Monday, December 31, 2012

The New Year

There's a lot of talk about Jr's dying off due to the money flight from risk. There's a lot of evidence to show that's only part of the story. The bloated balance sheets and the hording banks are to blame too. What this tells me is that no one trust the government politicos to manage their way out of a wet paper bag. As one person recently put it, they are strangling the goose to get the last golden egg.

Carney is joining the voice to try get corporations to free up the "dead money" but why would they? It's like a General yelling charge as he beats a path the other way. Where is the direction from our politicos. They have strayed to far from their manifestos and gotten the whole globe in trouble.  These are the people with the best information and the policy tools to act on it.

If there is a light at the end of the tunnel it's that the Green party surged ahead in the polls in Calgary. That was a wake up call for the old boys club. It's showing a shift in thinking. The NDP in Ottawa was the first alarm bell yet no one heard it. So what is our leader doing now? He's going ahead at break neck speed making secret deals that will damage Canada for the next 40 years. He's using every dirty trick to get deals done in secret before he gets ousted.  http://www.huffingtonpost.ca/2012/11/08/rick-mercer-canada-china-deal_n_2094126.html  When will the opposition call this what it is, treason? Well, never of course. One lone voice is speaking up while the people you elected as opposition do and say nothing.

The truth about the USA's one party system is shining through as the Repugnants er Repltiles er Republicans suddenly embrace peace and love and will soon be handing out flowers at airports and blessing people. They will become leaders of social change embracing gay rights and equal treatment of women. They even have a Muslim speaking out for them. It should be clear that they will do anything to keep up the farce of a two party system. Witness that they can't reach a deal on the fiscal cliff. http://www.cbc.ca/news/business/story/2012/12/31/business-fiscal-cliff.html  The reality is they have conspired to test what will happen when if does go over. They want to see the damage and I think they are hoping for an all out collapse of all those trillions and trillions of dollars worth of phony derivatives. If they were not conspiring one party would call for the head of the other.

So what will the new year bring? If the Mayans are right we will begin to see the fast unraveling of the fraud we call our governments. The waste of good air will begin to abate. However, they will leave a lot of damage in their wakes. Under ideal circumstances we will see decades pass before any of this turns around. What's needed is a fresh slate of people who actually represent the people and a brand new banking system that is not a cartel. I don't see that happening. In fact, no one seems to think that will happen.

In the new market there will be very few survivors and it's up to us to find them. The pundits who are saying go find companies with heave cash balances and some solid data to back up their development plans are quite correct. This doesn't just apply to mining. As the super cycle comes to an end there is always a vicious cleansing that goes on. Even some of the good ones will go down in the shake out. Normally when this process is over we get a rebound but unless the money cartels are broken, it's not going to happen this time. This is why the companies are holding on to every penny. In mining they know to bury their money in the ground so that one day when demand return they will have laid away a fortune. We all need to start thinking about it and making our own very long range plans.

Friday, December 28, 2012

Copper Fox Prediction

Lots of people wonder why the insiders are not taking their warrants and stuff. Why are they not buying at these low prices? Can they I ask? We know there's a mandatory formal request for the Liard shares etc which completes our ownership of the project. This is also the official start of the clock requiring Teck to make its option known. It also starts the 60 day clock for the Joint Venture agreement as per 15.1 of the contract.

What I think is coming is the attacks will continue so why rush to buy now. Why not start buying the day the NR comes out and join the momentum to try put the warrants in the money. Then execute those to. The idea is to push the price up so new support builds. If Teck is going to offer it will have to be above the 30 day high at a minimum. You have trade shows coming and what a better time to get in. This time they are going with info in hand and that's really a first. So they start the ball rolling and start buying. Not all at once but slowly. This builds retail confidence.

The sp must be sustained. I have a time frame of 34-36 days for a Teck offer. But, this could come before any attempt is made to bring the price up. It would not be smart to low ball but it doesn't have to be overly generous, simply a test of the resolve of the insiders. If it gets rejected then there's plenty of time to try again and see where they will soften.

Today people are closing trades and preparing to make TFSA transfers. A lot of the trading indicates that the volume is mostly a manipulation accompanied by people clearing for the year end. Nothing more. Should the NR come Monday or Tuesday we will see people caught off guard by it. There won't be a giant rally at the end of today like there should be. These are not normal times and this stock has had a very very long stretch of being punished by a few individuals.

On the bright side the real money is waiting for the signal to drive the price up. For starters, they know that an offer has to be real so the higher they drive it the better. Even 30% on a million is a lot of money. My concern is that the elevator is going to be very crowded. That makes for a premium just to get in. That is partially why the attack including false NR's have been used. These people want shares and will do anything to get them. They can afford the risk that it pancakes because the plus side is that rewarding.

I think people will accumulate next week in advance of IR's planned PR tour. At these prices there's little risk. If there's no NR Monday expect an attack. A big one. For that matter, take advantage of it. This is a time to have dry powder. Due to the number of shares down to 74 cents it's unlikely any free floater has enough fire power to drive it below that mark. That would probably force Ernesto to act too.

I do think the Request for Transfer will start the fire. In the big picture this strategy makes sense. The money people would know this too. They don't fire too soon. There's simply no need to. And, a lower price equals more shares. However, as we've seen, it doesn't take a lot of shares to drive the price up rapidly. Several recent events prove this is what's up.

More on the weekend.

Thursday, December 27, 2012

Copper Fox Teck Deal Pending

All the talk about when and why, it's actually simple to figure out.

Teck should elect right away. If it's a royalty or 20% they do not want to delay this because it only harms them and us. Why shoot themselves in the foot? If they want a bigger slice they will do it right away. Again, for the same reason. If we are to carry the ball in any way then they need to see us grow in strength not weaken due to the uncertainty the silence would bring.

I bet they are finalizing the option right now. Ya they are supposed to be taking a holiday but what a better cover to ink out a deal. No one will question what they are up to.

If they want the whole deal including building a mine then the earlier they can start the better. Right now costs are good and they can accelerate the program. The plan for a 5 year build when there is a 4 year build clause is a big tip off. We would have set the BFS to a 4 year clock if there was any need to meet this requirement.

Why spend a lot of money on a JV if you want to get out of it? We don't want to do a JV and it makes good sense for them to NOT want us as a partner. We'd be an unwilling partner. Our bag is exploration and development and they are the mining experts and both side have agreed to that. The JV legal alone not including the time comes with a high price. Why spend the time and money just to renegotiate it when we sell off our chunk.

