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Schaft Creek Project

Copper Fox is a 25% partner in the Schaft Creek Joint Venture (the "Joint Venture") with Teck Resources Limited ("Teck"). Teck is the operator of the Joint Venture which holds two main assets;
  1. the Schaft Creek copper/gold/molybdenum/silver project located in northwestern British Columbia and
  2. 85.45% of the shares in Liard Copper Mines Limited ('Liard'). Liard holds a 30% Net Proceeds Interest (subject to certain terms and conditions) in the Schaft Creek project.
The 2013 Technical Report (Feasibility Study on the Schaft Creek Project BC., Canada) considered the feasibility of a 130,000 tonne per day flotation/open pit mine with a Proven and Probable Reserve of 940.8 million tonnes grading 0.27% copper, 0.19 g/t gold, 0.018% molybdenum and 1.72 g/t silver; containing 5,611.7 million pounds of copper, 5.8 million ounces of gold, 363.5 million pounds of molybdenum and 51.7 million ounces of silver. The Feasibility Study suggested annual production of 105,000 tonnes of copper, 201,000 ounces gold, 1.2 million ounces silver and 10.2 million pounds of molybdenum.

The Schaft Creek deposit hosts a Measured and Indicated Resource of 1,228.6 million tonnes grading 0.26% copper, 0.017% molybdenum, 0.19 g/t gold and 1.69 g/t silver and a 597.2 million tonne Inferred Resource grading 0.22% copper, 0.016% molybdenum, 0.17 g/t gold and 1.65 g/t silver. The above stated Proven and Probable Reserves for the Schaft Creek project are included within the stated Measured and Indicated Resources for this project.

After delivery of the Technical Report and pursuant to the 2002 Option Agreement between Copper Fox and Teck, on July 15, 2013 Copper Fox formed a joint venture with Teck to further explore and/or develop the Schaft Creek project located in northwestern British Columbia, Canada. Terms of the Joint Venture Agreement are:
  • Teck will pay a total of $60 million in three direct cash payments to Copper Fox: $20 million upon signing the Joint Venture Agreement, $20 million upon a Production Decision, and $20 million upon the completion of the mine facility.
  • Teck will fund 100% of costs incurred prior to a production decision up to $60 million; Copper Fox's pro rata share of any pre-production costs in excess of $60 million will be funded by Teck and the two remaining direct cash payments payable to Copper Fox will be reduced by an amount equal to 25% of the expenditure in excess of the initial $60 million.
  • Teck will fund any additional costs (in excess of $220 million) incurred prior to a production decision, if required, by way of loan (at an interest rate of prime +2%) to Copper Fox to the extent of its pro rata share, without dilution to Copper Fox's 25% joint venture interest.
  • Management of the Joint Venture will be made up of two representatives from Teck and Copper Fox with voting proportional to equity interests.
  • Teck has agreed to use all reasonable commercial efforts to arrange project equity and debt financing for project capital costs of constructing a mining operation upon a production decision being made; Teck has agreed to fund Copper Fox's pro rata share of project capital costs by way of loan (at prime + 2%), if requested by Copper Fox, without dilution to Copper Fox's 25% joint venture interest.
The definitive Joint Venture Agreement between Copper Fox and Teck dated July 15, 2013, is available under Copper Fox's profile on SEDAR at www.sedar.com.

In 2013, the Schaft Creek Joint Venture conducted a diamond drilling program to test the extension to the east of the mineralization in the Paramount Zone and to collect additional geotechnical information for pit slope stability studies. Total cost of the 2013 Joint Venture activities related to Schaft Creek was $8.2 million. The positive aspects of the 2013 drilling program were:
  1. copper-gold-molybdenum-silver mineralization was intersected east of the resource block model indicating that the mineralization in the Schaft Creek deposit is open to the east, and
  2. DDH SCK-13-435 intersected two broad intervals of higher grade mineralization one of which is located immediately outside the resource block model and the second interval is located within the block model.
2013 Drilling Program:
Information on the 2013 drill holes including the average grades of the mineralized intervals are:

Exploration Drill Holes:

Zone DDH
ID
Dip Azimuth From
(m)
To
(m)
Interval
(m)
copper
(%)
gold
(g/t)
silver
(g/t)
molybdenum
(%)
Mike SCK-13-431 65 090 112.1 129.0 16.9 0.004 to 0.017 0.005 to 0.014 trace 0.001 to
 0.003
      and 170.5 259.0 88.5 0.008 to 0.045 0.005 to 0.015 trace trace
      and 558.0 573.0 15.0 0.018 to 0.038 0.006 to 0.042 trace trace
Paramount SCK-13-434 80 270 No significant mineralization, hole terminated at 180m depth due to bad ground conditions 
Paramount SCK-13-435 70 270 239.0 596.8 357.8 0.363 0.108 1.26 0.023
      including 305.4 349.0 43.6 0.648 0.241 1.52 0.043
      including 533.0 575.9 42.9 0.591 0.072 2.16 0.057
      and 615.6 665.5 49.9 0.180 0.188 0.67 0.015
Discovery SCK-13-436 60 090 50.5 68.5 18.0 0.09 0.117 0.56 0.0005
Paramount SCK-13-438 60 090 No significant mineralization, hole terminated at 15m depth



Geotechnical Drill Holes:

Zone DDH
ID
Dip Azimuth From
(m)
To
(m)
Interval
(m)
copper
(%)
gold
(g/t)
silver
(g/t)
molybdenum
(%)
Paramount  SCK-13-432 60 270 18.0 56.3 38.3 0.198 0.062 1.69 0.004
      and 64.2 420.5 356.3 0.215 0.196 1.71 0.015
      including 81.0 157.5 76.5 0.399 0.444 4.39 0.028
      and 442.0 469.5 27.5 0.148 0.036 0.33 0.002
Paramount  SCK-13-433 55 090 387.0 495.0 108.0 0.187 0.029 1.16 0.025
      and 521.0 562.0 41.0 0.149 0.033 0.53 0.026
Paramount  SCK-13-437 55 090 No significant mineralization, hole terminated at 202m depth due to bad ground conditions 
Paramount  SCK-13-439 60 270 38.0 67.0 29.0 0.144 0.027 0.98 0.003
Note: The core intervals listed in the above tables do not represent true widths.

The 2014 Schaft Creek program cost approximately $2.5 million and focused on reviewing the following aspects of the Schaft Creek project:
  • A potential initial 12 year mine plan focused on the Liard zone,
  • A series of studies including metallurgical, pit slope design, geological modelling and environmental aspects of the Schaft Creek project,
  • Mapping and core re-logging to gain a better understanding of the geotechnical and geometallurgical aspects of the mineralization over the first 12 years of mine life,
  • Geometallurgical modelling of the deposit and collection of additional metallurgical samples for variability testing, and
  • Resource modelling and review of the precious metal content of the deposit.
The 2014 field program at Schaft Creek located a new zone of copper and gold mineralization (referred to as the LaCasse zone) north of the Discovery zone with value from outcrop samples up to 1.56% copper and 1.3 g/t gold over an area that measures 1,300m long by 800m wide. The 2014 work identified a new exploration target south of the Schaft Creek deposit.

The 2015 program for the Schaft Creek project had a budget of $4.8 million and consisted of both field work and continuation of the optimization studies that commenced in 2014.

The field work portion of the 2015 program included diamond drilling (2,634 m in five holes) in the LaCasse zone, infill sampling and re-logging of diamond drill cores for geometallurgical, lithogeochemistry and acid rock drainage investigations, a study of the surficial geology of the proposed tailing impoundment area in the Skeeter Valley and a geophysical survey over the south extension of the Liard zone of the Schaft Creek deposit. The weighted average grade of the mineralized intervals from the 2015 drilling are shown below:
DDH # From (m) To (m) Interval (m) copper (%) molybdenum (%) gold (g/t)
SCK-15-440 120.50 167.60 47.10 0.13 0.004 0.20
includes*  121.50 134.30 12.80 0.21 0.007 0.69
includes  158.25 165.53 7.28 0.24 0.009 0.06
SCK-15-441 120.50 150.00 29.50 0.10 0.001 0.01
  178.50 205.50 27.00 0.09 0.016 0.06
SCK-15-442 439.70 454.10 14.40 0.13 0.004 0.01
SCK-15-443 354.60 369.00 14.40 0.16 0.002 0.02
  404.00 424.00 20.00 0.17 0.011 0.02
SCK-15-444 283.50 466.00 182.50 0.20 0.002 0.02
includes  283.50 313.50 30.00 0.40 0.005 0.05
includes  337.80 361.90 24.10 0.34 0.001 0.01
The core intervals in the above table do not represent true thickness. Numbers are rounded for presentation purposes. Average gold grade of 0.69g/t commencing at 121.5m core interval in DDH SCK-15-440 mostly due to two assays of 1.1g/t and 6.7 g/t gold.

