FXR - Fox Resources

I have just recently started to follow this small Nickel/Copper miner...

I found an interview with the MD on board room radio and it quite a good listen..

http://www.brr.com.au/company.php?o...ge=/index.php&searchtype=asx&q=fxr&qindustry=

cheers,

Benwex

Upgrade from FXR today. A few punters "selling the fact" after the strong rise recently, but the company appears to be on the right track. Cheers.

Could be wrong here, but there has been some subtle buying on FXR over the last few days as the sp consolidates after its last run up ............ There are still sellers kicking in, but everytime the sp looks like taking a bit of a plunge, there seems to be what is hopefully "smart money" getting on board ........... Will be interesting to see where the sp is in a couple of weeks .......... Only a gut feel so my opinion is probably worthless...... Cheers.

Glad you're still positive Barney, still waiting for my "smart money" to creep upwards of $1 again. Anyhow I have a long term positive outlook - it's a keeper. It funds it's own exploration pretty well and they have some tried and true methods of finding new goodies and some good spec positions eg: Mt Oscar and the DeBeers land.

doogie_goes_off said:

Glad you're still positive Barney, still waiting for my "smart money" to creep upwards of $1 again. Anyhow I have a long term positive outlook - it's a keeper. It funds it's own exploration pretty well and they have some tried and true methods of finding new goodies and some good spec positions eg: Mt Oscar and the DeBeers land.

Click to expand...

Hi there Doogs, Yeah I'm in debit on FXR atm like a few others, but the price action today particularly, was encouraging. Maybe I'm seeing things that aren't happening, but I'm pretty sure there is a little "bubbling" going on under the surface with this one. I think once the last of the current sellers from the last run up are out, we might see a bit of a positive move upwards. Time will tell. Cheers.

barney said:

Could be wrong here, but there has been some subtle buying on FXR over the last few days as the sp consolidates after its last run up ............ There are still sellers kicking in, but everytime the sp looks like taking a bit of a plunge, there seems to be what is hopefully "smart money" getting on board ........... Will be interesting to see where the sp is in a couple of weeks .......... Only a gut feel so my opinion is probably worthless...... Cheers.

Click to expand...

Occasionally I get to quote myself ..............

Some positive price action on Fox again today so far .............. Maybe my "gut" is improving ............ Up well over 5% atm ............... Certainly appears many are interested in accumulating this one on the dips. Good company report yesterday .............. Quietly going on about their business .......... Agree with Doogs .... looks like a keeper. Cheers.

Latest announcement provides more encouragement for locating material suitable to keep the radio hill operation running for a few years yet...

These highlights are backed up by some nice modeling, now lets hope we get some high grde intercepts!

HIGHLIGHTS
• SQUID Electromagnetic (EM) survey discovers three significant conductors at Ruth well 12km north of Radio Hill
• These conductors are supported by gossans with rock chip samples grading up to 13.5% copper along with moderate nickel anomalism
• Targets are near the existing Ruth Well komatiite hosted deposit where previous drilling had intersected grades of up to 15.9% nickel
• EM conductors are on granted tenements and diamond drilling is expected to commence in December 2007

Still subtle accumulation by what looks like a handful of punters .......... But the supply keeps topping them up ........... I'm a suspicious bugga, but if this doesn't take a little run within a few days to a week or two I'll be very surprised. Just waiting for the last of the supply to dry up. Then again I could be totally wrong

This may be of some interest to any FXR holders who haven't seen it yet ..... The results have been out from Fox for a while, but the involvement of a "new" player in Apollo Minerals (AON) may add some weight to the value of Fox's tenements ........

AON only been listed for a couple of weeks .... SP up over 20% after news below on there involvement in tenement/s involving and or adjacent to FXR in the Pilbara/Mt Oscar region .............. I'm not sure of the full significance of this at this stage, but if the accumulation I think I've been seeing is for real, we may see a bit of positive direction on Fox's SP ........ I for one would not be complaining about that ....... Next few weeks should give us the story one way or the other I guess.