It just doesn't make sense. While we can speculate what Teck will do we only know what's on the table currently. Yet there is a good reason to believe that money will rule at the end of the day.

Wednesday, December 26, 2012

Copper Fox Joint Venture Agreement

Some people are asking me to clarify the JV agreement. It does indeed say Teck has to form a Definitive Option Joint Venture with Copper Fox. The next step is to work to form a Joint venture company. What this means is Teck does have to declare it's intentions! So they put all the terms and clauses on paper, divide up the duties and start filing the papers for a new company. Would they have to declare the option? No, they could include all the options in the wording but that would be very difficult legally and a complete waste of time.

What is more practical is the straight forward declaration of intent and to get busy on the paper work. Sure we'd like to be bought out but consider the 6.6% royalty and the finance under the 75% option. Ya, I know we'd all like our money now so we can speculate on Arizona. So in reality Teck should just take the cherry and run without us. That 6.6% royalty resulting from the transfer of the shares minus the earn back portion plus the ones we bought is worth $85 million a year. Talk about exploration funding!

I know the JV appears at odds with the 120 clause. But it isn't. That just gives them an additional 60 days to give final consideration to the agreement. It closes the JV agreement by giving a final time limit to the formation of the JV company.

A last word on the contract. Should a change be required I'm sure we'd be happy to negotiate it as long as it was for the good of the shareholders.

It should be noted that the BFS clause says it has to be based off no more than 90% consumption of the proven and probable portions of the  deposit. This was a contractual requirement!

It should also be noted that the contract requires a study based on 12 year at a discount of 12% and a production rate of 25,000 tonnes per annum or 15 years, 8% at 50,000t/p/y. These are tough requirements. The BFS has met those requirements. This is why we laugh at the bashers. Speaking of them, you should see the angry messages I'm getting because the were stupid enough to forewarn us. We rallied some buying power and stole their shares lol.

Also worth reading is Vette350's update on the BFS info. http://www.vette350.com/2012/12/copper-fox-metals-feasibility-measured.html#comment-form







Monday, December 24, 2012

Copper Fox Good info from the conference call

It's pretty clear that the stock came under a huge manipulation this morning. This does not change the fundamentals of the project. Elmer is elucidating the upside details right now.

It is possible for an outside company to make an offer now. They would have to wait for Teck to make its election or approve the offer. It is confirmed that Elmer was appointed to the Liard board for the purpose of handling offers.

The over all tone seems to indicate that Teck is taking us out and Elmer will be involved with negotiating a deal with a partner. We should have an answer in less than 2 months.

A note on the trading. Today may have been a manipulation by http://neer-do-well-hall-of-infamey.blogspot.ca/. You will also notice they have the Penny Stock Journal logo on their blog. Any affiliation there? Before this started there was a lot of spamming of the PSJ on Agoracom. I suspect the usual suspects were behind it. But it looks like they failed big time. On our next trading day the insiders will be out of black out and ready to buy. It's interesting that on PSJ they claim affinity with Wolverton. http://pennystockjournal.blogspot.ca/p/paid-touts.html. Makes me wonder if there is a connection there too.

Given the need to push the price up to a respectable level it's pretty clear they will be buying. The base value calculations indicate that the share price should be $1.68. I won't be surprised to see it go over that. But, who can blame the insiders if they nibble away to take advantage of the low sp. I know we did.

Some of the other highlights:

This is a District not a deposit
Lots of ways for improve the optics of the BFS :
It would take a small amount of 340 mil generated by 75% backin to upgrade waste.
Potential of expansion east and north,
room for increased output potential
improve the recovery " 1% would make a huge difference"
improve timelines "faster construction and longer mine life" ( someone will be there for a very long time)
stronger and higher copper, gold and moly prices over time ( no one can explain why copper prices would drop )
room for tax reduction and breaks ( BFS is very conservative and does not represent accountants with pencil sharpeners
Laird shares will transfer
Tech will elect by April
Arizona is a wholly owned seperate entity
black out still on so there is more buying pressure on the side lines.

Max's Summary of the call:

Apologies if I cover points that have already been stated, but no problem re-enforcing all the pertinent points, all as I interpreted them:
BFS will be officially delivered to Teck by mid-January, 60 day JV and 120 day election clock start ticking
JV can only be requested via a previous election so that the JV agreement can be created based on the agreed election %
$3.25 Cu price used based on predicted increase in demand from China and India, not on what the curve predictors use ($2.50) as it doesn`t make sense. ES sounded pretty confident in this number.
ES has been blacked out for almost one year.
If 900 MM te moved from inferred to M&I then 19 year mine life of SC increased by another 21 years to 40 years, and that`s just based on what we know today.
BFS is on pit shell only, less than 1% of total area included in BFS
6 targets North...all not part of BFS
If Teck go with 75% back in then $340M available to move project enhancement forward (e.g. 10 DD programme to transfer shell pit `waste`` rock to measured). If Teck do not opt in then CUU will decide on what to do, most likely drill up and increase measured resource, re-do RE and make the whole prospect more attractive to potential suitors.
Drilling in North and South halted based on economics only, CUU had done all they need to for the BFS and proving up the potential of this district. The big boys can do the rest or go in a JV if they want help :)
EA, normally takes 1-2 years, CUU has been transparent with all relevant authorities since 2010, all questions on EA certificate application should already have been answered, CUU still in regular contact with issuing authorities.
My take on the call was that Mike & Elmer sounded happy if not slightly tired (well wouldn`t you be making sure a 5000 page BFS is done correctly). looking forward to see how the trading goes on the SP over the next few months.
Again, thanks to all who were on the call and forwarded information and their views today, glad I was off work today to listen in and buy some more.
A complete recording of today's conference call will be available within the next 24 hours by dialing 1-855-201-2300 and providing the conference reference number 864956 as well as the participant code 95993#. The recording will be available for 90 days. An MP3 recording of the call will also be posted on our website shortly.

Here's the new block model so you can see the inferred resource while you listen.

