Copper Fox Metals Inc V.CUU

CUU SUPER POST

[kelownasun]

2007 RESOURCE ESTIMATE:
The resource – 2007 numbers:
- 8Billion lbs of copper,
-8.1 Million oz of gold
-69. Million oz of silver,
-583 million lbs of molybdenum
https://www.goldminerpulse.com/c/cuu.php
This was only based on 200mdrilling
''The depth of the pre-2010 drilling atSchaft Creek averaged 226m, a very shallow depth in terms ofporphyry deposits''
.
The higher grades are at depth and CUUhas shown that it is still open beyond 800m.
''The work completed in 2010 clearly shows a largezone of higher grade mineralization at depth which could have significant depthextent, possibly in excess of 800m at the north end of the Schaft Creekdeposit.''
.
GeoModel: https://www.copperfoxmetals.com/s/Image.asp?i=maps/3D-GEOPHYSICAL-MODEL.jpg&id=428531
.
BigRed 1:https://www.copperfoxmetals.com/s/Image.asp?i=maps/Figure-1-Interpreted-X_Sect_6360900mN.jpg&id=444009
.
Unexplored Acres!
The 2007 drilling wasonly done on 1500 Acres of 51 000 = 2.9% of Schaft Creek
''Less than 1,500acres of the 50,000 acres Schaft Creek property has beenexplored using modern exploration techniques.''
.
CUU plans in APRIL toscan the whole 51000 acres. The company plans to complete a high sensitivityairborne geophysical survey consisting of magnetic, electromagnetic andradiometrics over the entire Schaft Creek property covering approximately51,000 acres
.
Still part of this 1500 acres CUU has discovered2 cores, 1 north and 1 East:
Core 1: https://www.copperfoxmetals.com/s/Image.asp?i=maps/Figure-1-Interpreted-X_Sect_6360900mN.jpg&id=444009
.
Core 2 (p.14) of presentation https://www.copperfoxmetals.com/i/pdf/CUU-Presentation.pdf
.
The true core is Under the Mountain….and forms 1 bigsystem.
As you can see on p.14they plan to drill that whole area while they complete Full Feasibility:
''The objective of theproposed 2011 drilling program is to continue testing the strike extentand most importantly the interval between 500m and 800m below surface in thezone of higher-grade mineralization.
The block modelgenerated by the updated resource estimate and the chargeability anomaly willbe used to locate the collars of the 2011 drill holes. An 8,000m drillprogram is planned and is expected to commence in mid May 2011.''
''additional drill testingof the deep zone of higher grade mineralization is being considered and ifsuccessful, is expected to add considerable value to the Schaft Creek mineralproperty.''
.
Nowread what CUU has been saying in recent NR's:
‘’The average grade ofthe deeper parts of the 2010 drill holes that extended themineralization to the east toward Mount La Casse and at depth into a previouslyuntested area. ‘’
``Mineralization isopento thenorth, at depth,and to the east under Mount La Casse.``
The portion of theanomaly that has not been drilled suggests considerable potential toexpand the size and average grade of the Schaft Creek deposit isencouraging and suggests that the majority of the Schaft Creek depositoccurs to the east underMount La Casse."
The 2010 geophysicalprogram and the pre 2010 drilling results strongly suggest this zoneoccurs on the flank of the depositand the former Paramount Zone, atthe north end of the deposit is the core of the porphyrysystem, where deep and higher grade mineralization would beexpected to occur.
.
The InducedPolarization/Resistivity (chargeability) anomaly outlined by the geophysicalsurveys completed in 2010 strongly suggest that the Schaft Creek mineral depositextends a significant distance to the north, the east andat depth beyond the limits of the diamond drilling
.
New Claims – Mt LaCasse!!!
Nownew claims (North Schaft Project) take in Mt La Casse!
https://www.cnw.ca/en/releases/archive/March2011/24/c6058.html
COPPER FOX ANNOUNCES STRATEGICACQUISITIONS TO ENLARGE SCHAFT CREEK PROPERTY AND PURCHASEOF LIARD COPPER MINES LTD. SHARES
Map new claims: https://www.copperfoxmetals.com/s/Image.asp?i=maps/North-Schaft-project-map.jpg&id=448864
The bottom part is Schaft Creek
* The red contour is Paget Tenure
* Pink contour is Creig-Kreft
.
See the NS Project and “Core #2” at: https://www.flickr.com/photos/60356448@N04/5556217326/in/photostream/
The green area is the “Zone of Cu andrelated hydrothermal alteration” that flows through the new North SchaftClaim.The white shading is the samemineral zone of the original Schaft Claim.
