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FENIX RESOURCES LTD — Capital/Financing Update 2013
Jul 23, 2013
64910_rns_2013-07-23_6daedc41-b0b9-4cd8-88dc-58a0bf3dbb92.pdf
Capital/Financing Update
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24 July 2013
Company Update: Re-focus on Growth
New Projects
As previously announced, the Company has allocated part of its working capital budget to the identification and evaluation of new mineral resource opportunities in Australia and overseas. In this regard the Company is actively reviewing a number of projects across a range of commodities. Newly appointed Executive Director, Dr Andrew Tunks, brings a wealth of experience in sourcing, review, securing and development of new mineral resource projects. Along with continuing to develop the Company’s existing assets, Dr Tunks is focussed on growing the Company through strategic investment and acquisition.
In addition to its cash reserves of approximately $3,000,000, the Company has the support of its two major Chinese shareholders, International Natural Resources and Advanced Endeavour Enterprises Limited, who have confirmed their interest in possible additional financial backing for any investment or acquisition made by the Company. This has greatly expanded the range of projects under consideration by the Company.
The Company considers that its combination of corporate and technical expertise, significant financial backing and cash reserves at a substantial premium to its current market capitalisation makes it ideally placed to grow through investment and acquisition. Particularly at a time when asset values have come back so sharply giving rise to a large number of attractively priced potential acquisitions and investments.
Extension Gold Project
The Company intends to conduct a targeted drilling program to test gold in soil Mobile Metal Ions (MMI) anomalies generated by previous exploration conducted on its Extension Gold Project. The gold anomalies are coincident with mineralisation intersected in previous drilling of a major shear zone close to a mafic-granite contact, geological features that are prospective for gold mineralisation.
Following preparatory works, the drilling program will comprise 800-1,000 metres of RC drilling, allowing the program to test structures at depth and across lithologies. The program will consist of 3 drilling sections to investigate the shear zone in the areas of highest MMI anomalism. Final planning for holes is yet to be completed but it is expected that the first hole will target the updip expression of an 8m at 5.3g/t Au intercept in GCM hole MD5.
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Figure 1 Shows the peak response of Soil Geochemical Survey and the planned zone for drill testing.
Mt Pleasant, Perth 6027, Western Australia
Beyondie Iron Ore Project
The Company has spent considerable exploration effort since 2007 at the Beyondie Iron Ore project resulting in a primary inferred magnetite resource of 561 Mt at 27.5% Fe . Potential still exists to further expand the resource base at Beyondie with exploration potential present for both Magnetite and Hematite mineralisationThe Company is currently conducting a complete a review of its very large database with a view to determining how best to expand the resource base at Beyondie.
Competent Persons Statement The information in this report which relates to Exploration Results and Mineral Resources is based on information compiled by Dr Andrew Tunks, a Director, who is a Member of the Australian Institute of Geoscientists. Dr Tunks 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’ (The JORC Code) . Dr Tunks consents to the inclusion in this announcement of the statements based on this information in the form and context in which it appears.
For further information please contact:
Dr Andrew Tunks
Executive Director
m +61 (0)400 205 555
Pat Burke
Director
m +61 (0)404 826 533 e [email protected]
Mt Pleasant, Perth 6027, Western Australia