Fox Resources has started production of its second stream of nickel concentrate from the Radio Hill operations in the Pilbara region of Western Australia.

This concentrate, called Z con, is being sold to Jinchuan Group in a strategic offtake agreement. The Z con is a by-product of the higher grade nickel and bulk concentrate being produced at Radio Hill.

Fox is targeting an estimated production rate for the Z con of 1200 wet metric tonnes for an estimated 30 tonnes of contained nickel per month. This monthly production will be in addition to the previous monthly forecasts of 167 tonnes of nickel and 287 tonnes of contained copper metal.

Fox managing director Don Harper says that in addition to the Z con production in early February a shipment of bulk concentrate from Radio Hill departed Dampier for the Chinese port of Lianyungang, representing a $6.1 million value for Fox. “Our copper production in particular is experiencing the benefit of a rapidly rising copper price.”

The February shipment of 5242 wet metric tonnes comprised of a provisional estimate of 239 tonnes of nickel and 380 tonnes of contained copper metal. The next shipment of 5500-6000 wmt is scheduled to depart Dampier this month.

“We have also made some improvements to the mill at Radio Hill, including installation of a state-of-the-art ore screening unit. This has enabled an immediate reduction in the scat rate, or hard-ore rejects, and increased nickel and copper recovery.

“Additional booster tail pumps have also been installed to alleviate bottlenecks in ore throughput and have resulted in the mill breaking through the 50 tonne per hour production rate. We are now targeting a 10% increase in hourly production,” Don Harper says.

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