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