word is new discovery is huge

2 July 2007 ASX/Media Announcement
FOX DISCOVERS IRON ORE PROSPECT ON 100%
OWNED TENEMENT
HIGHLIGHTS
• Fox discovers a significant potential magnetite/haematite iron ore prospect on its
100% owned tenement in the Pilbara region of Western Australia
• The Mt Oscar iron ore prospect is located only 30km south of the major iron ore
shipping Port of Cape Lambert and 25km south of the Cape Lambert Magnetite
Project
• Early evaluation indicates two strong magnetic sources each between 400m to
600m thick and highly magnetic
• Close spaced, low level helicopter magnetic survey to commence at the end of
July 2007
Fox Resources Limited (ASX: FXR) today announced the discovery of an iron ore prospect on the
Company’s 100% owned ELA47/1217 tenement (Figure 1). The Mt Oscar iron ore prospect is only
32km east of the Company’s flagship Radio Hill nickel/copper mining operations in the Pilbara of
Western Australia.
The Company has recently been made aware of significant magnetic anomalies on the Mt Oscar iron
ore prospect located 30km south of the major iron ore Port of Cape Lambert and 25km south of the
Cape Lambert Magnetite project (Figure 1) owned by Cape Lambert Iron Ltd (ASX:CFE). The area of
interest is partially outcropping Banded Iron Formation (BIF) which is 5km long and 2km wide and is
coincident with a regional magnetic high (Figure 2).
Geophysical consultants Southern Geoscience have completed an initial aeromagnetic model for the
main anomalies and have suggested the presence of a folded sequence and believe two strong and
broad (400m - 600m) magnetic units (Figure 3) are related by folding within a synclinal structure. The
modelled magnetic characteristics are very high and support the presence of potential strong
magnetite development below surface.
The Company will implement the following exploration strategy:
• Fly a low level, close spaced helicopter aeromagnetic survey over the area;
• Gravity survey of the local area to define potential magnetite/haematite target centres;
• Complete modelling of aeromagnetic and gravity surveys;
• Follow up with on ground geological mapping; and
• Plan an initial shallow drill test program.
“The Company is committed to continued development of its nickel, copper and zinc base metal
assets in the Pilbara, however, Mt Oscar appears to be a significant iron ore prospect which warrants
further investigation. The prospect is on 100% owned Fox ground and clearly demonstrates the
potential suite of minerals this Company has exposure to in the Pilbara.” said major shareholder and
director Terry Streeter.
The Company will announce its nickel and copper production, shipping and exploration update from
Radio Hill soon.
About Mt Oscar Iron Ore Prospect
Work in the area started in the 1960’s with the latest work being completed in 1994 by KKR Resources
which included rock chip sampling, mapping and airborne magnetics. A review of this work by Fox
Resources and Southern Geoscience indicates that the highest magnetic anomalies have not been
sampled. The BIF samples that have been taken are from peripheral areas to the magnetic high
anomalies. Of note, is that the area of interest is surrounded by Uranium anomalies.
-ENDSFor
further details, please contact:
Don Harper – Managing Director +61 8 9318 5600
Ann Nahajski – Porter Novelli +61 8 9386 1233 +61(0)400 205 433
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 consultant to 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.