Click on a percentage in the above legend to enlarge or reduce this picture

Sunday, December 23, 2012

Copper Fox has assumed control


Elmer didn't get a board seat as a plumb. I grilled him on that and he tried to wiggle out of talking. I think I got him to agree that he was there as a facilitator should an offer come from the outside. It makes a lot of sense to add him to the team should an outsider make a bid or even just poke around. Teck could not entertain anything without our cooperation.
We will drill up the asset and do resources if they don't buy us out. This would be the best bang for the buck. We will not be building roads or buying power lines. If we did anything other than use the money to remove the waste rock to aq cash crop it would signal a partnership with Teck. The drilling and reports would have to be number 1 in all cases. Next in line for value is the EA. Sure, as a third item we could buy power. A road as a fourth item, ok. Putting things in the right order is highly important. We have a vote on Liard and can act as the facilitator. We decide how any money is spent. The stipulation is that it must be spent on the project but that's it. If you want to see us get the maximum offer then this is how it will be done.
I'm surprised that more people are not getting the development process. We get a bare bones BFS so that we can stop diluting and start spending Tecks money. How much project do you think $350 million would get us? Remember as we drilled North the silver started to climb? If that has to come out of our budget it's a small dilution to get a valuable resource. Remember the 1650g/t? Would you like to find out more? How about the full value of the waste converted to a resource?
So the next NR reads: CUU and Teck form a joint venture and CUU has $350 million in cash to spend. Project highlights include...
This doesn't take into account the royalty. What does this do for our royalty? We can 1/2 the payback period and secure the power line with that kind of money. We could agree with Teck that the waste is cash and put all the money to the capex taking a big chunk out of it. Many many options. I badgered the co to spend more but obviously Teck had the brakes on what was applicable. This is because I wanted us to have a huge war chest when this moment arrived. Id $350 enough? Yes. $450 would have allowed for a couple other manouvers but I think the Liard seat takes care of that.
Even if Teck just takes 20% we have $85+ million in cash and that's more than enough to remove the waste. How many companies have this kind of cash and a positive BFS in hand?

Saturday, December 22, 2012

Copper Fox 60 Days to Joint Venture

I probably shouldn't write about this but the cat is out of the bag. It took a while but people are figuring out what it means for us to have control over where the option money goes.

Yes folks, we do decide where the $340-$350 million will be spent. Since we have 171M tonnes that needs to be converted so it can be included in the FS... you got it, that's where it will be spent. In addition, we had some stunning results in our last few rounds of drilling. $20 million there would open up a can of whoop ass. That's just 20 million! This would open up a new Resource requirement.

I talked to Elmer about slope issues in the silver rich zone. He said we'd need to define it because of where it was situated to determine what could be extracted. What we know is that it's open at depth but we'd need to know the concentration of the veinlets. I have the distinct impression that we'd be well served by proving that up.

There's enough money in the kitty at the 40% option to do 2 resources. This would put us in a position to sell to anyone. If we just had the 20% option that would complete 1 Resource Estimate and allow us to define the silver zone.

Enough said by me for now. I'll close with this. You all should know by now how a mine comes into being.

What Vette Said:


The whole point in this whole story, my 1st reason for ever buying, was to put Teck on the clock. This is what everybody wanted so bad. We all wanted Feasibility, even if it was $1 positive, to put Teck on the clock and force them to make an ownership decision..
Here we are....no more waiting for the Feasibility.
The Inferred is there, Teck knows it. Some companies get bought out just on Inferred, they don't even have a pre-feasibility. Others get billions just for Potential with almost nothing proven (Andean)
Then we have the whole other half of the Paramount zone and it was still open at 800m depth. Then we have the Discovery zone.
We have the port, and we apparently have 1 of the 3 spots on the NTL grid, it's just not officially announced. They added it to our cost 200 million !!
Insiders own 65%
Teck can now move us up to Feasibility complete line on their corporate presentation.
The ball is in their court. We know they have a right to 75% for almost nothing, but they don't want all those clauses attached to the other 25% and sold out to another.
Yes Teck is getting this whole project for 1/4, they'll never walk away from that. They just need to give CUU insiders the right price and it's all theirs.....
That's the next move...60 days...

Stocks and Discussion Boards

Why is it that on Stockhouse there are many boards that are not flooded with bashers and spam? Why is it that Copper Fox seems to be their single biggest target. On Monday I'll be writing to our Securities guys to ask this question and find out if this is legal. I know that several people files complaints over the trading and what appears to be paid bashing but I want to hear the response for myself. I'm less interested in what they will do about it and more interested in finding out who's behind it.

I've had to turn off anon comments due to the barrage of spam my own blog has attracted from these bashers. They don't even attempt to disguise what they are doing anymore. So it would be very interesting to out the people behind it. There's a lot of speculation that Teck is behind it just to try keep the share price down. I think it's a bigger money picture in that multi billions of dollars are coming this way. But why just CUU? Western Copper and Yellowhead Mining are not under attack. Even some of the miners in highly questionable locations who have to deal with dictators are not getting bashed like this.

A quick look at Stockhouse today shows that they have reached a crescendo in their efforts to muddy the stock. This has gone on for a few years now. If you are interested in seeing our Jr exchange cleaned up I encourage you to write to the securities commission and express your opinions. This behavior doesn't just effect one company it dirties the whole field.

And the basher blogs (insert eye roll here)

Copper Fox Metals Answer to Question

LDubs wrote:

Where do you think the other 1/2 of the metals went? Webs once talked about a mine beneath a mine. I am convinced based on this BFS that they had to pretty much rework the entire pit and perhaps shift it or broaden it to accomodate the drill results since 2008 PFS. This was obvious when they started to step out with the drills in the paramount zone. Now when you broaden the project like that you push the diameters beyond the more closely spaced drilling that contributes to the M&I portions of the project moving into the inferred metals. They have to be removed and because they can't contribute to revenue generating rock and become a cost for the purpose of a feasability study, they give us the 'false impression' that the economics are not there in the project and that something has gone wrong. This is not the case. These inclusive #'s are known by TT, Elmer and Teck and the calculations have been done and I'm certain that Elmer will be able to speculate on this given the 1:1 correlation and what impact this has on NPV, payback, IRR, etc. They have likely made the pit much larger for many reasons, but bottom line is you have to move out to move down. With the P&P of the BFS representing only half of the metals in MI&I of the RE, the pit likely isn't that deep.
Another thing. Did anyone catch the CuEq ? 0.44% Give me a break. TT used their own long term metal #'s of 2.97 Cu, 16.80 Mo, 1256 Au and 20.38 Ag to come up with that. I think I heard from someone a month or 2 back that the mine feed will be realistically more in the range of 0.58% CuEq But remember, this study is about derisking through worse case scenarios and being realistic. Elmer said that Teck wanted a realistic BFS and that is what they got. Recoveries in this BFS by TT were also reduced at 60.9% Mo, 70.6% Au and 43.4% Ag yet in Feb 2012 Metallurigcal testing recoveries averaged 89% Cu, 64% Mo, 73% Au and 58% Ag.

