FXR 0.00% 0.2¢ fox resources limited

FOX Opening Radio Hill Cash Cow

  1. 236 Posts.
    Fox announces it will reopen Radio Hill at Karratha.

    Titan made a net of $50m in 4 years but blew most of it up in its bio-heap technology.



    Also check out miningnews,net.au


    HIGHLIGHTS

    * Fox acquires Radio Hill nickel/copper sulphide process plant
    and heap leach operations

    * Fox secures nickel reserves and resources for future mining
    operations, Titan retains 1% royalty on nickel produced

    * Radio Hill acquisition to transform Fox from explorer to
    producer

    * Morning Star high grade gold intersected 10 metres @ 20.46
    grams/tonne from 49 metres

    * Star of Mangaroon high grade gold values of up to 120
    grams/tonne over a strike of 6 kilometres

    * Shareholders to receive free option for every four shares held

    MORE TO FOLLOW


    Part B (entered 05-Aug-2002 07:46 am)
    FOX RESOURCES LIMITED 2002-08-01 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    RADIO HILL OPERATION

    FOX ACQUIRES RADIO HILL NICKEL MINE

    Fox has finalised an agreement with Titan Resources NL ("Titan") to
    acquire the Radio Hill nickel/copper sulphide process plant, 35km
    south of Karratha in the West Pilbara region of Western Australia.
    The Company also acquires all associated heap leach operations,
    infrastructure and mining leases.

    Titan has produced approximately 45,000 tonnes of nickel concentrates
    per annum from the Radio Hill operation containing nickel, copper,
    cobalt and palladium metals. The plant contributed $37 million in
    revenue for 2001.

    Titan retains the right to the disseminated nickel sulphide reserves
    over the currently mined Radio Hill tenement, however, the Company
    has secured an option over these reserves, as well as an option over
    the nickel sulphide resources from Titan's Mt Sholl tenements.

    The Company has also entered into a joint venture agreement with
    Titan over these and other regional tenements.

    These agreements increase the Company's substantial land holding to
    almost 1000 square kilometres, including 12 granted mining leases in
    the Karratha area. This provides further opportunity for the
    discovery of extensions of nickel sulphide and precious metal
    resources for future milling and heap leach operations.

    FOX NICKEL/COPPER SULPHIDE PRODUCER

    The acquisition of the Radio Hill operations is a major development
    in transforming the Company from explorer to producer.

    The Company will immediately undertake a detailed review with the aim
    to commence heap leach operations of the high grade Whundo copper
    oxide stockpiles at the Radio Hill heap leach facilities. The
    Company's objective is to provide cash flow for the growth of the
    Company and enable the Company to fund its exploration programs. The
    Company's goal is to generate early term positive cash flow to
    provide returns to shareholders.

    The Company's due diligence review of the plant indicates that a
    significant increase in mill throughput and flotation capacity can be
    readily achieved and result in a lower cost production profile,
    enabling the economic production of the disseminated nickel/copper
    sulphide reserves and resources, which will substantially increase
    the mine life of the Radio Hill operations.

    The Radio Hill Plant and underground was originally constructed in
    the late 1980's by Agip Pty Ltd, a wholly owned subsidiary of the
    Italian State Oil Company at a cost of $45 million. The review of the
    plant by the Companys independent expert concluded that the plant
    has been well maintained and is in good operational condition.

    RESERVES/RESOURCES AND FUTURE OPERATIONS

    * Radio Hill disseminated nickel/copper sulphide reserves of 784,032
    tonnes at 0.76% Nickel, 1.04% Copper, 0.05% Cobalt and 0.6 grams per
    tonne palladium.

    * The Mt Sholl disseminated nickel/copper sulphide resources of
    2,069,000 tonnes at 0.81% Nickel, 0.87% Copper, 0.033% Cobalt and
    0.62 grams per tonne palladium.

    * The Whundo deposit includes stockpiles of 31,000 tonnes @ 4% copper
    and a resource of 2 million tonnes @ 2% copper, 1.3% zinc and 11 g/t
    silver. There is potential for further discoveries of massive base
    metal sulphide mineralisation extending over 12 kilometres of strike.

    These deposits contain in-situ resources in excess of 22,000 tonnes
    of contained nickel, 66,000 tonnes of copper, 1100 tonnes of cobalt
    and 1,750kg of palladium.

    The Mt Sholl tenement block also hosts a number of gold-bearing
    systems including the Four Ounce Show and Radley's where previous
    exploration outlined a preliminary resource in excess of 36,000
    ounces to a depth of 50 metres. The majority of this mineralisation
    is open in all directions.

    An additional promising gold prospect is East Well where previous
    drilling intercepted 2m @ 5.5 grams/tonnes gold. Assays of up to 50
    grams/tonnes gold were obtained from rock chip sampling over a strike
    length of 800 metres.

    The Company tenure also hosts several other important mineralised
    layered intrusive complexes including the platinum-rich horizons at
    Munni Munni and nickel copper at Maitland and North Whundo.

    The Company also acquired an extensive database that includes
    regional high-resolution magnetic and electromagnetic surveys, which
    were flown over the entire Titan project area in late 2000. The
    survey was designed to accurately map the limits of these layered
    intrusions and determine new prospective areas and has identified a
    number of new exploration targets.

