Perth-based Fox Resources Ltd has completed a $3 million capital raising which will be used to develop its West Whundo Copper Project located in the West Pilbara region.
Perth-based Fox Resources Ltd has completed a $3 million capital raising which will be used to develop its West Whundo Copper Project located in the West Pilbara region.
The full announcement is below:
Fox Resources Limited ("Fox") (ASX code FXR) is pleased to announce the successful completion of a $3million capital raising which was led and managed by Bell Potter Securities Limited. The placement of 12.7 million shares at an issue price of $0.24 per share was strongly supported by institutional and sophisticated investors.
Proceeds raised will be used for capital expenditure, debt reduction, working capital purposes, and contribute towards development of the West Whundo Copper Project where Fox aims to commence mining in the first quarter of 2006.
Part of the funding will be used to upgrade the copper flotation capacity at the Radio Hill processing plant to increase further copper production by the installation of, recently acquired, additional copper flotation cells. This increased copper flotation capacity will allow the company to capitalise on record spot copper prices as all sales are currently unhedged.
Fox remains focused on revenue generating opportunities through minimal capital expenditure, by leveraging off its existing infrastructure and experienced workforce at Radio Hill.
This announcement will lift the trading halt on the Company's securities.
WEST WHUNDO COPPER PROJECT FEASIBILITY STUDY UPDATE
The final stages of the regulatory approvals process - in which permission is sought from Government bodies to undertake clearing in preparation for mining operations - has been completed, with permit applications being submitted for the West Whundo Copper Project. Pit optimisation studies are underway with all hydrological, geotechnical and environmental studies completed.
Metallurgical tests are currently being carried out at laboratories in Perth. Metallurgical studies include gravity table and heavy media separation methods aimed at upgrading the high grade chalcocite and massive sulphide copper ores to direct shipping grade ore. Further test work is being carried out to recover copper from oxide ore through a sulphidisation method using the existing Radio Hill mill which will add further revenue to the project.
ABOUT FOX RESOURCES LTD
NICKEL, COPPER & ZINC ¬ Radio Hill, Sholl, Ruth Well and West Whundo
Fox is a Top Ten Australian nickel sulphide producer which operates the Radio Hill Nickel Sulphide Mine, located near Karratha in W.A. Fox's nickel and copper concentrate production 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 the first half of 2007.
GOLD ¬ Star of Mangaroon, Four Ounce Show, and Radleys gold deposits
The Star of Mangaroon Gold Mine is located 170 km north of Gascoyne Junction and 250 km northeast of Carnarvon, in the Gascoyne Mineral Field. The deposit was discovered in 1956 with underground production between 1960 and 1983 of 7,464 ounces of gold from 5,357 tonnes of treated ore (average grade of 34.8g/t gold). Fox holds the lease on which the deposit is located, as well as a surrounding lease application giving Fox a tenement holding of 65 km. Fox is currently assessing joint venture opportunities.
The Four Ounce Show and Radleys gold deposits are situated on a mining lease approximately 12 km from the Radio Hill Mine in the Pilbara. This tenement hosts a number of gold-bearing systems where previous exploration outlined a preliminary resource in excess of 36,000 ounces to a depth of 50 m. The mineralisation is mainly open in all directions.
An additional promising gold prospect is East Well where previous drilling intercepted 2 metres at 5.5 grams/tonne gold.
Assays of up to 50 grams/tonne gold were obtained from rock chip sampling over a strike length of 800 metres.
