Fox Resources Ltd

Published : February 09th, 2009

Mt Oscar Exploration Update

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9 February 2009

ASX / Media Announcement

 

 

MT OSCAR EXPLORATION UPDATE

 

Highlights:

?                     DTR results received from the first 10 holes of the RC drilling program

?                     Broad high grade magnetite horizons with Davis Tube Recoveries of up to 50%

?                     Metallurgical tests indicate a saleable concentrate can be produced

?                     Initial resource in 1st Quarter 2009

?                     Further drilling planned in second quarter 2009

Pilbara based minerals developer Fox Resources (ASX: FXR) is pleased to announce Davis Tube Recovery (?DTR?) and Metallurgical test results from the first 10 holes of a 27 hole 5,283 metres reverse circulation (?RC?) drilling program recently completed at the Mount Oscar Iron Ore Project (Mt Oscar) in the Pilbara of WA.

The results include Davis Tube Recovery (?DTR?) which confirm high grade magnetite with DTR of up to 50%, along with metallurgical testing which indicate Mt Oscar ore can produce a saleable concentrate using conventional processing techniques..

Fox Resources remains on track to deliver an initial mineral resource at Mt Oscar this quarter.

Significant DTR results are summarised in Table 1 and include:

?                     08ORRC002, 84 metres at an average DTR recovery of 51.16% mass to concentrate with a concentrate grade of 57.35% Fe

          Including 48 metres at an average DTR recovery of 58.14% mass to concentrate with a concentrate grade of 57.03% Fe

?                     08ORRC003, 40 metres at an average DTR recovery of 47.58% mass to concentrate with a concentrate grade of 57.39% Fe

          Including 32 metres at an average DTR recovery of 53.24% mass to concentrate with a concentrate grade of 58.05% Fe

?                     08ORRC004, 44 metres at an average DTR recovery of 49.32% mass to concentrate with a concentrate grade of 57.03% Fe


Metallurgical Testing

A 130kg bulk sample from holes RC01 and RC03 was delivered to Promet Engineering for metallurgical test-work. Results from these tests indicate Mt Oscar ore can produce a saleable concentrate using conventional crushing, grinding and flotation techniques. Silica levels in concentrate were successfully reduced from a worst case level of 17.2% to 6.9% using Reverse Flotation. Mass recovery levels from ore to concentrate are expected to be similar to those of other magnetite projects in the Pilbara. The company is confident that a target level of 5% silica in concentrate can be achieved given that average silica levels are below that of the bulk sample. Further metallurgical test-work is planned to confirm this silica reduction strategy and to optimise reverse flotation techniques..

Background

The Mt Oscar project area is on granted Exploration Licence E47/1217 located 30km south of the port of Cape Lambert (see Figure 1). This location gives the project massive advantages in terms of access to infrastructure and vital services. Gas, water and power are all within 20km of the project and port facilities are 30km from the project.

The Mt Oscar magnetite mineralisation is hosted within sub-vertical and outcropping Banded Iron Formations (?BIF?) of approximately 10kms strike length which are part of the Cleaverville Formation. The Cleaverville Formation hosts several other major magnetite projects in the Pilbara region.

These BIF?s are coincident with a regional magnetic high. A detailed airborne high resolution magnetic survey flown in August 2007 defined five discrete magnetic anomalies which are particularly strong in intensity - 50,000nT above background (see Figure 3). These anomalies are approximately twice the intensity of those associated with the Cape Lambert (MCC) and Cape Preston (Sino Iron) magnetite projects. Rock chip sampling and field mapping conducted early in 2008 confirmed these anomalies.

Drilling Programs

Due to the rugged topography within the Mt Oscar project area and lack of ground access diamond drilling was done with a helicopter supported rig and holes were collared where suitable access was available at the top of BIF ridges. A helicopter supported diamond drilling program commenced on 16 June 2008 at the two highest priority anomalies, Anomaly 1 and Anomaly 2 with a total of seven holes drilled for 694 metres. Magnetite mineralisation was intersected within BIF units of up to 80 metres apparent thickness.

An access track was bulldozed to Anomalies 1 and 2 during August 2008 in preparation for the RC drilling program. RC drilling commenced on 4 September 2008 using a track mounted rig with holes being collared near the base of the BIF ridges to test extensions of mineralisation at depth. Magnetite rich BIF horizons of up to 178 metres in apparent width have been encountered at Anomaly 1 and 2 which both have a strike length of approximately 1km.

A total of 27 RC holes have been drilled for 5,283 metres (see Figure 2). A total of 713 DTR samples have been sent to Amdel laboratories in Kewdale for processing. Further DTR results are expected later in February and March.

Resource Estimate

Data from the RC and Diamond drilling programs conducted at Mt Oscar during 2008 will be used to produce an initial resource estimate for the project. This resource estimate should be completed by the end of the first quarter 2009.

Planned Exploration

Further RC drilling programs are planned for Anomalies 3 and 4 during the second quarter of 2009. Field mapping has indicated the presence of similar widths and quality of magnetite mineralisation at these locations.

