Happy Creek Minerals - More big news

This is a very large land holder who has proven over and over that he can get results. I'm impressed with how cheap David has managed to develop these properties. (See their financials). Today we get news on the Tungsten and as well, the new Abbott property that he got for a song. 

The vendor of the Abbott property was putting in roads and noticed green rocks. So on close inspection he realized it was copper. The next logical step was to show this to David Blann of Happy Creek. 

Of the 57.5 M shares outstanding 12% are held by an institution. In the last 3 months they bought almost another million shares. There's no short interest and the company has held up well despite all the dirty games being played by the regulators, TSX and the HFT's. (See articles on the death of the Venture Exchange). 

I expect HPY will make a nice discovery adding to their already good property. No one is going to notice this stock and it will remain cheap for a little while longer. But... What will happen is the results will reach a critical mass and the sp should go up. If it doesn't that hardly matters. 

What the average investor doesn't know is that Teck and Newmont and others have been eyeing the ongoings with increasing interest. They are not the only ones. The virgin Tungsten has envious eyes on it. What this means for us is cheap stock that suddenly pays a big payout. Once that happens it will attract the attention of the Johnny-come-lately's. That will create volatility for a while but their interest will wan. Then there will be another big payday and it will repeat. This is the beauty of this stock. It flies under the radar allowing us to take up big positions and should have a huge payout in 18-24 months.     

The Company has explored the Fox from an early stage. Outcrops, trenches and drilling have returned strong tungsten grades over considerable thickness that are at or near surface, and over a distance of three kilometres. 

On November 19, 2012, the Company announced final drill results including 19.4 metres of 0.82% W03 (tungsten trioxide) and 24.7 metres of 0.68% W03 in the RC prospect. 

Drilling located a km to the north returned 5.0 metres of 0.68% W03. A kilometre to the south of the RC prospect, F12-27 returned 4.1 metres of 1.78% W03, 14.8 metres of 4.08% W03 and 24.0 metres of 0.79% W03. 

If you are following the news on Woulfe and Malaga you know why I like Happy and Blackheath. 

http://resourceinvestingnews.com/-tungsten-woes-a-tale-of-two-companies.html

The big advantage of Happy Creek is that the deposit is virgin.

During 2012, approximately 900 kg of drilled and "non-ex" blasted muck was collected from the BN, RC and BK trenches.  A composite sample used for test work averaged 1.04% W03, 0.27% zinc, 0.09 g/t gold, 1.58 g/t indium and 1.19 g/t silver.

David Blann, President and CEO of Happy Creek states: "We are learning more about the mineralogy and geology of the Fox tungsten skarn and the initial metallurgical characteristics are positive. More definitive results from phase 2 work is expected in about 10 weeks. We now have our 2013 exploration drilling permit in hand and anticipate advancing this new, near-surface and high-grade tungsten discovery".

The Company also reports that title of the Abbott property has been transferred 100% into the Company. Refer to news release dated June 5, 2012. The Abbott property adjoins the Company's West Valley property which adjoins Tecks Highland Valley copper property. During 2012 the Company completed an airborne magnetic and spectral survey on the West Valley and Abbott property, along with prospecting of newly constructed roads. Several new copper showings and historical trenches were located and sampled. Samples consist of Nicola Group volcanic and Guichon Batholith intrusive rocks. K-feldspar, quartz, epidote, sericite and kaolinite/clay occur with chalcopyrite-bornite copper minerals. The presence of these alteration and copper minerals are thought to be positive vectors for porphyry copper deposits. Sample 3593627 (1.5% copper) consists of epidote and magnetite rich volcanic rocks that appear similar to that found at the Craigmont mine, 15 kilometres to the southeast.

Pay attention to the above. 

The table below shows the results from scraping the bottom of trenches. When it's that good that close to the surface you're onto something. As a porphyry follower I'm up to speed on  what the descriptions mean. I can add this to my mental picture and to me it suggests that David has very good reason to acquire the 100% title. This is not a guess. He's not doing the work to create news for nothing but driving up the sp. That won't work in today's environment.

