Overview of Schaft Creek Project

Key Highlights:

• Schaft Creek is one of the largest Copper/gold deposits in Canada
• 1,393 billion tonnes of measured & indicated resources at a 0.20% copper equivalent cutoff including:
  • 4.76 billion pounds Copper at 0.25%
  • 4.5 million troy ounces gold at 0.18 gpt
  • 255.2 million pounds molybdenum at 0.019%
  • 32.5 million troy ounces silver at 1.55 gpt.
  
  
• Copper Fox is currently preparing a bankable feasibility study to evaluate the development of an open pit mine with a minimum capacity of 100,000 tonnes per day over a mine life of +22 years

• Upgraded the Inferred resource to Measured & Indicated categories based on a 3-D geologic, mineralization and alteration model that integrated all exploration work on the project, including 279 holes and 75,415.6 meters drilled in the property
• Signed a memorandum of Understanding with Tahltan Nation Development Corporation
• Entered the B.C. Government's Environmental Assessment process and completed Baseline studies for: wildlife, water quality, aquatic biology, fisheries, hydrology, meteorology, archaeology and metal leaching and acid rock drainage (ML/ARD).

• A total of 6,281metres was drilled in 2007
• Drilling focused primarily on condemnation, geotechnical, hydro-geological and geological drilling
• Scoping Study of Deposit
• Engineering Studies
  • Revised Pit Optimization Plans designed by Moose Mountain Engineering
  • Preliminary evaluation of the feasibility of providing access to the power grid for the Schaft Creek Project
  
  
• Bench and Bulk Floatation test results
• Enter into funding agreement with Tahltan Heritage Resources Environmental Team
• Expand upon the 2006 environmental and socio-economic baseline studies. 2007 baseline studies presented and approved include:
  • Socioeconomics, traditional (Tahltan) knowledge, country foods, wetlands, hydrogeology, soils, ecosystem mapping, vegetation, archaeology, human health, fisheries and aquatics, wildlife, hydrology and ML/ARD

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Resource Estimate

Schaft Creek Option

• Acquire 100% of Teck Cominco's 'Direct Holding', defined as a 70% direct participating interest in the Schaft Creek Property, by:
  
  
  • Incurring $5,000,000 in expenditures on or before December 31, 2006 and aggregate expenditures of $15,000.000 on or before December 31, 2011.
  
  
  
• Further acquire Teck Cominco's 'Indirect Holding' (defined as an indirect 23.4% carried interest through its 78% shareholding in Liard Copper Mines Ltd. who hold a 30% carried interest in the property) by incurring the above described $5,000,000 in expenditures and completing and delivering to Teck Cominco a positive bankable feasibility study.

• The option agreement has a time-limited back-in right exercisable by Teck Cominco within up to 120 days of the delivery of the positive feasibility study. If the back-in right is not exercised, and at Teck Cominco's option, CFM shall grant Teck Cominco a 1% net smelter royalty or, if CFM has assigned the option agreement to a public company whose shares are listed on a recognized stock exchange, shares of that company having a value of $1,000,000.

• a 20% interest by matching prior incurred expenditures, or it may earn;
• a 40% interest by matching three times prior incurred expenditures, or it may earn
• a 75% interest by incurring four times prior expenditures and arranging all production financing.

History

Geology & Technical Reports

Geological Model 203 KB, approx. 39 seconds at 56.6Kbps

Zones 56 KB, approx. 11 seconds at 56.6Kbps

Road Access Options 213 KB, approx. 41 seconds at 56.6Kbps

Engineering Reports

• summarize the exploration history and technical aspects of the subject property
• present a discussion of the mineral resource that has been identified, complete with consideration of the reliability of that resource calculation, and
• suggest a program of work that would improve the metallurgical understanding, study the economics of the project and improve the confidence of drill hole information.

Public Participation

• Open House Schedule (PDF)

• The Environmental Assessment Process and Public Involvement (PDF)
• Schaft Creek Project Description (PDF)
• Schaft Creek Environmental and Social Baseline Studies (PDF)
• Schaft Creek Environmental and Social Baseline Studies (2) (PDF)
• Schaft Creek Project Description (PDF) Environmental Assessment:
  
  Schaft Creek environmental and socio-economic baseline studies began in October 2005 and are ongoing. Baseline studies completed in 2006 included wildlife (moose, goats and bird studies), water quality, aquatic biology, fisheries, hydrology, meteorology, archaeology and metal leaching and acid rock drainage (ML/ARD). The results of the 2006 studies were reviewed by federal and provincial regulators and the Tahltan Nation. The scope of work for the 2007 environmental and socio-economic baseline studies was increased significantly and was aimed at fulfilling requirements of both a federal and provincial environmental assessment process and the specific studies requested by the Tahltan Nation. The work and scope of the 2007 environmental and socio-economic baseline studies were presented and approved by government authorities and the Tahltan Nation. The 2007 baseline reports are available below.
  