ASX Release
16 November 2007
Apollo to acquire 80% stake in new West Australian iron ore project
Key points:
• Apollo Minerals enters option agreement to acquire 80% interest in a recently
discovered iron ore project in the Pilbara region of Western Australia.
• Initial results at Mt Oscar Iron Ore Project (being adjoining E47/1217 held by
Fox Resources Limited) show up to 46% iron (Fe) at surface
• The Apollo Iron Project Area (being ELA 47/1378 and ELA 47/1379) lies 25km
south of Cape Lambert magnetite project presently being developed by Cape
Lambert Iron Ore Limited (Current resource of 977 million tonnes @ 32.4% Fe)
and is adjacent to Fox Resources Limited’s recent iron ore discovery, the Mt
Oscar Iron Ore Project .
• The Mount Oscar Iron Ore Project straddles both the Apollo Iron Project Area
and Fox Resources tenement
• Significant historical iron ore results contained on Apollo Iron Project Area
Newly listed Australian resources company Apollo Minerals Ltd (ASX code: AON) (“Apollo”) has
reached agreement to acquire an 80 per cent interest, under an Option Agreement, in two
exploration licence applications covering an area of approximately 212 square kilometers (ELA
47/1378 and ELA 47/1379) (“Apollo Iron Project Area”) located in the Pilbara region of Western
Australia (refer attached map).
On 2 July 2007, ASX listed Fox Resources Ltd (ASX Code: FXR) announced to the ASX the
discovery of a new iron ore prospect, the Mt Oscar Iron Ore Project (Exploration Licence
Application 47/1217). The geology comprises partially outcropping Banded Iron Formation (BIF)
over an area of approximately 5km by 2km. The BIF outcrop is coincident with a regional
strong magnetic high. On 9 August 2007, Fox Resources advised the ASX that rock chip
sampling confirmed surface iron ore enrichment in excess of 40% iron.
ABN 96 125 222 924
Registered Office
34 Parliament Place
WEST PERTH WA 6005
Telephone: +618 9488 5266
Facsimile: +618 9321 6699
Email: info@apollominerals.com.au
This highly magnetic unit straddles both the Fox Resources tenement and the Apollo Iron Project
Area. The Apollo Iron Project Area lies 32 kilometres east of Fox's Radio Hill nickel-copper mine
and 25km south of Cape Lambert's iron ore project. Cape Lambert is targeting a 1 billion tonne
plus magnetite project and is currently completing a feasibility study. The Central Target Area
recently delivered a total resource estimate of 977 million tonnes at 32.4% Fe.
Apollo’s Iron Project Area is believed to host the same potential iron ore unit as found at Cape
Lambert. Iron ore assays from samples taken over Fox Resources and Apollo’s ground have been
recently released by Fox Resources to the ASX on 9 August 2007 (see table 1).
On 17 October 2007, Fox Resources announced to the ASX after its initial assessment of
exploration results at the Mt Oscar Iron Ore Project that:
“These early exceptionally high magnetic results confirm the potential for a significant
magnetic iron ore unit to exist.”
The Mt Oscar Iron Ore Project as reported by Fox Resources to the ASX includes the following
significant results:
• “The area of interest is partially outcropping banded iron formation which is 5km long
and 2km wide and is coincident with a regional magnetic high
• Initial aeromagnetic modeling for the main anomalies have suggested the presence of a
folded sequence and believe two strong and broad magnetic units 400-600 metres thick are
related by folding within a synclinal structure. The modelled magnetic characteristics are
very high and support the presence of potential magnetite development below surface.
• Mt Oscar has been subject to exploration in the past which started in the 1960s and the
latest work was completed by KKR Resources in 1994. KKR's work included mapping,
airborne magnetics and rock chip sampling.
• Independent assays by Fox confirm surface iron enrichment in excess of 40% Fe on the
prospect. A review of work by KKR Resources undertaken in 1994 included rock chip
sampling and also showed results averaging above 40% iron(see table 1)
• Higher grade iron enrichment are below the surface as indicated by the recent geophysics
interpretation
• Fox to conduct further surveys to delineate potential areas of hematite irn or direct
shipping grade iron ore.”

It's nice to see the company secretary acquiring some shares on market, it just highlights that they are cheap and that management have confidence in a positive outlook.

Heaps of small trades rushed through at a low price towards the end of trade, not great news for holders such as myself. I have to wonder if someone is quietly dumping with very little positive buying activity around. I have to admit that I was moderately concerned that in the last announcement they mentioned the last two holes are going to be followed up by downhole electromagnetics, this sound like they missed their targets. Plenty more targets yet though!

Hey people there is a trading halt on this today...


Has anyone seen any other company who have as well?? possible M and A activity???

Benwex

CHINA’S LARGEST NICKEL PRODUCER JINCHUAN,
TAKES 11% EQUITY STAKE IN FOX RESOURCES
Pilbara nickel explorer and producer, Fox Resources Limited (Fox) (ASX: FXR) is pleased to
announce today that China’s largest nickel producer, Jinchuan Group Limited (Jinchuan), has entered
into a strategic agreement to take an equity stake in the Company.
Under the agreement, Jinchuan will subscribe for 18,800,000 fully paid ordinary shares in Fox at a
premium issue price of A$0.95. As a result, Jinchuan will own 11% of the issued shares in Fox.
Jinchuan will be issued a further 8,000,000 attaching options exerciseable at A$1.20 expiring
12 months after the issue of the 18,800,000 fully paid ordinary shares.
The funds raised from the issue will be applied to development of the Company’s nickel projects,
process improvements to the Radio Hill mill and the acceleration of nickel exploration on the 3,000km²
of tenements accessible to Fox.
On finalisation of the initial share issue, a Jinchuan representative will be invited to join the Board of
Fox Resources Limited.
Fox Resources Chairman, Mr Terry Streeter, said the subscription of shares at a premium is a major
endorsement of Fox’s prospective land holdings and operations in the Pilbara.
“We have been supplying Jinchuan for over three years with nickel and copper from our Pilbara
operations and believe this expanded relationship is a great win not only for our two companies, but
our collective shareholders,” he said.
“We welcome Jinchuan as the most appropriate alliance to maximise shareholder value,” said Mr
Streeter.
”Fox has the potential to become a long–term, quality supplier of nickel and copper concentrates and
we are delighted to have Jinchuan as a significant shareholder.”
The Agreement is subject to and conditional upon statutory approvals by the Provincial Government of
Gansu Province and the Central Government of the People’s Republic of China.