June 5 news highlight:

Happy Creek has acquired an option to earn a 100% interest in the Abbot property. The Abbot property consists of 2911 hectares (29.1 square kilometres) that adjoin the south side of the Company's West Valley property. Several weeks ago the Abbot property owner was prospecting these claims and noticed that very recent and on-going road construction, including blasting, had uncovered several zones of chalcopyrite and malachite (copper minerals). These new and encouraging copper showings occur in part within younger phases of the Guichon Batholith, believed to be Bethlehem, Skeena or Bethsaida, that host five major copper deposits to the north. The rocks appear to have variable propylitic, phyllic to argillic style alteration. This area also covers the southern extension of the Lornex fault, a key feature found at the Lornex and Valley mines to the north. The Company is pleased to have the first opportunity to evaluate these new copper showings. The West Valley and Abbot properties total approximately 124 square kilometres containing numerous copper prospects within a prolific and active mining camp.

So the road work appears to have stumbled on high grade results. When I say high grade I remind you we are talking surface dirt. This is what sparked the jump in price for Gold Reach. At GRV.v they noticed the wheels on the trucks were green!

2012 Abbott property rock sample results

 --------------------------------------
 |Sample-ID|Easting|Northing|Cu %|Ag  |
 |         |       |        |    | g/t|
 |------------------------------------|
 |3593625  |636070 |5574000 |0.38|1.68|
 |------------------------------------|
 |3593626  |636013 |5573914 |0.09|0.38|
 |------------------------------------|
 |3593627  |638199 |5572157 |1.51|15.7|
 |------------------------------------|
 |3593628  |638147 |5572111 |0.45|2.24|
 |------------------------------------|
 |3593629  |638144 |5572126 |0.50|2.84|
 |------------------------------------|
 |3593630  |641228 |5571724 |0.43|0.55|
 |------------------------------------|
 |3593631  |638659 |5571085 |0.09|0.53|
 |------------------------------------|
 |3593632  |642268 |5573165 |0.08|0.55|
 |------------------------------------|
 |3593633  |638895 |5571952 |0.01|0.07|
 |------------------------------------|
 |3593635  |638669 |5571085 |0.55|1.45|
 |------------------------------------|
 |3593634  |638134 |5572116 |0.04|0.24|
 --------------------------------------

We should note: To earn a 100% interest in the Abbot property, the Company must pay to an arm's length vendor a total of $15,000 in cash and issue 350,000 shares by May 30th 2013. The vendor retains a 0.5% Net Smelter Return (NSR), with the Company having the right to purchase the NSR for $1,000,000.

This does mean 350K was added to the sp float. The $15k is small and the vendor really sold it for the NSR. A nice payday when this becomes proven and sold.

On the Abbott property, the new copper showings together with a favorable geological setting and airborne geophysical results are positive additions to the Company's property in the Highland Valley area. Several priority areas are apparent and geological mapping and prospecting has commenced to assist in outlining future drill targets. As the Abbott property is now 100% owned by Happy Creek Minerals Ltd., it will be included within the West Valley property, totaling approximately 124 square kilometres in area.

On behalf of the Board of Directors,

"David E Blann"

____________________

David E Blann, P.Eng.

President, CEO

FOR FURTHER INFORMATION PLEASE CONTACT:

David Blann, President, CEO

Corporate Office:

Phone: 604.662.8310 
Email: Info@happycreekminerals.com

Website: www.happycreekminerals.com

Registered Investor Relations:
James Berard Phone: 604-687-2768 Toll free: 1-877-459-5507

Copper Fox Metals - Anger heats up as the silence continues

It's nearing the end of May and not a peep out of the company. Some investors call just to make sure the doors are still open. The tension is palpable. We know they are in talks with Teck over the Schaft Creek project and there's nothing to report that can be told over the phone. Still, investors expect to see a drilling plan or some money raised, anything but silence.

RabidTiger put it this way:

It looks like we might pass by the June 4 "deadline" without hearing anything from the company. Since we don't have a lot of good info, here are a few clues to watch out for:

Annual General Meeting

If Teck does decide to buy us out, we will need to vote on it at a meeting. We've got an upcoming Annual General Meeting that would be the perfect time to vote on a buyout. If Copper Fox thinks we might get bought out soon, it would be poor planning to have a standard AGM and then organize another special meeting afterwards for a buyout.