  Copper Fox has developed environmental and social baseline work plans for 2008, see below. These programs will be presented to the Tahltan Nation and federal and provincial regulators for review. These reports will be finalized in the third quarter of 2008. The anticipated completion date of the application for an environmental assessment certificate is the fourth quarter 2008.
  
  Click Here to view the Schaft Creek Project Description Report - February 2008
  
  2009 Reports
  Schaft Creek 2008 and 2009 Meterorology and Air Quality Baseline (pdf - 8.1mb)
  
  
  2008 Reports
  Schaft Creek Hydrology Baseline 2008 (pdf - 37.7mb)
  Geomorphic Channel Assessment and Channel Migration Hazard Mapping of Upper Mess Creek, January 2010 (pdf - 8.46mb)
  Schaft Creek Alternatives Assessment Report, July 2008 (pdf - 22.5mb)
  Schaft Creek Project - ML-ARD Presentation for the Proposed Access Road, May 2008 (pdf - 4.7mb)
  Schaft Creek Project - ML-ARD Presentation for the Proposed Minesite, May 2008 (pdf - 370kb)
  Final Presentations - April 22 & 23, 2008 (zip - 227mb) - Right Click Link to Download
  Schaft Creek Project ML-ARD Phase 2 Report, February 2008 (pdf - 1.7mb)
  Schaft Creek Project ML-ARD Assessment of Surficial Samples from the Proposed Access Road, February 2008 (pdf - 5mb)
  Schaft Creek Project 2008 Environmental and Social Work Plans (pdf - 13.8mb)
  Schaft Creek Geohazard Tailings Options - February 2008 (pdf - 4.6mb)
  Schaft Creek Tailings Assessment Engineering (VA08-00390) - February 2008 (pdf - 16.4mb)
  Schaft Creek Access Route Geohazards - March 2008 (pdf - 3.75mb)
  Schaft Creek Access Road Assessment Tahltan Highland - March 2008 (pdf - 1.3mb)
  Schaft Creek Tailings Water Management Assessment - March 2008 (pdf - 696kb)
  
  
  2007 Reports
  Metal Leaching - Acid Rock Drainage Phase 1 Report (pdf - 1mb)
  Schaft Creek Project 2007 Aquatic Resources Baseline Report (pdf - 136mb)
  Schaft Creek Project 2007 Archeological Baseline Study Technical Summary (pdf - 3.3mb)
  Schaft Creek Project 2007 Meteorology Baseline Report (pdf - 6.1mb)
  Schaft Creek Project 2007 Bat Inventory (pdf - 4mb)
  Schaft Creek Project 2007 Country Foods Baseline Assessment (pdf - 5.5mb)
  Schaft Creek Project 2007 Preliminary Groundwater Baseline Report (pdf - 9.2mb)
  Schaft Creek Project 2007 Noise Baseline Report (pdf - 4.1mb)
  Schaft Creek Project 2007 Soils Baseline Report (pdf - 7.5mb)
  Schaft Creek Project 2007 Vegetation Baseline Report (pdf - 2.5mb)
  Schaft Creek Project 2007 Western Toad Baseline (pdf - 5.7mb)
  Schaft Creek Project 2007 Hydrology Baseline (pdf - 86.7mb)
  Schaft Creek Project 2007 Fisheries Baseline (pdf - 129mb)
  Schaft Creek Project 2007 Tahltan (Country) Foods Baseline Assessment (pdf - 8mb)
  Schaft Creek Access Road Assessment - October 2007 (pdf - 1.7mb)
  B.1 Schaft Creek Project 2007 - Wetlands Baseline Report (pdf - 30.2mb)
  
  
  2006 Baseline Reports
  Schaft Creek Project 2006 Hydrology Baseline Report (pdf - 7.87mb)
  Schaft Creek Project 2006 Moose Baseline Report (pdf - 7.82mb)
  Schaft Creek Project 2006 Bird Study (pdf - 5.85mb)
  Schaft Creek Project 2006 Meteorology Baseline Report (pdf - 10.84mb)
  Schaft Creek Project 2006 Fisheries Baseline Report (pdf - 18.81mb)
  Schaft Creek Project 2006 Aquatics Baseline Report (pdf - 61.00mb)

  The Mine Development Process

  Mine development is a complex long-term process that starts well before a mine is built and continues well beyond when the mine is closed. During the exploration stage, the first step is a public outreach or stakeholder consultation program. A mining or exploration company usually begins this stage when it acquires or discovers a mineral project with economic potential or plans an initial work program to test the potential of a mineral prospect.
  
