fox resources limited investor presentation bruno seneque, managing director july 2009 asx code: fxr...
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FOX RESOURCES LIMITED
Investor Presentation
Bruno Seneque, Managing Director
July 2009
ASX Code: FXR
FOX RESOURCES LIMITEDPilbara 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
Sales agreements with China’s largest nickel producer – Jinchuan Group Ltd ( a major Fox shareholder)
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)
PILBARA BASED MINERALS DEVELOPER
W A
Perth
N500 Km0
Dampier Port
Newman
Karratha
Paraburdoo
WESTERN
AUSTRALIA
NORTHERN
TERRITORY
Broome
Derby
Port of Wyndham Kununurra
railway
railway
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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 multi-
metal nickel and copper sulphide deposits.
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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
MANAGEMENT TEAM
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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
GOALS FOR THE COMPANYCORPORATE GOALS
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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 ASXApril 2002, Code: FXR
Market Capitalisation$32 million @ 0.145 cents per share
Fully Paid Shares224,385,245
Top 5 Share Holders (at 22 July 2009)
Number of
Fully Paid Shares
%
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
Total 71,622,837 31.92
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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:
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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.
INCREASING RESOURCES: SHOLL B2Additional 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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Radio Hill• Large tonnage, low grade developed Resource
Sholl Complex:- B2, B1, Razerline• Large tonnage, low grade Resources
Ruth Well• Small shallow Resource, high tenor nickel sulphides intersected
Bertram• Nickel sulphide mineralisation intersected
Baynton Complex, Goliath & David• Large under explored layered intrusions
Greenfields
NICKEL/COPPER EXPLORATION TARGETSPipeline of Projects
Brownfields
Advanced
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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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Whundo, West Whundo, • Developed oxide/sulphide Resource
Ayshia• Zinc sulphide resource
Shelby, Austin• Copper, zinc sulphide mineralisation intersected
Railway Bore• Geochemical anomalism Greenfields
COPPER ZINC EXPLORATION TARGETSPipeline of Projects
Brownfields
Advanced
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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REGIONAL EXPLORATION
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 opex20
CONTACT US
For further details please contact:
Bruno Seneque, Managing Director +61 8 9318 5600Warrick 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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