The upcoming BFS has let many of us to hope that the share price of Copper Fox will soon improve. However, we received a rude shock 4 months ago when the 2011 Resource Estimate was released. We were expecting a great RE, to cause a nice spike in the share price. But instead, we received a very disappointing RE, and the share price plummeted
The RE got hit for the wrong reasons, ingnorance mostly. The RE was great. Elmer purposely removed tonnage to make the BFS alot better $$$. Here are many hints and explanations
http://www.bus-ex.com/article/copper-fox-metals
But Copper Fox has always had faith in the property and in early 2010, retained respected consultants Wardrop to complete the feasibility study which will include an updated geological model, resource estimate, reserve estimate, revised capital cost and operating costs estimates and other technical, socio-economic and financial aspects related to the feasibility study.
Worldwide, operational copper mines have an average grade of around 0.46 percent copper. At Schaft Creek, the pre-feasibility study indicated a grade of 0.32 percent—hence the previous lukewarm response. But this was a figure based on findings across the entire site and calculated on a projected mine life of 30 years.
Stewart’s approach is how best to maximize short term returns by maximizing the cash flow from the mine over the first ten year period. Doing it this way and by concentrating on selected zones where much higher grades (essentially a starter pit) of 0.7 to 0.8 percent copper equivalent have been found, a much shorter payback period appears feasible
http://www.highgradereview.com/elmer-stewart-copper-fox-metals-tsxvcuu/
You joined Copper Fox as Chief Executive in 2009, when you were doing your own due dilligence what was it about the Schaft Creek project that caught your attention?
I joined Copper Fox as President and CEO in July 2009. Prior to that I was a director of the Company and non-executive Chairman of the Board. I have always been excited about the size of the resource, its polymetallic nature, metallurgical recoveries and the general setting of the deposit.
The reported low grade nature of the Schaft Creek deposit was clearly a function of the low cut-off used to report the resource which I saw as a positive. Using a higher cut-off grade clearly reduced the resource, but provides higher average metal grades. The ability to balance average grades and resources is fundamental in mine development. Another aspect was that developing mines and specifically open pit mines in mountainous terrain depends on the ability to have space for the infrastructure and waste piles associated with mine development. Schaft Creek possessed all these features.
The we have the presentation:
http://www.copperfoxmetals.com/i/pdf/CUU-PP-Nov-2011.pdf
COMPLETE FEASIBILITY STUDY BY 4TH QUARTER 2011 OBJECTIVE IS TO IMPROVE THE DEPOSIT ECONOMICS:
DEFINE A 3 YEAR HIGH-GRADE STARTER PIT
INCREASE THE DAILY MILL CAPACITY
REDUCE THE CAPITAL COSTS AND
REDUCE THE PAY-BACK PERIOD
And Elmer interview:
Capital Cost and payback
Listen 3min54
