Fox Resources

PROMISING ASSAY RESULTS FROM RADIO HILL

Pilbara-based nickel developer, Fox Resources (ASX:FXR), is today pleased to announce more encouraging assay results from the southern holes as part of the 2,000 metre drilling programme at its Radio Hill project near Karratha.

Commenced at the end of last year, the program was designed to test a series of Electromagnetic (EM) anomalies between 400 and 600 metres down plunge of mine workings – see figure 1.

The assays produced promising results from holes 08RHDD110 and 09RHDD111, which both intersected thick intervals of mine gabbro sequence containing variable to significant amounts of disseminated sulphides, before terminating in basalt basement. Each hole returned several intervals anomalous in nickel and copper within the mine gabbro, including 09RHDD111 1.0 metre @ 1.15% nickel and 0.94% copper from a depth of 412 metres down hole. Significant assays are tabulated below.

Fox Resources Managing Director Bruno Seneque said the results from these holes demonstrate that the mineralised trend extends south from the mine at least as far south as 08RHDD110.

“These results will now be followed by a re-evaluation of recent and historic drilling to assist in the planning of a follow-up drilling programme, aimed at delineating higher grade zones within the mineralised trend immediately south of the Radio Hill mine,” Mr Seneque said.

“The drilling program is part of the re-evaluation and interpretation of the geological and geophysical information at Radio Hill, which is being managed by renowned nickel exploration specialists Newexco Services Pty Ltd in conjunction with Fox.”

The potential for the mineralised trend to continue down plunge remains strong, with only sparse drilling, no surface EM and limited DHTEM present to the south of hole 08RHDD110. The mine gabbro has been identified in a number of these holes in the south and core re-logging is currently underway to re-interpret the geology in this location. Interpretation of the DHTEM results from hole 07RHDD084 (previously reported) suggest that the anomalous response in this hole is caused by the weakly mineralised horizon which extends toward 08RHDD110.

Fox is aiming to increase resources at Radio Hill, and is targeting at least three million tonnes of low grade ore with the aim of developing a robust, higher tonnage mining and processing operation.