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%)

Free
Message: Economics of SC

I have a question and sorry if this has been addressed:

When reviewing the images of the "Pit shell" it clearly indicates we have resources outside of it. The BFS only contains the metal tonnage within the pit shell right? If we expand and widen the pit shell we could then include these resources that are outside the Pit in the BFS which would improve the economics? That being said when you expand the pit shell we would be able to increase the production rate which would in turn improve the payback period?

Also, when a BFS is created you can not include the inferred resource due to the existence and viability of the metal. If we eventually upgraded the inferred to a measured and indicated category could this vastly improve the economics of the deposit since we have 597 million tonnes of it?

In a BFS document you can only have measured and indicated category used to determine the economics of the deposit, so my other thoughts are this:

Copper Fox has 1228 million tonnes of metal in the M&I category but only 940 million tonnes of that is considered economically viable to extract from the ground and sell for a profit? Now I understand that not all measured and indicated resources can be converted into a "reserve resource" so people do not need to educate me there.

Doing the math this adds up to 288 Million tonnes of metal that is not economic to extract? It seems to me that this is a great amount of metal that is not included and that maybe it should be considered viable but it is not. So my question, Is this 288 MT outside the Pit Shell and could not be included in the BFS? Or, is the resource outside the "Pit shell" the inferred resource that can not be included in the BFS? Or both?

We know that 171 Mt of rock within the "Pit shell" is an inferred resource which is treated as waste removal which explains the extremely high operating costs and strip ratio. We understand it is mineralized and not waste because Teck drilled it from the Liard zone many years back. The remaining inferred resource (426 MT) is outside the Pit and is within the Paramount zone right?

11
Oct 06, 2013 05:33PM
4
Oct 07, 2013 10:43AM
1
Oct 07, 2013 03:25PM
3
Oct 07, 2013 03:35PM
Share
New Message
Please login to post a reply