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22 May
2009
ASX / Media Announcement
FOX
COMMENCES HEAP LEACHING TESTS
Highlights:
?
Fox
exploring viability of heap leach operations at West Whundo
and Radio Hill.
?
Potential
low cost of operation for heap and dump leaching with stockpile and oxide
materials.
?
Added
benefit of producing higher value end products.
?
Infrastructure,
including power, water, workshop, accommodation and all other facilities are
present at Radio Hill.
Pilbara-based minerals developer Fox Resources Limited
(ASX: FXR) is commissioning metallurgical testwork to explore the potential of
heap leaching ores from Whundo and Radio Hill.
The work will assist in determining whether a successful
cash generating business can be developed with existing ore resources and
stockpiled material.
Fox has more than 300,000 tonnes of stockpiled material
that will be subject to the study, and which could provide the basis for a five
year, heap leaching operation.
Fox Managing Director Bruno
Seneque said this represents a low cost opportunity for Fox to
produce high value end products. If successful, the operation could be underway
within three months from commencement of testwork.
?We have a significant volume of mined material that we
are aiming to incorporate in a heap leach operation, including stockpiles of
oxide copper ore and copper supergene tailings from West Whundo, both grading
approximately 1.5-2.0% copper,? Mr Seneque said.
?We believe this is a promising, low cost opportunity for
Fox, we already have key infrastructure in place, and have appointed a
dedicated team to lead the test work.?
The Radio Hill flotation plant will remain on care and
maintenance ready to be used for any massive/semi-massive nickel/copper
sulphide discoveries.
Heap
Leach Testwork ? Whundo Copper
Approximately 60,000 tonnes of oxide material grading 1.5%
copper is stockpiled on surface at the Whundo site as a result of previous
mining operations by Fox (see Figure 1). This means there are significant
cost savings, as there is no requirement to mine or crush the ore, thus
resulting in significant cost savings.
Column testing will commence as soon as possible to
determine copper recovery, reagent consumption and general leach kinetics. The
liquor produced will also be processed in a highly concentrated solution using
copper resin technology. This resin technology will then facilitate the
production of a high grade saleable copper product such as copper sulphate or
copper cement. It is anticipated that this test work should be completed in
three months from commencement.
Assuming successful results from this testwork, Fox
geologists have commenced a review of the resource models at Whundo and West
Whundo to determine the quantity of additional copper oxide ore that
can be mined for such heap leaching operations. The installed heap leaching
infrastructure would also facilitate the future heap leaching of considerable
copper and zinc sulphide resources known to exist below existing pit levels.
Heap
Leach Testwork ? Radio Hill Nickel/Copper/Cobalt
At Radio Hill approximately 250,000 tonnes of stockpiled
material is available in the form of scats (mill rejects), oxidised massive and
semi-massive Run of Mine (ROM) material and copper supergene tailings from West
Whundo copper supergene processing. Once again the key advantage of
this ore is that there is no requirement to mine or crush this material, thus
resulting in significant cost savings.
Column testing will commence as soon as possible to
determine metal recovery, reagent consumption and general leach kinetics.
Resin technology will also be used to produce a high tenor liquor which can
then be converted to a nickel/cobalt mixed hydroxide precipitate (MHP) which is
a post-smelting product. Nickel/Cobalt MHP can attract a premium to
conventional sulphide concentrates as MHP?s are introduced into the refining
process thereby by-passing the smelting process. A high copper concentrated
liquor will also be produced from this material, which can be run through
electro-winning cells to produce copper cathode. The commissioned
testwork will determine what end product Fox will produce.
Disseminated ore from Fox?s Sholl deposit has been
previously heap leached by Titan Resources NL as part of a large field based,
pilot scale operation with a 5,000 tonne heap and another 8,000 tonne heap.
Irrigation of the initial 5,000 tonne heap commenced in May 2000 and by October
2000, nickel recovery into solution reached 74%. It is anticipated that the
column testing will take up to 12 months to complete however satisfactory
results may be achieved much earlier as demonstrated from Titan?s pilot
operation.
Assuming successful results from this testwork, there
exists the potential to utilise disseminated resources available from the Radio
Hill underground mine and Sholl B2.
Key
Appointment to Drive Heap Leach Operations
A new team has been appointed to drive the heap leach
testwork headed up by Mr Len Spencer, who was previously Mill Superintendent
for Radio Hill during the period of ownership by Titan Resources NL.
Len has over 30 years of experience and held a number of
senior management roles including a post with European Nickel PLC where he was
responsible for management of the design, construction, commissioning and
start-up of a pilot plant facility, at the Caldag Project in Turkey,
to commercialise European Nickel?s new technology for the acid heap leaching of
nickel laterites. This was completed successfully and he also contributed to
the further development of the company?s technology in the areas of leaching
procedures, nickel product development and full scale design.
ENDS
For further details please contact:
Bruno Seneque, Managing Director +61 8 9318 5600
Ryan McKinlay / Warrick Hazeldine ? Purple Communications +61 8 6314 6300
Figure 1. Whundo oxide
materials
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