Copper Fox Metals Inc V.CUU

Roulston comments on Copper Fox

[Greenstake]

"Last week, Copper Fox published a preliminary economic assessment of their Schaft Creek deposit in north-western British Columbia. Basing metal price projections on the long term average prices resulted in a long term copper price forecast of $1.50 and $550 for gold. On that basis, the project had a net present value of $380 million. Using the average prices from the past 3 years, that is, copper at $2.64 a pound and gold at $564, the deposit had a projected value of $5.3 billion...

14 times higher!

This example should give you a sense of what could happen as analysts begin to raise their forecasts for long term metal prices. The first thing that will happen is that companies with existing production will get an immediate re-rating. Secondly, development projects will be re-evaluated. The Copper Fox example gives a flavour of what is likely. Companies that hold large, advanced stage metal deposits could see their values multiply. In time, the gains should be reflected throughout the exploration and development sector for companies that have credible management teams and realistic prospects of finding and developing new metal deposits."