Fox Resources recently announced a significant upgrade to the indicated Resource at its 100%-owned Whundo copper-zinc deposit located just 12km from the company"s Radio Hill treatment plant in the Pilbara, Western Australia.

Whundo is a key deposit in Fox"s emerging new Whundo Volcanic Massive Sulphide (VMS) copper-zinc project area. The resource upgrade is based on results from a successful drilling program that concluded in the December 2006 quarter and the resulting assays.

The original Whundo Indicated Resourcehas been significantly upgraded to 10,000 tonnes of contained copper and 10,600 tonnes of contained zinc metal - a 600% and 400% increase respectively. The original Indicated Resource at Whundo stood at 1700 tonnes of contained copper and 2560 tonnes of contained zinc metal.

A total of 101 holes have been drilled to define the Whundo deposit, comprising of 1245 diamond drill metres and 10,770 reverse circulation drill metres. The Indicated Resource has been drilled on 15m x 15m spacings. The increase in resource is attributed to an increase in strike length to the north and mineralisation still remains open since the previous resource estimate.

Fox managing director, Don Harper, says the Whundo Resource upgrade is a further step towards significantly increasing the company's resource base.

"We remain focused on developing Fox's shallow low cost base metal deposits - a formula that has worked well for us," Don Harper says.

"We are in a very fortunate position to have exposure to minerals such as nickel, copper and zinc at a time of excellent commodity metal prices.

"The company will maintain its focus on copper and zinc production from West Whundo for now, until we install additional milling capacity at the Radio Hill Mill to treat nickel ore from Radio Hill and Sholl. We have been presented with an excellent opportunity to maintain our cashflow while we strengthen the Company's move into nickel production on the back of increased throughput and nickel recovery," he said.

Don Harper says the company is currently reviewing several milling options. The strategy includes the utilisation of the previously announced Elizabeth Hill mill acquisition which is located only 5km south-west of the upgraded Whundo deposit.