Proactive investors

Fox Resources

Fox Resources finds high grade magnetite at Mount Oscar in Pilbara

Pilbara based minerals developer Fox Resources (ASX:FXR) has announced that 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 were 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.

Background

The Mt Oscar project area is on granted Exploration Licence E47/1217 located 30km south of the port of Cape Lambert. 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. 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.

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.

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.

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.