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Fox Resources Intersects Magnetite At Mount Oscar In Western Australia

Fox Resources (ASX: FXR) has encountered magnetite bearing Banded Iron Formation in all holes drilled to date at the Mount Oscar Joint Venture in Western Australia.

Separately, the company has extended repayment of a $500,000 loan to 31 August 2013 in return for its issuing 1 million shares to the lender.

Mount Oscar

Fox and Magnetic South Pty Ltd have completed five reverse circulation holes at Anomalies 3 and 4 of the Mount Oscar project to depths of between 350 metres and 650 metres.

Drilling progress has been better than anticipated and the remaining 10 holes are n target to be completed by the end of June.

The magnetite drilling program totals $1.8 million and is fully funded by Magnetic South, which is earning up to 60% of the project by spending $18 million over a ten year earn-in period.

This will be followed by the $320,000 White Quartz Hill gold exploration program.

Mount Oscar hosts five airborne magnetic anomalies and an inferred resource of 72 million tonnes of banded iron formation (NYSE:BIF) magnetite iron mineralisation.

The current resources are hosted in Anomaly 1 (43.4Mt at 33.3% Fe) and Anomaly 2 (29Mt at 35.1% Fe).

Loan repayment

Fox has also secured more time to repay a $500,000 loan it had secured on 15 May 2012 with its agreement to pay the lender 1 million Fox shares at nil cost within five days.

The loan, arranged with Merchant Opportunities Fund, was originally due on 14 May 2013.

It carried an interest rate of 8% per annum or is repayable at the lender's election by the issue of new Fox shares at a price per share based on a discount to the volume weighted average price of Fox shares traded on ASX over the 30 days from receipt of the loan.

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