The economics surrounding Schaft Creek are based on earlier pre-feasibility studies done by previous owners and frankly were not that encouraging. But Copper Fox has always had faith in the property and in early 2010, retained respected consultants Wardrop to complete the feasibility study which will include an updated geological model, resource estimate, reserve estimate, revised capital cost and operating costs estimates and other technical, socio-economic and financial aspects related to the feasibility study.

The finishing touches are being made on this report which Stewart confidently expects to demonstrate that Schaft Creek, far from being an ugly duckling, is all set to emerge as a beautiful swan. Should this be the case, this is when Teck’s computers will earn their keep—calculating which of the many options it has will be best to take. 

Worldwide, operational copper mines have an average grade of around 0.46 percent copper. At Schaft Creek, the pre-feasibility study indicated a grade of 0.32 percent—hence the previous lukewarm response. But this was a figure based on findings across the entire site and calculated on a projected mine life of 30 years.

Stewart’s approach is how best to maximize short term returns by maximizing the cash flow from the mine over the first ten year period. Doing it this way and by concentrating on selected zones where much higher grades (essentially a starter pit) of 0.7 to 0.8 percent copper equivalent have been found, a much shorter payback period appears feasible.

The mining operation would be a conventional, open pit feeding standard flotation recovery plant. The plan is to produce two concentrates—one exclusively for molybdenum and a second for copper, gold and silver. Initial throughput of the mill is expected to start at 120,000 tonnes per day which could be jacked up to 180,000 tonnes if necessary.

No great distances are involved—one kilometer, say, to the crushing station and then 3 km of conveyors to the mill and processing plant. Nevertheless, the estimate of costs involved in getting the mine up and running as set out in the previous study was an eye watering $2.8 billion—a figure far too rich for Copper Fox to carry alone. 

Stewart should know. He’s been in the mining business for 30 years, holding the position of QP (qualified person) and in this time has helped bring on stream five different gold mining operations. “Even assuming that we could raise that much money alone,” he says, “it would leave the company highly exposed in the event of a market downturn. I already have the board’s agreement that selling our interests is the best course of action.”

In the meantime, Copper Fox is preparing the necessary licenses and permits for whoever it may be who takes the ball and runs.