RADIO HILL EXPLORATION UPDATE

Pilbara-based nickel developer, Fox Resources Limited (ASX: FXR), is pleased to provide an update on exploration activity from its base metals projects near Karratha.

As part of its strategy to integrate all geological, geophysical, and geochemical data, Fox is currently reassessing airborne geophysical surveys across its large landholding in the Pilbara.

The aim is to identify long-wavelength anomalous responses which may have been missed by previous interpretations.  Several new anomalies have already been identified for further exploration activity.

The current work will complement recent near mine drilling and geophysics at the nearby Radio Hill project, where Fox is targeting an increase in disseminated resources to three million tonnes.

The review is focusing on surveys commissioned by Fox and flown by Geotech Airborne between 2006 and 2008 over the Balmoral (formally De Beers), Sholl-Radio Hill-Whundo, Ruth Well and Baynton Project areas (Figure 1).  Work to date has corroborated the earlier interpretations, but has identified additional areas of interest that require verification and follow up programmes of further geophysics, geochemistry or drilling.

A re-examination of the Baynton VTEM survey flown in 2008 has confirmed the earlier interpretation and identified seven new anomalies (Figure 2).

Ground truthing of the previously reported VTEM anomalies failed to identify their sources as the region is covered by thick alluvial overburden.   Follow up ground EM surveys have commenced to better define these anomalies, prior to drill testing.

The Whundo Regional VTEM survey flown in 2006, covered an extensive area from Sholl in the north to Bertram in the south, and includes Radio Hill and Whundo.  A review of the Whundo survey has again confirmed earlier interpretations and also identified several new anomalies that require ground truthing, together with establishment of their geological settings, prior to recommending further work.

Within the Whundo survey area, two large magnetic anomalies ?David? and ?Goliath?, close to the Radio Hill mine, had previously been identified (Figure 3).  It is believed that David and Goliath may represent repetitions of the highly prospective Radio Hill intrusion.  A 3D inversion of the aeromagnetic data over these areas indicates that the depths to the top of the magnetic sources at both anomalies are in excess of 150m below surface, meaning the prospective mine sequence is likely to be at a depth of 200m or more and therefore beyond the effective penetrative limits of the VTEM system in this terrain.

Consequently, as part of the current geophysical campaign, a moving loop EM (MLEM) survey using a fluxgate receiver is planned over the David anomoly.  The survey has the potential to detect a Radio Hill sized target up to 400m below surface.

The Balmoral and Ruth Well surveys are yet to be re-assessed.