A drill rig is currently being sought to enable calculation of an indicated resource by November, with recent hits including 8m grading 19.94% copper from 24m below surface, 12m at 9.5% from 24m and 10m at 10.85% from 18m.

Fox said the oxide overburden was expected to be free-digging.

While managing director Don Harper was unwilling to be drawn on the potential resource ahead of the planned drilling, he said the probability the prospect would be developed was “very high”.

Fox is currently producing around 240 tonnes of contained nickel and 140t of contained copper per month from its nearby Radio Hill mine, netting the company in the order of $400,000 per month. A completion of deliveries into hedging next month is expected to result in a doubling of that cash flow.

Shares in Fox were off 0.5c at 33c in morning trade. The stock was at 69.5c late last year, and at around 30c in July.