thank god some good news...


benwex

Good news.......i cant help thinking that they have been playing with the sp to help the deal along................and the timing may come with further discovery results......soon

All good !!

yeah i caught the last bit on i think new business foxtel channel of a director from fox saying how good it is with the chinese coming on board and along the lines of how well fox will go esp next few months. of course all directors will talk up the company. unfortunately caught the tail end of interview.

Summary of todays good news from reuters:

SYDNEY, Jan 14 (Reuters) - Jinchuan Group, China's biggest nickel refiner, has agreed to a new supply agreement with Australia's Fox Resources Ltd (FXR.AX: Quote, Profile, Research) less than a week after becoming the company's largest shareholder.

Jinchuan agreed last week to pay $15.5 million for 11 percent of Fox as it chases access to raw materials for its operations in China.

Fox is among a handful of outback miners seeking to cash in on strong demand for metals driven by China's industrial boom.

Under the latest pact with Fox, Jinchuan, which already buys all the ore the company currently yields from its Radio Hill mine in western Australia, will purchase the entire output of nickel and copper concentrate from Fox's proposed Sholl B2 prospect nearby, for processing into refined metal in China.

The agreement will help Fox begin development of the mine and avoid taking out metals hedges to obtain bank financing, Fox managing Director Don harper said.

Ore from the Scholl B2 lode contains about 32,000 tonnes of nickel and 37,000 tonnes of copper. Production was scheduled to start in the second half of this year, according to Fox.
SYDNEY, Jan 14 (Reuters) - Jinchuan Group, China's biggest nickel refiner, has agreed to a new supply agreement with Australia's Fox Resources Ltd (FXR.AX: Quote, Profile, Research) less than a week after becoming the company's largest shareholder.

Jinchuan agreed last week to pay $15.5 million for 11 percent of Fox as it chases access to raw materials for its operations in China.

Fox is among a handful of outback miners seeking to cash in on strong demand for metals driven by China's industrial boom.

Under the latest pact with Fox, Jinchuan, which already buys all the ore the company currently yields from its Radio Hill mine in western Australia, will purchase the entire output of nickel and copper concentrate from Fox's proposed Sholl B2 prospect nearby, for processing into refined metal in China.

The agreement will help Fox begin development of the mine and avoid taking out metals hedges to obtain bank financing, Fox managing Director Don harper said.

Ore from the Scholl B2 lode contains about 32,000 tonnes of nickel and 37,000 tonnes of copper. Production was scheduled to start in the second half of this year, according to Fox.
SYDNEY, Jan 14 (Reuters) - Jinchuan Group, China's biggest nickel refiner, has agreed to a new supply agreement with Australia's Fox Resources Ltd (FXR.AX: Quote, Profile, Research) less than a week after becoming the company's largest shareholder.

Jinchuan agreed last week to pay $15.5 million for 11 percent of Fox as it chases access to raw materials for its operations in China.

Fox is among a handful of outback miners seeking to cash in on strong demand for metals driven by China's industrial boom.

Under the latest pact with Fox, Jinchuan, which already buys all the ore the company currently yields from its Radio Hill mine in western Australia, will purchase the entire output of nickel and copper concentrate from Fox's proposed Sholl B2 prospect nearby, for processing into refined metal in China.

The agreement will help Fox begin development of the mine and avoid taking out metals hedges to obtain bank financing, Fox managing Director Don harper said.

Ore from the Scholl B2 lode contains about 32,000 tonnes of nickel and 37,000 tonnes of copper. Production was scheduled to start in the second half of this year, according to Fox.

Any opinions on why this stock is so volatile and when good announcements are released it just does not move?
I just keep scratching my head.

I guess despite all the good exploration announcements, they never manage to turn a profit so that might put a lot of people off. If they can't make a quid in the boom times, what hope now metals prices are lower?

It's really hard to turn a profit when wage cost is so high in the area they work, this being said, it has to be a matter of time, they just need both operations producing at once ie: Radio Hill/Elizabeth.

Mt.Oscar looking promising. We will have to wait and see in the next month or so. The tide might be finally turning.