FXR - Fox Resources

Geeeez, I haven't had a verbal spanking like that for some time. I hope your faith in FXR is rewarded.

I suspect we may both be right. Short term I don't think this announcement means much beyond an effort to slow the slide in SP in advance of a placement. Long term, they have infrastructure near a number of commercial deposits, which as long as they develop a good long term strategy, they should be able to exploit and benefit shareholders greatly (rather than switching between copper/nickel).

I don't hold, but will at the right price.

Sorry if my language was a little terse, I was merely wishing to point out that many companies do EM surveys, define targets and drill something other than mineralisation. Maybe only 1/10 or less EM targets will present as massive sulphide mineralisation once drilled, however fox have found what works for them and have a proven conversion of 'target to mineralisation'. This is a good result and I will be hanging on the results because I guess that they will be good. Yes i have a strong belief in fox, becuase they are a consistent performer. I will be holding unless the market lets them slide below the 1.25 mark which was the last capital raisng price, at which point it would be buy, buy and buy for me. If I could direct the company I would send them straight over to the next large EM anomaly and drill that too, maybe then they could scare people with their strategy. Truth is that it takes significant time to drill these things out and there is a long lead time for any new operation, but a result is a result, there is something new there!

Well my faith has not deteriorated any, the exploration position consolidated over the new ground/rights aquired in the last couple of announcements looks like good news, particularly when FXR does not have to run the surveys that De Beers has already done. Sure it will cost for data purchase, but the lead time to come up with even more targets for Fox will be reduced. The question remains "how many discoveries can they make in the Pilbara?" ie: how much "blue sky" do they have, IMO the answer is simple - Heaps!

I still hold, so I will continue to post and see if anyone can tell me I shouldn't. There was a very close result in the general meeting to see if the company should raise money (10M as I remember) at $1.25 (see release today)which was very cheap at the time they struck the deal. My guess is that we will see organic growth now relying on re-investment of profits from the export of copper, zinc and nickel as the investors who are in for the long run do not want to see dilution. So just watch the money roll in and hope that the new discoveries are as good as they look, so that the profit rolls on for years to come!

doogie_goes_off said:

I still hold, so I will continue to post and see if anyone can tell me I shouldn't. There was a very close result in the general meeting to see if the company should raise money (10M as I remember) at $1.25 (see release today)which was very cheap at the time they struck the deal. My guess is that we will see organic growth now relying on re-investment of profits from the export of copper, zinc and nickel as the investors who are in for the long run do not want to see dilution. So just watch the money roll in and hope that the new discoveries are as good as they look, so that the profit rolls on for years to come!

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Getting a beating!
Can anyone shed some light, as I do hold FXR. I can't work it out.
I know investers did not like the 2.5 yr life span of Ni mine, still copper and zinc prices are going well and with off take agreements with zinc + Ni and 3000km² of Pilbara land to explore, surely it must turn around.

I'm still in for the long haul, bought a few more at 1.12 that looked like a bottom to me. This exploration result is not great, so relying on good continued production

JM

doogie_goes_off said:

I'm still in for the long haul, bought a few more at 1.12 that looked like a bottom to me. This exploration result is not great, so relying on good continued production

JM

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Looks good for a descent Ni strike at Radio Hill F-zone and the 20% increase Ni recovery at the plant is good news, more Ni TPH the bigger the profit!
Still it did not empress the market, very harsh on this stock.

doogie_goes_off said:

I'm still in for the long haul, bought a few more at 1.12 that looked like a bottom to me. This exploration result is not great, so relying on good continued production

JM

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looks like it hasn't bottomed out yet, reading their half yearly, they're running a small but profitable operation around radio hill, producing Cu, Ni, Zn. Nickel production should be similar to that of AUZ, but this has taken a huge hammering, from 1.90 to 0.90 in 6 months (during a bull market)..anyone care to shed some light?

NB: i dont hold but looking for a bargin if it is one

Nice revival in share price (was up near 10% mid morning). The off conductor exploration result is particularly significant. Zinc price has performed very well this year and even though there iks weak copper intersections at conquest ther could be high grade zinc adjacent - zinc does not show up on EM surveys. Nickel in F zone will extend Radio Hill mine life if intersections like this can be repeated. The Managing director also stated on board room radio .com that the head grade of Radio Hill is better than expected from drilling = more output = more cash flow. I hold more than ever after snapping a bargain at 95c. I see plenty of upside, DYOR.

Hot off the presses!! No announcement out there on this one. The implications for Fox SP....?


AFX News Limited
Australia's Fox Resources to enter stake sale talks with 2 Chinese cos - report
06.14.07, 10:36 PM ET

BEIJING (XFN-ASIA) - Australia's Fox Resources Ltd plans to initiate negotiations with Jinchuan Group Ltd and Sinosteel Corp to explore possible stake purchases by the two Chinese metal firms, the Wall Street Journal reported.

'We want to start discussions for the opportunity to participate in equity in the new financial year. There won't be a limit on the stake,' the report cited Fox managing director Don Harper as saying.

The new financial year for Fox begins July 1.

