8.0 CONCLUSIONS AND RECOMMENDATIONS Following the transfer of operations from Copper Fox to Teck on July 15th, 2013, a program of drilling and core relogging was conducted during the period from August 15th – October 30th, 2013. The drill program comprised a total of 3,453m in nine drill holes, and included drill holes designed to advance both geotechnical and exploration objectives. The geotechnical drill program contributed to the geotechnical understanding of the deposit. The drilling included two holes with economically significant mineralized intercepts that expanded the area of known mineralization within the Paramount Zone. A table of significant intercepts is presented above (Table 10), and the key results are summarized here:

55 SCK-13-432 (18 to 286.1m, grading 0.237% Cu, 0.238 g/t Au, 0.015% Mo): This hole was drilled at the northern limit of the Paramount Zone. This hole is significant because it extends the strike length of the Paramount Zone to the north, and also because mineralization occurs nearsurface. In particular, the interval at 67.3–166.5m is significant because it demonstrates unusually high grade at a fairly shallow depths (99.15m grading 0.361% Cu, 0.401 g/t Au, 0.031% Mo).

SCK-13-435 (239 to 665.5m, grading 0.324% Cu, 0.112 g/t Au, 0.021% Mo): This hole was drilled to test the down-dip extent of the central Paramount Zone at depth, in an area with a high chargeability IP anomaly. No deep drilling had been conducted previously within this particular part of the Paramount Zone. This hole is significant because it demonstrates the continuity of the Paramount Zone at depth, and indicates that there are more opportunities remaining to expand the Paramount Zone resource at depth. This hole also intersected two small intervals of high grade mineralization (i.e. 307-335m grading 0.817% Cu, 0.324 g/t Au, 0.051% Mo). These high grade intervals consist of hydrothermal breccias with abundant chalcopyrite-bornite-molybdenite cement. Further drilling and relogging is required to determine if these high grade breccia intervals represent traceable domains that can be delineated by future drilling.

SCK-13-431 (Mike target area): This hole was designed as an initial drill test of the Mike target area. The Mike target area is defined by a large high-chargeability IP anomaly. This drill hole did not intersect any economically significant mineralization, however a large amount of disseminated pyrite was intersected over a wide interval in this hole. This hole is significant because the large volume of disseminated pyrite intersected in this hole is probably the reason for the large high-chargeability IP anomaly in the Mike area. Thus, this hole provides insight into other large high-chargeability IP anomalies that are present around the periphery of the Schaft Creek deposit area. Going forward, more work needs to be done to evaluate the possibility of a pyrite-rich shell around the periphery of the Schaft Creek deposit, and care must be taken when drill testing other peripheral high-chargeability IP anomalies.

MoneyK