I was going to show you some comparative materials but then I came across this and it sums it up nicely. This is one of the reasons I'm telling you it is a very base estimate. The eq of 0.44% is not our doing. But, to show that this is robust we had to go along with it.
NR snippet from the link above.
"Metallurgical Testwork
Metallurgical test work including; rougher flotation, locked cycle testing by closed circuit flotation and concentrate quality was completed on six samples of mineralization from the Paramount zone. The test work was completed by G&T Metallurgical Services Ltd. Six samples (totaling 810 kgs) were tested for metallurgical performance. These samples were prepared using 80% passing 150 micron grind size, tested individually and then composited for similar test work. Results of the test work on the two master composite samples (with average copper grades of 0.42% copper) yielded average recoveries of 89% copper, 64% molybdenum, 73% gold and 58% silver. Concentrate produced from this testwork averaged 31% copper, 1.30% molybdenum, 16 g/t gold and 131 g/t silver. The concentrate was low in other base metals and other common penalty elements. These results will be combined with the previous metallurgical test work from the Schaft Creek deposit to determine the estimated average metal recoveries to be used in the feasibility study that is expected to be completed in the first quarter of 2012."

So given what they said in the NR I wanted to hear from Elmer as to why the actual recoveries didn't get used. I suspect we will see a section in the full document showing this for the starter pits.

By comparison:

The Quellaveco deposit. 18% of that deposit was fought over just recently. Capex was 3 Billion in 2010... imagine today. They're in Peru and have huge water issues.
Their resource: 2010 M&I: 823.8 Mt @0.44 Cu (3.68 Bil pounds) with 183mt Inferred at 0,45 (828 Mil pounds)
They have not even completed a feasibility.
So what did they recently get:
Mitsubishi Corp said on Monday it had bought an 18 percent stake in Peruvian copper project Quellavecoa hotly contested asset among Japanese trading and mining companies - in a deal reportedly worth $760 million to $890 million.

Just based of this I'd give us a value of about $3.15. Now add in all the stuff I've mentioned before. $340 million prepaid from our option agreement, the land package, our Liard royalty shares and a host of other items. Take note that we have superior metal credits. (Gold which is certain to run up in price)

If you are wondering why IRR came in at 10% look at the bill added for waste rock removal! Why didn't drill it right up as per the quoted NR. Well, we went about expanding the potential. When I spoke to Elmer (CEO) about this (knowing what the answer was going to be) he confirmed that the money was better spent expanding the potential. Infill drilling was going to run millions so how much should we dilute? The overburden is acceptable to Teck as a cash opportunity and so Elmer decided to show us just how big the district really is. Teck will probably spend north of $200 million drilling the area up over the next 6 years. People tend to forget that we are a Jr exploration/developer.

Returning to the IRR. The recoveries are deliberately low balled to allow for more unknown grades. But why? This is a hefty err on the side of caution. Since the money comes from concentrates this impacts the IRR in a big way. Imaging what the study would look like if we gave full credit to the recoveries. Look at the ROV method at 5%. This is what we will look like when the enviro apps are completed. It's all about de-risking. Since we have no enviro issues this should be given more consideration. In discussions with other companies I can assure you this is a top consideration amongst all developers and major investors. If anything is going to derail you it's enviro.

It's worth reviewing the FS stament against the Resource estimate. As far as potential is concerned Copper Fox has delivered.
  OPEN PIT MINING, PROCESSING AT A NOMINAL RATE OF 130,000 TONNES PER DAY; A 21 YEAR MINE LIFE PRODUCING 4.88 BILLION POUNDS OF COPPER, 4.21 MILLION OUNCES OF GOLD, 25.10 MILLION OUNCES OF SILVER AND 214.92 MILLION POUNDS OF MOLYBDENUM
http://www.copperfoxmetals.com/s/SchaftCreek.asp?ReportID=209011&_Type=Schaft-Creek-Project&_Title=Resource-Estimate

Friday, December 21, 2012

BC's Jobs Plan

Ah er um http://www.vancouversun.com/news/Chinese+workers+fill+mining+jobs/7366971/story.html

So by making Mandarin a requirement they can claim we don't have the skills to do the job http://www.vancouversun.com/business/resources/Canadians+shut+jobs+mine+least+four+years/7688982/story.html

My response: YGBFK
It's time to throw out ALL of our politicos and start over. This is one of the grossest most blatant lies ever told in BC. http://en.wikipedia.org/wiki/Category:British_Columbia_political_scandals

Now that you've read this I trust you realize you are responsible for all of this! (People of BC who vote)


Copper Fox Metals BFS is Good

If the initial reaction on some of the discussion boards was an indication of the value of the BFS you'd hear toilets flushing around the country. But, within an hour the mood has changed.

So what's my take? None of our inferred is included. It is listed as waste because there's not enough drilling to say it's economical. But, we saw the assays! Our chief wants Teck to see that the mine is profitable even if they have to pay to remove it as overburden. That's one.

Two. The report doesn't include anything beyond the main zones. Yet, we saw those assays too! So the report strictly focuses on real numbers. This is what Teck wanted. This report is for them not the retail. We are not advertising to the retail. We are completing a contract for a major that doesn't want any sunshine up the backside.

The third thing. No magic numbers were used. Everything is fully costed out. $200 million for the power tariff. Even the shared road starting from mile 0. Hint hint.

Summary of Economic Results
ItemUnitBase Case3-Y Avg* CaseSpot Price** CaseReal Options Case
Metal Price
CopperUS$/lb3.253.633.693.25
GoldUS$/oz1,445.001,445.001,736.001,445.00
SilverUS$/oz27.7427.7432.7127.74
MolybdenumUS$/lb14.6414.6411.3414.64
Exchange RateUS:Cdn0.970.991.020.97
Pre-tax Economic Results
Operating Cash FlowCDN$ M10,74612,06512,16111,284
NPV (at 5%)CDN$ M1,6942,3482,4192,665
NPV (at 8%)CDN$ M5139671,0241,382
NPV (at 10%)CDN$ M25388437836
IRR%10.1311.912.1415.4
PaybackYears6.485.815.74.9
Cash Cost/lb CuCDN$/lb1.151.191.121.15
Total Cost/lb CuCDN$/lb2.092.142.072.09
Avg Annual operating Cash Flow***Millions371414425640

Look at the NAV at 5%. The more realistic value suggests a pretty good profit without converting the waste to cash generating rock. Even at 8% there's still a profit. So factor in the waste as a zero sum so the mine doesn't pay for the removal and the numbers get better. Take 20% as paydirt like the drills suggest and the numbers get even much better.

