Fox Resources Ltd has announced that is has finalised an agreement with new resources float, Prime Minerals Ltd to joint venture its non-core exploration project, Star of Mangaroon Gold Project.
Fox Resources Ltd has announced that is has finalised an agreement with new resources float, Prime Minerals Ltd to joint venture its non-core exploration project, Star of Mangaroon Gold Project.
Under the agreement, Fox will maintain an exposure to gold through the Star of Mangaroon Gold Project, where Prime is earning up to 80% interest in the project and Fox will maintain a 20% interest. Prime will be required to spend $500,000 within the next 5 years to earn 80%.
The Star or Mangaroon Gold Project is located approximately 170km north of Gascoyne Junction and 250km northeast of Carnarvon, Western Australia (Figure 1).
"While we remain focused on unlocking the value of Fox's core base metal assets and operations located in the Pilbara, we are also conscious of our exposure to quality gold assets," said Managing Director, Mr Don Harper.
"We are pleased to have finalised this deal with Prime which will ensure that exploration is accelerated at the Star of Mangaroon Gold Project with a view to driving shareholder value for both companies," he said.
Fox welcomes and congratulates Prime's successful listing on the Australian Stock Exchange on 3 January 2007. Prime will be focusing on aggressively drilling the under-explored Star of Mangaroon Gold Project as outlined in its prospectus.
Mr Harper went on to say that Fox shareholders also continue to have exposure to gold assets through the Company's Four Ounce Show and Radleys gold deposits - both situated on a mining lease 100%-owned by Fox, approximately 12km from the Radio Hill Mine in the Pilbara.
"Today's joint venture announcement with Prime also provides us with an opportunity to update our shareholders on Fox's less talked about, but still promising, gold projects," Mr Harper said.
"The Four Ounce Show and Radleys 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 metres and the icing on the cake is that the mineralisation is mainly open in all directions."
An additional promising gold prospect is East Well where previous drilling intercepted 2m at 5.5 g/t gold. Assays of up to 50 g/t gold were obtained from rock chip sampling over a strike length of 800m.
Further updates and information about Fox's gold projects will be available later this month in the Company's December 2006 Quarterly Report.
