Transcript Slide 1

FOX
RESOURCES
LIMITED
FOX
RESOURCES
LIMITED
Pilbara Based Minerals Developer
Investor Presentation
Bruno Seneque, Managing Director
July 2009
ASX Code: FXR
PILBARA BASED MINERALS
DEVELOPER
FOX RESOURCES
 Nickel / Copper Resources (Indicated &
Inferred 40,263t Ni, 48,958t Cu)

Copper / Zinc Resources (Indicated &
Inferred 25,353t Cu, 35,516t Zn)

Outstanding exploration opportunities 3,000km2 of tenement holding

WA
P erth
Port of
Wyndham
Sales agreements with China’s largest
nickel producer – Jinchuan Group Ltd ( a
major Fox shareholder)
Kununurra
Derby
Broome

Established infrastructure, close to port:
•
425,000tpa nickel processing plant;
•
fully developed underground mine at Radio
Hill;
•
concentrate storage at Port of Dampier –
40km from Radio Hill;
•

84 person accommodation village
Mt Oscar Magnetite Project (100% Fox)
Dampier Port
Karratha

railway
WESTERN
NORTHERN
AUSTRALIA
TERRITORY
Newman
Paraburdoo
railway
0
500 Km
2
N
BOARD OF DIRECTORS
Terry Streeter, Chairman

More than 30 years experience in exploration and mining companies – particularly nickel sulphides

Chairman and co-founder of Western Areas NL (Nickel) and Director of Midas Resources Ltd (Gold)

Previous director of Jubilee Mines NL (Nickel)
Bruno Seneque, Managing Director (CPA)

Finance Director 2005 - 2008. With Fox since 2004

14 years in corporate accounting and financial management of resource companies

Previous experience includes Company Secretary & Financial Controller to Haddington Resources Ltd and Group
Accountant to Titan Resources Ltd. 10 year involvement with Radio Hill
Geoff Clifford, Non-Executive Director - (CPA)

More than 30 years experience in senior accounting, finance, administration and company secretarial roles in the
mining, retail and wholesale industries

Chairman of Atlas Iron Limited and Non-Executive Director of RMA Energy Limited and Glengarry Resources Ltd
Dr Yulong Tian, Non-Executive Director (Ph.D Prof. Geologist)

Professional Geologist with a wealth of knowledge and extensive experience with non-ferrous mineral deposits
including tin, copper and nickel

Accomplished a Post Doctoral qualification on the Jinchuan Nickel-Copper deposit -one of the worlds largest multimetal nickel and copper sulphide deposits.
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MANAGEMENT TEAM
Laurence Chew, General Manager – Business Development, Mining Engineer (B.Eng)
•
WA School of Mines graduate
•
22 years experience
•
Holder of Shift Supervisors Certificate of Competency
•
Background prior to joining Fox – underground mining and civil construction with contractors, tenders,
contract management, overseas assignments including Singapore, Hong Kong, South Africa
•
Have been with Fox since Feb 2004 as Contracts Engineer, Senior Project Manager, Manager Projects to
current General Manager
Leonard Spencer, General Manager – Pilbara Operations,
•
WA School of Mines graduate
•
Over 30 years experience
•
Has held senior management positions with various mining companies and is experienced with Nickel,
Copper, Lead, Zinc, Tin and Gold.
•
Was previously Mill Superintendent at Radio Hill operations during ownership by Titan Resources NL.
Neil Winfield , Exploration Manager, Iron Ore Bsc Geol, Dip Comp, MSc (Min Econ)
•
20 years experience in a diverse range of positions in exploration, mining and resource geology in several
commodities – particularly Gold and Iron Ore.
•
Involved in projects from grass roots levels through to feasibility studies leading technical teams to produce
bankable resources.
•
Strong working knowledge of the iron ore industry particularly in regard to project management .
Nicholas Walker, Exploration Manager: Base Metals (Bsc.Hon, MSc)
•
Exploration geologist with over 14 years of practical experience at various levels in a diverse range of
exploration activities, including grassroots, brownfields, near mine resource delineation and feasibility studies.
•
Actively explored for nickel, copper and zinc in numerous geological terrains in Australia, Finland and Ireland.
•
Senior Exploration roles in Outokumpu, Exploration Manager for Vulcan Resources Ltd
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CORPORATE GOALS
GOALS FOR THE COMPANY
Nickel / Copper
Grow resource base during next twelve
months
 Poised to capitalise on rebound in
metal price
Iron Ore
 Introduce a joint venture partner for
development of Mt Oscar
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JINCHUAN GROUP
STRATEGIC PARTNER
 Largest nickel producer in
China – 130kt of nickel, and
200kt of copper per annum
 Provide world leading
technical and metallurgical
input in development of
Radio Hill
 Off-take agreement for 100%
of Radio Hill output
 Major shareholder in Fox
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CAPITAL STRUCTURE
Listed on ASX
April 2002, Code: FXR
Market Capitalisation
$32 million @ 0.145 cents
per share
Fully Paid Shares
224,385,245
Number of
Fully Paid
Shares
Top 5 Share Holders
(at 22 July 2009)
%
of
Total
1
Jinchuan Group Ltd
28,200,000
12.57
2
Jungle Creek Gold Mines Pty Ltd &
Velsberry Pty Ltd (Terry Streeter)
20,363,181
9.07
3
Northmead Holdings Pty Ltd
9,057,355
4.04
4
G Santalucia Investments Pty Ltd
8,191,598
3.65
5
UBS Wealth Management
5,810,703
2.59
71,622,837
31.92
Total
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RADIO HILL – NICKEL/COPPER

