FXR 0.00% 0.2¢ fox resources limited

FOX Drilling Commences

  1. 236 Posts.
    FOX RESOURCES LIMITED 2002-05-22 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    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
 
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