market.

Conclusion:

The high-grade lithium results from Bird Rock and Kandui underscore the potential of Maximus Resources' Lefroy Lithium Project. With multiple prospective targets, ongoing exploration catalysts, and a strategic partnership with KOMIR, the company is well-positioned to advance its exploration programs. The upcoming follow-up drilling and refined targeting strategies present catalysts for further resource definition.

Sources:

MXR Drill Results Announcement

Additional Figures:

Australia

ASX

Rare Earths

Nov 21, 2024