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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%)

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My paranoid little mind has being grinding out thoughts of Teck putting us on the shelf for another decade or two. Images of our BFS still on it's trolley sitting in the janitor room somewhere between the mop bucket and box of Christmas decorations came up often.  

   So I emailed Elmer during an anxiety attack yesterday and he responded right away. My comments are followed by his responses which are in bold print.

 

 

Thanks for the e-mail.

Please see comments to your questions in brackets below.

Thanks

 Elmer

 Hello Elmer,

 I may be totally wrong about Teck's intentions toward Schaft Creek but it appears to me they are not very enthused about the deposit.

 ( I would not agree with your statement. Teck has spent a considerable amount of money on the project since 2013 even during times when they were undertaking major cost cutting.  The re-model work is the last major component of the work completed by Copper Fox to be reviewed by Teck.  With the onset of a new commodity/investment cycle, Teck has returned to better financial health. The re-model work is a significant component in establishing the resource base from which to make decisions on advancing the Schaft Creek project.  The old saying that “you do not find a mine, you have to build them” applies.  The work completed to date and what needs to be completed are all part of a detailed process to establish a scenario whereby the project exhibits sufficient economics to warrant development.  Copper Fox wants Teck to make a production decision. That will only occur if the project demonstrates economics that justify such a decision)  

 

Copper Fox kept them up to date over the years, that exploration was going on. It seems to me as though Teck does not feel obliged to reciprocate.  

 (Teck have been very good to work with and responsive to communications, suggestions etc.)

 

I realize you may be restricted on what you can share with the shareholders. But will there come a time, despite Teck's objections or support, that you or the SCJV will share all the info that has been collected since the BFS was completed.

 (The only component not reported on is the re-model. See news releases over the past four years.  When the remodel is completed, Copper Fox will issue a news release on the results of the work) 

 

Five years is a long time to be excluded considering we were the investors that took the risk of the deposit being worthless.  

 (When Copper Fox obtained the option on the project in 2002 it was deemed to have no value.  The work completed by Copper Fox demonstrated that the project had merit and established a considerable value based on the input parameters at the time of the study.  That study demonstrated sufficient merit for Teck to exercise the maximum back in pursuant to the option agreement leading to formation of the SCJV)


I can only think that the reason for secrecy is so Teck can get the best deal, without competing interest, for our shares.    

 ( I do not share agree with your statement. Teck knows that by the terms of the Joint Venture agreement Copper Fox has a carried interest to production. Waiting does not help Teck one bit.  In any event, Copper Fox would have an independent valuation completed before any decision to either accept an offer or agree to sell would be taken. The estimated cost to develop Schaft Creek is measured in $ billions and that is a decision that would not be taken easily given the past five years in the sector) Not something we should support.

 

Has any effort being made to have another mining company buy out Tecks interest in the project? 

 (Teck would first have to announce that they want to divest their interest in the project before Copper Fox could approach another company.)



thanks

 

XXXXXXXX

I usually share any info I receive with the Agoracom forum

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