PERTH (miningweekly.com) – Base-metals explorer Fox Resources on Thursday reported that it was in discussions with China’s Jinchuan Group regarding the development of the heap-leaching operation at the Radio Hill nickel/copper project, in Western Australia, which is on care-and-maintenance.

The Radio Hill project was halted in 2008, after nickel prices slumped when the global economic crisis hit.

Fox said that it was working on extending the mine life for the proposed heap-leach operation, based on the growing resources inventory of ten-million tons.

The discussions with Jinchuan discussions covered the sales offtake agreement, as well as the construction of the project.

Jinchuan and Fox were discussing a potential nickel and copper carbonate sales offtake agreement for the Radio Hill project, which would be delineated under the project’s feasibility study.

The terms of the new offtake being presented to Jinchuan, while not finalised, would cover Fox’s commissioning period and initial early years output from Radio Hill, providing the company with a strong level of project support and confidence.

The companies were also reviewing the capital cost of the construction, which could lead to a construction and funding agreement for A$20-million. Fox said that this would cover the engineering and construction services for the heap-leach processing operation, as well as the associated infrastructure.

Fox chairperson Terry Streeter said that the ongoing discussions with Jinchuan demonstrated a strong support for the technical viability of the Radio Hill heap-leaching operation.

Streeter also said that Jinchuan has expressed a desire to use “reasonable endeavours” to fast-track the project to production.

“The company is buoyed by the fact that Jinchuan remains a key strategic alliance for Fox and intends to finalise negotiations as soon as practicable.”

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