Drilling in the LaCasse zone intersected low grade copper mineralization characterized by chalcopyrite and bornite mineralization hosted as disseminations and veinlets in granodiorite and quartz monzonite as well as hydrothermal and intrusive breccia. The results of the 2015 drilling program indicated that the intervals of higher grade copper mineralization intersected in 2015 and the 74m at 0.5% Cu in DDH 2012CF427 in the Discovery Zone (2012) are analogous to the styles of mineralization in the Paramount Zone.

A total of 100 representative samples of the lithologies and alteration across the Schaft Creek deposit were collected in 2015 for geometallurgical testwork. This work indicates for the various GeoMet Units (based on 50th percentile of hardness) throughput could range from 118 to 153 kt/d, while maintaining a 150 micron flotation feed size. This information will guide future work in optimizing the design of the project's crushing and grinding circuits.

The geotechnical, comminution and electrical portions of the optimization studies found similar results to those presented in the 2013 Feasibility Study. Surficial geological mapping of the proposed tailings impoundment area did not find any evidence to support the existence of a large slope sagging feature previously reported by Copper Fox in 2011.

At the end of 2015, over 40% of the drill core from the deposit has been re-logged. Further work includes upgrading the 3D structural model as well as the alteration, mineralization and geo-metallurgical 3D models.

In 2016, the program for the Schaft Creek project is estimated to cost $0.7 million and includes incorporating the results of the 2013 drilling and the re-logging completed in 2013, 2014 and 2015 to update the resource model for the Schaft Creek deposit with emphasis on getting a better understanding of the precious metals content of the deposit.

Other aspects of the 2016 program includes, environmental monitoring and collection of field data including humidity cell tests and other environmental base line data and ongoing consultation with the Tahltan First Nations on social and cultural matters.

Other activities in 2016 included voluntarily withdrawal from the Environmental Assessment ("EA") process and the queue for the Northern Transmission Line ("NTL") for the Schaft Creek project. The Schaft Creek Joint Venture is of the opinion that keeping the EA active and remaining on the NTL queue would not be significantly beneficial to the project as there are no technical or procedural disadvantages to leaving these processes and then re-entering the processes at a later date. It is expected that getting back in the NTL queue would not be a problem.

Pursuant to the Schaft Creek Joint Venture agreement, in addition to other obligations, Teck is responsible for funding the first $60 million in joint venture expenditures at Schaft Creek. Corebox 3D Model:



Corebox interactive sections:

Technical Reports


Current

NI 43-101 Technical Report and Feasibility on the Schaft Creek Project, BC, Canada by Tetra Tech, effective date January 23, 2013 (pdf -- 21.8 MB, 604 pages)

NI 43-101 Technical Report and Resource Estimate on the Schaft Creek Project, BC, Canada by Tetra Tech, dated June 21, 2012, effective date May 23, 2012 (pdf -- 22.9 MB, 325 pages)



Archives

July 26, 2011 Updated Mineral Resource Estimate

May 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

September 20, 2004 - (AMCL) and HATCH(tm) conducted a preliminary assessment (Scoping Study) of the viability of the Schaft Creek project.

May 20, 2004 - Giroux Consultants Ltd. - Status and Resource Estimate, Schaft Creek Property, N.W. British Columbia



Environmental Assessment:

The Schaft Creek Mine Project (Project) comprises the mining and processing of a multimetal porphyry deposit located in northwestern British Columbia. The Project requires an Environmental Assessment Certificate under the British Columbia Environmental Assessment Act before proceeding with activities related to construction and operation of the Project.

The Project is also be subject to federal review under the Canadian Environmental Assessment Act and thus requires a federal approval before construction can commence.

The Canada/British Columbia Agreement on Environmental Assessment Cooperation provides for cooperative environmental assessments (EA) to minimize duplication whenever possible. Thus a single environmental assessment will be undertaken for the Project.

The Project has been in the environmental assessment process since 2006 and has been collecting baseline environmental, economic, social, heritage and health data to support the environmental assessment since 2005. In 2013, 2014 and 2015, the Joint Venture has continued collection of baseline environmental data for the Schaft Creek project."

