THE BOURSE WHISPERER: Rox Resources (ASX: RXL) has received the results of a Scoping Study undertaken on the company’s Fisher East nickel project, located north-east of Leinster in Western Australia.
The company reported the Scoping Study has indicated the project appears to be financially robust.
“To have progressed the project to the Scoping Study stage within two years of discovery, in the context of the extremely difficult financial markets that have existed for much of this time, is a significant milestone for the company,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.
“The Scoping Study confirms that the project appears to be both technically low risk and financially robust, and the outcomes are therefore very encouraging.
“The options we may have regarding stand-alone processing versus toll milling are really pleasing.
“We also have significant opportunities to optimise and improve the project, particularly the mining schedule, as well as the ability to increase mineable resources through further drilling.
“On both counts we are highly confident of success and as a result, adding further significant value to the project.
“Based on the results of the Scoping Study, we intend to proceed with a pre-feasibility study, but in parallel will continue our drilling efforts to expand the Project’s resources.”
The Study examined two development cases, Base and Toll, for the mining and processing of nickel sulphide resources from the Camelwood and Musket deposits within the Fisher East nickel project.
The Base Case was founded on an assumed processing and production rate of 500,000 tonnes per annum (tpa) to produce between 8,000 and 10,000 tonnes of contained nickel in concentrate per annum.
The Toll Case was based on the assumption of hauling run of mine (ROM) ore at a lower production rate (250,000 tpa) to a nearby processing plant for toll treatment.
Rox explained the Toll Case requires negotiation of an agreement with a third party processing facility which has not yet occurred.
The company also stressed the Mineral Resources at Camelwood and Musket are not yet fully defined.
However, drilling completed late last year, after the resource estimation for Musket was completed, has extended the mineralisation outside current resource boundaries.
Further mineralisation was also recorded at the Cannonball prospect.
“There is an opportunity to optimise the project, particularly with the mining schedule which has the potential to improve the financials significantly,” Mulholland continued.
“An increase in resources, which I am very confident will be achieved, will improve the economics of the project even further.”