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  • Fox Resources Readies For Anticipated First Coking Coal Drilling In Bundaberg  0 comments
    Apr 21, 2013 11:22 PM

    Fox Resources (ASX: FXR) is set to begin its first drilling program at the Bundaberg Coal Project in Queensland in the first week of May - adjacent to a hard coking coal discovery by International Coal (ASX: ICX) and partner Gina Rinehart's Hancock Prospecting subsidiary.

    Seven holes will be drilled in a 15 kilometre long corridor that has demonstrated potential to host a coking coal deposit in the order of that discovered recently by the International Coal/Queensland Coal Investments Joint Venture.

    Drilling will be designed to identify whether the coal seams encountered at depths of 250 metres by International Coal at its EPC 2196 extends into Bundaberg (EPC 1523). EPC 2196 is located immediately northwest of EPC 1523.

    Indicating the size potential, the JV has delivered an Inferred JORC Resource of 28.5 million tonnes, and a further down-dip exploration target of 20 to 40 million tonnes within the neighbouring EPC 2196 tenement.

    The coal in International Coal's tenement has been tested and results received to date indicate a crucible swelling number (CSN) of eight to nine. (1 is low, 10 is very high quality).

    Based on several recent geological consultants' reports for Fox Resources and previous investigations, recommendations were made that the most promising area within Fox's EPC 1523 for discovery of coking coal resources is a 15 kilometre north to south corridor along the western margin of the EPC.

    Historical coal exploration drilling in the 1980s indicated coal intersections on the Bundaberg tenement at shallow depths of <150 metres.

    Multiple coal seams ranging from 0.2 metres to 2 metres thick may be present over a stratigraphic interval of 5 to 20 metres.

    The available coal quality test work indicates that prime coking coal is potentially present.

    Modern-day drilling, with accurate survey and comprehensive down hole geophysical logging is required to move forward with resource estimation within this tenure.

    The Bundaberg tenement is wholly owned by Fox Resources and all the coal tenements will shortly be transferred into the company's wholly owned subsidiary Waterford Coal.

    Fox plans to fast track work on its existing Queensland assets, which include Bundaberg, Styx, Emerald, Springsure, Alpha, and Eromanga.

    The tenements, which cover 10,358 square kilometres, have good access to infrastructure necessary for commercial development. All of the tenements are considered to be prospective for either coking or thermal coal.

    Fox recently secured A$2.56 million via a placement to major shareholders to progress its exploration program on its base metals tenements in Western Australia's Pilbara region and repay debt.

    Analysis

    Fox Resources' Terry Streeter and Bruce Garlick will be hoping for similar success enjoyed by neighbour International Coal and Hancock Prospecting' s recent Bundaberg Project discovery on the adjacent tenement.

    Streeter is also chairman Western Areas (ASX:WSA) with a market cap. of $528 million and knows how to make sizeable discoveries.

    Drilling by Fox is designed to test for a continuation of the same high quality coal seams that have been discovered on International Coal's EPC 2196.

    A core hole had Crucible Swelling Index (CSN) of 9 in that JV's exploration program.

    Drilling success for Fox would see the current share price of $0.035 a thing of the past.

    Fox is likely to be closely watched by investors as it readies for drilling and results will be highly anticipated.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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