Rox releases nickel study

Rox Resources has released an updated scoping study for its Fisher East nickel project following an improvement in market conditions, with a forecast capital cost of between $85 million and $125 million.

The study estimates annual production of about 7,3000 tonnes over a six-year mine life at the project, which is located 150 kilometres north-east of Leinster in WA.

If the company builds a concentrator at the mine, its capital expenditure will total $125 million, but the company has the option to toll mill at a nearby concentrator leading to a reduced cost at $85 million.

The original scoping study was completed in 2015 and managing director Ian Mulholland said the positive outlook for the mineral had prompted the update.

“The updated scoping study shows the project can deliver significant value to Rox shareholders under both a standalone concentrator option or taking advantage of nearby toll treating opportunities, such as Leinster,” he said.

“Developing a concentrator generates strong cashflow and competitive costs, while toll treating can be undertaken with significantly lower pre-production capital costs and only slightly higher operating costs.

“Additions to the mineable resource inventory will only improve the project economics, as will the improving prospects for the nickel price which are related to increasing demand from electric vehicle batteries and declining LME nickel stockpiles.”