Metallurgical testwork commissioned to explore the potential for heap leaching operation

More than 300,000t of stockpiled material (no mining costs to be incurred) that will be subject to
the study and which could provide the basis for a 5 year operation.

Represents a low cost opportunity to produce high value end products.

Key infrastructure already in place and present at Radio Hill, including, power, water, workshops
and accommodation.
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NICKEL / COPPER OBJECTIVES
Increase Resource:
 Grow Resource at
Radio Hill and
supplement with Sholl
mineralisation for heap
leach operation.
Near Mine Potential:
 Identify near mine high
grade nickel sulphide
mineralisation and
satellite deposit for
further expansion
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INCREASING RESOURCES: RADIO HILL
 Re-logging and sampling of
disseminated hanging wall
mineralisation above the Radio Hill
deposit; significant intercepts include:
Hole ID
From (m)
To (m)
Interval (m)
Ni (%)
Cu (%)
UGD130
0.0
17.0
17.0
0.84
1.30
Incl.
3.0
9.0
6.0
1.27
1.82
UGD198
0.0
103.15
103.15
0.90
1.05
UGD202
0.0
42.0
42.0
0.86
1.38
 Currently modeling the resource as
nested domains (nickel, copper) to
maximise resource potential.
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INCREASING RESOURCES: SHOLL B2
Additional mine life for Radio Hill operations
 Established Resource
•
•
Indicated 630kt @ 0.59%Ni, 0.64%Cu
Inferred 5,324kt @ 0.53%Ni, 0.62%Cu
 Feasibility study complete
 Mining approvals in place
 Potential for smaller higher
grade Resource
 Expansion potential, open to
the south
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INCREASING NICKEL COPPER
RESOURCES
 Integrate and evaluate
previous drilling and
geophysical survey data to
identify exploration targets at
Radio Hill
•
Beneath Radio Hill
•
F-zone and Radio Hill
connection
•
Down plunge of Radio Hill
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NEAR MINE POTENTIAL:
SATELLITE DEPOSITS
 Untested
geophysical
anomalies
 Within 5km of
Radio Hill
processing Centre
 Prospective as
gabbros similar to
those at Radio Hill
intrusion identified
on surface.
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NICKEL/COPPER EXPLORATION TARGETS
Pipeline of Projects
 Radio Hill
• Large tonnage, low grade developed Resource
Brownfields
 Sholl Complex:- B2, B1, Razerline
• Large tonnage, low grade Resources
 Ruth Well
Advanced
• Small shallow Resource, high tenor nickel sulphides intersected
 Bertram
• Nickel sulphide mineralisation intersected
 Baynton Complex, Goliath & David
Greenfields
• Large under explored layered intrusions
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COPPER AND ZINC: WHUNDO PROJECT
 Historical mining at Yannery
 Existing Resources at
Whundo, West Whundo and
Ayshia – 2.45Mt at 1.04%
cu, 1.27% Zn
 Majority open in two or more
directions
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COPPER AND ZINC: WEST WHUNDO
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COPPER ZINC EXPLORATION TARGETS
Pipeline of Projects
 Whundo, West Whundo,
Brownfields
• Developed oxide/sulphide Resource
 Ayshia
Advanced
• Zinc sulphide resource
 Shelby, Austin
• Copper, zinc sulphide mineralisation intersected
 Railway Bore
• Geochemical anomalism
Greenfields
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REGIONAL EXPLORATION
 Large tenement holding
 Historic and Recent
mining activity
 Defined Resources
•
Within 20km of Radio Hill
 Pipeline of projects
