Fox Resources restarted nickel production at its Radio Hill Operations in the Pilbara region of Western Australia.

While Fox was generating a cash flow from its West Whundo copper-zinc mine, the 2 ½ year nickel mining reserve announced in January this year, at Radio Hill, has enabled the company to switch back to nickel production.

The company can benefit from record level nickel prices while at the same time prove-up its base metal resources around the company's second mill at Elizabeth Hill.

Earlier this year, Fox announced that it was conducting a review of its nickel assets to support the development of a dual income business strategy. This review determined the economic viability of treating 89,000 tonnes of low grade nickel-copper ore stockpiled on the surface 150 metres from the Radio Hill mill. This ore is now being processed successfully through the existing mill with an expected ramp-up in production scheduled this month when the second ball mill comes on stream.

The first nickel shipment from Radio Hill is scheduled later this month.

The stockpiled material, grading 0.66% nickel and 1.04% copper has an estimated total of 587 tonnes of contained nickel and 925 tonnes of contained copper metal. This low grade nickel ore stockpiled on the surface is the starting point for preparations to mining underground at Radio Hill next month.

Significantly, Fox will be producing copper along with nickel in a bulk concentrate. This is supported by the company's new offtake agreement announced last month with China's largest nickel producer Jinchuan Group Limited for a bulk nickel and copper concentrate which allows payment for all nickel produced in concentrate.

Meanwhile at Fox's VTEM target, drilling will start at  Conquest which consists of two Electromagnetic conductors and through preliminary interpretation may be consistent with the presence of massive sulphides.

The conductors are approximately 80 metres below surface and the larger of the two conductors has an estimated strike length of 100 metres and is open to the east and south. There is a gossan (oxidised sulphides) and a copper-zinc occurrence on the surface in the immediate area of the conductors which may have the potential to lead to another shallow high grade supergene copper discovery similar to West Whundo and Whundo.

The 2½  year JORC compliant mining reserve for Radio Hill underground is 6000 tonnes nickel metal and 8200 tonnes of copper metal. The underground operations have been on care and maintenance and all power, ventilation and pumping systems are operational.