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Overview of Schaft Creek ProjectDescription: The Schaft Creek Project consists of a large undeveloped porphyry copper-gold-molybdenum-silver deposit (the Schaft Creek deposit) and is located within a contiguous group of mineral claims that cover 21,025 hectares, the ownership of which was recently transferred to Copper Fox by Teck Resources Limited ("Teck"). The mineral claims covering the Schaft Creek deposit are subject to an earn-back right held by Teck pursuant to an Option Agreement dated January 1, 2002 (the "Option Agreement") between Teck and Copper Fox. In addition, Copper Fox owns a 100% working interest in another contiguous group of mineral claims covering 3,947 hectares that is not subject to the Option Agreement.Location: The Schaft Creek Project is situated 45 kilometers west of the Stewart-Cassiar Highway and approximately 80 kilometres south of Telegraph Creek in north western British Columbia. History: The Schaft Creek Project was extensively explored and drilled by several mining companies since its discovery in the late 1950's culminating with the completion of a pre-feasibility study by Teck-Cominco Corp. (now Teck Resources Limited) in the early 1980s. In 2002, Copper Fox Metals Inc. secured the rights to acquire a 100% working interest in the project pursuant to an Option Agreement with Teck Resources Limited ("Teck") and related underlying agreements. Copper Fox has since earned a 100% working interest in the project (subject to the terms and conditions of the Option Agreement and an earn-back Option held by Teck) and has incurred expenditures of approximately $43 million to the end of December 2009. Option Agreement: Pursuant to a 2002 Option Agreement with Teck, Copper Fox has acquired a 100% working interest in the Schaft Creek Project (subject to a 30% net proceeds interest held by Liard Copper Mines Limited ("Liard") a private company 78% owned by Teck and an earn-back Option held by Teck). Under the terms of the 2002 option agreement with Teck, Copper Fox can earn their 78% interest, or 23.4 % of the deposit, by completing a "positive" Feasibility Study. Pursuant to the Option Agreement, Teck may at any time elect to exercise its earn-back rights, on receipt of a Positive Bankable Feasibility Study, a defined term in the Option Agreement, Teck has 120 days in which to elect to either: i) exercise one of its earn-back options, or ii) retain a 1% net smelter return royalty, or iii) receive shares of Copper Fox to a value of $1,000,000. If Teck elects to exercise its earn-back option pursuant to the Option Agreement, then Teck has the right to elect to acquire either a 20%, a 40% or a 75% working interest in the Schaft Creek Project from Copper Fox by solely funding subsequent expenditures equal to either 100%, 300% or 400% of Copper Fox's prior expenditures pursuant to the Option Agreement. In the event Teck elects to earn-back a 75% working interest in the Schaft Creek Project, Teck will also be responsible for arranging Copper Fox's share of project financing and will recover the project financing funds from Copper Fox's share of metal sales until payout is reached. Mineral Resources and Mineral Reserves: As set out in the Preliminary Feasibility Study dated September 15, 2008 prepared by Samuel Engineering, Inc., the current Mineral Resources and Mineral Reserves in the Schaft Creek deposit are set out below:
The Preliminary Feasibility Study estimated the current Mineral Reserve at Schaft Creek to be:
The Preliminary Feasibility Study shows that based on the estimated metal recoveries defined by metallurgical test work, the metal produced over the life of the mine would be approximately 4.76 billion pounds of copper, 4.5 million troy ounces of gold, 32.5 million troy ounces of silver, and 255.2 million pounds of molybdenum over a projected mine life of 22.6 years. The main conclusion of the Preliminary Feasibility Study was that the Schaft Creek deposit should be advanced to the feasibility stage. In early 2010, Copper Fox contracted Wardrop (A TETRA TECH Company) to complete a feasibility study on the Schaft Creek project. The feasibility study is expected to be completed by the end of 2010. Resource EstimateCopper Fox Metals reported an independent National Instrument 43-101 compliant resource calculation prepared by Associated Geosciences Ltd. (AGL) dated June 22, 2007 on the resources for the Schaft Creek deposit. The measured and indicated resources at Schaft Creek include 1,393 billion tonnes including 7.7 billion pounds Copper, 8.1 million ounces Gold, 584 million pounds Molybdenum and 69.4 million ounces Silver at 0.2% Copper Equivalent cutoff. The 0.55% Copper Equivalent Cutoff indicates that a significant volume of higher-grade mineralization occurs in the deposit. A 0.35% Copper Equivalent has also been included to compare to the historical resource reported by AMCL and by Giroux and Ostensoe.   Schaft Creek OptionCopper Fox has an option agreement dated January 1, 2002 to:
If Copper Fox delivers a feasibility notice to Teck Cominco prior to completing the $15,000,000 in expenditures, Copper Fox will be deemed to have exercised the option as to Teck Cominco's Direct Holding in addition to having acquired the Indirect Holding.