  In British Columbia, most companies understand that they must begin their consultation programs early so that local communities, First Nations leaders and other stakeholders be involved in the project by understand the scope and objectives of the work programs and the safeguards that will be incorporated into these programs to protect the environment. Early consultation helps companies understand local values and address issues of concern that may be raised by First Nations leaders and other stakeholders. This two-way dialogue also helps the public understand that only a few prospects ever become operating mines, and that all mine proposals must undergo a lengthy and rigorous environmental assessment process open to broad public scrutiny.
  
  The consultation process usually increases as the project advances to the stage where a preliminary economic assessment (or scoping study) is completed. This study is the first time that current economics are tied to the project. Following the preliminary findings of a scoping study, a company will move to the pre-feasibility and feasibility stages, and may at the same time, enter the environmental assessment and permitting process. This stage provides more specific findings about the project's design and economics than the scoping study. Government agencies, environmental groups and non-governmental organizations will also carefully scrutinize any mine project that advances to this advanced stage of environmental assessment and permitting. Mining companies must consult and engage with a broad range of stakeholders in order to develop public understanding and support for their projects over time, and thereby gain a "social license" to operate.
  
  Another important early step in project design is collecting data for environmental baseline studies because it is the cornerstone of environmental planning for any proposed mine. Data collected from these exhaustive and rigorous studies help the company, government agencies and stakeholders understand the state of the environment near the proposed project before it is built, including wildlife, vegetation, air and water quality, fisheries, wetlands, and cultural resources among others. The data also contribute information for the mine-planning process, form the basis of an environmental assessment required by government agencies, and support the permitting process.
  
  

  The Environmental Assessment Process

  In 2002, the British Columbia government introduced a new, streamlined Environmental Assessment (EA) process for all proposed major projects in the province. The Environmental Assessment Act requires all major mine proposals to obtain an Environmental Assessment Certificate before they can proceed. Simply put, the EA process is a way to review major projects, assess their potential impacts, and address a broad range of environmental, economic, social, health, heritage and cultural issues. The goals of this integrated process are to ensure that all issues and concerns raised by all groups are considered, studied, addressed or mitigated, and that the proposed project will be developed in a socially and environmentally responsible manner. An EA must be successfully completed and the proposed project must be approved by two provincial government Ministers before it can proceed.
  
  The federal government also plays an important role in mine development, as more than 70% of major projects undergoing a provincial EA will also require a federal assessment under the Canadian Environmental Assessment Act (CEAA). Similar to the provincial EA, the federal environmental assessment is a planning tool that anticipates adverse environmental impacts so they can be minimized and mitigated. Federal environmental assessments are required if the proposed project has a trigger which can include: an act under federal authority, federal money is involved or federal lands are involved.. As an example, a federal EA is required for projects with potential to impact any fishery under the jurisdiction of the federal Department of Fisheries and Oceans (DFO). The CEAA process is administered by the Canadian Environmental Assessment Agency.
  
  When a project falls under both provincial and federal EA responsibility, the two levels of government will cooperate and may carry out a single harmonized EA while still maintaining their respective decision-making powers.
  
  An EA is also planning tool used to identify the potential effects of a project on the environment, including air, water, land, wildlife and human settlements before it is built. Through good planning, a company can reduce the length, complexity, cost, potential for controversy and corrective action and other risks that may be associated with the environmental assessment and permitting process. A well-planned EA makes it easier for government agencies and other decision-makers to have the information they need to approve projects acceptable projects.
  
  Once a company applies to the province of British Columbia's Environmental Assessment Office (EAO) with a proposal for a project, the EAO determines how the review (if required) should be conducted. The EAO then issues an order for the project review that includes what will be assessed, the consultation requirements and the review process. The terms of reference for the information requirements are usually developed by the company after consultation with First Nations, government agencies and the public. The company then conducts studies and prepares its application based on the pre-determined terms of reference.
  
  Key elements of the EA process include: a detailed description of the project and proposed facilities - such as the size, scope, and type of mine and processing facilities --- and power, road and infrastructure requirements, expected mine life, and other technical details. The EA considers the potential environmental and socio-economic effects of proposed mines and ways to minimize, avoid, or mitigate any potential adverse effects. The review is conducted by the EAO through a process determined by the Minister of Environment, usually a panel or commission. First Nations, government agencies and the public are asked to review and comment on the application, usually during a formal public comment period.
  
  Findings of the review are documented in an Assessment Report prepared by the EAO that is then referred to two Ministers for a decision as to whether the project should be approved and an Environmental Assessment Certificate issued. Once the project is approved, the company receives the necessary permits and authorizations to construct and operate the proposed mine (subject to obtaining any local permits that may also be required). Companies are required to restore the land to productive use after the mine is closed, and in some cases must also implement long-term monitoring programs.