Just look at the map again…they state thatyou can see copper mineralization from the helicopter:
https://www.copperfoxmetals.com/s/Image.asp?i=maps/North-Schaft-project-map.jpg&id=448864
“anarea of Cu gossan visible from helicopter” [Gossan is intensely oxidized, weathered or decomposedrock, usually the upper and exposed part of an ore deposit or mineralvein)
"both the Paget and the Greig/Kreftmineral claims cover the interpreted extension of the mineralized trendthat hosts the Schaft Creek deposit
Paget: The average of the 32 samplescollected from the Paget claims was 0.87% copper and 0.31 g/t gold
.
Greig/Kreft: Wide spacedreconnaissance sampling on the Greig/Kreft claims in 2008 consisted of 17 graband chip samples that averaged 1.24% copper, 16 g/t silver and0.07g/t gold
The widespread copper-gold mineralization,geology and apparent control on the mineralization on theseclaims show many similarities to that seen at Schaft Creek
The interpreted SchaftCreek mineralized trend (including the Schaft Creekdeposit) extends for a distance of at least 10 kilometres tothe north end of the newly acquired Greig/Kreft claims.
.
Mess Creek Project
Don’tforget Mess Creek Project:https://www.flickr.com/photos/60356448@N04/
10 000acres: the Mess Creek South Mineral Claims 100% owned by Copper Fox
The work is designed to carry out its firstgeological assessment of the Mess Creek South Mineral Claims 100% ownedby Copper Fox. Prospecting of the claims by six geologists resulted inthe collection of 27 rock and 9 soil samples along fourtraverses. Sample No 08CFL3-3 (AssayNo. 167570) assayed5.94g/t gold from a sample described as a quartzite. https://aris.empr.gov.bc.ca/ArisReports/30794.PDF
===============
The mine property itself is situated within theSchaft Creek watershed which drains north into Mess Creek.The closest lava flows to the Project area are part of theBig Raven Formation atop the escarpment forming the east side of MessCreek valley (Souther 1992). In particular, the Mess Lake lava field andAsh Pit (both east of Mess Lake), and Nahta Cone at the source of Nahta Creek,are young volcanic centres dating to the Holocene.
The Galore Road connects to Highway 37 near BobQuinn Lake. The total road distance from the Schaft mine site to Highway 37 is105 km. The majority of the 39.5 km Schaft Road is within the MessCreek watershed. In order to avoid geohazards along the Mess Creek valley,the Schaft Road will cross Mess Creek twice (Figure 1.1-3). Mess Creek isconsidered navigable per Transportation Canada criteria.
TheSchaft Road passes right through the Mess Creek Claim.
.
THE NEW RESOURCE ESTIMATE
* Its coming in April (“expected before theend of April, 2011)
It will include:
- all drilling 207 to 2011
- re-sampling data (2 decades of coresre-sampled for gold, moly and copper)
- High grade starter pit
- Updated Indicated, Inferred and referred,based on new bloc model, and extensions of Schaft Creek (NORTN - SOUTH, ATDEPTH)
.
Note: One of the key components of a feasibility study is theaverage grade of the metals contained in the resource estimate. Smallincreases in metal content in large porphyry deposits such as Schaft Creek canhave a significant impact on the Net Present Value of the deposit. Withthe strong possibility of including higher grade mineralization into theresource estimate, completion of the resource estimate was deferred toinclude the assay results from the 2010 diamond drilling and core re-samplingprogram. These assays have been received and are undergoing QA/QC testingprior to delivery to AMEC Americas Limited (AMEC).
.
SIZE of Schaft Creekconsidered as Strategic Asset to Canada
''The key to this project hasalways been the huge numbers involved— huge in terms of depositsize.''
.
''The sheer size ofSchaft Creek is the factor behind another point made by some analystsin Canada.
.
In short, theybelieve its size makes it an irresistible, strategic asset that Chinaor some other Asian economy must secure. Thus, they expect that, ifTeck backs out of the project, we will see a sovereign wealth fund or someother national entity step in to fund its development.
.
It will all be veryinteresting to watch develop. But one thing is certain: Schaft Creek is, along withthe Pebble deposit of Northern Dynasty (NDM.TO) and Galore Creek of NovaGold, amongthe select few projects of such size that they can seriously be considered asstrategic assets.
GoldNewsletter, Oct 2008: https://www.copperfoxmetals.com/i/pdf/GNL1008_Copperfox.pdf
.
Quotes frommanagement: WHEN NOBODY WAS LISTENING
'' Copper foxis confident that the Schaft Creek story is only beginning to build...
'' we weresurprised to learn that Copper Fox has made new discoveries tocomplement the existing resource. ''
“There isabsolutely no doubt that the Schaft Creek deposit is world class,”
'' Schaft Creek isa world-class deposit and has the potential to be a lot larger than itis. It keeps indicating that there’s a lot more to be found.”
