17 June 2009
ASX Media Announcement
HEAP LEACH TESTS
DELIVER EXCITING RESULTS
Pilbara-based
minerals developer Fox Resources Limited (ASX: FXR) is pleased to
announce promising results from heap leaching tests undertaken at its Whundo
and Radio Hill projects.
The
testwork has delivered high grades of nickel and copper recovery from existing
oxide and stockpiled material, and confirmed the potential for a successful
heap leach operation.
The
results include recoveries of 15% nickel and 7% copper following three days of
testing via a heap leach simulation column. The material for the heap leach
simulation was sourced from Radio Hill and the Whundo projects in the Pilbara.
Fox
Managing Director Bruno Seneque said the results were better than expected, and
the Company was proceeding with more advanced testwork as a priority.
?This
is an exciting development for shareholders, and represents a new approach to
the Radio Hill asset,? Mr Seneque said.
?It is
early days, but the testing to date is certainly encouraging, and supports the
development of a low-cost cash generating business opportunity for Fox,? Mr
Seneque said.
Column
testing will be continued to determine metal recovery, reagent consumption and
general leach kinetics. The pregnant liquor solution (PLS) will be sent to
independent metallurgical consultants Ammtec, which will focus on producing a
nickel - cobalt mixed hydroxide precipitate (MHP), currently in high demand
from Chinese customers.
Mr
Seneque said Fox had more than 300,000 tonnes of stockpiled material which
could provide the basis for a five year heap leaching operation, utilising
existing nickel/copper resources at Radio Hill and at Sholl B2.
We have
a significant volume of mined material that can be incorporated in a heap leach
operation, including stockpiles of oxide copper material and copper supergene
tailings from West Whundo, both grading approximately 1.5% copper, Mr Seneque
said.
This
approach means there are significant cost savings, as there is no requirement
to mine or crush ore, and with relatively minimal initial capital expenditure
required.
Fox’s
new metallurgical team is currently investigating the purchase of new equipment
to produce high end copper products.
We
believe there is potential to also use heap leach infrastructure to treat known
sulphide resources at the Radio Hill and Whundo projects in the future, Mr
Seneque said.
The Company recently announced the
appointment of a dedicated team to drive the heap leach tests and potential
project development. The team is headed by Mr Len Spencer, who has significant
knowledge of the Radio Hill asset. Mr Spencer was previously Metallurgy Manager
at Radio Hill during the period of ownership by Titan Resources NL.
The Radio Hill flotation plant will remain
on care and maintenance ready to be used for any massive/semi-massive
nickel/copper sulphide discoveries. Fox is currently continuing exploration
programs across Radio Hill and surrounding tenements.
Our exploration and development strategy
for Radio Hill remains in place, and we have a large and prospective
landholding which we believe has significant potential for further high grade
sulphide discoveries. Nickel exploration specialists Newexco are currently
driving the exploration program at Radio Hill and surrounding tenements, Mr
Seneque said.
Heap Leach Testwork Whundo
Copper
Approximately 60,000 tonnes of oxide
material grading 1.5% copper is stockpiled on surface at the Whundo site as a
result of previous mining operations by Fox.
Column testing is under way and the liquor
produced will also be processed in a highly concentrated solution using copper
resin technology. This resin technology will then facilitate the production of
a high grade saleable copper product such as copper sulphate or copper cement.
It is anticipated that this test work should be completed in three months from
commencement.
Fox geologists have commenced a review of
the resource models at Whundo and West Whundo
to determine the quantity of additional copper oxide material that can be mined
for such heap leaching operations. The installed heap leaching infrastructure
would also facilitate the future heap leaching of considerable copper and zinc
sulphide resources known to exist below existing pit levels.
Heap Leach Testwork Radio
Hill Nickel/Copper/Cobalt
At Radio Hill approximately 250,000 tonnes
of stockpiled material is available in the form of scats (mill rejects),
oxidised massive and semi-massive Run of Mine (ROM) material and copper
supergene tailings from West Whundo copper
supergene processing.
Column testing is under way. Resin
technology will also be used to produce high tenor liquor which can then be
converted to a nickel/cobalt mixed hydroxide precipitate (MHP) which is a
post-smelting product. Nickel/Cobalt MHP can attract a premium to conventional
sulphide concentrates as MHP?s are introduced into the refining process thereby
by-passing the smelting process. A high copper concentrated liquor will also be
produced from this material, which can be run through electro-winning cells to
produce copper cathode. The commissioned testwork will determine what end
product Fox will produce.
Disseminated ore from Fox’s Sholl deposit has
been 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%. It is anticipated that
the column testing will take up to 12 months to complete however satisfactory
results may be achieved much earlier as demonstrated from Titan?s pilot
operation.
Please follow the link below to
view a high resolution image of:
Column testing in the
background. Samples of copper and nickel in solution, from column testing.
http://www..purplecom.com.au/_content/documents/1226.JPG
About Fox Resources
Fox
Resources is a nickel focused metals developer, with a substantial resource
footprint in the world-renowned Pilbara region. Fox?s Radio Hill project has
been producing and shipping nickel and copper concentrate for more than four
years. It was placed on care and maintenance during 2008 following adverse
movements in nickel prices.
The
project offers the advantages of established infrastructure, including a new 84
man village, a 425,000 tonne per annum nickel processing plant, a fully
developed underground mine at Radio Hill and concentrate storage facilities at
the Port of Dampier, 40km from the Radio Hill Mine. The concentrates produced
at Radio Hill are also high value due to their low levels of magnesium oxide
and arsenic.
Fox
Resources has an off-take arrangement in place with marketing partner Jinchuan
Group Limited - China's
largest producer of nickel, and a major Fox Resources shareholder. The Company
has also the benefit of a highly experienced Board and management team, with
particular expertise in the development of major nickel projects.
The
Company is also advancing its substantial Mount
Oscar magnetite project in
the Pilbara, where it has recently delivered an initial inferred JORC resource
estimate of 72 million tonnes grading 34% iron and is aiming for a one billion
tonne target.
-ENDS-
For further details
please contact:
Bruno
Seneque, Managing
Director
+61 8 9318 5600
Warrick Hazeldine / Ryan McKinlay ? Purple
Communications +61 8 6314 6300