Rox Resources new $73 million mine looks to triple its inventory.
The Fisher East deposit, discovered by Rox, is part of a new province for nickel sulphide deposits.
With the potential for a $73 million mine, Fisher East is one of the emerging nickel provinces in Western Australia.
Rox is carrying out a phase of exploration region, stating it “aims to double, if not triple the project’s resource inventory as a priority as it has substantial untested potential over and above its known 25 kilometre strike length”.
“While Fisher East’s grade was in the middle range of the Kambalda-style mineralisation surrounding it, the project’s inventory had potential to grow to deliver an anticipated much larger resource without any deterioration in current grade levels,” Rox Resources managing director, Ian Mulholland, said whilst addressing the Paydirt 2015 Australian Nickel Conference in Perth.
Fisher East has a current resource of 3.6Mt @ 2.0% nickel for 72,000 tonnes of contained nickel metal.
”Our discovery costs to date for this province are just 4.8 cents a pound,” Mulholland said.
Rox has plans for new reverse circulation drilling to test other targets as they are seeing Kambalda-style deposits occurring in clusters within their tenement footprint.
“The prefeasibility study is under way and will be some months before that is completed as we are taking it slowly, mindful of the current state of the nickel market.”
The scoping study delivered an operating cost of A$207/t, a gross margin of A$146/t and a pre-tax yearly cash flow of A$51.1 million “so we can make some good money on this,” Mulholland added.
Rox Resources is a finalist in the Australian Mining Prospect Awards, in the Explorer of the Year category.