Fox Resources may realign resource investment

Fox Resources is considering whether or not to realign its strategy of Australian resources investment.

The company may divest its Bundaberg metallurgical coal project in the Maryborough Basin, Queensland, in order to focus on developing its nickel and base metal mining projects in Western Australia.

The company has engaged PCF Capital to evaluate divestment alternatives for the project, which has an inferred resource of 101 million t.

According to Proactive Investors, The Bundaberg project has been independently valued at a preferred value of AU$ 17.9 million within a range from AU$ 15.5 million to AU$ 21.5 million.

In April this year, Fox identified a significant strike extension to the coal seams with an exploration target of 20 million – 50 million t.

Coal samples had confirmed raw calorific values exceeding 7,000 kCal/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 metallurgical coal from the Bowen Basin.

Fox’s mining projects in Western Australia include nickel, copper and zinc resources, while it also is looking to develop two gold mining projects and one magnetite mine.

If Fox should divest from coal, it would focus on further developing these projects. 

Edited from various sources by Sam Dodson

Read the article online at: https://www.worldcoal.com/coal/07102014/fox-resources-may-divest-from-coal-project-1395/