Give us credit for 30% at .24% for 35 meters add that to the ROV and Teck has a rosy picture to look at. I'm guessing at the average overburden paydirt because I'd have to look up the NR and do a bunch of calculations.

I'm seeing a number of things that didn't get fudged on. They all represent cost savings. So if this is the worst it can get...

A word about the copper prices. Teck wanted to know real numbers. $3.25 is a factual number. This gives us a more realistic payback of 5 years if we accept that nothing else improves like converting the waste to cash.


Development Schedule
  • Project development will take place over a 5 year period after initial permitting and engineering.
  • Permitting completed June 30, 2014
  • Engineering completed February 2016
  • Access Road construction completed March 2016
  • Construction Phase I completed July 2019 and Phase II March 2020
  • Commercial Production Phase I Start December 2019 and Phase II August 2020

Given the 5 year plan it's safe to say we are not concerned with the so called 4 year clause. I see more hints of things to come.

Overall this is a very solid document. It tells us that this is very likely to be a mine.


Copper Fox Metal HALT

HALT!!!
BFS PENDING

Monday, December 17, 2012

Happy Creek Extends Warrants too HPY.v

They have about 3 million out at 35 cents. This indicates to me that they also expect those to be in the money. My last talk with David gave me the impression that this next year will be big. I know they have not burned through all the old pp shares. About 300k left. In the new year I may take all of those. After xmass I'll talk to them again. They should have the next leg planned and we'll see where the money is going. Can't wait for the year's wrap up. The tungsten space is heating up and there's a lot of extra pressure on copper since a few deals and mines went south this month.

If you have not looked at their copper data you should. Sure, the tungsten will be quick out of the gate but the copper is looking to be a mammoth. If they hit a few high grades along the strike it will get serious attention by May or June. It's also possible they rush things a bit and the results come early. Having 3 hot commodities is a nice way to end a year and an even better start to the next.

Copper Fox vs Orko Silver

Orko Silver
about 145,000,000 shares
154,000,000 oz silver eq
$3.85 billion in situ
Pit prices
$1465 gold
$26 silver
Offer 10 cents on a dollar
$2.72/share

Copper Fox
$60 billion in situ
1/10 = 6 billion
25% = 1.5 billion (if this was in Panama but it's not and it's fully funded under the 75% option)

Bonuses:
Option Agreement $340 million
Port facility $6.8 million (Savings from transport costs)
Land $44 million (Mess Creek another $4-10 million? This is the access point and a chunk of gold was found on it.)
JV and finance carried (Interest on 1.2 billion) Value, $2.4 million based on the difference of interest terms.
(We can ignore Royal Gold's 3.5% NPI for now.)
We have the 100% working rights to the property
There is a 30% NPI held by Liard
We are about to earn 78% of the Liard NPI giving us that 23.4% of the original 30% NPI that Liard held.
Next, Teck earns back 75%.
75% of the 23.4% NPI leaves us with 5.85% NPI
5.85% NPI = $76M/yr (1.3 billion NPV) Note: We bought floating  liard shares 2 separate times so this is a ball park figure.
75% of the deposit leaves us with 25% ($300 million at a fire sale price)

The option agreement has to be spent on the project and can't really be separated out. Some people think we are attributed only 25% of that. But, dollar for dollar it is an enhancement to the total package. In other words, it is ours and forms part of the package Teck has to negotiate for. Most importantly, we decide how to spend it.



 Where it says 23.4% of the deposit is an error. It should read NPI.
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 3.5% net profits interest held by Royal Gold, Inc., a 30% carried interest held by Liard Copper and an earn back option held by Teck Resources Limited ("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.

TOTAL:  1.827 BILLION TONNES

10 BILLION POUNDS COPPER
10.6 MILLION OZ GOLD
98.3 MILLION OZ SILVER
662 MILLION POUNDS MOLYBDENUM

Thursday, December 13, 2012

Copper Fox is heating up.

The volume is increasing as expected. The buyers are winning the battle and the price is staying above $1. I know many people would ask why should anyone want to see the price go down? In this world there's competition for money, infrastructure, jobs, investor attention and the list goes on. Mostly it's greed driven. There are people who want to accumulate on the cheap at the expense of investors who really can't afford a great deal of risk. They invested here based off pounds in the ground a solid company and the option agreement.

So some people want them to lose confidence and they want to discourage other retail from adding to the buying pressure. You see this so often that the pattern becomes a signal to those who know what they are looking for. If your goal is to make money then don't confuse it with your desires. This stock ran way over time and people who desired a fast buck didn't get it. But if your goal is to make money... hold. As far as we know, the BFS is going to come out next week.

There are other signs. Bashers who are usually paid are arriving on the discussion boards. That is a good sign. It's not 100% because they get the timing wrong too but it is a good sign that they thinks the time is right. The chart also indicates the time is right. We call it tree shaking. The price is deliberately driven down and yes, the guys doing it are taking small losses. They become the dominant bid ask because everyone else is in. That lets them move the price up or down at will. This often catches the last minute guys off guard. The last minute guys end up chasing the sp up and when the bite at market then the price drop 3 cents and they get worried. Some are dumb enough to sell at a small loss only to see the sp start to head back up. Don't be fooled.

Recently a fake email from the company was posted on a board. That's what I call going to extremes. One posters comments reveal some insight.
"Right now we, CUU shareholders, are living a disinformation nightmare caused by lack of verified/official information delivered from management."
The lack of info often imposed by black outs allows for the void to be filled with nonsense. I admit we get up to mischief when the company doesn't give us news on a regular basis. But hey, speculation is fun. It's not fun when it is deliberately false with the intention of leading people astray.

This weekend we'll all sleep well. Next week should be exciting.

Wednesday, December 12, 2012

Probe Mines just keeps delivering

This one should be on your wish list. They are just asking to be taken out. They are about to follow this up with even better results as the zero in on the core. Target: $2.56. If the next results are 50m or better this is a $3 stock.



