HIGH MAGNETICS CONFIRM IRON ORE POTENTIAL AT MT OSCAR

Transcription

1 ABN October 2007 ASX / Media Announcement HIGH MAGNETICS CONFIRM IRON ORE POTENTIAL AT MT OSCAR Fox Resources Limited ( Fox ) (ASX: FXR) today announced an update on exploration at the Mt Oscar Iron Ore project in the Pilbara of Western Australia. MT OSCAR IRON ORE PROJECT The Mt Oscar Iron Ore project is on ELA 47/1217 in the rich iron ore province in the Pilbara region of Western Australia and lies only 30km south of the iron ore Port of Cape Lambert and 25km south of the Cape Lambert magnetite project (Appendix 1). As announced on 9 August 2007, a low level detailed helicopter magnetic survey has been completed over the Mt Oscar Iron Ore project and has clearly defined several highly magnetic anomalies. The strength of these anomalies are measured in nanotesla (nt) and anomaly amplitudes of up to 120,000nT have been recorded, with a background ambient magnetic of approximately 55,000nT (Figure 1). Overall given the anomaly amplitudes and initial magnetic modelling, it has been estimated that the associated local, highly magnetic western source has a magnetic susceptibility of approximately 3 to 5 SI units which is equivalent to 50% to 75% iron ore. This western magnetic anomaly signature supports the presence of a highly magnetic unit of approximately m strike, and approximately m thickness, with good depth extents. Of significance is that the helicopter magnetic survey shows that there is a significant extent of the Cleaverville formation (which hosts the Cape Lambert Iron Ore deposit) within Fox s Mt Oscar ELA 47/1217. This survey data will be used to locate well developed more localised zones of magnetite enrichment that are still of economic size and also haematite units in the same general area that could have direct shipping grades. A gravity survey which is planned for December 2007 will define zones of higher density, which will aid in identifying areas of potential interest for haematite. As announced on 10 July 2007, the Company has been in discussion with a major iron ore company and these results will allow discussions to be fast tracked in respect to their potential participation in the project. Fox has recently completed a regional sampling program to acquire material for analysis and preliminary metallurgical test work as warranted. Assay data will be released as they come to hand. Suite 1 & 2, 614 Newcastle St, Leederville WA 6007 Tel: Fax: Web: fxr@foxresources.com.au

2 Fox is on track in the implementation of the following exploration strategy as announced on 2 July 2007: Fly a low level, detailed helicopter magnetic survey over the area completed; Gravity survey of the local area to define potential magnetite/haematite target centres scheduled for December 2007; Complete modelling of aeromagnetic survey in progress; Complete modelling of gravity survey planned for December 2007; Follow up with on ground geological mapping in progress; and Plan an initial shallow drill test program scheduled after completion of gravity survey. Approval from the Department of Industry and Resources to commence drilling is expected to be granted in December "These early exceptionally high magnetic results confirm the potential for a significant magnetic iron ore unit to exist. This is a very exciting development for the Company. We look forward to the gravity survey planned to explore for areas of potential haematite iron ore. In the meantime, the Company continues to maximise nickel and copper production through its Radio Hill operation." said Bruno Seneque, Executive Director. Exploration Program Update Radio Hill Near Mine Exploration Diamond drilling continues to test for the repetition of another Radio Hill massive nickel and copper sulphide style ore body. A full update along with drilling at Bertram (announced 23 August 2007) will be released soon. Squid EM at Sholl B2 and Ruthwell As announced on 3 October 2007, deep penetrating Squid EM has been completed at Sholl B2 testing for nickel and copper sulphide conductors 250m below surface where drill hole B2RCD044 intersected % nickel, 1.2% copper and 0.2% cobalt from 264 metres below surface. In addition, the program has been extended to cover the Ruth Well area where drill hole RWRC218 intersected % nickel, 1.5% copper, 0.13% cobalt, from 55m, including % nickel, 1.0% copper, 0.35% cobalt from 59m; were reported on 10 May An update on Squid results will be released as they come to hand.

3 Figure 1: Low Level Detailed Helicopter Magnetic Survey over Mt Oscar Iron Ore Project

4 Figure 2: Regional Aeromagnetics About Mt Oscar Iron Ore Project The Mt Oscar Iron Ore Project is on ELA 47/1217 and lies 30km south of the iron ore Port of Cape Lambert and 25km south of the Cape Lambert magnetite project which is currently having a feasibility study completed by Cape Lambert Iron Ltd. The area of interest is a partially outcropping Banded Iron Formation (BIF) which is 5km long and 2km wide and is also coincident with a regional magnetic high. Work in the area started in the 1960 s with the latest work being completed in 1994 by KKR Resources which included rock chip sampling, mapping and airborne magnetics. A review of this work by Fox and Southern Geoscience indicates that the highest magnetic anomalies have not been sampled. The BIF samples that have been taken are from peripheral areas to the magnetic high anomalies. Tenement ELA 47/1217 is in the process of being granted. -ENDS- For further details, please contact: Bruno Seneque Executive Director Ann Nahajski Porter Novelli (0)

5 Appendix 1 ` Information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Gustav Wolff who is a consultant to the company and is a member of the Australasian Institute of Mining and Metallurgy. Mr Wolff 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 Wolff consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.