26 May
2009
ASX / Media Announcement
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.
-ENDS-
For further details please contact:
Bruno Seneque, Managing Director +61 8 9318 5600
Ryan McKinlay / 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 delivered a maiden inferred resource during the first
half of 2009.
COMPETENT PERSON STATEMENT
The information within this report
as it relates to mineral exploration and geophysics is based on information
compiled by Fox Resources Ltd and William Amann of Newexco Services Pty. Ltd. William Amann
is a member of the Australian Institute of Geoscientists and has sufficient
experience which is relevant to this style of mineralisation and deposit under
consideration to qualify as a Competent Person as defined in the 2004 Edition
of the ?Australian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves?. William Amann consents to the
inclusion in the report of the matters based on the information in the form and
context in which it appears.
Please follow the links below to view images:
Figure 1: Location of VTEM surveys with
respect to the current Fox tenement
http://www..purplecom.com.au/_content/documents/1211.JPG
Figure 2: Anomalies identified from Baynton VTEM survey overlain on a TMI image with survey
flight lines. Anomalies BC4-7 and BC11-13 are recently identified features.
(Blue lines: initial follow-up survey lines).
http://www..purplecom.com.au/_content/documents/1212.JPG
Figure 3: Location of Goliath and David
prospects with respect to Radio Hill
http://www..purplecom.com.au/_content/documents/1213.JPG
Issued by
Purple
Communications
Level 3, 28
Kings Park Road, WEST PERTH
WA 6005
Ph: 08 6314 6300 Fax: 08 6314 6355
purple@purplecom.com.au