 
Table 1: RC Drilling Intercepts at Mount Oscar

Hole ID

LOCATION

SAMPLE

Mass Recovery

Head Fe

DTR Results

Easting

Northing

From

To

Interval

Conc Fe

Conc SiO2

Conc Al2O3

Conc P

Conc S

(MGA94)

(MGA94)

(m)

(m)

(m)

(%)

(%)

(%)

(%)

(%)

(%)

(%)

08ORRC002

519000

7686205

131

215

84

51.16

36.93

57.35

16.54

0.916

0.032

0.012

Including

160

208

48

58.14

38.78

57.03

17.17

0.942

0.035

0.01

08ORRC003

518789

7686156

48

88

40

47.58

35.37

57.39

15

0.917

0.043

0.024

96

128

32

53.24

36

58.05

15.69

0.786

0.038

0.014

08ORRC004

518789

7686155

32

56

24

46.75

35.3

56.02

15.43

1.217

0.044

0.024

64

108

44

49.32

34.08

57.03

16.8

0.861

0.037

0.012

08ORRC005

518636

7686161

52

135

83

40.1

35.32

60.54

12.8

0.6

0.038

0.046

08ORRC006

518636

7686160

44

109

65

44.11

35.55

59.31

14.21

0.669

0.039

0.043

08ORRC008

518271

7686156

195

243

48

37.05

31.93

60.18

12.94

1.096

0.036

0.056

08ORRC011

518120

7686292

115

138

23

42.61

32.39

57.11

17.45

1.19

0.038

0.026

08ORRC012

518549

7686154

23

67

44

26.89

32.76

55.43

12.83

0.561

0.039

0.068

83

135

52

31.11

31.3

58.98

12.28

0.477

0.041

0.027

08ORRC013

518549

7686153

22

58

36

35.99

33.59

56.87

14.84

0.773

0.037

0.124

66

118

52

32.38

34.46

59.07

11.77

0.406

0.04

0.017

08ORRC014

518996

7686211

154

178

24

38.36

34.6

64.13

8.72

0.647

0.045

0.012

243

280

37

37.87

34

61.48

12.42

0.629

0.036

0.104

 

 

1.      Intercept widths are apparent not true

2.      Sample intervals are based on 4 meter composites

3.      Each composite is individually tested by DTR, with all composite results averaged for the interval

4.      Minimum interval 20 metres, maximum internal waste 8 metres

5.      DTR head samples prepared to nominally 80% passing 25 micrometers

6.      Assays performed by AMDEL Limited (IML laboratory) with chemical analysis by X-ray Fluorescence Spectrometry (XRF).

 

-ENDS-

For further details please contact:
Bruno Seneque, Managing Director                       +61 8 9318 5600
Warrick Hazeldine ? Purple Communications       +61 8 6314 6300

 

 

About Fox Resources

Fox Resources is a nickel focused metals developer, with a substantial resource footprint in the world-renowned Pilbara region. Fox?s Radio Hill project has been producing and shipping nickel and copper concentrate for more than four years. It was placed on care and maintenance during 2008 following adverse movements in nickel prices.

The project offers the advantages of established infrastructure, including a new 84 man village, a 425,000 tonne per annum nickel processing plant, a fully developed underground mine at Radio Hill and concentrate storage facilities at the Port of Dampier, 40km from the Radio Hill Mine. The concentrates produced at Radio Hill are also high value due to their low levels of magnesium oxide and arsenic.

Fox Resources has an off-take arrangement in place with marketing partner Jinchuan Group Limited - China's largest producer of nickel, and a major Fox Resources shareholder. The Company has also the benefit of a highly experienced Board and management team, with particular expertise in the development of major nickel projects.

The Company is also advancing its substantial Mount Oscar magnetite project in the Pilbara, where it is working to deliver an initial JORC resource estimate during the first half of 2009.

 

 

COMPETENT PERSON STATEMENT

The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Neil Winfield who is an employee of the company and is a member of the Australasian Institute of Mining and Metallurgy. Mr Winfield has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Mr Winfield consents to the inclusion in the report of the matters based on his information in the form and context in which it appears



 

Purple Communications

Level 3, 28 Kings Park Road, WEST PERTH WA 6005

Ph: 08 6314 6300 Fax: 08 6314 6355

purple@purplecom.com.au

 

Fox Resources Ltd

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Fox Res. is a silver and gold producing company based in Australia.

Fox Res. develops silver, gold, cobalt, copper, nickel and palladium in Australia, and holds various exploration projects in Australia.

Its main asset in development is RADIO HILL (FOX) in Australia and its main exploration properties are ASHBURTON, RUTH WELL, WHUNDO and MT REGAL in Australia.

Fox Res. is listed in Australia. Its market capitalisation is AU$ 1.7 millions as of today (US$ 1.3 millions, € 1.1 millions).

Its stock quote reached its highest recent level on November 10, 2006 at AU$ 1.88, and its lowest recent point on March 24, 2016 at AU$ 0.00.

Fox Res. has 847 800 000 shares outstanding.

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