+++++++++++++++++++++++++ The Board of Fox is pleased to announce that it has finalised an agreement with Titan Resources NL ("Titan") to acquire the Radio Hill nickel/copper sulphide process plant, 35km south of Karratha in the West Pilbara region of Western Australia. Fox also acquires all associated heap leach operations, infrastructure and mining leases.
Titan has produced approximately 45,000 tonnes of nickel concentrates per annum from the Radio Hill operation containing nickel, copper, cobalt and palladium metals. The plant contributed $37 million in revenue for 2001.
Titan retains the right to the disseminated nickel sulphicle reserves over the currently mined Radio Hill tenement, however, Fox has secured an option over these reserves, as well as an option over the nickel sulphide resources from Titan's Mt Sholl tenements.
Fox has also entered into a joint venture agreement with Titan over these and other regional tenements.
These agreements increase Fox's substantial land holding to almost 1000 square kilometres, including 12 granted mining leases in the Karratha area. This provides further opportunity for the discovery of extensions of nickel sulphide and precious metal resources for future milling and heap leach operations.
FOX NICKEL/COPPER SULPHIDE PRODUCER
Listed on the Australian Stock Exchange on the 26th April 2002, the acquisition of the Radio Hill operations is a major development in transforming Fox from explorer to producer.
Fox will immediately undertake a detailed review with the aim to commence heap leach operations of the high grade Whundo copper oxide stockpiles at the Radio Hill heap leach facilities. The company's objective is to provide cash flow for the growth of the company and enable the company to fund its exploration programs. The company's goal is to generate early term positive cash flow to provide returns to shareholders.
Fox's due diligence review of the plant indicates that a significant increase in mill throughput and flotation capacity can be readily achieved and result in a lower cost production profile, enabling the economic production of the disseminated nickellcopper sulphide reserves and resources, which will substantially increase the mine life of the Radio Hill operations.
The Radio Hill Plant and underground was originally constructed in the late 80's by Agip Pty Ltd, 2 wholly owned subsidiary of the Italian State Oil Company at a cost of $45 million. The review of the plant by the company's independent expert concluded that the plant has been well maintained and is in good operational condition.
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