Re: Lawrence Roulston on BNN
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Welcome To the Copper Fox Metals Inc. HUB On AGORACOM
CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)
Message: Re: Lawrence Roulston on BNN
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Yea, he loves it so much he doesn't even mention it. Is he a man or a mouse? Squeak up.
He does in his news letter, and this was not about his news letter. But since you seem to need his recommendation so much here you go:
Here is 1 (Aug 15th 2011), see page 2:
http://www.moneyshow.com/investing/article/29/Global-24139/Big-Upside-in-2-Junior-Gold-Miners/?aid=global-24139&iid=Global&page=2
Here is another July 28th:Copper Fox Metals(CUU-TSXV)
Copper Fox recently updated the resource estimate for its huge Schaft Creek copper-gold deposit in northwestern British Columbia.
Those figures add up to 6.1 billion pounds of copper, 383 million pounds of molybdenum and 5.8 million ounces of gold. An inferred resource of 283 million tonnes carries a copper equivalent grade of 0.39%. The Schaft Creek deposit also contains silver, estimated at 1 to 2 grams per tonne. The silver was not included in the figures as the historic work did not generate reliable data for silver.
The present drilling program is aimed at further expanding the high-grade portion of the deposit, in particular the Paramount zone. A geophysical survey in 2010 identified a substantial target area outside of the Main zone. Drill hole #405, which was directed into that zone of chargeability last summer, intersected 484 meters that graded 0.82% copper equivalent (0.47% copper, 0.34 grams per tonne gold, 0.23% molybdenum and 2.2 g/t silver). Four other holes in the Paramount zone encountered widths ranging from 489 to 576 meters grading better than 0.67% copper equivalent.
The chargeability (geophysical) anomaly extends a further 800 meters beyond the drilling. That area will be tested in this year's drilling program. The company expects that the mineralized zone continues further to the north, and is conducting additional geophysical work to test that area.
The Paramount zone represents a separate phase of the porphyry system from the Main zone. Most of the exploration in the past was focused on the Main zone, as that area occurs at or near surface. The Paramount zone, while deeper, carries a grade that makes it a very important part of the project. The zone is characterized by a hydrothermal breccia that follows a major north-south trending structure.
The geological understanding of the entire porphyry system is evolving as more information becomes available. President Elmer Stewart, a geologist with considerable experience in this type of setting, now recognizes that the driving force for the porphyry system is likely a different intrusive body than previously believed. That new thinking has important implications for the Paramount zone as well as other exploration targets in the area.
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 and in a subsequent meeting with Elmer Stewart.
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 site visit was also useful in better understanding the logistics of the project. We flew by helicopter from the airstrip at Bob Quinn Lake, following the proposed road access route. The first part of the road has been completed as part of the Galore Creek road.
Teck Corp, which has an interest in Schaft Creek, is also a partner in the Galore Creek project. They funded road building before suspending that project in 2008, pending revisions to certain aspects of the Galore project. The Galore road is completed from highway 37 to Miller Creek, about 40 km. Portions of the road are completed from there to the Galore Creek proposed mill site, 50 km further along the valley. Heavy equipment was brought in by helicopter to several camps along the road route, from where they worked outwards.
The Schaft road would branch off the Galore road to follow a valley northward, crossing a low saddle to the mine site. That route would be quite straightforward for road building, essentially following a valley for much of the distance. The mill site would be on the saddle, with ample room for tailings in a valley to the north.
Copper Fox has optioned the project from Teck under a deal allows Copper Fox to earn effectively a 100% interest, subject to a back-in right by Teck. If the major elects to back in to a 75% interest, they would be obligated to provide the next approximately $240 million of funding. The backin 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.
Copper Fox also holds 39 square kilometers of property contiguous to the joint venture property that is not presently subject to the Teck agreement. There are targets on that property that will also be evaluated this summer. Of particular interest is the northward extension of the Paramount zone.
Teck is a major mining company based in Vancouver. They already have a very substantial presence in British Columbia, operating a huge smelter-refinery complex in Trail and the world-class Highland Valley copper mine near Kamloops. It is very significant that the major is involved in both Schaft Creek and Galore Creek.
There would be substantial synergies in operating two large-scale mines in close proximity. That part of the province is really opening up. The provincial and federal governments are funding development of a power line that will tie the region into the provincial power grid. Electricity in BC is rated among the lowest cost in the world. Access to inexpensive power will provide a huge boost to the value of mining projects in the region.