Probe Mines Ltd
CVE: PRB - 12 Dec 3:59pm ET
2.02+0.06‎ (3.06%‎)
1d
5d
1m
6m
1y
5y
max
Open
High
Low
2.15
2.24
2.01
Volume
Avg Vol
Mkt Cap
1,213,275
0
131.34M

As at September 14, 2012
Shares Outstanding65,021,533
Warrants and Options16,941,466
Fully Diluted81,962,999


TORONTO, ONTARIO -- (Marketwire) -- 12/12/12 -- PROBE MINES LIMITED (TSX VENTURE:PRB) ("Probe" or the "Company") is pleased to announce that it has received further assays from its ongoing drilling program at the Company's Borden Lake Gold Project near Chapleau, Ontario. Results for diamond drill holes BL12-247 to BL12-271 were received and continue to expand the Borden Lake gold zone to depth, identify new mineralization to the hanging wall side (northeast) of the main zone of mineralization and confirm the main zone continuity through infill drilling. Results include the highest grade interval reported to date, a 51-metre wide zone averaging over 10 g/t Au, including 25 metres of 17.8 g/t Au, which represents a significant improvement of the deposit's higher-grade core.

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Spread the word on this blog. I do metals with a focus on Canada and currently BC because of the $25 billion that's going into the area. This also includes the Yukon and Alaska. I welcome comments and tips.

I'll research specific companies in a sector that I think will be hot next year. If you have a good idea for research let me know.

Boxxer Gold BXX.v Rumor

There was a recent NR stating that insiders bought BXX. Just a heads up. If the Geo says really good things are coming in about a year then they buy now. They don't wait because that gives the impression of taking advantages that they should not have. At Elmer's pace that would mean good news will come in the dull drums of summer. He tends to drill when everyone else does but he doesn't rush the QC on the logs so his assays show up late compared to others.

Yes, I am completing my dd to figure out why they are piling on.

Inmet rejects offer CUU value is....?

"TORONTO — First Quantum Minerals Ltd. has offered $4.9-billion for Inmet Mining Corp. in a bold attempt to get its hands on Cobre Panama, one of the largest mining development projects underway anywhere in the world."

A side by side comparison to Inmet's 80% owned Panama deposit is a little difficult. On an eq basis they are pretty close. Some of the side issues like capex involving the building of a coal fired power plant are what causes the blur. For example, CUU's Schaft Creek will run on cleaner power that's being provided by the grid. The capex will be lower for that reason and the plant size is less. But without going into fine detail let me say that CUU has the better product in a better country.

At roughly $6 billion for the whole deposit in Panama you get the idea that Schaft Creek has a much higher value than the share price would indicate. It translates into $1.5 billion before the extras like the 4 times expenses and the Port facilities. Just having you development costs carried by Teck is a huge burden off your back. Then add in the original Area of Interest Royalty. To top it off, Schaft Creek has been hardly touched with a drill. We know the deposit in the main area does beyond what the drill proved up. How deep? The Titan done on the main area suggests there's a deposit under the deposit. How that will be mined won't be known for a decade or two.

The scope for increasing the deposit resource and reserves at SC rivals any major deposit out there. This year the drill were halted then called back and then suddenly halted again. We can only assume that Teck decided they had enough evidence to make a confident offer. While the media cites Teck as being a potential buyer for Inmet we have to ask why would they? They have Relincho and SC. Together, these two properties are enough to keep them with a healthy supply while reducing the cost per pound for decades to come. It is true that the last of the giants are being gobbled up but Teck also has Galore.

At about .58% average grade and a negative cost per pound SC will be hard to beat by any deposit. Ivenplats takeover of the stolen deposit is an example of the lengths companies will go to to secure supply. I do not think such properties are secure at all. Given the long life spans I think we are bound to see more M&A in safe havens like Canada.

As for low grade low IRR. SC has high grade starter pits that will take a decade to deplete. The IRR in terms of jumbo sized deposits is very respectable. I'm looking forward to reading the BFS due out next week.





Blackheath BHR.V In the news

BHR sealed the deal. What you now see is the completion of a mini trifecta. The next step is raising money. There are steep commitments in this business. Use it or lose it agreements must be met. What's needed next is for the company to let us at some of those shares they have locked up in paper. Currently, the sp does need to run up a bit just to catch up with the company.

More news should follow soon. We are waiting for the completion of some assays and I bet the guys are busy talking to others about joining the team. If they can keep this pace up the New Year will start off with a bang. I'm expecting big things from the company and they are in the right place to do it.


December 12, 2012 Symbols: TSXV - BHR; Frankfurt - 04B

Blackheath Resources Inc. (TSXV: BHR) is pleased to announce that the Company has entered into definitive agreements (the “Agreements”) for options to acquire a 100% interest in each of the Borralha Tungsten project and the Bejanca Tungsten-Tin project in northern Portugal. Both are past-producing mines and have the potential for development of additional tungsten and tin resources. Exploration plans are underway commencing with data compilation and early diamond drilling.

See the corporate website for the full details. www.blackheathresources.com

Saturday, December 8, 2012

Copper Fox News. What does it mean

Cheap money is good money. Last time I talked to the co they said they had all the money they needed. So why extend the warrants? First, at about $1.35 the company is signalling to us that the sp is about to correct. Second, we all know full well that the finale is coming for the BFS. If that holds true we'll need money for Arizona. Plain and simple. I suggested a while back that the company should just retain some cash from the sale to increase share holder value in the spin co. It also sets them up to go full tilt on Az. Last, why not throw EE a bone one last time? It was his money that saved the company in the first place.

I also touched on the subject of CUU needing a cut off point. It seems many people got this wrong and think the warrants are signalling a delay and more dilution. But, since the money will be retained in Az we would have had to go get it anyway. This way we don't pay fees for it and we are writing agreeable terms. So there's no harm in doing it now. There's been some questions as to why now and what about the ones that expired and what about vested shares? CUU has tended to follow the letter of the law. In the current situation there was a need to NR the extension and the extra value of hinting that the sp is going to put those in the money. Vested shares are just that, vested. No BFS yet, no expiry. Did anyone think this was going to go this long? I bet no one did.

There a lot of unhappy people making a lot of noise about the warrants and vested shares. They don't like the dilution and they don't think management has earned those shares they handed out. I completely understand. My own report card on the management shows us a student who is struggling to get a C-. That's not a great career starter. Elmer wanted to do a Hunter but this is no way to kick that off. In time it will fade from memory and it is better than Ivenplats past record. (You know who I mean). Still, I would have preferred a happier ending. (Much earlier). So now we have to content ourselves with the quality of the ending.

