The latest non-news release (!) published by Copper Fox Metals this morning should not deter future investors from entering this play, but many were probably hoping for something more material in its content.
However, the MDA filed on SEDAR on 29 January 2021 was quite revealing about Schaft Creek on page 10: “The study and technical report… is expected to be completed and filed on SEDAR in Q2 2021. The study will describe the status of the Schaft Creek project including AN UPDATED RESOURCE ESTIMATE, site layout/infrastructure, OPTIMIZED PIT PLAN, production schedules, etc…”
Two significant statements can be found here: 1) the resource estimate will be updated from the one done by TECK in 2018. This 2018 resource estimate used a NSR cut-off of $ 4.31 USD which implies an average cost of $ 4.31 USD to move a tone of rock. If correct, the 2013 report used a cut-off of $ 6.50 USD implying a higher operating cost. This can only mean that the new 2021 number should be better than both estimates above, which is great news to shareholders.
2) The pit plan will be optimized. Reading between the lines, the new pit plan will have a larger volume which will enable the mine to process a larger volume of ore which will generate more revenues than the 2013 plan, with the possibility of a longer mine life and larger than otherwise anticipated value. Again, another great news for shareholders.
Therefore, we must wait another three long months until the end of Q2 to discover the new and true 2021 value of Schaft Creek as a potentially sellable asset, because that is what the PEA is for = to sell CUU's share of the joint venture to someone at high value!
Now that the insiders of the company have FINALLY decided to cash in some of their warrants, and more will come to termination in April, shareholders can better feel secure about the funds available to Copper Fox Metals. If you calculate the money injected by warrants to date with the October 2020 budget report data, CUU should have over a million dollars in cash in the firm's coffers this Winter. Enough to carry on until the Spring, at least.
The last but most frustrating point in this story is simply that the market does not value anything other than Schaft Creek, which is quite unfair! With the new Van Dyke report and data, the current stock price of CUU alone with this mine should be around $ 1.68 or so. But all the Arizona mines and the other B.C. property (Eaglehead) seem to be totally ignored by the market.
Investors should wake up this Spring. Until then, we might well go back to the lower teens because of shorters and flippers. The stock price did not hold at 48 cents or much at 30 cents so far. Better days ahead...