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Fox Resources Enters New Phase At Mount Oscar Magnetite Project In WA

Fox Resources (ASX: FXR) has entered a busy two months with a 1,200 kilometre aerial survey completed and a drill program completed at Mount Oscar magnetite project, with drilling at White Quartz to commence in Western Australia.

Mount Oscar Background

The Mt Oscar Magnetite Iron project is 100% owned by Fox Resources 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.

The new Mount Oscar drilling program follows on the previous exploration success to increase and identify additional magnetite exploration targets.

The magnetite drilling program totals $1.8 million and is fully funded by Magnetic South Pty Ltd the Joint Venture partner.

Drilling

The Mount Oscar Magnetite drilling on anomalies 3,4, and 5 has seen magnetite bearing Banded Iron Formation encountered in 11 out of 14 holes drilled in this programme to date.

A total of 14 of the 15 RC holes have been completed to depths between 350 and 630 metres at Anomalies 3, 4 and 5, and 6,500 metres of drilling has been completed.

The project 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 (43.4 million tonnes at 33.3% iron) and Anomaly 2 (29 million tonnes at 35.1% iron).

White Quartz Hill

The White Quartz Hill gold exploration is part of the Mount Oscar Joint Venture, and is fully funded by the Joint Venture partner Magnetic South Pty Ltd.

The White Quartz Hill $320,000 gold and base metals exploration program will commence mid July 2013.

The total gold and base metals program comprises 50 Air Core holes and 15 RC drill holes for up to 3,500 metres of drilling.

VTEM aerial survey

The 1,2000 kilometre VTEM aerial survey over the Mt Oscar, PLS joint venture tenements, and Mill Stream tenements has been completed. The VTEM Mt Oscar data will be provided in 4 weeks and the PLS/Millstream data will be provided in 6 weeks.

Pilbara Western Australia

Fox intends to conduct Ground EM on the 8 anomalies already defined on the Pilbara Mineral Minerals tenements.

Fox will assess the data from the VTEM aerial surveys aimed at generating additional anomalies for Ground EM follow up on the Mt Oscar, Pilbara Minerals Joint Venture, and Millstream tenements.

In addition to the Mt Oscar VTEM survey Fox has flown VTEM surveys over some of the prospective Pilbara Minerals Joint venture tenure (PLS) and also the Millstream tenure (100% Fox Resources)

A total of 453 Line KM of VTEM was flown over the PLS tenure while 176 line KM was flown over the Millstream tenure. The map below details the locations of all 3 VTEM surveys.

This completes the current VTEM aerial survey of the Fox Resources Tenements.

Queensland Coking Coal Bundaberg

Fox is assessing tenders on the 7 hole RC drill program on the Bundaberg tenement to assess the coking coal potential within the Bundaberg tenement EPC 1523.