Proactiveinvestors recommends

Additional Information

Market:	ASX
Sector:	General Mining
EPIC:	FXR
Latest Price:	0.07 (0.00%)
52-week High:	0.12
52-week Low:	0.04
Market Cap:	23.02M

1 year chart

1 day chart

Fox Resources

Fox Resources (ASX: FXR) is a diversified base metals explorer with nickel, copper and zinc projects located in the Pilbara region of Western Australia.

Fox Resources announces a return to production in 2010

Tuesday, December 01, 2009

Nickel and copper exploration company Fox Resources (ASX: FXR) is set to commence the development of a base metals heap leaching operation at Radio Hill, located in the Pilbara region of Western Australia.

The Company aims to develop an initial five-year mine life with commissioning expected to occur in the September quarter of 2010.

In May 2009, Fox announced that metallurgical testwork was underway to explore the possibility of a new heap leaching operation. In September 2009, the total mineral resources at Radio Hill increased by 307% from 988,000 to 4.02Mt @ 0.51% nickel and 0.89% copper.

The testwork was originally expected to take up to 12 months to complete, but based on the most recent successful column recoveries of nickel, copper and cobalt metal and production of high value end products the Company has decided to proceed with plans to return to production.

This development represents a new approach to the Company’s assets, with cost savings of approximately $16 million expected in year one due to the absence of mining and crushing required for material stockpiled on surface. Surface material is estimated to contain 4,000 tonnes of nickel metal and 4,000 tonnes of copper metal.

Fox Resources managing director Bruno Seneque said the heap leaching operation was very economical with minimal environmental impact.

“Today’s milestone represents an exciting new growth phase for Fox,” Mr Seneque said.

He said the Company’s existing infrastructure is expected to speed up construction of the back-end processing plant.

There also exists the potential to utilise disseminated resources available from the Sholl complex (Sholl B2, B1, and Razerline), which has the potential to increase mine life beyond five years.

Disseminated ore from Fox’s Sholl deposit was previously heap leached by Titan Resources NL as part of a large field based, pilot scale operation with a 5,000 tonne heap and another 8,000 tonne heap.

Irrigation of the initial 5,000 tonne heap commenced in May 2000 and by October 2000, nickel recovery into solution reached 74%, rising to approximately 90% following re-stacking of the heap.

Work has commenced at the Sholl resource with a view to increasing mine life further.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.