• Brownfields → Conceptual
 Multiple commodities
•
Nickel, copper, zinc, lead and
gold
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MAGNETITE PROJECTS IN THE WESTERN
PILBARA OF WESTERN AUSTRALIA
 All deposits hosted in the Cleaverville
Formation
 Major Projects under development:
•
•
•
Sino Iron Project (Cape Preston) 2 Billion
Tonnes
Balmoral South (Australasian Resources)
1.4 Billion Tonnes
Cape Lambert (MCC) 1.6 Billion Tonnes
 All projects > 1 Billion Tonnes
 Close proximity to existing
infrastructure
• Ports
•
Rail, Roads
• Power & Gas
•
Towns, Airports, Services
 Opportunities to share new port &
transport infrastructure
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MAGNETITE PROJECT CHECKLIST
 PORT – Anketell Point multi-user port
 TRANSPORT to port – 30km slurry pipeline
 GAS/POWER – readily available
 WATER – readily available
 SALEABLE CONCENTRATE – confirmed by metallurgical
testing
 Initial inferred Resource: 72.4mt at 34% Fe
 Proximity to markets
 Minimal capex and opex
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CONTACT US
For further details please contact:
Bruno Seneque, Managing Director +61 8 9318 5600
Warrick Hazeldine – Purple Communications +61 8 9485 1254
Email: [email protected]
Website: www.foxresources.com.au
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DISCLAIMER
The material used in this presentation is intended to be a summary of selected geological data, current and proposed activities, as
well as resource estimates based on information available to Fox Resources Limited at the time. It does not include all available
information and should not be used in isolation as a basis to invest in Fox Resources. Any potential investors should refer to Fox
Resources Limited ASX releases and statutory reports before considering investing in the company.
The information within this report as it relates to mineral resources is based on information compiled by Fox Resources Ltd and
Adrian Black of Newexco Services Pty Ltd. Adrian Black is a member of the Australian Institute of Geoscientists and has sufficient
experience which is relevant to this style of mineralisation and deposit under consideration to qualify as a Competent Person as
defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
Adrian Black consents to the inclusion in the report of the matters based on the information in the form and context in which it
appears.
The information within this report as it relates to mineral exploration and geophysics is based on information compiled by Fox
Resources Ltd and William Amann of Newexco Services Pty. Ltd. William Amann is a member of the Australian Institute of
Geoscientists and has sufficient experience which is relevant to this style of mineralisation and deposit under consideration to
qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves”. William Amann consents to the inclusion in the report of the matters based on the information in
the form and context in which it appears.
The information in this presentation that relates to iron ore exploration results, mineral resources or ore reserves is based on
information compiled by Mr Neil Winfield who is an employee of the company and is a member of the Australasian Institute of
Mining and Metallurgy. Mr Winfield 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 Winfield consents to the
inclusion in the report of the matters based on his information in the form and context in which it appears
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