PERTH (miningweekly.com) – A scoping study into the Fisher East nickel project, in Western Australia, had delivered two development options that would be further investigated, minerals explorer Rox Resources said on Tuesday.
The first option considered was the construction of a 500 000 t/y processing plant at the Fisher East project, which would result in the production of between 8 000 t/y and 10 000 t/y of contained nickel-in-concentrate.
The second option considered was a toll treatment option, and would see Rox haul run-of-mine ore at a rate of 250 000 t/y to a nearby processing plant for toll treatment.
Rox MD Ian Mulholland said the toll case would require negotiations with a third-party processing facility, which had not yet occurred.
For both cases, the mining inventory had been estimated at 3.6-million tonnes, grading 2% nickel. Up-front capital costs of between A$85-million and A$20.8-million had been estimated for the two development options respectively.
It was estimated that development could start within the next 18 to 24 months, depending on approvals and financing.
“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 the time, is a significant milestone for the company,” Mulholland said.
He added that the scoping study confirmed that Fisher East was a technically low risk and financially robust project.
“The options we may have regarding standalone 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 though further drilling.
“On both counts, we are highly confident of success and as a result, [of] adding further significant value to the project.”
Mulholland said that based on the results of the scoping study, Rox would proceed with a prefeasibility study, and would continue with its drilling efforts to expand the resource base.