INTERVIEW WITH KEVIN WILLS, MANAGING DIRECTOR OF MAXIMUS RESOURCES LIMITED (MXR)

“Resource Upgrade at Bird in Hand”

http://www.brr.com.au/event/49308

MONDAY, AUGUST 11 2008, 10:45 AM.

            BRR    Welcome to Boardroom Radio. Today, I’m joined by the managing director of Maximus Resources, Dr. Kevin Wills. Kevin, thanks for joining us today.

10        MXR    Good morning.

            BRR    You know, at the end of last week, you released some result from work that you’re undergoing at your Bird in Hand project in the Adelaide Hills area. You’ve announced an increase in the resource and also some positive results

15                    from the scoping study. Kevin, could you talk us through the details of this.

            MXR    Yes. Thanks. The new resource is about sort of an annual review we’ve been doing since we started and this one’s about 46% up on the previous one. We’ve now got contained gold content in the resource of 237,000 ounces, which is about 95% of what we said we wanted to develop the mine. So we’re

20                    pretty heavy with that. Also, we’ve got indicated and inferred resources this time, which means the resources we’ve got are of a higher quality of certainty. The recent scoping study gave us positive results and we’re now in a pre-feasibility study, which means gradually getting closer to development which is what the announcement was all about. At the moment, we’re

25                    undertaking more drilling and more detail on the water studies.

            BRR    Just on the topic of water there, Kevin, you’ve mentioned it is a sensitive topic and you’ve also indicated in your release that you have community support to start looking into a water neutral mining operation. How sensitive is this issue

30                    and how confident are you that you’re able to overcome it?

            MXR    We’ve been having community consultation meetings at every quarter nearly for two years now and in our discussions with the local community, the subject of water has been the main issue of concern. We originally came up  with a plan to reticulate water to anyone who needed it but local community

35                    didn’t seem to like that and we’ve now come out with an alternative plan which is called managed (inaudible) (00:02:01) for recharge and that involves some pumping water into the ground and then ring around the mining operation so that very few people would actually have their  (inaudible) (00:02:11) affected and we call that water neutral because some…. all the

40                    water we’re taking out were basically pumping back in again. That seemed to get a much better reception at the last meeting but there’s a way to go yet. We’ve still got to do a pump test that is part of the pre-feasibility study which is some actually testing pumping water out and pumping it back in at the same time making sure that everything worked in getting a much more and

45                    reliable feeling of what would happen in the long run. But basically together with the mining studies we’ve been doing the chances of development of the whole operation look a lot better at the moment.

            BRR    And just touching on the final highlight from this announcement, you’ve indicated you’ve received approval to do some drilling at your Deloraine prospect. Obviously a pleasing result here?

            MXR    Yes. We’ve been having to discuss this matter through the warden’s court

5                      because the local people wanted more compensation than we originally planned to pay but we’ve now reached agreement on that and we’re going to be in there drilling a number of holes over the next few months. Deloraine is actually the biggest gold mine in the Adelaide Hills, produced about three tonnes as much as the Bird in Hand did and our exploration target at

10                    Deloraine is between 1.8 to 1.1 million tonnes, grading 15 to 20 grams. What that means, basically, is that we would be exploring for a gold content in the order of about 1 million ounces in the Adelaide Hills in total. Of course if we can find that then that makes the whole project much more significant and gives Maximus the opportunity of looking at 100,000 ounces a year over 10

15                    years which would be very good.

            BRR    Just finally, Kevin, looking at these prospects at Bird in Hand and Deloraine in the near term, what are the new scores and milestones that investors should be looking out for from Maximus?

20        MXR    Well, Deloraine…. the significant issue is drilling the first few holes and seeing if we get economic intersections, if we get good whips and  grades of gold mineralisation at Deloraine, that would be highly significant. Bird in Hand is more of an ongoing gradual process before we make a development. We’ve got more drill holes, we’ve got the water pump test to do, the results

25                    from that, and then later in the pre-feasibility study we’ll start more mining plans and also metallurgical work to see how the ore would be treated. But I think the most interesting thing in the next few months is going to be how we go with our first few drill holes at Deloraine.

30        BRR    All right, Kevin. Well, thanks very much for taking the time to give us an update on Boardroom Radio and we look forward to following the progress at Bird in Hand and Deloraine prospect in the near future.

            MXR    (inaudible) (00:05:06) Thanks very much.

35        BRR    And remember, if you have any questions about this broadcast or any other broadcasts on Boardroom Radio, send through your e-mails to brr@brr.com.au.

INTERVIEW CONCLUDED

Contact brr@brr.com.au for more information

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