Fox Resources: Fox Resources mulls divesting Bundaberg Coking Coal Project

Fox Resources (ASX:FXR) is looking to divest its Bundaberg Coking Coal Project in the Maryborough Basin, Queensland, to focus on developing its Western Australia nickel and base metal projects. The company has engaged PCF Capital to evaluate divestment alternatives for the project, which has an Inferred Resource of 101 million tonnes. Divestment will allow the company to focus on its Radio Hill, Sholl deposits and the drill ready Osborne exploration target in the PilbaraThe project has been independently valued at a preferred value of $17.9 million within a range from $15.5 million to $21.5 million.Fox's geological team is preparing to continue exploration activities on the Mt Oscar Joint Venture tenement for Magnetic South, its Joint Venture partner in the project.The aim of these activities are to assist in targeting gold at the White Quartz Hill prospect and also evaluate several high priority VTEM targets that require follow up ground evaluation.Bundaberg Coking Coal ProjectThe Bundaberg Coking Coal Project in EPC1523 has an Inferred Resource of 101Mt and is adjacent to International Coal's (ASX:ICX) Bundaberg Hard Coking Coal Deposit in EPC2196, which has a Resource of 41Mt and appears to share the same coal seams.In addition, Fox had in early April identified a significant strike extension to the coal seams with an Exploration Target of 20 million to 50 million tonnes.Coal samples had confirmed raw calorific values exceeding 7,000KCal/kg for large sections of the seams with raw crucible Swelling Index numbers of 8 to 8.5, ranking the coal amongst the highest quality coking coal from the Bowen Basin.Western Australian ProjectsFox has five projects in Western Australia, these being the Radio Hill nickel deposit and surrounding tenements and three JVs on adjacent tenements including, Mt Oscar, the Mt Marie and the Pilbara Minerals tenements.These four projects, located near Karratha are prospective for nickel, base metals, gold and magnetite.The fifth project is the Star of Mangaroon gold project which is located in the Gascoyne region.Radio Hill is currently on care and maintenance. It includes a plant with a 450,000 tonne per annum capacity and can produce two separate base metal sulphide concentrates.There is also significant infrastructure on the Radio Hill mine site.Non exploration activities undertaken on site over the past year have consisted of continued evaluation of the bacterial heap leach development alternatives for the identified resources at Radio Hill and Sholl.These development alternatives are not currently being considered.Base Metal ExplorationDuring the June 2014 quarter, Fox continued its thorough evaluation of its tenure, prospects and resources.The outcome has been the identification and prioritisation of several advanced targets including the high grade historic intersections and possible resource extensions of the Radio Hill and Sholl nickel / copper deposits and the Ayshia and Whundo copper / zinc resources.Additional drilling is also being evaluated at several advanced prospects within the tenement package.Downhole electromagnetic surveys are planned to assist in delineating off-hole conductors to improve the targeting of these extensions.At the Mt Oscar JV tenement, a detailed geophysical evaluation was undertaken by Newexco Services Pty Ltd who identified twenty five anomalies for follow-up work.Two other separate VTEM surveys on E47/1813 and E47/2328, flown in 2013 continue to be processed and levelled by Geotech Airborne Limited and are expected to be available for evaluation during the second half of 2014.Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.