Copper Fox Metals Pumped on E-mail today
(CUU-TSXV)
The following is extracted from the January 2007-1 Issue
Copper Fox continues to make steady progress on its huge copper-gold deposit in northern British Columbia. The Schaft Creek deposit was discovered in 1957 and explored by a couple of large mining companies through the early 1970s. That work outlined a deposit of more than a billion tonnes.
Over the past couple of years, Copper Fox has assembled and reinterpreted the earlier data. The company re-assayed some of the old drill core and has also carried out further work on the project, including additional drilling. Copper Fox negotiated an option in 2001 to acquire a 93% interest in the project from Teck Cominco, with the major retaining the right to earn back up to 75% of its interest.
An independent resource study estimated that the deposit contains 9.1 billion pounds of copper, 8.6 million ounces of gold, 620 million pounds of molybdenum and 82 million ounces of silver. The Schaft Creek deposit is one of the largest undeveloped copper-gold deposits in Canada. It is similar in size and metal content to the Galore Creek deposit of NovaGold (NG-TSX, Amex) located 35 kilometers to the west.
A preliminary economic assessment of the project showed a net present value of $583 million, based on copper at $1.00 per pound and gold at $500 an ounce. A $2 copper price would generate a $1.2 billion net present value for the project. Those figures are preliminary, but demonstrate the enormous upside potential for a company with a current market value of C$39 million.
During 2006, the company did further drilling to confirm earlier results as well as to collect material for metallurgical testing. The drilling also identified an area within the deposit that has a higher grade.
Those results will be worked into an updated resource estimate over the coming weeks. That resource study will form the basis of a pre-feasibility study, which is already underway and due for completion during the first quarter of next year.
Many investors remain skeptical of the Schaft Creek deposit. ("It sounds too good to be true" seems to be the prevalent approach.) We have seen exactly the same attitude at this stage toward other projects that have become enormous successes.
A recently completed feasibility study on NovaGold's nearby Galore Creek project demonstrates that project to be very attractive. As the NovaGold project moves toward development, it will attract a great deal of interest to the region and to the Copper Fox project. In addition, investor confidence in the Copper Fox project will grow as the prefeasibility study is completed. Investors prepared to take a position now stand to realize significant gains over the coming months as the value of the company moves toward the potential value of the project.
Price January 19, 2007: C$0.61
Shares Outstanding:64 million
Shares Fully Diluted:77 million
Market Cap: C$ 39 million
Contact: Investor Relations
1-866-913-1910
www.copperfoxmetals.com
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