FXR 0.00% 0.2¢ fox resources limited

High Grade Gold Results

  1. 236 Posts.
    FOX RESOURCES LIMITED 2002-06-05 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    STAR OF MANGAROON GOLD PROJECT - ACQUISITION

    The Company is pleased to announce 100% acquisition 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 Australia.

    The Star of Mangaroon Mine was discovered in 1956 and produced 7464
    oz of gold from 5357 tonnes of ore at a grade of 43.19g/t Au between
    1960 and 1983 and was the largest gold producer in the Gascoyne
    Mineral Field.

    * Limited drilling in 1987 and 1994 outlined a measured and indicated
    resource to around 50m vertical depth of 46,490 tonnes grading 17.2
    g/t Au for 25,709 oz Au. The in-situ value of this resource at todays
    gold price of $572.85 (on 04/06/2002) is $14.7 million.

    * The Star of Mangaroon resource remains open at depth and along
    strike.

    * High grade gold mineralisation has been identified by prospecting
    and sampling over a strike length of 3.5 to 4 kilometres trending in
    a NNW direction from the Star of Mangaroon mine. Results of up to 373
    g/t Au (12 oz/tonne Au) from shallow old workings have been obtained
    from this work. No drilling is evident in this area.

    * Several other gold targets have been identified within the project
    area over a total strike length of 15 kilometres.

    * The Mangaroon Goldfield occurs in Proterozoic rocks identical in age
    to many other major gold producing regions of Australia, eg
    Granites-Tanami, Tennant Creek, Pine Creek, Peak Hill and including
    Newmont's 5-6 million oz Callie deposit. The recently discovered and
    developed Paulsens and Paraburdoo gold mines are 150-200 kilometres
    NE of the Star of Mangaroon mine in equivalent age (though less
    metamorphosed) rocks.

    The terms of acquisition is subject to shareholder approval the issue
    of 3 million fully paid ordinary shares in Fox Resources Limited
    (FXR) and 3 million free attaching 31 January 2006 20 cent options.
    The options will have the same terms and conditions as the bonus
    options issued to shareholders. The vendor retains a royalty of $5.00
    per ounce of gold mined.

    STAR OF MANGAROON
    SIGNIFICANT REVERSE CIRCULATION DRILLING RESULTS

    HOLE NORTH EAST AZI FROM TO M g/t Au

    MA002 10066 10026 310 10 14 4 3.27
    MA005 10043 10018 276 14 15 1 1.06
    MA006 10033 10018 176 17 21 4 6.42
    incl 20 21 1 15.10
    MA007 10019 10018 300 13 18 5 3.67
    incl 14 15 1 13.30
    MA008 10016 10017 270 15 19 4 9.57
    incl 16 17 1 19.95
    MA008 10050 10014 278 12 13 1 6.11
    MA010 9990 10010 322 9 13 4 25.97
    incl 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
    incl 25 27 2 15.25
    MA017 9983 10019 290 22 24 2 41.86
    incl 22 23 1 79.35
    MA018 10071 10002 275 50 51 1 1.05
    MA020 10029 10041 270 49 50 1 21.05
    MA022 9986 10046 285 1 4 3 1.36
    47 51 4 6.29
    incl 47 48 1 15.25
    MA023 9978 10012 302 0 4 4 1.56
    19 21 2 29.80
    incl 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
    MA029 10140 9940 205 5 6 1 1.16
    MA032 10104 9992 206 2 3 1 1.10
    10 11 1 1.60
    MA034 10100 10020 206 8 9 1 2.30
    MA036 10030 10077 270 75 76 1 1.60
    82 84 2 3.63
    MA037 10030 10097 270 95 97 2 1.89
    MA038 10011 10053 270 51 52 1 8.20
    MA040 9990 10077 270 69 72 3 6.76
    incl 71 72 1 13.15
    MA041 9957 10034 303 42 43 1 1.62
    MA043 9950 10000 303 18 19 1 47.50

    Note all holes drilled at -60 degrees except MA027.

    STAR OF MANGAROON
    SIGNIFICANT DIAMOND DRILLING RESULTS

    HOLE NORTH EAST AZI FROM TO M g/t Au

    MDH001 280 90.83 96.38 5.23 17.75
    incl 90.83 92.96 1.8 33.66


    JASPER QUEEN GOLD PROJECT - ACQUISITION

    The Company has also agreed to acquire 100% of the Jasper Queen
    mining centre, which consists of a granted mining lease located 18 km
    east of Cue in the Murchison Mineral Field of Western Australia.

    The mining Lease was granted on 14 September 1992, and covers an area
    of 100 ha. The lease hosts the historic Jasper Queen Gold Mine, the
    site of the original discovery in the region. At the Jasper Queen
    historical mine, recorded production amounts to 1,022 ounces of gold
    produced from 611 tonnes of ore. Mine development reached a maximum
    depth of 45 meters. A privately owned CIP plant commissioned within
    200 meters of the Jasper Queen mineralised zones. The former
    Westgold's decommissioned CIP plant is located 5km east and Harmony's
    Big Bell operation is approximately 40 km west.

    RAB drilling has been carried out by the previous tenement holders
    but was limited to relatively shallow depths (approx 20-30m) and
    though gold anomalism was encountered it was not until 3 RC holes
    were drilled in April 2001 (MRC01 to 03) that evidence of the degree
    of weathering and leaching became apparent. Each of these 3 RC drill
    holes encountered significant gold mineralisation as follows.

    HOLE NO EAST NORTH DEPTH FROM TO INTERVAL GRADE
    (m) (m) (m) (m) (g/t)

    MRC 001 1920 1000 74 46 50 4 7.8
    60 70 10 4.2

    MRC 002 1920 1030 75 12 22 10 1.2
    32 44 12 2.4

    MRC 003 1918 1055 56 48 50 2 7.6

    It is expected that drilling will commence on the Jasper Queen lease
    immediately after completion of the drilling at Fox's Cuddingwarra
    lease, which was announced last week.

    The Jasper Queen program will consist of approximately 12 holes
    (1000m) mostly testing strike and depth extensions of the previous
    high-grade gold intersections encountered in MRC 001 - 003. The aim
    of this drilling will be to delineate high-grade ore suitable for
    open cut mining.

    The terms of acquisition of the 100% interest is the issue subject to
    shareholder approval of 850,000 fully paid ordinary shares in Fox
    Resources Limited (FXR) and 850,000 free attaching 31 January 2006
    20 cent options. The options will have the same terms and conditions
    as the bonus options issued to shareholders. The vendors retain a
    $1.50 per tonne of ore mined royalty.

    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 RAISING OPTION PLACEMENT

    The Company intends to 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.

    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 exploration of the Star of Mangaroon Project, the Jasper
    Queen Project and Fox's other exploration expenditure commitments.

    It is proposed that these capital raisings be placed through the
    issue of a prospectus. Application will be made to list the options
    on the ASX.


    B R Matich
    MANAGING DIRECTOR
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.