''Copper fox isconfident that the Schaft Creek story is only beginning to build'
'' the depositis substantially larger than what has been defined to date. ''
FULL FEASIBILITY
A considerablenumber of the studies required for the feasibility study were completed duringthe quarter. The feasibility study is expected to be completed by the end ofJune 2011.
Copper Foxidentified four aspects of the preliminary feasibility study that would have adirect impact on improving the economics of the Schaft Creek deposit. Theseare:
<!--[if !supportLists]-->1. <!--[endif]-->higher-grade"starter
<!--[if !supportLists]-->2. <!--[endif]-->increased dailymilling rate (The daily milling rate has been increasedfrom 100 000 tonnes per day over 20 years to 150 000 over 15 years)
<!--[if !supportLists]-->3. <!--[endif]-->reducedcapital costs
<!--[if !supportLists]-->4. <!--[endif]-->arealistic resource estimate geared toward maximizing the economicreturn/benefits of the Schaft Creek deposit over the life of mine.
Note: The North west transmission line will also lower Capex
.
Teck Back in Option
AfterFeasibility the clock starts ticking:
On receipt of a Positive BankableFeasibility Study, a defined term in the Option Agreement, Teck has 120days to exercise its earn-back option pursuant to the Option Agreement,then Teck has the right to elect to acquire either a 20%, a 40% or a 75%working interest in the Schaft Creek.
.
Manyalready think a move will be made by Teck before Feasibility comes out:
''Teck may at any time elect to exercisethe earn-back terms and conditions of the Option Agreement. '
.
Funding and Expenditures:
* All our dilution in spending on Schaft Creek isadded value to the resource and money in the bank 100% to 400%
'' by solely funding subsequent expenditures equalto either 100%, 300% or 400% of Copper Fox's prior expenditurespursuant to the Option Agreement.
.
HUGE VALUE NOT RECOGNIZED BY MARKET: THE FINANCINGCLAUSE:
In the event Teck elects to earn-back a 75%working interest in the Schaft Creek Project, Teck will be responsiblefor arranging Copper Fox's share of project financing and will recoverthe project financing funds from Copper Fox's share of metal sales until payoutis reached.
.
Many analystsagree, if Teck does not back in someone will step up:
Roulston:
Copper Fox istargeting year end to complete the feasibility study. That would trigger the120 day period for Teck to exercise its back-in. If the major does elect toearn back into the project, it would be an endorsement of the merits ofthe project and would relieve the junior of funding obligations.
If Teck does not back-in,then Copper Fox would retain its interest (and would alsoget Teck’s portion of the royalty interest). With a controlling interest insuch an attractive project, Copper Fox would have little difficulty inattracting another partner. More likely, the junior would be taken over byanother mining company.
.
Jay Taylor:
''The sheer size ofSchaft Creek is the factor behind another point made by some analysts inCanada. In short, they believe its size makes it an irresistible, strategicasset that China or some other Asian economy must secure. Thus, theyexpect that, if Teck backs out of the project, we will see a sovereign wealthfund or some other national entity step in to fund its development.
.
Seeking Alpha
As we pointed out inour initial article on Copper Fox Metals (CPFXF.PK) in August, TeckCominco, one of the largest mining companies in the world, is a partner withCopper Fox on the Schaft Creek project, a neighbour to NovaGold's Galore Creekproject. Today’s news of Teck Cominco partnering with NovaGold onGalore Creek is great news for Copper Fox.
We believe TeckCominco partnering with NovaGold on Galore Creek means they really like thearea and are likely to buy out Copper Fox upon completion of the feasibilitystudy, or at least exercise their option to buy out 75% of Schaft Creek bypaying Copper Fox 4 times all prior expenditures and arranging productionfinancing.
.
Teck being involved inboth projects also means that Schaft Creek should have an easier time piggybacking on the Galore Creek infrastructure (power, roads, etc.) to go toproduction, greatly reducing costs.
As this MetalsPlace article from earlier this year pointed out, Schaft Creekis arguably a better project than Galore Creek for a variety of reasons:
Another Galore Creekneighbor is the Schaft Creek project being developed by Copper Fox [CVE:CUU].Schaft Creek is only 36km from Galore Creek, but it is on the BC side of themountains, thus no tunnel or Alaskan environmentalists. The deposit is everybit as big as GC and they have a top notch CEO. The life of mine strip ratio isa much cleaner 0.7:1. The gold grades are higher and it also has molybdenum.The 2004 capital costs were $600MM. While the cost is sure to increase it willstill be much less than GC. Copper Fox optioned the property from Teck Comincoin 2002, but Teck retained a back in right for up to 75%. Teck would have tocontribute 4 times all prior expenditures and arrange financing after CUUdelivers the feasibility study. A preliminary feasibility study and an updatedresource estimate were ordered last month. At $2 copper and $500 gold the NPVis $1.2B discounted at 8%. So CUU has arguably a better project and a strongpartner already in place. They will undoubtedly have to dilute shareholders tocomplete the FS, but then they get four times their expenditures to help payfor their 25% of capital costs. The entire market cap of Copper Fox iscurrently about $40MM. Twenty five percent of Galore Creek would run about$600MM.
