I recently reviewed Copper Fox's management notes from the year-end financials and I will bring up some interesting statements from the report:

Schaft Creek project

The Technical Report included a number of recommendations to enhance the economics of the Schaft Creek Project. This report indicated that the Net Present Value (‘NPV’) of the Schaft Creek project is most sensitive to the foreign exchange between the Canadian and United States dollar. For each one point change in the foreign exchange in favor of the United States dollar, the project NPV over the life of the mine increases by approximately $75 million. Since the date of the Technical Report, the foreign exchange has changed 17 basis points in favor of the United States dollar above that used in the Technical Report. The implied increase in NPV of the Schaft Creek project (assuming that all other aspects of the Technical report remain constant) based on the change in foreign exchange is approximately $1.2 billion. This in addition to the approximately $500 million NPV of the project at the date of the Technical Report would imply a NPV of approximately $1.7 billion CDN.

The 2014 work located a new mineralized zone (referred to as the LaCasse zone, that covers an area that is approximately 1,300m long by 900m wide) north of the Discovery zone (drilled in 2012) with metal values from outcrop samples up to 1.56% copper and 1.3 g/t gold demonstrating the potential to locate additional mineralization. This area was surveyed in 2011 by Copper Fox using the Titan 24 DCIP system and exhibits a positive chargeability signature similar to that identified at the Schaft Creek deposit. The 2014 activities also identified a new possible mineralized target south of the Schaft Creek deposit. As part of the 2014 activities, a review of all previous metallurgical studies on the deposit was completed. The Operator has recommended additional variability testwork to determine more accurately the metal recoveries and mill throughput at Schaft Creek. The large size of the deposit, changes in alteration, styles of mineralization and metal concentrations may cause the overall metal recovery and daily throughput to change within the deposit. Work on the comminution (grindability) portion of the geometallurgy is ongoing and when completed is expected to play a significant role in determining the mill size, daily mill throughput as well as power consumption.

Van Dyke project

Due to advances in the technology and operating techniques associated with in-situ leach operations in both the uranium and copper industry over the last three decades, the Van Dyke oxide copper deposit is considered to be amenable to in-situ leaching recovery techniques.

Total exploration expenditures on the Van Dyke oxide copper project in 2014 was $4,146,116. The objectives of the 2014 program were to complete the exploration work necessary to verify the historical data and move the project to the Preliminary Economic Assessment (‘PEA’) stage. To achieve these objectives, a six hole (3,211.7m) verification diamond drilling (PQ core diameter) program, In-Situ Pressure Leach testing (8 samples) of the oxide copper mineralization, environmental baseline studies, hydrology measurements and studies, fluid mechanics, geochemical characterization of the lithologies surrounding the deposit, scoping level engineering studies, a mineral resource estimate as well as drill core, sample pulps and data recovery were completed in 2014.

The work performed in 2014 on this project has verified the majority of the historical information and has significantly advanced the understanding of geological and metallurgical aspects of the Van Dyke oxide copper deposit. During the first quarter of 2015, the Company expects to determine if the data collected in 2014 is sufficient to complete a PEA. The completion of a PEA on the Van Dyke oxide copper deposit would provide a conceptual study that includes an independent preliminary engineering analysis of the project, an estimate of potential value, operating costs, capital and sustaining costs and a conceptual plan on development and operations of the Van Dyke oxide copper deposit. If the decision is made to proceed with the preparation of the PEA, it is expected that this would be completed on or before the fourth quarter of 2015 and is estimated to cost in the order of $750,000.

Eaglehead Project

The current inferred mineral resource for this deposit is based on the mineralization contained in the Bornite and East zones. The mineralization in both zones is open in several directions. The 2014 Eaglehead exploration program consisted of re-logging 18 selected historical diamond drill holes from the previously located zones of mineralization, airborne and ground geophysical (Titan-24 DCIP) surveys, recovery of the historical drill core, collection of samples for preliminary metallurgical testwork and a four hole (2,229m) diamond drilling program. The 2014 drill program tested the interpreted correlation between the chargeability results from the Titan 24 DCIP survey and copper mineralization on the north and south sides of the chargeability signature. The four drill holes completed in 2014 intersected broad intervals of porphyry style mineralization on both the northern and southern edge of the chargeability anomaly.

The Far East zone is located approximately 3,000m from the eastern end of the chargeability anomaly and exhibits a 1,000m by 1,000m copper and molybdenum in soil anomaly and numerous mineralized drill holes. The Far East zone and the area located between the East zone and Far East zone are considered prime exploration targets. The re-logging of the selected diamond drill cores from the six mineralized zones, the chargeability anomaly and the positive correlation of the chargeability and copper mineralization suggests that Eaglehead could be a 9,000m long porphyry copper system.

Since its discovery in 1963, 124 drill holes have been completed on the property. Of these drill holes, approximately 100 diamond drill holes have not been systematically logged and only partially sampled. These drill holes contain a substantial amount of information on alteration, sulphide species, as well as structure and lithology controls of the mineralization that has not been recorded in a systematic manner. This information can provide guidance as to the potential size and future exploration and in selecting future drill hole locations. Copper Fox has recommended to Carmax that the 2015 program should consist of re-logging all the historical drill holes to obtain this information to better understand the geometry, distribution and controls of the copper-molybdenum-gold-silver mineralization. The estimated cost and details of the 2015 program are expected to be received from Carmax before the end of March 2015. Copper Fox will evaluate the merit of maintaining its 42.09% interest at that time. On completion of the re-logging and modelling of the data collected, additional geophysical surveys and diamond drilling could be considered to test the updated modelling and the mineral potential of the property. The costs of this additional work would be estimated at that time.

Sombrero Butte Project

This project has a common boundary with Redhawk Resources’ Copper Creek copper deposit located approximately 3 kilometres from the Sombrero Butte project. In 2014, Red Hawk Resources concluded a joint venture agreement with Anglo American on its Copper Creek project whereby Anglo American would spend US $64 million to earn an 80% interest on or before the seventh anniversary date of the joint venture. In 2015, the Company plans to pursue the possibility of either option or joint venture partners to carry on exploration of this project. If the Company decides to complete the proposed Titan-24 survey, then the estimated expenditure in 2015 would be in the order of $300,000.