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Fox Resources Upgrades Mount Oscar Magnetite Resource To 126Mt

Fox Resources (ASX: FXR) has upgraded Resources at the Mount Oscar Joint Venture magnetite project in Western Australia by 75% to 126 million tonnes grading 33.84%.

Magnetite exploration drilling at Mount Oscar has also returned Davis Tube Recovery (DTR) concentrate result of 47.2% mass recovery and 61.7% Fe from one of the three targeted anomalies.

The drilling programs are fully funded by farm-in partner Magnetic South Pty Ltd, which is earning up to 60% of the project by spending $18 million over a ten-year period.

Fox also has chairman Terry Streeter - as a substantial shareholder with a 19.69% stake in the company who has history in lifting the valuation of mining companies as founder and chairman of $569 million market cap Western Areas (ASX: WSA).

It has also completed initial White Quartz Hill gold exploration drilling and has started analysis of the VTEM survey over the Mount Oscar joint venture tenement.

Mount Oscar Resource

The upgrade of Resources in anomalies 1 and 2 at Mount Oscar was carried out by Golder Associates.

This incorporates the existing estimate of 72 million tonnes and the 2012 reverse circulation drilling.

The Resource has a recovery of 23.02% and a concentrate grade of 60.54% iron.

Magnetite Drilling

The company has also completed the latest Mount Oscar exploration reverse circulation drilling program over anomalies 3, 4 and 5 with 15 holes completed for a total of 6,553 drill metres targeting magnetite hosted in banded iron formation.

Results have been received for all 930 composite samples that were submitted to ALS Iron Ore Technical Centre in Perth with drill intercepts from Anomaly 4 returning significant assays including 68 metres with an average Davis Tube Recovery (DTR) concentrate result of 47.2% mass recovery and 61.7% Fe from 453 metres.

The results also indicated that further analysis and drilling would be required before a resource estimate could be made for Anomaly 4.

This is due to the lack of drill holes into Anomaly 4 and the depth of the significant intercepts from the current drill results.

Drilling also indicated that further exploration is not warranted on anomalies 3 and 5 as the results suggest that there is little potential to derive a mineral resource estimate from these anomalies.

White Quartz Hill

At White Quartz Hill, the company completed 14 reverse circulation holes for 2,496 metres to follow up on existing mineralisation as well as 44 air core holes totalling 497 metres into an area that hosted prospective geological structures.

Several reverse circulation holes reported gold assays with a peak of 4.86ppm while no and the company has identified a 4.5 kilometre long shear zone.

The company noted that less than 1 kilometre of the 4.5 kilometre strike length of the gold bearing zone has been drilled and zone has not been mapped in detail.

Ongoing work includes detailed structural geology mapping, supported by detailed ground magnetic surveying, to define possible fertile structures. These exploration activities are designed to test a conceptual target of high grade shoots within shear hosted gold mineralisation.

Mount Oscar Background

The Mount Oscar Magnetite Project is located on E47/1217-I, a wholly-owned Fox tenement about 25 kilometres south of the port of Cape Lambert in the Pilbara region of Western Australia.

The project is subject to a farm-in agreement whereby Magnetic South Pty Ltd can earn up to 60% of the project by spending $18 million over a ten year earn-in period.

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