If Teck Cominco wishes to exercise its back-in right, it may earn;
The option agreement includes provisions for joint management and for dilution of interests in proportion to expenditures, including reversion of either party to a defined net profits royalty if that party's interest is diluted below a 20% working interest in the joint venture. HistoryThe Schaft Creek copper-gold-molybdenum-silver prospect was located in 1957 by prospector Nick Bird while employed by the BIK Syndicate. Three diamond drill holes were drilled to moderate depths. Cores from two holes, when sampled, returned sufficient copper values to encourage further work. The prospecting syndicate was re-organized in 1966 into Liard Copper Mines Ltd. (" Liard") with Silver Standard Mines Limited, holding a 66% interest, acting as the manager. In 1966, ASARCO obtained an option to explore the Liard Copper Mines Ltd. ground, carried out geological and induced polarization surveys and drilled 10,939 feet (3,335 metres) in 24 holes. The option was not maintained despite encouraging drill results and in 1968 Hecla, a subsidiary of Hecla Mining Company of Wallace, Idaho, entered an option agreement to earn a 75% property interest and commenced drilling and other exploration work with Hecla operating company as its agent. Hecla, in the period 1968 through 1977, completed 34,500 metres of diamond drilling, 6,500 metres of percussion drilling, induced polarization and resistivity surveys, geological mapping, air photography, and engineering studies related to the development of a large open pit copper-gold-molybdenum mine. Property work ceased in 1977 and in 1978 Hecla sold its interest to Teck Corporation ("Teck") (now Teck Cominco Limited). In 1980 Teck commenced a program of exploration and drilling designed to confirm and expand Hecla's work. A total of 26,000 metres of diamond drilling was completed by 1981. Teck then undertook an engineering study to determine the feasibility of mine development. Further data reviews were completed by Western Copper Holdings in 1988 and Teck in 1993. A total of 230 core holes with total length 60,200 metres and percussion holes with total length 6,500 metres were completed prior to Copper Fox acquiring an option on the property in 2002. Geology & Technical ReportsMay 20, 2010 Updated Amended Technical Report September 15, 2008 Canadian NI 43-101 Technical Report - Preliminary Feasibility Study on the Development of the Schaft Creek Project Located in Northwest British Columbia, Canada December 7, 2007 Preliminary Economic assessment study (PEA) - Executive Summary December 7, 2007 Canadian NI43-101 Technical Report - Preliminary Economic Assessment on the Development of the Schaft Creek Project Located in Northwest British Columbia, Canada June 22, 2007 AGL Updated Resource Estimate for Schaft Creek March 19, 2007 Diamond Drill Report
Engineering ReportsGiroux Consultants Ltd. May 20, 2004 - The report "Summary Report -- Status and Resource Estimate, Schaft Creek Property, N.W. British Columbia", was prepared to:
Associated Mining Consultants Ltd. September 20, 2004 - (AMCL) and HATCH(tm) conducted a preliminary assessment (Scoping Study) of the viability of the Schaft Creek project. AMCL is the Project Manager for this study. Click here to view the full PDF file (4.5 MB). Community Relations Tahltan Nation Copper Fox understands it is important to build a relationship with the Tahltan Nation. It does this by communicating in an open, honest and transparent way and by participating in events and initiatives important to the Tahltan Nation. Language Camp Copper Fox provides financial support to the Tahltan Language Camp. The week-long camp was held in Dease Lake and organized by Camille Callison, TCC Heritage Manager, and Shana Day, Language Project Coordinator. The camp was designed to preserve, promote and revitalize the Tahltan language by bringing together Elders and youth from the three Tahltan communities of Iskut, Telegraph Creek and Dease Lake. At the Camp over 150 Elders, students and teachers learned the traditional language, made cultural items such as drums, mini-button blankets, medicine pouches, and were taught to sing and dance to Tahltan songs. Science Camp Copper Fox provided financial support to the Tahltan Youth Science Camp. The Science Camp provides young people with a fun, interactive learning environment where they learn about different trades and skills used in the mining industry. What's more youth participate in traditional activities and games. Mining Forum Copper Fox provided financial support to the Mineral Forum hosted in Telegraph Creek in June 2008. The purpose of the forum was to listen to Elders and community members and hear their opinions on mining in general. Copper Fox is committed to listening through open houses, public meetings and community consultation. Copper Bursary Program The Copper Fox Bursary is designed to provide Tahltan youth living in the Nation with the financial support they need to continue their studies. In 2008, three $5,000 bursaries will be made available to students demonstrating exceptional leadership and commitment $75 