Wednesday, March 19, 2014

Interesting news from CUU and a bounce for HPY

Looks like Teck and Copper Fox Metals reached a decision for the year's program. Last year was not fully completed compounding the issue of how to make best headway. Now we see a re-examination of the very expensive Report CUU paid for. They want to refine the findings! Hey, we all were pretty sure the deposit extended beyond the pit design so the proof came as no surprise.

I snicker to myself because it sure looks like the deposit goes under the mountain too. Two years ago there were encouraging findings suggesting the deposit goes right through the mountain. If this turns out to be the case then Teck has an interesting problem. How to get at it?

A couple of year back CUU had a 3d drawing showing what appeared to be a root for the main deposit. So it may turn out that Teck has to explore deeper. They could find a deposit on a deposit. When they do find this it will result in one gigantic hole. That would give them a place to put the mountain material 30 years from now. That's a major cost savings despite being so far off that you can't really calculate it. However, it would be a very good incentive to go ahead with a mine.

Happy Creek.
Told you so! Yes, an insider freed up some shares. Just keep an eye on the bid ask spread. No one lets them go too cheap. When someone needs cash they impact the price but it rebounds. The small retails just don't sell. Go try by some today and see what happens. So if you missed the boat at 10 cents give yourself a kick. This isn't a trading stock. They have diddly squat for shares out there.

Someone asked if the rebound was due to some impending news. Ah, nooo, just some tax shuffling that dropped the price. Will news come? Ah, yesss. I can't see this sitting on the shelf beyond 2015. By then the sp should be up around 80 cents and climbing. Of course, a deal could derail my projections. If that happens some of us will be seriously laughing. All the way to the bank.

In the last few years I've fully reviewed a very large score of projects. The list of valid Jrs is strikingly small. Surprisingly, many of the other companies are still able to attract money. They problem with them is they don't have the geology. That means there are still investors who are playing poker. Well, I prefer chess. I don't like betting on people. I do like betting on geology, location and economics.


  1. Great post!
    In connection to Copper Fox what value would you place on a buyout offer? In your opinion, what is a reasonable timeline until Copper Fox sells its interests? These are interesting questions I would like your thoughts on. I understand that Teck will be conducting "comprehensive series of studies to review all aspects (including metallurgical, pit slope design, geological modelling and environmental) of the Schaft Creek project". Could you explain this statement in greater detail? Does this mean an updated BFS and mine plan in your opinion?
    Thanks in advance.

    1. It seems we are moving towards a new and improved pit at SC. Word from Teck was contradictory to the NR from CUU. I sure got the feeling of mixed messages. Obfuscations? So, the official work is comprehensive. The BFS cost millions yet, was not all inclusive. Many are skeptical that the curtailed scope was at Teck's behest. Some of course, think CUU did that on purpose knowing the stock was being manipulated, economic times were going to be very bad, economics of the project were poor... a long list of reasons to stall. In short, you could even theorize that Elmer wants a mine and has no intention of selling cheap. I really want Elmer to be an empire builder. Screw selling, get us a mine built.

      Before the road leads to riches: We have to have a road! Before we get a road we have to show the improved economics! People complain about the loss of pounds. What if we pared it down by half concentrating on the high grade and gave an IRR of 30%? So ask yourself why Teck is not concerned with the IRR and wants to increase the pounds towards the amount we know is already there?

  2. What's happening with HPY's sp the past few days? I can't find any reason for it...what do you think?

    1. Last year I said the annual sell off would begin two weeks early. Said the same thing the year prior. It's no longer sell in May and go away. It's become sell in March now.