I've kept track of the stock I would have put money into and CUU has to come in pretty big just to make up for the lost opportunities. I think it can but I've reached the point where it will be hard for CUU to meet that objective. By the end of the year I doubt CUU can make up the lost opportunities. On the bright side I have built up a fair bit of dd for the next round. I've actually got my next 5 years worked out.

I think the outside date is the second week of Jan. I've been told enough times that if it comes sooner it must be dropped. The earliest is Monday. Xmass may drown it out so timing sucks but people will write about this deal. A lot of people will want to publicly pat themselves on the back.

This could end up as a 10 billion dollar deal. The foundation of that would be based on the strength of the BFS. We have to have the legal foundation for the execution of the contract. We have to make sure nothing can stand in the way of collecting our pay. Each item in the contract has to be thoroughly verified. So we should expect that the delays are due to us making sure there's no disagreement. I take this to mean that CUU intends to make the deposit available to other parties and Teck at the same time. This will give Teck time to think about it. They already have access to all the information. CUU may get offers for it's JV portion outside of Teck's control but Teck does have a built in head start.

This may be one of the first times a Jr got the jump on a major. CUU has made every mistake they could along the way and struggled through mistakes piled on them by contractors and finally arrived intact with a BFS. An incredible journey.

So we end up with nearly 4 billion pound eq copper that we own outright. We also own shares of a royalty under the Liard agreement. We own land that is connected to the trend and the land that will become the access point. We own land that will be needed for storage. Best of all, we own the option agreement that Teck has to satisfy. I say Teck has to satisfy it because the ball is going to be in their court in under 2 weeks. Some armchair experts say that the weight of the option agreement really gives Teck just 2 options and a few dissenters say Teck will be forced to take the 20%.

What's 4 billion eq of copper worth? With an attached mine you could expect up to 30%. It comes with a royalty attached to the whole mine not just CUU's portion. It comes with built in finance for the mine and the convenience of just being handed the keys or accepting a check every month.

Should Teck take 20% then CUU has the right to sell the project. With 80% of the deposit and the royalties in hand plus the approvals largely in place to make this a mine, I think it would not be that hard to find buyers. Having that large of a portion, about 16 billion pounds eq copper, they could lower the price on the pounds and still come out big.

For those of you who think CUU can never raise the money to build the mine. Royal Gold would be in the mix in an instant. Barrick would also have to line up. CUU would have no problems selling mineral streams and those companies could arrange the funding. It would take some time but I think CUU could come out a little better with about 40% equity remaining. Poland is in the hunt for more BC copper. They like it here. I can't see a consortium passing this up if Teck took a back seat. I suspect Teck has already asked Elmer to middle the agreements and that's why he was appointed to the Bod of Liard.

Stay tuned. If I get time I'm going to do a more precise review next week.  



Tuesday, December 4, 2012

A new spec stock SNO.v

I've done a lot of dd over the last year on these guys. Now that the option agreement is ironed out I will now look at it to see if it can be done and try to get an idea of what it's worth. For answers to your questions call: Dave Goodman Teatyn Capital Corp. Office  604-574-7555    Toll Free  1-855-832-8961
At 1.5-2 cents it might be worth taking a pure risk but as always, it's better to miss a few cents on the rise and be sure about your investment. It might not be all that easy to get shares because they only have about 35 million.

