Name and Location
Fisher East nickel sulphide project, Australia.

Client
Rox Resources.

Project Description
A scoping study on the Fisher East project, 150 km north-east of Leinster, in Western Australia, has confirmed that the project is technically low risk and financially robust.

A base case and a toll case have been examined for the mining and processing of nickel sulphide resources, located in the Camelwood and Musket deposits within the Fisher East nickel project area.

The base case is founded on an assumed processing and production rate of 500 000 t/y to produce between 8 000 t/y and 10 000 t/y of contained nickel concentrate.

The toll case is based on the assumption that run-of-mine ore will be hauled at a lower production rate of 250 000 t/y to a nearby processing plant for toll treatment.

The toll case requires the negotiation of an agreement with a third-party processing facility, which has not yet occurred.

The conceptual designs for the Musket and Camelwood mines include entry from boxcuts to conventional decline under-ground mines, with trackless haulage and mining using the longhole open stope method. Equipment used will include twin-boom development jumbos; top-hammer production rigs; load, haul, dump loaders; and articulated dump trucks.

The conceptual mining method involves open sublevel stoping with no backfilling, level intervals of 20 m, with sill pillars and low-grade pillars as required and access by twin decline from the boxcut to the start of stoping areas.

Musket and Camelwood are assumed to be a standalone operation, owing to the distance between them. It is possible that this could change if further drilling at the project’s Cannonball prospects proves to be a mineable deposit between Musket and Camelwood.

Net Present Value/Internal Rate of Return
Not stated.

Value
The project has low upfront capital requirements of $85-million for the base case and $20.8-million for the toll case.

Duration
Development of the project could start within 18 to 24 months, depending on relevant project approvals and finance.

Latest Developments
Based on the results of the scoping study, Rox is proceeding with a prefeasibility study, which is progressing well.

Resource estimates are under way, incorporating new data from recent drilling and new geological interpretations.
The resource estimate, expected to be finalised in the next few weeks, will also include the Cannonball deposit for the first time.

A geotechnical assessment has also been completed, which, together with the resource estimates, will then allow for a detailed mine plan and schedule to be developed and detailed costings to be derived. This work is expected to take another two months.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Rox Resources, tel +61 8 9226 0044, fax +61 8 9322 6254 or email admin@roxresources.com.au.