Fox Resources Exploration Update

Transcription

1 ABN April 2012 ASX / Media Announcement Fox Resources Exploration Update Recent Ayshia results to be followed up with additional drilling Successful Mt Oscar drilling program nearing completion Ayshia Drill Planning Base metals development and exploration company Fox Resources ( Fox, the company ) (ASX: FXR) is pleased to announce it will shortly commence a new program of drilling at its Ayshia deposit. The drill testing follows the highly encouraging drill results reported during February and March 2012 at Ayshia, the Company s 100% owned volcanogenic massive-sulphide (VMS) deposit. Discussions with a suitable drill contractor are well advanced and the contract is expected to be let shortly. Six diamond drill holes for a total of approximately 2500m have been planned. The drilling is planned to test the down-hole electromagnetic (DHEM) targets defined in the geophysical surveying program at the end of the last drilling campaign. The DHEM targets indicate the presence of mineralisation both along strike and down plunge of the current drilling extents. Since the initial zinc resource was defined in 2006, no further exploration has been conducted at Ayshia. It is now pleasing to see the results of our geological re-assessment produce positive drill results and exploration momentum said Fox s Chief Executive Officer, Laurie Chew. The results from Ayshia reported previously are as follows: Hole Id 12AYDD102 12AYDD103 12AYDD104 Intersection 1.1% Cu, 0.5% Zn, 3.4g/t Ag and 0.2g/t Au, from m to 204.5m downhole 3.2% Cu, 0.4% Zn, 7.3g/t Ag and 0.14g/t Au, from 209.0m to 232.7m downhole, 4.4% Cu, 1.7% Zn, 16.9g/t Ag and 0.22g/t Au, from 259.6m to m downhole - 1

2 Figure 1 details the position of the planned drilling in relationship to the recently completed holes, DHEM targets and the known mineralisation at Ayshia. Figure 1: Planned Drilling at Ayshia. All coordinates are MGA94 Zone

3 VMS District Significance of the Recent Ayshia Results VMS deposits are generally located in swarms within camps or districts with each district hosting a number of distinct deposits. Up to two dozen deposits might be clustered in a camp of a few tens of square kilometers. 1 VMS are an important base metal deposit type. They are typically polymetallic with combinations of Zn, Cu, Pb, Ag, and Au. Mineralisation generally occurs as lenses of massive sulphide that form at or near the seafloor in submarine volcanic environments. As many as 800 different deposits are known worldwide. In any given district, deposits may range in size from less than one million tonnes to several tens of millions of tonnes. 1 The recent exploration success at Ayshia has highlighted the potential of the VMS district. Fox Resources currently holds, within its tenure, three VMS deposits for which mineral resources have been calculated, along with a number of other VMS occurrences. Figure 2 details the VMS deposits and prospects within the district. Figure 2: Simplified Geology and Prospects of the Fox Resources VMS District. - 3

4 Summary of Fox Resources Prospects and Deposits in the VMS District Prospect Resources Mining History Exploration Notes West 645, % Cu and 1.82% Zn Supergene copper mined with an open pit by Fox in 2006 Exploration potential for additional ore lenses to the north of the resource 1,042, % Cu and 0.4% Zn plus 421, % Zn Historic underground mining. Mined in the mid 1970s with a small open pit EM target (Austin) below and down-plunge of mineralisation requires further drill testing Ayshia 767, % Cu and 2.41% Zn No mining Recent exploration success down-plunge of resource Shelby No defined resources No mining Conquest No defined resources No mining Best intersection 3.6% Cu from m in hole SHDD016. Best intersection 0.52% Cu from 144.2m in hole 07CQDD009. Further drilling is required to further test two anomalies at this prospect. Sunchaser No defined resources No mining Best intersection of 3.1% Zn, from 28.4m in hole 07SCDD002. The prospect contains further anomalies that are yet to be drill tested. Yannery No defined resources Historic sporadic underground mining of high grade supergene copper ore from early 1900s until the late 1950s The prospect contains a deeper untested EM anomaly. East Well No defined resources No mining Exploration prospect, yet to be drilled. Full resource statements for summaries quoted here are presented as an appendix to this announcement. During 2011, Fox Resources, under the guidance of its consultants Newexco Services Pty Ltd, reassessed the known geology, mineralisation and geophysics of the district. This assessment resulted in the definition of a number of drill targets which were subsequently ranked for drilling. Ayshia was the first, and to date only, one of these targets to be drilled. Further reassessment of the district is ongoing. - 4