000 Scholarship Copper Fox Metals and the Tahltan Central Council, on behalf of the Tahltan Nation including the Tahltan Band and the Iskut First Nation are offering a merit-based scholarship to a Tahltan First Nation student planning to attend the University of Alberta to study in one of following programs: Education, Nursing, Medicine, Physiotherapy, Nutrition, Law, Engineering, Geology, Agriculture, Social Work or Native Studies. The Copper Fox Scholarship is a new undergraduate program for students attending the University of Alberta. The scholarship will be provided over five years max ($15,000 per year). The Copper Fox Scholarship covers tuition, regular student fees and books for students studying at the University of Alberta for up to five years. Continued support under this program depends upon maintenance of satisfactory academic standing and enrollment in a full time program that will lead to an undergraduate degree. Copper Fox Metals is the sole contributor to the fund. Award winners are selected on the basis of academic performance, career goals, brief biography, role model qualities, and volunteer and leadership contributions to their community. Academic performance, residency and career interest are considered in the selection process. Applicants who wish to pursue a career in the mining industry and traditional studies are favoured. Agreements Copper Fox has negotiated several agreements with the Tahltan Central Council (TCC), the government representing the Tahltan Nation. These agreements outline how the company will work with the TCC. Communications Agreement Signed on June 1, 2007 What it means Copper Fox has signed a Communications Agreement with the Tahltan Central Council (TCC) with the objective of ensure strong communications between the company and TCC. The agreement outlines financial support the company will provide to the TCC to ensure adequate financial resources are available to funding communications between the TCC and the company. Heritage Agreement (formerly known as the Traditional Knowledge Agreement) Signed on October 25, 2007 What it means Copper Fox has signed a Heritage Agreement with the Tahltan Central Council (TCC) with the objective of confirming how traditional knowledge will be collected and protected, as well as how the process will be funded. Copper Fox will fund any collection of traditional knowledge and be responsible for ensuring it keeps confidential such information. In addition, the information is always owned by the Tahltan Nation and all information is to be returned to the Nation following the environmental assessment. THREAT Agreement Signed on November 24, 2007 What it means Copper Fox has signed a THREAT Agreement with the TCC. This agreement outlines how Copper Fox and THREAT will work through the environmental assessment process. In addition, the agreement also outlines how work will be funded. Copper Fox and the THREAT team have met several times during this pre-applications phase. There are two purposes of the meetings. The first is for Copper Fox and their consultants to provide project updates, engineering and technical reports and assessments of different project design components to THREAT. The second, is for THREAT to provide the company with provide feedback and ensure Tahltan views are incorporated early on into the project. Who is THREAT? THREAT stands for the Tahltan Heritage Resources Environmental Assessment Team. THREAT consists of numerous Tahltan professionals who participate in the environmental assessment process for mining projects. The team ensures that work done in the Tahltan Nation is based on Tahltan values and traditions and implemented according to the principles outlined in the Tahltan Resource Development Policy. TNDC Memorandum of Understanding Signed on April 15, 2007 What it means Copper Fox has signed Memorandum of Understanding with the Tahltan Nation Development Corporation which defines the scope of work, program commitments, cooperation, and communication that Copper Fox will follow at Schaft Creek and recognizes TNDC will be a "preferred contractor". This agreement includes commitments regarding contracting and sub contracting opportunities for Tahltan businesses and employment and training opportunities for all members of the Tahltan Nation. The Tahltan Nation Development Corporation (TNDC) is the economic arm of the Tahltan Nation and generates wealth, economic, employment and training opportunities for all members of the Tahltan Nation.
Public ParticipationCopper Fox is committed to working with community members, stakeholders and the Tahltan Nation to develop an economically, environmentally and socially responsible project. The Project is communicated via open houses, public meetings, brochures and factsheets. For more information on the Project please select from the factsheets below. For more information please see the flyer.
For more information on the Project or how to become involved please contact: Mr. Shane Uren, VP Environment and Permitting info@copperfoxmetals.com 604 689 5080 Click on the PDF to view the posters:
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