+++++++++++++++++++++++++ The company is pleased to announce the purchase of the Archaean Volcanic Hosted Massive Sulphide (VHMS) Whundo and Yannery copper-sulphide deposits in the West Pilbara from Straits Resources Limited (ASX Code: SRL) for a cash consideration and a royalty of $0.50 per tonne of ore mined. The acquisition marks the consolidation of the company's substantial land holdings in the Karratha district and provides the opportunity for the discovery of extensions to these high grade copper resources close to a major regional centre with modern port facilities.
VHMS deposits are typically high-grade and occur in clusters. They are an important class of deposit, contributing to a significant proportion of world copper and zinc production annually. The Golden Grove deposit, near Yalgoo in the Murchison region of Western Australia, and the giant Kidd Creek, Horne, Flin Flon and Dome deposits of Canada, are of this type.
Copper was first discovered at Whundo in 1912. Production has come from four deposits, Whundo, West Whundo, Yannery and Maitland. Mining concentrated on the secondary oxide and carbonate ore, with production of 10,000 tonnes grading 22.7% copper that was shipped from Whundo in 1979. The potential for extensions to the primary sulphide resource has largely been ignored.
At a 1% copper cut off, the reported resources are as follows: TONNES OF DEPOSIT ORE TYPE RESOURCE CONTAINED JORC COPPER CLASSIFICATION METAL
West Whundo Supergene 95,000 tonnes at 4.21% Cu Measured 4,020 Oxide Ore Sulphide 2,000,000 tonnes 2.0% Cu Inferred 40,000 Whundo Sulphide 431,000 tonnes 2.2% Cu Inferred 9,482 Stockpiles 10,000 tonnes at 3.7% Cu Stockpiled 370
There is potential for further discoveries of massive sulphide mineralisation in these and the adjacent tenements. Fox holds several licences around Whundo/Yannery which cover previously identified mineralisation which extends for 12 kilometres north-east of these deposits.
CUDDINGWARRA RC DRILLING COMMENCES
The Company is also pleased to announce the commencement of its first reverse circulation drilling program at Fox's 80% owned Cuddingwarra gold project located 14km north west of Cue in Western Australia.
The program consists of approximately 17 holes (1500m) mostly testing strike and depth extensions of previous high-grade gold intersections around the Northern Anomaly, the Snake Pit West and East and the Dam Anomaly.
The aim of this drilling is to confirm the previous high-grade drill intersections and to test their immediate extensions both along strike and down dip to delineate high-grade ore suitable for open cut mining.
B M Matich MANAGING DIRECTOR
FXR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