5 Mt Oscar The Mt Oscar Iron ore project is located on E47/1217, a wholly owned Fox Resources tenement, which is subject to a farm-in agreement whereby Magnetic South Pty Ltd can earn up to 60% of the project by spending $20 million over a five year earn-in period. The project hosts five airborne magnetic anomalies and a resource of 72Mt of BIF magnetite iron ore. The current resources are hosted in Anomaly % Fe) and Anomaly % Fe). Each of these anomalies have a strike length of approximately 1000m and are open to the north west. The current round of drilling is designed to test the strike extents of these anomalies to the north west for a strike distance of approximately 1000m. Figure 3 details the location of each of the anomalies at Mt Oscar and the location of the existing drill holes and current drill program. The drilling of the Mt Oscar magnetite BIF iron ore project is nearing completion with thick drill intersections of highly magnetic banded iron being reported. Summary logs of the first 6 of 12 holes are reported below. Figure 3: Mt Oscar Airborne Magnetic Anomalies and Drill Hole Locations - 5

6 Hole ID Magnetic BIF From (m) To (m) Thickness (m) 12ORC ORC ORC ORC ORC ORC ORC ORC ORC Table 1: Preliminary Drill Hole Intercepts Mt Oscar Iron Ore Drilling References: details the geology of VMS deposits. For further information, please contact: Laurie Chew Chief Executive Officer Fox Resources Ltd +61 (0) David Ikin Professional Public Relations david.ikin@ppr.com.au - ENDS - About Fox Resources Fox Resources (ASX: FXR, Fox) is a base metals development company with a substantial land-holding in the Pilbara region of Western Australia. Fox is well advanced in developing an innovative heap leaching operation to capitalise on an existing 300,000+ tonnes of stockpiled material at its flagship Radio Hill copper/nickel Project. Returning to production at Radio Hill is a major priority for the Company with exploration to further define base metal resources key to extending the future heap leach operations. Fox s exploration program also covers a number of prospective gold targets, and a highly prospective magnetite project at Mt Oscar, located 25km south of the port at Cape Lambert which is a Joint Venture with Magnetic South Pty Ltd. - 6

7 Competent Persons Statement: The information within this announcement as it relates to mineral exploration results and geophysics is based on information compiled by Fox Resources Ltd and William Amann and Adrian Black of Newexco Services Pty. Ltd. William Amann and Adrian Black are members of the Australian Institute of Geoscientists and have 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 and Adrian Black consent to the inclusion in this announcement of the matters based on the information in the form and context in which it appears. Information in this document that relates to Mineral Resources is based on information compiled by Mr Jeremy Peters, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Peters is a full-time employee of Snowden Mining Industry Consultants Pty Ltd. Mr Peters 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 (the JORC Code). Mr Peters consents to the inclusion in the document of the matters based on his information in the form and context in which it appears. Statement of Copper-Zinc and Zinc Mineral Resources COPPER ZINC MINERAL RESOURCES Deposit Mineralisation Classification Tonnes Cu % Zn % West Primary Sulphide Measured 386, West Primary Sulphide Indicated 259, Primary Sulphide Measured 304, Primary Sulphide Indicated 598, Primary Sulphide Inferred 140, Total 1,687, Contained Metal (t) 18,533 15,909 Cut-off Grades: West 2006 estimate (RSG Global) Cutoff grade 0.5% Cu or 0.5% Zn. The measured resource has been depleted from the RSG estimate by 20,000t based on company mining records estimate (Coffey Mining) Cutoff grade 0.4% Cu or 0.4% Zn. ZINC MINERAL RESOURCES Deposit Mineralisation Classification Tonnes Zn % Cu % Primary Sulphide Measured 94, Primary Sulphide Indicated 249, Primary Sulphide Inferred 78, Ayshia Primary Sulphide Measured 150, Ayshia Primary Sulphide Indicated 344, Ayshia Primary Sulphide Inferred 273, Total 1,188, Including 767, Contained Metal (t) 22,911 3,289 Cut-off Grades: Ayshia 2007 estimate (Coffey Mining) Cutoff grade 0.4% Cu or 0.4% Zn 2006 estimate (RSG Global) Cutoff grade 0.4% Zn - 7