    The Radio Hill site also provides the Company with offices and other
    base facilities that provide a regional exploration base to allow to
    readily evaluate its resource and exploration land holding in the
    West Pilbara.

    RADIO HILL PLANT AND TENEMENT ACQUISITION

    An agreement has been finalised with Titan for the sale of the Radio
    Hill treatment plant and associated infrastructure along with three
    underlying and associated mining tenements by paying Titan the sum of
    $925,000. Titan also retains a royalty of 1% of the value of nickel
    produced from any new discoveries of nickel ore from the mining
    tenements. The Company will also assume responsibility for future
    rehabilitation of the Radio Hill site, this is subject to statutory
    approvals but both parties expect this to be a formality.

    OPTION OVER RADIO HILL AND MT SHOLL RESERVES/RESOURCES

    In respect of the Radio Hill disseminated nickel sulphide reserves, a
    cash payment upon exercise of the option of $75,000 plus a 1% royalty
    on all nickel, copper and cobalt produced. In respect of the Mt Sholl
    disseminated nickel sulphide resources a cash payment upon exercise
    of the option of $200,000 plus a 1% royalty on all nickel, copper and
    cobalt produced. The term of the option is until 30 June 2004.

    JOINT VENTURE AGREEMENT

    In an associated transaction, the Company has signed a farm-in
    Agreement with Titan, whereby the Company may earn a 70 per cent
    equity in seven Mining Leases held by Titan (M47/207, 252, 254, 275
    and 347 for all minerals and M47/344-5 for precious metals only) by
    paying the sum of $50,000 cash and sole funding the next $500,000 of
    exploration expenditure over the next three years.

    WHUNDO AND YANNERY COPPER DEPOSITS

    During the quarter the Company announced the purchase of the Archaean
    volcanic Hosted Massive Sulphide (VHMS) Whundo and Yannery
    copper-sulphide deposits in the West Pilbara for a cash consideration
    and a royalty of $1.00 per tonne of ore mined.


    MORE TO FOLLOW


    Part C (entered 05-Aug-2002 07:41 am)
    FOX RESOURCES LIMITED 2002-08-01 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    MORNING STAR AND JASPER QUEEN PROJECTS

    RC DRILLING

    During the quarter RC drilling at Morning Star prospect has confirmed
    that the Snake Pit area contains high-grade gold mineralisation. RC
    Hole MSRCOO09 intersected 10m at 20.46g/t gold from 49m. This
    intercept lies approximately 30m down dip from CDAC230, which also
    returned a high grade intercept of 13m @ 13.66g/t including 1m at
    68.7g/t gold from 13m and 2m at 86.7g/t gold from 21 m. The
    mineralisation is currently open in all directions and further
    drilling is recommended.

    At Jasper Queen, RC drilling confirmed significant mineralisation
    along strike in at least three-stacked shear zones. These shears
    correlate well with a line of shallow old mine workings and remain
    open to the east.

    The RC drilling results prompted a review of all existing RAB
    drilling data and this has identified an additional six targets that
    justify following up, markedly enhancing the prospectivity of the
    mining leases.

    SIGNIFICANT RC DRILLING INTERCEPTS

    PROSPECT HOLE# NORTH EAST AZI DIP FROM TO WIDTH AU
    (G/T)


    PROJECT: MORNING STAR

    Nth Anomaly MSC0001 6978579 579367 270 -60 63 64 1 2.73
    79 80 1 1.80
    83 84 1 4.81
    Nth Anomaly MSCR003 6978412 579363 270 -60 63 64 1 2.71
    Snake Pit MSRC004 6978262 579528 270 -60 47 50 3 2.09
    55 56 1 4.03
    Snake Pit MSRC008 6978102 579526 270 -60 52 53 1 1.56
    Snake Pit MSRC009 6978100 579546 270 -60 49 59 10 20.46
    including 49 52 3 7.32
    including 56 59 3 60.32
    73 74 1 3.41
    Snake E MSRC0010 6978104 579606 270 -60 10 11 1 2.43
    37 39 2 3.35
    60 61 1 1.27
    65 67 2 3.03
    Snake E MSRC0012 6978024 579606 270 -60 23 24 1 2.14
    Dam MSRC0015 6978083 579377 270 -60 42 43 1 2.51

    PROJECT: JASPER QUEEN

    Fence JRC002 1880 1000 360 -60 60 61 1 1.57
    75 76 1 2.34
    JRC009 1800 1080 360 -60 24 25 1 2.85
    JRC010 1960 1000 360 -60 17 18 1 12.76
    62 66 4 2.45
    JRC011 1960 1040 360 -60 13 18 5 2.65
    46 47 1 1.29
    JRC0012 1960 1080 360 -60 34 36 2 2.18
    JRC0013 1920 1015 360 -60 28 30 2 1.13
    38 39 1 4.39
    44 46 2 3.84
    63 64 1 4.26

    During the quarter the Company agreed to acquire 100% of the Jasper
    Queen project, which consists of a granted mining lease located 18
    kilometres east of Cue in the Murchison Mineral Field of Western
    Australia.

