Good ReportPage 33
The study is planned to be completed
by the end of 2011.
Page 47
Note: Non-contiguous claims shown to the south of themain Schaft Creek project along Hinckman Creek and Mess Creek are not part ofthe Schaft Creek Project.
Page 48
4.2.2 Greig/Kreft (Schaft North) Claims
In March 2011, Copper Fox purchased two mineral claims(Claims 217462 and
569460 totalling 2,786.54 ha) from Charles James Greigand John Bernard Kreft
(Greig/Kreft) that are contiguous with the Schaft CreekProject claims. These claims
are indicated in Figure 4-2.
Consideration paid by Copper Fox was $250,000 cash,1,250,000 common shares of
Copper Fox and a 2% net smelter return (NSR) royalty onthe mineral claims subject to
a “Partial NSR Buyout Option”. The Partial NSR BuyoutOption allows Copper Fox at
any time to purchase half of the NSR for a cash paymentof $1.5 M such that the net
smelter royalty is reduced from 2% to 1%.
These mineral claims are located within the Area ofInterest (essentially an “Area of
Mutual Interest”) set out in the Option Agreement,accordingly participation in these
claims will be offered and included in the joint ventureshould one be negotiated with
Teck.
9.8 ExplorationPotential
Mineralization at Schaft Creek is still open at depth andrecent drilling in 2011 has
confirmed this concept. The 2011 airborne high-resolutionmagnetometer geophysical
survey indicated that there may be potential for anadditional 1 km of strike of deposit
to the south. Schaft Creek is part of anextensive porphyry complex. Geological mapping and
geophysics surveys by Copper Fox indicate good potentialfor additional porphyry
copper–gold mineralization within the complex. Inparticular, the 2011 geophysical
surveys have outlined an exploration area of interestthat is approximately 4 km wide
by 20 km long. TheGK and ES prospects identified in the Greig/Kreft claims also have exploration
potential and represent additional porphyrycopper–gold–molybdenum mineralization
targets.
I'm starting at Grouse Mt in North Van and I cannot help but imagine it being full of copper all the way to the Lions right now. Probably to scale with Schaft Creek lol