FOX Resources, thanks to its acquisition of the last 30 per cent in the Sholl nickel sulphide deposits, is moving to double its nickel production.
The company plans to commence work on a bankable feasibility study into heap leach operations targeted to begin in the second half of 2005.
Production estimates from those deposits are expected to double the current nickel production from 3,000 tonnes a year to 6,000 tonnes a year at full production.
Fox had been committed to pay $3.5 million to earn the remaining 30 per cent in the deposits from Titan Resources NL.
It has acquired the outstanding stake for $100,000, the issue of 250,000 Fox shares and a 1.5 per cent net smelter royalty on nickel production.
Fox’s recent $3.4 million placement and its proposed rights issue is expected to provide enough funds to fast track the completion of the Sholl bankable feasibility study.
Fox managing director Brett Matich said a production rate of 6,000 tonnes of nickel a year could place the company among the top six nickel producers in Australia.
“It [the Sholl deposit] will also significantly extend the production life of our Karratha operations and through exploration we are confident of further extensions,” he said.