Both nickel miner Jinchuan and metals trader Sinosteel already have supply agreements for nickel, copper and zinc concentrate with Fox.

andrew.pasek@xinhuafinance.com

Good announcement out today...drilling has confirmed down-dip extension of the F-zone at Radio Hill. PGE's look good. SP up about 4% today in a down mkt. SP has been affected by tax-selling lately...has drifted lower from above $2 to about 85c

HIGHLIGHTS
• F-Zone diamond drillhole 07RHDD078 has returned a best massive nickel sulphide
intersection of 2.2m @ 2.69% nickel, 4.21% copper, 0.08% cobalt, 2.85g/t palladium,0.48g/t platinum and 1.56g/t gold, from 97.1m down hole depth.
• PGE assays for F-Zone diamond drillhole 07RHDD077 returned 4.55m @ 3.3g/t palladium,0.58g/t platinum and 1.69g/t gold from 99.45m down hole depth, including 1.5m @ 7.7g/tpalladium, 1.42g/t platinum and 4.07g/t gold.• Radio Hill surface diamond drill hole RHDD079 is currently at 450m depth targeting
potential massive nickel sulphide extensions below the existing Radio Hill orebody.Target depth is between 800m and 1000m.
• Concentrate production is expected to achieve 2,700 dry metric tonnes, (135t nickel and
189t copper metal) returning a positive operating cashflow of between $1.5m to $2m this
month.
Fox Resources Limited (ASX: FXR) today announced an update on exploration and production at the
Company’s flagship Radio Hill operations in the Pilbara of Western Australia.
F-ZONE NICKEL/COPPER EXPLORATION
Assays have now been received for surface diamond drillhole 07RHDD078 (Figure 1) announced
1 June 2007, which intersected 11m of nickel and copper sulphides from 94.7m down hole depth. The
intersection was 10.4m @ 0.81% nickel, 2.23% copper, 0.03% cobalt, 1.4g/t palladium, 0.24g/t
platinum from 92m down hole depth, including 2.2m @ 2.69% nickel, 4.21% copper, 0.08% cobalt,
2.85g/t palladium, 0.48g/t platinum and 1.56g/t gold.
Platinum Group Elements (PGE’s) assays have now been received for surface diamond drillhole
07RHDD077 (Figure 1) announced 1 June 2007, which intersected 8.7m of nickel and copper
sulphides from 94.7m down hole depth. Best mineralised intersection of 4.55m @ 2.13% nickel,
4.18% copper, 0.07% cobalt returned 3.3g/t palladium, 0.58g/t platinum and 1.69g/t gold from
99.45m down hole depth, including 1.5m @ 4.9% nickel, 7% copper, 0.15% cobalt, 7.7g/t
palladium, 1.42g/t platinum and 4.07g/t gold.“These results are particularly encouraging as it confirms the down dip continuity of F-Zone with high
nickel, copper and PGE grades. Our offtake agreement with Jinchuan allows Fox to capitalise on
credits received for these high PGE grades. F-Zone is outside the current mining reserve and really
has been an unexpected bonus for Fox.” said Managing Director Don Harper.
F-Zone is located 200m west of the Radio Hill orebody where Fox mined two levels before mining
ceased as the Company commenced high grade copper production from West Whundo in July 2006.
F-Zone was excluded from the 2.5 year mining reserve (6,000t nickel, 8,200t copper and 350t cobalt
metal) announced for Radio Hill on 22 January 2007.

Does FXR have cash flow?

Has more than halved in value.

I dont like to catch falling knifes but trying to figure out why it has been sold down so heavily. Does it have something to with the options coming on board?

Manging Director told Board Room Radio that people didn't have the cash for options lying around. Later on they underwrote them, seems that if they can excercise for 75c that the price will buffer down to ~80c until the cash has come in. That's my worth. Should recover after full earnings are reported for the financial year, I'm not sure of the reporting date.

doogie_goes_off said:

Manging Director told Board Room Radio that people didn't have the cash for options lying around. Later on they underwrote them, seems that if they can excercise for 75c that the price will buffer down to ~80c until the cash has come in. That's my worth. Should recover after full earnings are reported for the financial year, I'm not sure of the reporting date.

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You've hit the nail on the head.

Tricom hold a large amount of stock and have also agreed to underwrite the offer. I don't have the article handy, but the story goes that tricom are doing what they can to drive the price down in order to maximise the number of options they underwrite.

FXROA - the listed options due to expire June 30th were SUSPENDED on Friday 22/6/07 at 6.40 pm. No reason has been provided by the ASX and no ann released so far. Any ideas??

Col Lector said:

FXROA - the listed options due to expire June 30th were SUSPENDED on Friday 22/6/07 at 6.40 pm. No reason has been provided by the ASX and no ann released so far. Any ideas??

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Reason discovered....the v.fine print on options expiry notice...
"Last trading day of Options on ASX will be June 22".

"Identifies new iron ore prospect"

I like the look of the magnetics image, it is compelling when comparing to Cape Lambert's anomalies. Good to see the share price climbing above $1. It's hold hold hold for me!

Looks good to me too.

Nice to see it gets a mention in the SMH and Age investor section........

Looking good from the chartists point of view

I think they are reporting on the 28th July

I have started to crack a smile, despite unloading some to buy some other shares. Nearly 10% rise on average volumes for the week which are better than recently. Looking for a nice profit for the half

A nice recovery for FXR shareholders. Have any of the long termers considered how FXR might fund further exploration (drilling) and ultimately development of this iron ore? There gear at Radio Hill is geared toward Copper/Nickel and is already suffering from capacity restraints.

Personally, I'd like to see them focus on one commodity for a while (hell, also focusing on one mine would be great too), get some money under their belt and then start to think about growth plans. Ultimately, a venture into Iron Ore will need to be by spin off or large capital raising. In my model I'm not attaching any value to the iron ore for this reason - I believe its great to get press/attention and not much else for the moment.