If the feasibility report comes in as expected the former owner of the Schaft Creek deposit (TECK)will have a big decision to make, as Copper Fox CEO Elmer Stewart explains to Alan Swaby.

At the time of writing, it’s easy to imagine that the computers at Teck Resources are doing some extra bench presses followed by a daily 10km run for improved stamina. Anything, in fact, to get them in peak condition for the serious number crunching they are going to have to do, starting in the next few months.

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

On receipt of a positive bankable feasibility study, the clock starts ticking and Teck has 120 days to decide which box to open.

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

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. But whatever the future brings, the geologist in Stewart is sure that Schaft Creek will have a long and productive future. “This area has all the hallmarks of an emerging porphyrydistrict and deserves more interest than the previous ‘low grade’ image it has had.”
http://www.bus-ex.com/article/copper-fox-metals

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BRIEN LUNDIN 2011:

The results of this new resource estimate, and the potential for other promising exploration and corporate
news in the months ahead, has prompted me to reinstate Copper Fox to our portfolio. In other words,
I think there are substantial nearterm gains ahead for this stock.

And there’s more to come, as Copper Fox has continued to advance the Schaft Creek project on all fronts. In particular, the updated resource estimate was an important step toward completion of a bankable feasibility study
due in the fourth quarter of this year.

When taken together, all this evidence supports the belief that, as big as Schaft Creek may be, it stands to get much, much larger.

With drilling underway to prove up a payback-period shortening starter pit and with a feasibility study on the way, Schaft Creek and Copper Fox are likely to win the market back, once we’re through this current period of volatility.

It’s a buy once again.


LAWRENCE ROULSTON 2011

I Recently toured the Schaft Creek project, with a particular focus on learning more about the Paramount zone and the other exploration targets. My view of the upside potential of the project has been greatly enhanced by what I learned on that site visit

Clearly, the old geological view of Schaft Creek has been replaced by a new model that provides considerable scope for greater size, and in particular, for more of the higher grade tonnes that will support the economics of the project

The Back in is triggered by delivery of a feasibility study. That study is now expected around November. The study will incorporate results from this summer’s drilling of the Paramount zone and the other results that will be generated over the summer. On delivery of the feasibility study, Teck will have 120 days to make a decision.

A back-in would be confirmation of the value of the project with Copper Fox holding 25% of a large project funded by a major.

If Teck does not back in, Copper Fox would effectively hold 100% of a billion tonne copper-gold deposit. They would have little difficulty in finding another partner.

Most significantly, the emerging Paramount zone and the other targets stand to add a significant high grade component to the project and thereby add substantial value to the project.

That value might be realized in the near term if a major metals company wanted a stake in a big development project in a very favorable jurisdiction.


JAY TAYLOR

''The sheer size of Schaft Creek is the factor behind another point made by some analysts in Canada. In short, they believe its size makes it an irresistible, strategic asset that China or some other Asian economy must secure. Thus, they expect that, if Teck backs out of the project, we will see a sovereign wealth fund or some other national entity step in to fund its development.


SEEKING ALPHA

We believe Teck Cominco partnering with NovaGold on Galore Creek means they really like the area and are likely to buy out Copper Fox upon completion of the feasibility study, or at least exercise their option to buy out 75% of Schaft Creek by paying Copper Fox 4 times all prior expenditures and arranging production financing.

Schaft Creek is only 36km from Galore Creek, but it is on the BC side of the mountains, thus no tunnel or Alaskan environmentalists. The deposit is every bit as big as GC and they have a top notch CEO. The life of mine strip ratio is a much cleaner 0.7:1. The gold grades are higher and it also has molybdenum.