See below for list of baseline studies in support of the environmental assessment.

2013
Schaft Creek 2011 Baseline Hydrogeology Study (pdf - 37.2mb)

2012
Schaft Creek - Winter Moose Population and Distribution Survey - October 2012 (pdf - 6.79mb)

2011
Schaft Creek Mine Project Application Information Requirements/Impact Statement Guidelines - February 2011 (pdf - 9.7mb)

2010
Schaft Creek - Wildlife Habitat Suitability Baseline (November 2010) (pdf - 25.5mb)
Schaft Creek - Moose Literature Review (November 2010) (pdf - 2.9mb)
Schaft Creek - Engineering Hydrometeorology Report (July 2010) (pdf - 3.9mb)
Schaft Creek Project - ML-ARD Geochemical Shake-Flask Testing of Overburden in the Proposed Pit Area, August 2010 (pdf - 775kb)
Schaft Creek Project - ML-ARD Report on 3D Modelling of ABA Data, May 2010 (pdf - 632kb)
Schaft Creek Project - ML-ARD Report on Acid-Base Accounting and Total Solid-Phase Elements for Rock, April 2010 (pdf - 1.8mb)
Schaft Creek Socio-Economic Baseline, May 2010; (pdf - 2.5mb)
Schaft Creek Land Use Baseline, May 2010; (pdf - 6.9mb)
Schaft Creek Soils Baseline, May 2010; (pdf - 82.3mb)
Schaft Creek Archaeology Baseline Study, May 2010; (pdf - 3.8mb)
Geomorphic Channel Assessment and Channel Migration Hazard Mapping of Upper Mess Creek, January 2010 (pdf - 8.5mb)

2009
Schaft Creek 2008 and 2009 Meteorology and Air Quality Baseline, Feb 2010; (pdf - 8.1mb)
Schaft Creek 2009 Country Foods Baseline Update, May 2010; (pdf - 4.8mb)
Schaft Creek 2009 Baseline Hydrogeology Study, April 2010; (pdf - 4.8mb)

2008
Schaft Creek Hydrology Baseline 2008, Feb 2010 (pdf - 37.7mb)
Schaft Creek 2008 Fisheries Baseline Report, February 2010; (pdf - 18.9mb)
Schaft Creek 2008 Fisheries Addendum, May 2010; (pdf - 488kb)
Schaft Creek 2008 Bird Studies Addendum, May 2010; (pdf - 3.76mb)
Schaft Creek 2008 Aquatics Baseline Report, May 2010; (pdf - 38.2mb)
Schaft Creek 2008 Vegetation and Ecosystem Mapping Baseline, May 2010; (pdf - 48.7mb)
Schaft Creek 2008 Navigable Waters Assessment (pdf - 12.0mb)
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 - 4.7mb)
Schaft Creek Access Route Geohazards - March 2008 (pdf - 3.75mb)
Schaft Creek Project Mountain Ungulate Baseline 2008, September 2010 (pdf - 18.6mb)

2007
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 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)
Schaft Creek Project 2007 - Wetlands Baseline Report (pdf - 30.2mb)
Metal Leaching - Acid Rock Drainage Phase 1 Report (pdf - 1mb)

2006
Schaft Creek Project 2006 Hydrology Baseline Report (pdf - 7.9mb)
Schaft Creek Project 2006 Moose Baseline Report (pdf - 7.8mb)
Schaft Creek Project 2006 Bird Study (pdf - 5.9mb)
Schaft Creek Project 2006 Meteorology Baseline Report (pdf - 10.8mb)
Schaft Creek Project 2006 Fisheries Baseline Report (pdf - 18.8mb)
Schaft Creek Project 2006 Aquatics Baseline Report (pdf - 61.0mb)

Other (Completed) Technical Reports
Schaft Creek Project Prediction of Minesite-Drainage Chemistry, Metal Leaching, and Acid Rock Drainage (ML-ARD) through 2011 (pdf - 15.7mb)
Schaft Creek Project 2008 Environmental and Social Work Plans; (pdf - 13.5mb)
Schaft Creek Alternatives Assessment Report, July 2008; (pdf - 22.5mb)
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 Road Assessment Tahltan Highland - March 2008; (pdf - 1.4mb)
Schaft Creek Tailings Water Management Assessment - March 2008. (pdf - 697kb)

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