Fox Resources (FXR) is an exploration company focused on developing coal assets in Central Queensland, Australia. The company's focus is the Bundaberg North Coal Project (consisting of exploration tenures EPC 1523, 2195, 2196 and MDLA 3040) located in the Maryborough Basin, located close to existing or planned infrastructure. Previous coal mining has taken place, south of Bundaberg, in the same Burrum Coal Measures (Colton Mine).

In the past fifteen (15) years there has been numerous exploration successes in adjacent or nearby tenements with New Hope Coal, Waratah Coal, and Kontrarian Resources delineating coal occurrences or reporting coal resources. This project will not be an open cut, but most likely an underground bord and pillar operation, which will reduce surface impact and subsidence.

Considerable exploration work was commissioned by Fox Resources between 2014 to 2020. In April 2018 a two-stage drilling program increased the JORC Resource to 133Mt of Inferred Resources, an increase of 33Mt over the 100Mt from the 2014 drilling campaign. Subsequently, in August 2019, Fox drilled fourteen (14) holes increasing the EPC 1523 JORC Resource to 64Mt Indicated Resource, 83Mt Inferred Resource, and 5-35Mt Exploration Target1. This drilling program successfully proved that in the southern tenure area there is shallow coking coal from 76m, which may be a possible site for the decline to underground workings. A Scoping Study was undertaken throughout late 2019 and early 2020 which provided tangible proof that, at that time, the project had a positive NPV.

In September 2019 a Mining Development License Application (3040) was submitted over most of the current EPC 1523 but has been subject to numerous objections.

For each exploration program completed, the coal quality laboratory testing has consistently proved the quality of the coking coal as high grade, except for the Coke Strength after Reaction which is comparable to Blackwater coals in the Bowen Basin. The coal quality variance across the project area can be divided into two different coal specifications, a premium hard coking coal, and a high-ash thermal/cement kiln coal. Yields for the coking coal appear to be 50-60% with yield for the secondary thermal averaging 25%, giving a combined theoretical yield of 75-85%. The coal holds superior vitrinite content (between 75% and 85%), higher fluidity, higher CSN and a broader plastic range compared to its Australian competition.

The latest Coal Resource Estimate (calculated at to the Indicated and Inferred level of confidence; Biggs 2019, 2020) has been completed for two tenures. Table 1 below summarizes the result which totals 206.3 Mt.

Table 1: Summary of Resource Estimates for Bundaberg North (50% Fox, Zimprops 50%).

Note: The qualities shown in Table 1 have been adjusted to 9.5% washed ash.

Additionally, an Exploration Target [1] in the range of 25 to 80Mt (Table 2) was estimated within the Inferred Resource, with the details contained in Biggs (2019, 2020). This Exploration Target is in addition to the JORC Inferred Resource mentioned above and was based on the same Datamine Minescape model as the resources in Table 1, but which fell outside the limit of the masks, especially down dip to the east, or consisted of upper seams.

Table 2: EPC 1523 Summary of Exploration Target September 2019

Further infill drilling and several 2D seismic survey lines are required within the Bundaberg North Project to confirm structural interpretations and convert the reported Inferred and Indicated resources to a higher confidence class. Enough information now exists to begin additional mine design studies and a refreshed Scoping Study or a Pre-Feasibility Study.

References

Biggs, M. S. (2019). EPC 1523 Bundaberg North Project Coal Resource Estimate Report. Prepared by ROM Resources for Fox Resources Limited, unpublished Report, Nov 2019, 76pp.

Biggs, M. S. (2020). Bundaberg North Project Coal Resource Estimate Report November 2020. Prepared by ROM Resources for Fox Resources Limited, Nov 2020, 69pp.

Figure 1: Bundaberg North Location of Coal Resource Masks