09/10/2006 - 11:15

Fox acquires processing plant for $500,000

09/10/2006 - 11:15

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Leederville-based mining company Fox Resources Ltd has acquired a processing plant and tailings project from Sydney-based Swiss company MKS Capital Ltd for $500,000.


Leederville-based mining company Fox Resources Ltd has acquired a processing plant and tailings project from Sydney-based Swiss company MKS Capital Ltd for $500,000.

The Elizabeth Hill processing plant, which was sold to MKS for $2.1 million in 2001, was previously part of a joint venture between Legend Mining Ltd and East Coast Minerals NL.

Fox managing director Don Harper said in an announcement the acquisition made the company more flexible and able to process a greater variety of ores.

 

The full text of a company announcement is pasted below

Fox Resources Ltd today announced that is has acquired the Elizabeth Hill Processing Plant and the associated Silver Tailings Project, both are located just 5.5km west of the Ayshia Zinc deposit.

Fox Resources' managing director, Mr Don Harper, said the acquisition of a second treatment facility would allow Fox to introduce another commodity into its current revenue stream being generated by the Company's high grade open pit copper mine at West Whundo.

"This plant represents more flexibility for Fox - we can now process a combination of ores in conjunction with our Radio Hill processing plant located 16km to the north," said Mr Harper.

Until this year, Fox was primarily a nickel producer. But today, the Company has become a diversified base metals explorer and producer with a state-of-the-art processing plant and ability to process copper, zinc and nickel.

Fox is now an emerging base metals player in Australia and plans to pursue its wider exploration strategy targeting Volcanic Massive Sulphide mineralisation in the largely unexplored areas close to its Radio Hill operations. The Company already has a life-of mine
offtake agreement with Jinchuan Group, China's largest producer of nickel, and is rapidly expanding its portfolio of commodities to drive further shareholder value.

It has been a rapid evolution for Fox. In 2004, the Company was engaged primarily in nickel concentrate production and an aggressive exploration program targeting nickel sulphide systems at Ruth Well and Sholl. At that time, it could only process nickel at
Radio Hill with copper as a by product.

Fox has since transformed from a primary nickel miner to become a diversified base metal producer through organic growth from exploration and now by the strategic acquisition of a second processing plant.

The consideration for the plant and associated infrastructure will be met by a total payment of $500,000, subject to certain conditions being met by MKS Capital. The purchase included the following:

  • 30 cubic meter Flotation Circuit
  • Jaw Crusher
  • Crushing circuit
  • 20 man fully functional camp with full messing facilities
  • A target estimate of 500,000 ounces of silver remains in the tails dam

Mr Harper went on to add that the plant is in good working order, with only limited refurbishment required.

"We have copper at West Whundo, zinc at Ayshia, nickel at Radio Hill, Sholl, Ruth Well and with the five new EM targets discovered at the Whundo base metal complex, we now have the ability to maximise shareholder value through the addition of a second
revenue stream at a time of high commodity prices, in particular zinc and nickel."

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