The Companys first reverse circulation (RC) drilling programme at Radio Hill has been extended following the intersection of high-grade massive sulphide mineralisation in two holes. The best intersections were 4 metres @ 3.2% nickel, 6.9% copper, 5.4g/t gold, 6.0 g/t palladium and 2.0g/t platinum (6.3% nickel equivalent) from 109 metres in RAHRC4 and 3 metres @ 4.8% nickel and 3.5% copper (5.5% nickel equivalent) from 91 metres in drillhole RAHRC3.
These intersections are contained within a broader halo of disseminated sulphide mineralisation that averaged 1.6% nickel and 4.0% copper (3.2% nickel equivalent) over 9 metres from 108 metres in RAHRC4 and 30 metres @ 0.9% nickel and 1.5% copper (1.4% nickel equivalent) from 75 metres in drillhole RAHRC3. The intersections reported are down-hole lengths as the true width is unknown.
This new nickel sulphide discovery at Radio Hill has great significance for its potential to increase the existing nickel reserves and extend the mine life of the Radio Hill nickel mine. This new zone is accessible with minimal development of the existing decline and can be treated at the Radio Hill Plant.
As a result of this discovery, step out drilling has been undertaken to test the strike and down dip extension of the new zone mineralisation.
The drillholes tested a poorly defined zone of massive and disseminated nickel-copper- PGEs sulphide mineralisation located 200 metres west of the main mineralised trend. The mineralisation is hosted by gabbroic units of the Radio Hill layered intrusion. Limited drilling in this area by Fox suggests that the mineralisation forms a shoot that runs parallel to the ore zones previously mined by Titan and Agip.
Follow up exploration using the latest geophysical and geological techniques together with an experienced exploration team will enhance the ability to make further successful discoveries at Radio Hill.
The details of the drillholes are as follows:
HOLE LOCAL EAST LOCAL NORTH DEPTH DIP AZIMUTH NUMBER METRES (LOCAL) RAHRC4 6720 4050 157 -60 270 RAHRC3 6710 4100 200 -60 270
Samples were assayed by AMDEL using fire method FA3 for Au, Pd and Pt and method IC3B for Ni and Cu. Over-range Ni and cu samples were re-assayed using metallurgical digest Met1.
B Matich MANAGING DIRECTOR
The information in this report that relates to exploration results was compiled by Mr Donald Thomson, an employee of Fox Resources Ltd and a member of the AusIMM. Mr Thomson 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 competent Person as defined in the Australasian Code for the Reporting of Resources and Ore Reserves. Mr Thomson consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
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