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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. a 78% equity interest in Liard Copper Mines Limited ('Liard'). Liard holds a 30% Net Proceeds Interest (subject to certain terms and conditions) in the Schaft Creek project.
On January 23, 2013, Copper Fox filed a National Instrument ("NI") 43-101 Technical Report comprising a feasibility study 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 grams per tonne ("g/t") gold, 0,018% molybdenum and 1.72 g/t silver; with contained metal of 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 Technical Report was prepared by Tetra Tech. The feasibility study contemplated a 21 year mine life.

The Schaft Creek deposit hosts a Measured and Indicated Resource of 1,228.6 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.

Since execution of the Joint Venture Agreement, the Schaft Creek Joint Venture has conducted field programs in 2013 and 2014 and is currently conducting the 2015 field program. In addition to the field programs, in 2014 the Joint Venture commenced a comprehensive series of studies to optimize the Schaft Creek project.

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.

2013 Drilling Program:

Information on the drill holes completed including the average grades of the mineralized intervals are set out in the tables below.

Exploration Drill Holes:

Zone DDH ID Dip Azimuth From (m) To (m) Interval (m) copper (%) gold (g/t) silver (g/t) molybdenum (%) Rec. Cu Eq (%)
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 not estimated
      and 170.5 259.0 88.5 0.008 to 0.045 0.005 to 0.015 trace trace not estimated
      and 558.0 573.0 15.0 0.018 to 0.038 0.006 to 0.042 trace trace not estimated
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 0.44
      including 305.4 349.0 43.6 0.648 0.241 1.52 0.043 0.80
      including 533.0 575.9 42.9 0.591 0.072 2.16 0.057 0.71
      and 615.6 665.5 49.9 0.180 0.188 0.67 0.015 0.29
Discovery SCK-13-436 60 090 50.5 68.5 18.0 0.09 0.117 0.56 0.0005 0.14
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 (%) Rec. Cu Eq (%)
Paramount  SCK-13-432 60 270 18.0 56.3 38.3 0.198 0.062 1.69 0.004 0.22
      and 64.2 420.5 356.3 0.215 0.196 1.71 0.015 0.33
      including 81.0 157.5 76.5 0.399 0.444 4.39 0.028 0.67
      and 442.0 469.5 27.5 0.148 0.036 0.33 0.002 0.15
Paramount  SCK-13-433 55 090 387.0 495.0 108.0 0.187 0.029 1.16 0.025 0.25
      and 521.0 562.0 41.0 0.149 0.033 0.53 0.026 0.22
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 0.15
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 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 of interest that measures 1,300m long by 800m wide as well as identifying a new possible mineralized target south of the Schaft Creek deposit as well as extensions to the mineralization in three areas of the Schaft Creek deposit.

The 2015 program for the Schaft Creek project is estimated to cost $4.8 million. The objectives of the field program are to continue the optimization studies that were commenced in 2014 and to diamond drill test the copper-gold mineralization located in the LaCasse zone.

The 2015 field work includes additional infill sampling and re-logging of diamond drill cores for geometallurgical purposes as well as lithogeochemistry and acid rock drainage investigations. The 2015 field program also includes an estimated 2,500m of diamond drilling (5 drill holes) focusing on the copper-gold mineralization located in the LaCasse zone in 2014. The completion of the last two drill holes is contingent on the results of the first three holes.

Studies on comminution (grinding), daily milling rates, electrical demand, mine planning, land use concepts, updating the resource model, review of infrastructure planning, water management and various possibilities related to tails and tails storage are also part of the 2015 program for the Schaft Creek project.

As per 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


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)


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.

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

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

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

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)

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)

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)

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)

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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