Shares in Western Australian-headquartered diversified resources company Fox Resources Ltd have surged 23.3 per cent today after announcing 22 metres of sulphides have been intersected at its Ayshia zinc prospect near Karratha in WA's Pilbara region.
Shares in Western Australian-headquartered diversified resources company Fox Resources Ltd have surged 23.3 per cent today after announcing 22 metres of sulphides, including visible copper and zinc sulphides, have been intersected at its Ayshia zinc prospect near Karratha in WA's Pilbara region.
At market close, shares in Fox had risen 20.5 cents to $1.085.
Fox managing director Don Harper said, "Based on the high grade zinc and copper results to date, the Whundo area is shaping up as a classic VMS district and could very well become one of the best base metal exploration plays in Australia."
The company today came out of Monday's trading halt pending the announcement of the Ayshia intersection and other exploration-related news.
The strength in the company's exploration potential has resulted in Fox's share price rising over 146 per cent.
Fox commenced open pit mining last month at its West Whundo copper and zinc project near Karratha.
Mining was scheduled to be completed within five months, delivering a total of 8,000 tonnes of copper metal to be processed at Fox's nearby Radio Hill mill.
Below is the edited announcement:
22 METRES OF MASSIVE SULPHIDES INTERSECTED AT THE AYSHIA ZINC PROSPECT
HIGHLIGHTS
22m of massive sulphides, including visible copper and zinc sulphides, has been intersected in the upper portion of the Ayshia Electromagnetic (EM) anomaly in diamond drill hole AYRCD034, from 101m down hole depth (assays pending).
AYRCD034 is located down dip of previously announced drill hole AYRC022 which intersected 18m @ 8.8% zinc, 31 g/t silver 48m below surface, including 8m @ 15% zinc and 49 g/t silver
Diamond drilling is currently targeting the large Austin EM anomaly, located 1.5km south west of the Ayshia prospect
AYSHIA ZINC PROSPECT
Fox Resources Limited ("Fox") (ASX code FXR) is pleased to announce an update on exploration at Fox's Ayshia zinc prospect (Figure 1). Diamond drilling has now intersected the upper portion of the Ayshia EM anomaly with immediate success. Diamond drill hole AYRCD034 (Figure 2) has intersected 22m of visible massive sulphides from 101m down hole depth. Drill core is being processed, with assay results released when available. In addition 10m of stringer sulphides were intersected above the massive sulphides from 91m down hole depth. Further drilling is required to determine the potential plunge of the mineralisation.
AUSTIN EM ANOMALY
As announced on 5 December 2005, the Austin EM anomaly is effectively untested with historical drilling stopping short of the conductor plate (Figure 3). WHRC005 drilled in 2004 intersected 5m @ 2.3% copper, 8.8% zinc and 17 g/t silver, is the nearest hole offset to the south east of the Austin EM conductor plate. Geophysical consultants consider WHRC005 has intersected a less conductive source above the main Austin conductor. The diamond drill rig is currently drilling AURCD001 and is expected to intersect the Austin EM conductor soon.
VOLCANIC MASSIVE SULPHIDE (VMS) SYSTEMS
VMS systems tend to cluster in districts. The average massive sulphide district in Canada can host up to 9 deposits, but ranges from 4 (Manitouwadge) to 21 (Noranda), however, individual deposits may consist of a number of closely associated, discrete lenses ranging from several thousand to several million tonnes in size. The largest deposit in this group may be in excess of 100 million tonnes such as Kidd Creek in Canada.
"Based on the high grade zinc and copper results to date, the Whundo area is shaping up as a classic VMS district and could very well become one of the best base metal exploration plays in Australia." Managing Director, Don Harper said.
