Fox Resources Limited has discovered a significant new sulphide zone at its flagship Radio Hill operations in the Pilbara region of Western Australia.

One diamond drill hole has intersected 45 metres of disseminated nickel and copper sulphide mineralization from 287m down hole depth, about 350 metres south-east of the existing Radio Hill ore body. The intersection included 1.15m of massive nickel and copper sulphide mineralization from 323.5m down hole depth.

These strong preliminary results are part of Fox's three-hole conceptual drill program designed to test for a repetition of the existing Radio Hill ore body.

Fox managing director Don Harper said it was a brave decision to commit to deep drilling at Radio Hill based on conceptual targets. Although we are still at an early stage the result is highly encouraging.

Continued success here will only be positively magnified due to the discovery being at the location of an operating mill and within 350m of an existing decline already at a depth 285m below the surface.

A Down Hole Electromagnetic (DHEM) survey crew is scheduled to return soon to test the extent of this newly discovered sulphide zone.

Radio Hill produced 21,000 tonnes of nickel and 16,000 tonnes of copper metal through the mining of high grade massive nickel and copper sulphides between 1998 and 2002.