    The purchase of Jasper Queen by Fox is subject to shareholder
    approval of the issue of 850,000 fully paid ordinary shares in Fox
    Resources Limited and 850,000 free attaching 31 January 2006 20 cents
    options. The vendors retain a $1.50 per tonne of ore mined royalty.

    STAR OF MANGAROON PROJECT

    Highly encouraging results were obtained from a regional rock chip
    sampling program recently carried out over the Company's Star of
    Mangaroon project area in the upper Gascoyne region of WA.

    High grade gold values of up to 121.24 grams/tonnes gold were
    obtained from several locations over a strike length of around six
    kilometres east and west of the historic high-grade Star of Mangaroon
    gold mine.

    Highly anomalous silver and base-metal values accompany gold
    mineralisation in most places sampled. The best assays included 185.5
    grams/tonnes silver, 6.92 % copper and 23.37 % lead.

    STAR OF MANGAROON
    SIGNIFICANT REVERSE CIRCULATION DRILLING RESULTS

    Hole Northing Easting Azimuth From To M g/t Au
    MA002 10066 10026 310 10 14 4 3.27
    MA006 10033 10018 176 17 21 4 6.42
    including 20 21 1 15.10
    MA007 10019 10018 300 13 18 5 3.67
    including 14 15 1 13.30
    MA008 10016 10017 270 15 19 4 9.57
    including 16 17 1 19.95
    MA008 10050 10014 278 12 13 1 6.11
    MA010 9990 10010 322 9 13 4 25.97
    including 10 12 2 49.68
    MA014 10030 10027 270 29 31 2 17.95
    MA015 10022 10025 270 24 28 4 3.27
    MA016 10010 10023 272 25 28 3 10.50
    including 25 27 2 15.25
    MA017 9983 10019 290 22 24 2 41.86
    including 22 23 1 79.35
    MA020 10029 10041 270 49 50 1 21.05
    MA022 9986 10046 285 1 4 3 1.36
    47 51 4 6.29
    including 47 48 1 15.25
    MA023 9978 10012 302 0 4 4 1.56
    19 21 2 29.80
    including 19 20 1 50.80
    25 26 1 1.82
    MA026 10129 982 30 3 4 1 2.57
    19 20eoh 1 1.39
    MA027 1014 9999 0 0 1 1 3.90
    MA034 10100 10020 206 8 9 1 2.30
    MA036 10030 10077 270 75 76 1 1.60
    82 84 2 3.63
    MA038 10011 10053 270 51 52 1 8.20
    MA040 9990 10077 270 69 72 3 6.76
    including 71 72 1 13.15
    MA043 9950 10000 303 18 19 1 47.50
    MDH001 280 90.83 96.38 5.23 17.75
    Including 90.83 92.96 1.8 33.66
    Note all holes drilled at 60 degrees except MA027.

    During the quarter the Company reached agreement to acquire 100% of
    the Star of Mangaroon gold mine, which includes 65 square kilometres
    of the surrounding Mangaroon Goldfield, located 200 kilometres south
    west of Paraburdoo in Western Australian.

    The purchase of the Star of Mangaroon by Fox is subject to
    shareholder approval of the issue of 3 million fully paid ordinary
    shares in Fox Resources Limited and 3 million free attaching 31
    January 2006 20 cent options. The vendor retains a royalty of $5.00
    per ounce of gold mined.

    CORPORATE

    BONUS ISSUE OF OPTIONS

    The Directors have resolved to reward shareholders for their support
    of the Company and to provide an incentive for their continued
    support by the issue of options for no consideration on the basis of
    1 option for every 4 shares held on the record date. The options will
    be exercisable at 20 cents and expire on 31 January 2006.

    It is proposed that the options be issued through the issue of a
    prospectus. Further details regarding the record date will be
    provided on the lodgement of the prospectus. Application will be made
    to the ASX to list the options.

    CAPITAL RAISINGS AND OPTION ISSUE

    The Company proposes to:

    * raise up to $1.6 million (before costs) through the placement of up
    to 8 million shares at an issue price of 20 cents per share. The
    issue will include a free attaching option for every 4 shares
    subscribed.

    * raise approximately $195,000 (before costs) through the issue of up
    to 9,750,000 options at 2 cents per option. The options will be
    issued at the discretion of the directors. These options will have an
    exercise price of 20 cents each and an expiry date of 31 January
    2006. The options will have the same terms and conditions as the
    bonus options issued to shareholders.

    * issue a total of 6 million free incentive options to the directors,
    management and consultants of the Company. The options will be
    unlisted and have an exercise price of 40 cents each and an expiry
    date of 31 December 2009.

    The issue of securities will provide funds to strengthen the financial
    position of the Company to provide working capital for the conduct of
    the Company's current and future activities, including funding the
    Radio Hill operations and the exploration of the Star of Mangaroon
    Project, the Jasper Queen Project and the Companys other exploration
    expenditure commitments.

    The Company will seek shareholder approvals in respect to the
    proposed issue of options and the capital raisings.


    B Matich
    MANAGING DIRECTOR
 
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