 Snowfield Development Corp. ("Snowfield" or the "Company") is pleased to announce that it has negotiated and executed an Option Agreement for the Nahmint Property ("Nahmint Property Option Agreement") dated November 27th, 2012. This Nahmint Property Option Agreement is based on the initial Letter of Intent Agreement dated January 17th, 2011 (see NR11-05 on February 21st, 2011) between the Company and Nahminto Resources Ltd. ("Nahminto") and Karen Sui Hang Woo ("Woo"), (collectively the "Vendors") under which the Company can earn a 90% undivided ownership interest in the Nahmint Property (the "Nahmint Property") located in the Alberni Mining Division, Vancouver Island, British Columbia. The Nahmint Property consists of 14 Crown grants and 21-cell mineral claims totaling 9,551.98 hectares. Final approval for the Nahmint Property Option Agreement is subject to the acceptance of the TSX Venture Exchange (the "Exchange").
    Under the terms of the Nahmint Property Option Agreement, the Company will follow the original terms of the Letter of Intent Agreement to make total cash option payments to the Vendors of $550,000 over five years which includes a $25,000 signing bonus. As of the date of this Option Agreement, the Company will have paid the Vendors, Option payments of $145,000, with an additional $50,000 to be paid by December 31st, 2012, for a total of $195,000. The remaining schedule of cash payments will be as follows: $97,500 for the year 2013, $100,000 for the year 2014, $118,000 for the year 2015, and $19,500 for the year 2016.
    The Company shall issue up to 4,500,000 common shares to the Vendors, subject to the approval of the Exchange. As of the date of this Option Agreement the Company has issued to the Vendors a total of 875,000 shares and by the end of December 31st, 2012, the Company will issue an additional 500,000 shares for a total of 1,325,000 share Option payments. The remaining schedule of share payments will be made in the year 2013 in the amount of 1,000,000 common shares; in the year 2014, 500,000 common shares and in the year 2015, 1,125,000 common shares.
    The Vendor cash payments and share issuances will be allocated to Woo 60% and Nahminto 40% upon payment or distribution.
    The Company will also expend total minimum exploration work commitments on the Property of $1,350,000 over the term of the option (as per the original Letter of Intent). As of the April 30th, 2012 Audited Financial Statements, the Company had incurred expenditures of $209,462 on the Nahmint Property. As per the Nahmint Property Option Agreement, the Company will undertake minimum exploration work on the Nahmint Property in the amount of $300,000 for the year 2013, $400,000 for 2014, and $450,000 for 2015.
    Upon completion of the terms of the Option Agreement, the Company will have earned a 90% undivided ownership interests in the Nahmint Property.
    The Nahmint Property is a large contiguous, early stage copper +/-gold-silver-zinc-molybdenum-tellurium exploration property located along the sheltered tidewaters of Barclay Sound, Vancouver Island.
    The Nahmint Property geology consists of a flat-lying sequence of layered rocks of Triassic to Jurassic age, including Karmutsen volcanics, Quatsino limestone, Parson Bay volcanics and sediments, and LeMare Lake volcanics. These layered rocks have been intruded and domed from beneath by a batholith or large sill of Jurassic Island Intrusive granodiorite and related stocks and dikes. Steeply dipping, northwest-trending faults have deformed and offset the layered and intrusive rocks both vertically and horizontally. This represents the ideal geological setting on Vancouver Island for porphyry copper-gold-molybdenum and related copper, iron and gold skarn deposits.
    The Nahmint Property hosts three historic past producers of direct-shipping, high grade copper-silver-gold ore which yielded a total of 3,274 tonnes averaging 8.15% copper, 34.4 g/t silver and 0.61 g/t gold. Those ore producers consisted of the following occurrences:
  •     Three Jays produced 1,981 tonnes @ 7.52% copper, 38.0 g/t silver and 0.97     g/t gold from 1898 to 1902
  •     Monitor produced 1,288 tonnes @ 9.08% copper, 28.8 g/t silver and 0.05     g/t gold from 1900 to 1918
  •     Sunshine produced 5 tonnes @ 17.4% copper and 43.6 g/t silver in 1916
    These past producers were discovered, developed and mined in an era predating modern mineral deposit models and mining techniques. Recorded production occurred between 1900-1902 and 1916-1918. The above numbers are historical numbers and not NI 43-101 compliant. It is worthy of note that no exploration by diamond drilling has been documented on the Nahmint Property, which has good road access to the northern and western boundaries by four-wheel drive vehicle and there are extensive logging roads over most of the area.
    Some assays of rock samples taken in 2009 and 2010 are detailed below. Sample taken from a 0.2 meter thick exposure of skarn mineralization in the Monitor Shaft area returned 3.41% copper, 0.223% lead, >1% zinc, 1096 ppm (1.1 kilos/tonne) tellurium, 58.2 g/t silver, 225 ppb (0.225 g/tonne) gold, 29.3% iron and 26.6% sulphur.
  •     Sample taken from a broken fragment of iron/zinc/copper skarn approximately 96m north of the Monitor Shaft returned 40% magnetite, 40% sphalerite, 10% chalcopyrite and 5% pyrite, and yielded 12.3% zinc, 1.3% copper, 0.17% lead, 43.4 g/t silver, 106 ppm cobalt, 177 ppm bismuth, 42.5 ppm mercury, 1200 ppm tellurium, 67 ppb gold, 49.7% iron and 6.4% sulphur.
  •     Sample taken from a 0.2 meter thick exposure of pyretic quartz east of the Monitor Shaft contained chlorite, jarosite, chalcopyrite, pyrite and hematite hosted in basalt or andesite, and yielded 1.02% copper, >1% lead, >1% zinc, 934 ppm tellurium, 45.6 g/t silver, 50 ppb gold, 28.3% iron and 5.27% sulphur.
    Upon acceptance for filing of this Nahmint Property Option Agreement with the Exchange, a full Nahmint Property 43-101 technical report prepared by Jacques Houle, P. Eng. dated October 15th, 2010 will be available on Snowfield's SEDAR filings.
    Excerpts from the above referenced 43-101 technical report read: "Only a small fraction of the Nahmint Property has been prospected to date and much more work is clearly justified. The Property represents a large, early stage project with many known high-grade occurrences of copper+/-silver-zinc-cobalt-tellurium-gold and iron (magnetite) and extensive exposures of limestone and some marble. Project logistics are excellent with the protected tidewaters of Alberni Inlet along two sides of the Property and an extensive logging road network providing access to much of the Property and to the nearby resource-oriented community of Port Alberni. Modern systematic exploration techniques have only recently been utilized on the Property, with much success. The potential exists on the property to discover both metallic and industrial mineral deposits of economic significance, including both high-grade skarn deposits and large, disseminated porphyry copper deposits. The Nahmint Property should be re-evaluated based on its regional geological setting compared to other similar settings worldwide which host past or currently producing mines, with consideration to mineral deposit types and models. Today's geological literature is much more extensive than it was at the times when the mineral occurrences in the area were being actively developed and mined. Some of the key points to consider in such a comparison would be:
  •     Jurassic age intrusive associated deposits and mineral districts
  •     Skarn, and possible related porphyry and epithermal mineral deposit types
  •     Accessory elements, minerals and mineralogy in other similar deposits
  •     Industrial mineral and/or dimension stone limestone/marble deposits
    Using today's and projected future estimates of metal prices for copper, silver, gold, iron and possibly molybdenum, zinc, cobalt, tellurium, and rhenium, along with limestone and marble, reasonable exploration target models should be established for the entire Nahmint Property. The Property clearly warrants continued systematic exploration programs, data compilation and evaluation."
    Tellurium is an extremely rare element that has traditionally been used to improve the machinability of copper and steel. Tellurium is a semi-conductor with unusual properties and in recent years its uses have increased and it is now in demand in the solar-panel industry, the electronics industry (including CD and DVD coatings), and the auto industry. The world supply cannot be accurately gauged, but the steep increase in price from USD$30 per kilogram in 2000 to approximately USD$110 - 140 in 2012 would suggest that supply is not keeping up with demand, and predictions are that this demand will increase sharply.
    While Snowfield was performing work on the Nahmint Property under the original Letter of Intent a preliminary airborne survey was conducted on a portion of the Nahmint Property, the Three Jays area during the September 2011 (see NR11-17 on December 7th, 2011 and NR12-04 on February 7th, 2012).
     Results of the airborne survey confirmed an east-west magnetic anomaly with a strike length in excess of 900 meters and a width of 400 meters approximately 700 meters north of the Three Jays mine workings. This anomaly also has and east-west strike.
    A further limited airborne geophysical survey was carried out over the 3 Jay's area of the Nahmint Property in February of 2012. The magnetic data from this survey was sent to Geosci Data Analysis Ltd. for further processing (see NR12-07 on February 23rd, 2012). The interpretive report showed an east-west elongated magnetic high, some 1,400 metres long and 500 metres wide north of the 3 Jay's which has been interpreted as an intrusive plug extending from the near surface to greater than ½ km in depth. This signature has some of the characteristics of a porphyry system.
    Details of the Company's planned exploration programs for the Nahmint Property will be announced following the acceptance for filing of the ensuing formal Option Agreement by the Exchange.
    The Company's geological consultant, Marvin A. Mitchell, P. Eng, a qualified person under National Instrument 43-101 has approved the contents of this news release.
ON BEHALF OF THE BOARD
"Albert (Rick) Timcke"
President and Director
SNOWFIELD DEVELOPMENT CORP.