The Copper Fox share price reflects a substantial valuation for the present resource, in line with the junior’s portion of the project ownership if Teck backs in, based on the values determined in the prefeasibility study. However, that valuation incorporated copper and gold price that are much lower than the current prices. 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.
And another April 2011
Subject: Lawrence Roulston April 2011
Copper Fox Metals (
TSXV:CUU)
Copper Fox is about to start field work on the Schaft Creek copper-gold deposit in northern British Columbia. A feasibility study is due for completion by the end of June and is being led by Wardrop, a highly regarded international engineering firm.
The work is being done in close cooperation with Teck, a major mining company
The work is being done in close cooperation with Teck, a major mining company
from whom Copper Fox is acquiring the project. The study considers a minimum 120,000 tonne per day open pit mine. The resource estimate supporting the feasibility study outlines 1.4 billion tonnes hosting 7.7 billion pounds of copper, 8.1 million ounces of gold, 584 million pounds of molybdenum and 69 million ounces of silver.
A prefeasibility study completed in 2008 estimated a net present value for the Schaft Creek deposit (discounted at 8%) of $2.7 billion. That value was based on the following metal prices: copper at $3.12, gold at $692, molybdenum at $33, and silver at $13. The values for copper, gold and silver are much higher now than the prices upon which the study was based.
The field work getting underway will refine some aspects in support of the feasibility study but also test other targets that could extend the resource and lead to further discoveries.
Of particular importance, Copper Fox recently acquired a 100% interest in 40 square kilometers of minerals rights adjacent to the north. Two large, relatively unexplored zones of copper mineralization are exposed in outcrop on the recently acquired mineral claims. The Schaft Creek deposit and the recently recognized zones encompass what is now considered a 15 kilometer long mineralized trend.
Of particular importance, Copper Fox recently acquired a 100% interest in 40 square kilometers of minerals rights adjacent to the north. Two large, relatively unexplored zones of copper mineralization are exposed in outcrop on the recently acquired mineral claims. The Schaft Creek deposit and the recently recognized zones encompass what is now considered a 15 kilometer long mineralized trend.
Planning for the 2011 diamond drilling program of 8,000 meters for the Schaft Creek deposit is underway. One of the objectives will be to expand the zones with higher grades. Copper Fox has earned a 100% interest in the project from Teck.
A 30% net profits interest is held separately and Copper Fox can also acquire 78% of that interest from Teck by delivering a positive feasibility study. The major has an option to earn back a 20%, 40% or 75% interest in the Schaft Creek project. Upon delivery of a positive feasibility study, Teck has 120 days to make its election. Should Teck elect to exercise its option for 75% they are required to fund subsequent property expenditures up to a total of 400% of the amount expended by Copper Fox ($58.1 million as of March 29, 2011) and arrange for project financing, including the Copper Fox portion. If Teck back in for the higher level, Copper Fox would hold a 25% interest in a large deposit that could become a huge mining operation, and be fully carried to production. (That is, they would not have to provide any further funding.) In addition to the Schaft Creek deposit,
A 30% net profits interest is held separately and Copper Fox can also acquire 78% of that interest from Teck by delivering a positive feasibility study. The major has an option to earn back a 20%, 40% or 75% interest in the Schaft Creek project. Upon delivery of a positive feasibility study, Teck has 120 days to make its election. Should Teck elect to exercise its option for 75% they are required to fund subsequent property expenditures up to a total of 400% of the amount expended by Copper Fox ($58.1 million as of March 29, 2011) and arrange for project financing, including the Copper Fox portion. If Teck back in for the higher level, Copper Fox would hold a 25% interest in a large deposit that could become a huge mining operation, and be fully carried to production. (That is, they would not have to provide any further funding.) In addition to the Schaft Creek deposit,
Teck is also involved in the Galore Creek deposit, located to the west. The major has a 50% interest in that massive deposit (with NovaGold holding the balance). Development of Galore had begun in 2007 before being suspended by rising costs and the Global Financial Crisis. The major and its partner are now revising the feasibility study on Galore Creek. There is considerable scope for synergies between those two large deposits. Teck operated the big Highland Valley copper mine in British Columbia, as well as the world’s largest zinc-lead smelter/refinery complex which is in the province. Teck’s head office is in Vancouver.
The present market value of Copper Fox is pretty aggressive in view of the uncertainty with regard to the project, but still allows for considerable upside potential.
Putting the market value into perspective: it equates to 25% of the prefeasibility study valuation. Given the low metal prices used in that study, there could stillbe upside potential.
Putting the market value into perspective: it equates to 25% of the prefeasibility study valuation. Given the low metal prices used in that study, there could stillbe upside potential.
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.
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