.
ENVIRONMENT
CUU has ZERO environmental issues.
1) Very long going positive relationship they have the Tahltan Nation.
2) Shaft Creek has an estimate of 3.6% to 5.1% of the totalwaste rock mined could potentially be net acid generating, a very lowpercentage compared to other porphyry copper deposits.
3) Thewatershed areas around the Schaft Creek deposit are non fish bearing
.
Mr. Elmer B. Stewart, MSc. P. Geol, President and Chief ExecutiveOfficer stated "We are extremely pleased with the results received fromthe preparation of the Feasibility Study. The confirmation that avery lownet acid generating potential exists from the waste rock mined is extremelygood news from an environmental point of view.
Environmental Studies Update:
Copper Fox has been collecting environmental baseline information on theSchaft Creek area since mid 2005. As part of the ongoing environmentalbaseline studies, Copper Fox has completed 634 Acid/Base Accounting Samplesand numerous Humidity Cell Tests whereby Copper Fox's consultant, Dr KevinMorin, has concluded that approximately 3.6 to 5.1% of the total rockmined from the Schaft Creek deposit could potentially be net acid generatingwhich is low compared to other porphyry copper deposits.
.
Environmental Assessment Certificate:
CopperFox has received a Section 11 Order from the Government of British Columbiasetting out the parameters of the public consultation process related to theapplication by Copper Fox for an Environmental Assessment Certificate. This isan important, major step forward and allows Copper Fox to commence the publicconsultation process as part of its ongoing environmental and thesocio-economic impact studies related to development of the Schaft Creekdeposit.
https://www.copperfoxmetals.com/s/NewsReleases.asp?ReportID=442282&_Type=News-Releases&_Title=Milestone-In-Environmental-Assessment-Of-Schaft-Creek-Achieved
February14, 2011
Milestone in Environmental Assessment of Schaft Creek Achieved
Vancouver,British Columbia -- February 14, 2011 -- Copper Fox Metals Inc. ("CopperFor" or "the Company") (TSX-Venture: CUU) is very pleased toannounce that it has received confirmation from the BC Environmental AssessmentOffice and the Canadian Environmental Assessment Agency that its ApplicationInformation Requirements (AIR) for the proposed Schaft Mine has been approved.
3) Thewatershed areas around the Schaft Creek deposit are non fish bearing
Mr.Stewart, President of Copper Fox stated that "I am pleased that the fishhabitat portion of the environmental studies on the Schaft Creek depositconcluded that no fish species have been found from 1 to 6 kilometer radius ofthe deposit. The lack of fish habitat and low acid generating potential of thewaste rock to be mined are very positive environmental features of the SchaftCreek deposit.
EnvironmentalAssessment Update:
CopperFox is working with the Tahltan Heritage Resources Environmental AssessmentTeam and provincial and federal regulators to submit an EnvironmentalAssessment (EA) Application for the Schaft Creek deposit in the fourth quarterof 2010. One aspect of the EA Application will require authorizations under theCanadian Fisheries Act. The exhaustive studies completed by Copper Fox showthat the tailings storage facility, the open pit and the waste rock storageareas, all three of which are major components of the feasibility study and theproposed mine site are not located within fish bearing waters.Naturally occurring barriers prevent fish from accessing to within 1, 2.5 and 6kilometers of the tailings storage facility, waste rock storage area and openpit.
(CUU doesnot even require the Fisheries Act!)
Due tothe absence of fish, approval under the British Columbia EnvironmentalAssessment Act, the Canadian Environmental Assessment Act and the CanadianFisheries Act will not be contingent upon the reclassification of fish habitatas mine waste disposal facilities. Copper Fox expects that due to the absenceof fish in the area around the proposed mine site, a Schedule 2 Amendment underthe Fisheries Act would not be required.
CopperFox has selected the tailings and waste rock storage areas based onconsultation with the regulatory agencies with the goal of minimizing impactson the environment and is working with provincial, federal and Tahltan HeritageResources Environmental Assessment Team representatives to develop the SchaftCreek Project in an environmentally responsible manner.
.
INSIDER BUYING
.
* Insider of CUU own now with the pp'sover 65% of all the shares and are still buying at the highs (1.76$, 1.73$,1.67$, 1.53$)
.
* Any selling is exercising of optionsto purchase even more shares
.
* Buying all of 2010, every month,almost every day and most of 2011
Up to date Insider buying: https://canadianinsider.com/coReport/allTransactions.php?ticker=cuu
.
<!--[if !supportLists]-->.``,