Fox Tungsten Builds Financial Strength While Advancing a High-Grade Western Tungsten Project

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Fox Tungsten is currently strengthening its financial position through a significant advance payment from Metal Energy, which has provided the company with two million dollars worth of shares ahead of schedule. This transaction serves as a crucial financial backstop, offering the firm "hard dollars" that can be directly utilized to fund general and administrative expenses as well as ongoing exploration activities. By securing this non-dilutive financing, Fox Tungsten demonstrates its ability to raise capital for drilling operations without immediately diluting existing shareholder value, thereby creating a stable foundation for future growth and market confidence. The core of the company's strategy revolves around its Western tungsten project, which boasts what is described as the highest-grade resource in the world with an average grade exceeding 1%. To put this exceptional quality into perspective, a 1% tungsten concentration is equivalent to approximately 22 grams per ton of gold or 25% copper. This high-grade deposit was originally discovered through traditional prospecting methods where a prospector identified glowing scheelite rocks under ultraviolet light in the woods. The mineralization is characterized as a "high nugget" deposit, featuring very high-grade pockets within a larger, lower-grade halo, and current drilling efforts aim to prove that these distinct zones are actually part of one massive single deposit. To further validate this resource and transition from an exploration phase to a development stage, Fox Tungsten has launched an aggressive drilling program involving two operational drill rigs with plans to add a third by the second half of the summer. This extensive campaign, totaling 20,000 feet of drilling, is expected to continue through late October, with assay results anticipated by Christmas. The data gathered from this effort will form the basis for a comprehensive resource update and a Preliminary Economic Assessment (PEA), both scheduled for release in the first or second quarter of next year. These milestones are critical not only for technically advancing the project but also for engaging with government stakeholders in the US and Canada, who have shown philosophical support pending the availability of these detailed economic studies.

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[music] >> Today I have the pleasure of speaking with Steven Gray from Fox Tungsten, and of course Tungsten is one of the absolute hottest critical minerals in the critical mineral watch list. Can you give us an update about this new deal that you have Well, it's not a new deal, but your most recent payment from Metal Energy. >> Yes, so we sold the property to Metal Energy a few years ago. Um it was a copper project, and as part of that transaction, Metal Energy owed us um several deferred payments. Uh so we recently received the payments for actually this year and next year. They They elected to pay early. Um so we received $2 million of their shares. Um and that's an important uh kind of financial backstop for the company uh because that's how we fund our G&A. Those are hard dollars. Um and so investors know that when we go to the market when we raise money, uh we're raising flow-through. We're raising money to to drill and to put that money into the ground. Um because we have our those hard dollars, we have that backstop. >> So of course back to the discussion on Tungsten, you have one of the highest grade Tungsten resources in the Western world. Okay? So are you getting a lot of reach out from I'm assuming government officials? >> Yeah, that's right. We do have what is to my knowledge the highest Tungsten resource in the world. Um we're a little over 1% Tungsten, and to put that into context, what that means, 1% Tungsten is the equivalent of about 22 g per ton gold or 25% copper. Um so it's an incredibly high-grade resource, and and we're drilling now to expand it. Um to get back to your question, yes, we have had interest from both the the US and Canadian governments. Um the message that we've received is they're kind of they're philosophically supportive, but it's it's too early stage to come back when we have the PEA. Um so that's exactly what we're doing right now. Um we're doing a big drill campaign this summer, and we'll do a resource update and a PEA off the back of that. And I think that will be an important milestone, not just advancing the project technically, but also advancing those discussions with government stakeholders. Where once we have the mine plan, once we have the economics, uh we'll be able to demonstrate that yes, this is a real project, um and that will hopefully allow us to secure some non-diluted financing down the road. >> Well, based on my observation of your leadership, Stephen, you have been a real machine. And according to one of your news releases, your you're targeting getting this PEA done by second half of 2027. Is that correct? >> That's right. So we're drilling right now. Uh we have two drill rigs operating on the property. We're actually ramping up to three. Um and that drilling will take us through to late October. Um so we'll have all our assays by Christmas. Um and then the PEA will will start in earnest. Um so we'll be doing a resource update and a PEA, um and that will be coming out in Q2 of next year. Um so again, very exciting milestone for the company as we transition from being an exploration company to a development company. >> And of course, you're doing an aggressive drilling program right now. 20,000 ft meter drill program. Is that correct? Yeah, thank you. >> Yeah, that's right. So like I said, um we have two drills operating right now. Um we'll be bringing in a third one for the second half of the summer. Um it's going very well on the ground. Um we don't have any assays yet, but as we press released a few weeks ago, um we have visually been seeing consistent mineralization in in the vast majority of the holes that we've drilled. Um so we're proving out our thesis that our three distinct zones are actually one big zone. Um and so that will be the foundation of the resource update and and the eventual PEA is what will hopefully be one larger um single deposit. >> According to your 43-101, your your tungsten percentage is exceedingly high. For those of you out there unfamiliar with Fox Tungsten, I I urge you to take a look at these numbers and if you can hit some of those high points for us, we would really appreciate it, Stephen. >> Yes, so we do have what is to my knowledge the highest grade tungsten resource in the world at a little over 1%. Um and that's concentrated within our our RC and BN zones. Um and so this is a very high grade deposit, but to get a bit technical, it's it's a high nugget deposit and that the grade is discontinuous. So we have these very high grade pockets among kind of a larger uh lower grade halo. Um and we're seeing more of that as we drill. We're seeing some very impressive grades and so we think that we're going to be able to maintain that grade as as we grow. Um so very exciting to have what is the highest grade tungsten resource in the world and again, 1% tungsten our average resource grade is the equivalent of about 22 grams gold or 25% copper. Um so this is something special and we're looking forward to uh sharing more results with the market as we move forward. >> And for those of us out there who are not geologists, can you tell us how you managed to secure the highest grade tungsten resource in the world? >> It was um it was prospecting. This was a greenfield discovery. Um it was found on the ground. Uh tungsten and scheelite, the mineral in particular, it glows under UV light. Um and so that's how this deposit was found was a prospector in the woods at night time with a UV light and found some glowing rocks. Um and it just kind of grew from there. Um, so this was a again, it was a greenfield discovery in the most traditional sense. And uh, we're advancing now rapidly to try and bring that uh, further into development and ultimately into production as soon as possible. >> Now, just going back to this deal you did in 2024 with Metal Energy. Um, you were going to receive four tranches of share payments and this would be the second one. Is that correct? >> Yes, uh, Metal Energy owed us a million dollars of their shares this year and also another million dollars in 2027. Uh, they voluntarily elected to give us next year's payment this year. So we received two million dollars this year. Uh, and they'll owe us another four million dollars over the next four years of future payments. Um, this represents an important financial backstop for the company uh, because when we do sell those shares, those are hard dollars and we can use that to fund our G&A and the PEA study that will be kicking off this year. >> Well, again, I want to congratulate you on this uh, creative non-dilutive financing. And what should we as shareholders be looking forward to with Fox Tungsten in the next quarter? >> So we're drilling now. We have two drills operating and we'll have a third one soon. Um, so we'll be having assays in the coming weeks. Um, so we'll have a steady drumbeat of assays between now and and Christmas. Uh, following that we'll have a resource update and a PEA in uh, Q1 Q2 of next year. Um, so there're going to be a lot of news flow as we release the results of the exploration program and ultimately the results of our our resource update and technical studies. >> And for those of you going tungsten, highest grade resource in the world, please go to the following website. Thank you so much, Mr. Gray. >> Thanks, Tracy. It was great to see you again. >> Mhm.