3 metres at 13% nickel intersected at ruth well

ABN: 44 079 902 499
ASX Code: FXR 6 Kings Park Road West Perth
Western Australia 6005
Phone: 61 8 9420 7300
10 May 2005 Fax: 61 8 9420 7333
Website: www.foxresources.com.au
3 METRES AT 13% NICKEL INTERSECTED AT RUTH WELL
Fox Resources Limited (“Fox”) (ASX code: FXR) is pleased to announce that drilling at Ruth
Well, situated only 12 kilometres from the Radio Hill treatment plant (refer figure 1), has
continued to intersect high grade nickel mineralisation with one intersection result of 3 metres @
13.1% nickel, 1.0% copper and 0.35% cobalt from 59m (RWRC218) (refer table 1). Further high
grade nickel mineralisation intersections achieved at Ruth Well are given below:
• 11 metres @ 4.3% nickel, 1.5% copper, 0.13% cobalt, from 55m,
----including 3 metres @ 13.1% nickel, 1.0% copper, 0.35% cobalt from 59m; RWRC218
• 3 metres @ 6.0% nickel, 1.2% copper, 0.18% cobalt from 69m,
----including 1 metre @ 13.8% nickel, 1.7% copper, 0.41% cobalt, from 70m; RWRC230
• 4 metres @ 5.4% nickel, 3.0% copper, 0.17% cobalt from 79m,
----including 1 metre @ 15.9% nickel, 6.7% copper, 0.49% cobalt from 81m; RWRC220
Ruth well is quite different from other nickel projects in that the high grade nickel mineralisation
is close to surface at around 50 metres and can be mined readily. Ruth Well has excellent
potential to extend the mine life of the Radio Hill Nickel Mine.
The latest results added to the previously announced intersection of 4 metres at 5.9% nickel,
8.1% copper, 0.2% cobalt from 50 metres shows that a significant nickel deposit exists at Ruth
Well . Drilling will continue through the month of May to be followed by a resource evaluation.
Electromagnetic (“EM”) surveys have identified a geophysical anomaly which is 400 metres in
strike length and has a similar geophysical signature to the current Ruth Well mineralisation. Drill
testing of this conductor is underway and follow up downhole EM surveys are planned.
The exploration program is consistent with Fox’s strategy of aggressively exploring for massive
nickel sulphides from surface and underground within the highly prospective Karratha Nickel
Province.
Figure 1
Table 1: Significant Drill Intercepts
Internal (M) Ni% Cu% Co% Au g/t Hole No. From To
11 4.3 1.5 0.13 3.0 RWRC218 55 66
3 13.1 1.0 0.35 0.8 includes 59 62
3 6.0 1.2 0.18 2.0 RWRC230 69 72
1 13.8 1.7 0.41 5.6 includes 70 71
4 5.4 3.0 0.17 1.0 RWRC220 79 83
1 15.9 6.7 0.49 0.8 includes 81 82
7 1.7 1.1 0.07 0.8 RWRC217 45 52
2 3.3 0.7 0.12 0.2 includes 48 50
5 1.4 3.8 0.05 5.0 RWRC219 61 66
1 4.6 11.7 0.16 0.3 includes 65 66
9 1.3 0.9 0.05 0.1 RWRC223 44 53
2 2.0 1.1 0.08 0.0 includes 45 47
4 1.9 5.9 0.07 3.3 RWRC230 62 66
1 2.8 3.7 0.08 6.9 includes 63 64
2 2.0 9.7 0.08 0.6 includes 64 66
12 1.1 2.0 0.04 1.5 RWRC225 49 61
2 1.7 3.8 0.07 5.2 includes 53 55
HOLE ID MGA94_N MGA94_E MGA94_RL Dip Azi
RWRC218 7692341.138 486012.506 1067.831 -60 0
RWRC230 7692339.152 486031.479 1066.262 -60 0
RWRC220 7692328.818 486041.583 1065.715 -60 0
RWRC217 7692347.109 485988.139 1066.677 -60 0
RWRC219 7692342.789 486022.159 1067.138 -60 0
RWRC223 7692351.544 486012.545 1067.157 -60 0
RWRC225 7692344.498 486000.189 1067.611 -60 0
For further details, please contact:
Brett Matich – Managing Director +61 8 9420 7300
Kevin Kartun, RADAR Investor Relations +61 4 1380 6353
About Fox Resources Ltd
Fox is a Top Ten Australian nickel sulphide producer which operates the Radio Hill Nickel Sulphide Mine, located near
Karratha in W.A. The project, acquired in September 2002 includes an 180,000tpa nickel processing plant and a fully
developed underground mine with a 1.8 kilometre decline to a depth of 280 metres. Previous owners from 1988 to
2002 have spent over $60 million in capital and from 1998 to 2002 approximately 20,000 tonnes of nickel and 16,000
tonnes of copper were produced from Radio Hill.
Fox is producing around 35,000 tonnes of nickel and copper concentrates per year, which is shipped monthly to
China’s largest nickel producer, Jinchuan Limited. A feasibility study has commenced into mining and heap leaching
of the disseminated nickel resources at Radio Hill and the surrounding Sholl deposits. These deposits contain 40,000
tonnes of nickel and 50,000 tonnes of copper and on successful completion of the study, Fox aims to commence
production in 2006.
About Cape Lambert Iron Ore
Fox has agreed to acquire the Cape Lambert magnetite iron deposit that is within 10 kilometres of major infrastructure
including a shipping port. Positioned nearby to Radio Hill, currently data are under validation to target a 250-500 Mt
deposit of magnetite from 22,000m of drilling conducted in the 1990’s. Since then iron ore prices have doubled.
Fox can also earn a 60% interest in the Bandicoot iron project covering an area of 150 sq km located only 50km from
the Port of Wyndham. Assays carried out in the 1970’s have returned values of up to 65%Fe over a significant strike
length.
The technical information contained in this report is based on information compiled by Ed Mead who is a member of
the AusIMM and is able to sign off on resources and reserves as a competent person with over 10 years experience
in the minerals industry. This person is competent in the field of activity being reported on and consents to the
inclusion of this information in the form and context in which it appears in this report.