30 January 2007 ASX/Media Release WHUNDO COPPER RESOURCE INCREASES 600% Fox Resources Limited (“Fox”) (ASX code: FXR) today announced a significant upgrade to the Indicated Resource at its 100%-owned Whundo Copper-Zinc Deposit (“Whundo”) (Figure 1), located just 12 kilometres from the Company’s Radio Hill treatment plant in the Pilbara, Western Australia. Whundo is a key deposit in Fox’s emerging new Whundo Volcanic Massive Sulphide (VMS) Copper-Zinc Project area. The resource upgrade is based on results from a successful drilling programme that concluded in the December 2006 quarter and the resulting assays. The original Whundo Indicated Resource, as announced on 12 July 2006, has been significantly upgraded (Table 1) to 10,000 tonnes of contained copper and 10,600 tonnes of contained zinc metal – a 600% and 400% increase respectively. The original Indicated Resource (Table 2) at Whundo stood at 1,700 tonnes of contained copper and 2,560 tonnes of contained zinc metal. A total of 101 holes have been drilled to define the Whundo deposit, comprising of 1,245 diamond drill metres and 10,770 reverse circulation drill metres. The Indicated Resource has been drilled on 15m x 15m spacings. The increase in resource is attributed to an increase in strike length to the north and mineralisation still remains open (Figure 1) since the previous Resource estimate. Fox’s Managing Director, Mr. Don Harper, said today’s Whundo Resource upgrade is a further step towards significantly increasing the Company’s resource base. “We remain focused on developing Fox’s shallow low cost base metal deposits – a formula that has worked well for us,” said Mr Harper. “We are in a very fortunate position to have exposure to minerals such as nickel, copper and zinc at a time of excellent commodity metal prices.” “The Company will maintain its focus on copper and zinc production from West Whundo for now, until we install additional milling capacity at the Radio Hill Mill to treat nickel ore from Radio Hill and Sholl. We have been presented with an excellent opportunity to maintain our cashflow while we strengthen the Company’s move into nickel production on the back of increased throughput and nickel recovery,” he said. Mr Harper went on to say that the Company is currently reviewing several milling options and will update the market on it’s two revenue stream production strategy. The strategy includes the utilisation of the previously announced Elizabeth Hill mill (Figure 2) acquisition which is located only 5km south west of the upgraded Whundo deposit. EXPLORATION UPDATE Exploration drilling for the Company is scheduled to re-commence in February 2007 targeting the Razerline nickel deposit (Figure 2) and the Zodiac anomaly, which has potential for nickel and is located only 5 kilometres east of Radio Hill mill.
Zodiac consists of four Electromagnetic (EM) conductors, each of which is approximately 100 metres in strike length. The other remaining EM targets (Figure 2), namely Sunchaser, Conquest, Bertram and Carver will be tested following the completion of the tenement approval process expected late February 2007. - ENDS - For further details, please contact: Don Harper – Managing Director +61 8 9318 5600 Jim Hawtin – Porter Novelli +61 8 9386 1233 ABOUT WHUNDO Copper was mined from the Whundo deposit intermittently since 1911, with the most recent operations ceasing in 1976. Total production from this deposit was 12,000 tonnes of direct shipping supergene ore grading 22.3% copper. The largest mining operation was by Whim Creek Consolidated NL in 1976 when 6,746 tonnes of 27.4% copper ore was produced from a supergene oxidised ore shoot at Whundo. Since acquiring the project in 2002, Fox’s successive exploration strategy and drilling programs have returned consistent results earmarking the potential of all the Whundo Copper Zinc Project’s deposits. Whundo is adjacent to the West Whundo high grade open pit copper mine currently operated by Fox where mining of the high grade supergene ore has been completed and open pit operations have been centred on mining and stockpiling massive copper and zinc sulphide ore in preparation for the production of copper and zinc concentrate. - ENDS - APPENDIX Table 1 – Whundo Upgraded Resource Table 2 - Whundo Original Resource Indicated Tonnes % Cu %Zn Total 32,000 5.3 8 Metal Tonnes 1,700 2,560 Indicated Tonnes %Cu %Zn Total 627,000 1.6 1.7 Metal Tonnes 10,000 10,600
Figure 1 – Plan view of Whundo Copper Zinc Deposit Significant drill intercepts previously reported on 9 November 2006 from Whundo included; COPPER • 22m @ 4.05% copper from 35m down hole depth, WHGC009 • 14m @ 2.75% copper, 3.08% zinc from 121m down hole depth, WHRC231 • 14m @ 2.36% copper from 36m down hole depth, WHGC012, • 10m @ 2.80% copper, 2.88% zinc from 72m down hole depth, WHRC339, • 6m @ 4.14% copper, 4.09% zinc from113m down hole depth, WHRC283 • 7m @ 3.81% copper from 36m down hole depth, WHGC012 ZINC • 7m @ 11.61% zinc, 1.42% copper from 100m down hole depth, WHRC263 • 8m @ 8.63% zinc from 109m down hole depth, WHRC268 • 12m @ 7.08% zinc from 100m down hole depth, WHRC263 • 24m @ 2.89% zinc from 121m down hole depth, WHRC231 • 4m @ 6.05% zinc from 90m down hole depth, WHRC275 • 3m @ 7.79% zinc from 90m down hole depth, WHRC275
Drill Hole Collar Co-ordinates Hole ID North East R/L WHGDC009 7669013 492509.08 1101.006 WHGC012 7669023 492499.8 1101.006 WHRC231 7669185 492460.2 1098.152 WHRC246 7669086 492400.4 1099.373 WHRC263 7661945 492480.0 1097.020 WHRC275 7669126 492320.0 1097.365 WHRC283 7669164 492383.7 1097.387 WHRC323 7669055 492310.0 1097.020 WHRC339 7669095 492340.0 1097.020 WHRCD236 7669045 492339.3 1098.385 WHGC006 7669166 492469.2 1098.680 WHGC009 7669105 492099.7 1095.770 WHGC012 7669045 492040.8 1095.840 WHRC231 7669185 492460.2 1098.152 WHRC232 7669185 492440.3 1098.131 WHRC263 7669145 492480.0 1097.020 WHRC268 7669165 492480.0 1097.020 WHRC275 7669126 492320.0 1097.365 WHRC283 7669164 492383.7 1097.387 The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Ed Mead who is a full-time employee of the company and is a member of the Australasian Institute of Mining and Metallurgy. Mr Mead has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Mead consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
FXR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