We will be notified of a meeting on Sedar as a "Notice of Meeting" followed with a Management Information Circular and Form of Proxy. The Form of Proxy will have the items we need to vote on. There is supposed to be 21 days between the Proxy and the meeting itself.

To summarize, it will be bad news if our Proxy info gets posted soon. This will indicate that it's "business as usual" and that Copper Fox doesn't expect a buyout any time soon (although a back-in is still possible).

Insider Buying/Selling

If the company is in negotiations the insiders will all be blacked out. If we see an insider buy or sell, this will indicate that discussions have terminated.

Financings

If Teck is buying us out, we won't need to raise any money. If Teck is backing in, we will need very little money to keep the company running. If we see a financing, it will indicate that Copper Fox doesn't think they will be getting Teck's help for anything. While some might be happy that we will get 100% of the property, I think this is very bad for us.

Drilling Program

As I have mentioned before, it will be a bad thing for us to announce a drilling program unless we know Teck's decision. We don't have any money and the latest PP proved that we are unable to raise any money. Without knowing our financial situation, it will be difficult to determine the size of a drilling program.

Environmental Assessment

Perhaps part of Teck's hesitation to make any decisions is because they want the EAA filed before they make any commitments. All progress on the EAA is shown on this website. The most recent filing is from December. It will be a good thing if we see some new filings because it means that progress is being made on the EAA. Anyone want to place any bets about the EAA being delayed? :)

So it looks like all the silence could be good news for us. Time to sit back and see where things go from here.

I have to agree with many of the points. Put what concerns a number of people is the idea that CUU is deliberately dumbing the news down and not actually following the contract.
This was recently posted by Explorationguy:
Some still insist that the share price doesn't matter, it's just pounds in the ground. Here's a quote out of this article from The Gold Report:theaureport.com 

" Duluth has a contract with Antofagasta Plc (ANTO:LSE), which owns 40% of the joint venture. Once the bankable feasibility study is completed, probably in two years, Antofagasta has the option to buy 25% of the Maturi project for a pro rata share of 1.0x net asset value (NAV), which will be determined by the bankable feasibility study. We've modeled it at a NAV 10% discount rate, $2.80 copper, and we get a value of over $2B for the deposit. That's $500 million ($500M) for the 25%, but Duluth is trading only at a couple of hundred million market cap. If I'm Antofagasta, I'm just going to buy Duluth, and then I get 60% for less than I can buy the 25% for. What I like most is that there's a catalyst that encourages Antofagasta buy Duluth much sooner. My target is $5. "

A couple of points here. One is this deal is 1X NAV and it confirms a point I tried to make on the AG site once. Even if the pounds in the ground was worth $ 10 billion it would be much cheaper for Teck to make a buyout offer for all of CUU shares at say a very generous 60% per cent premium, or about a $ 1.00/share or $ 430 MM. It reinforces the need to get our share price up with the usual methods like starting the 120 day clock, press releases etc.

This post was from the Silicon Investor site. Explorationguy has a point. Every other company out there beats the drum like crazy when they get even the slightest good news to put out but not CUU.

Next, the issue of where are the LIARD shares:

Many of us believe we have earned them but Metacommet cites:

Positive Feasibility Study on the Schaft Creek Project, BC, Canada, Effective date January 23, 2013, 114 days ago, has never been constructively delivered to Teck http://www.copperfoxmetals.com/i/pdf/Copper-Fox-Metals-Feasibility-Study-January-23-2013.pdf

Major points of concern
.....65 share price
....failure to invoke contract terms
...misrepresenting acceptance status of undelivered PBFS
...failure to initiate any action to support share price=get Liard shares 
...no official start of Teck 120 day review cycle=no relief from Teck claims, ever
...majority holder unable to liquidate due to position size
...majority holder at <0.30 average 
...no funding source other than said major holder for any ongoing requirements=single lifeline, when he's done so are we

Seems to me the whole game here is what does EE need

...and at that average, my hunch is he mostly needs to sell em all at once for a lot more than he paid

..the question is what is his "a lot more"

And I theorize the reason for our current, intentional, share price suppression is to keep the price down so that Teck can take EE out within a predetermined limit

...the ethical and legal argument being is it appropriate to ignore the interests of other stakeholders in order to achieve an optimum result for the majority shareholder

He has some valid points. I have tried to get official answers but couldn't get a single line to explain this. Instead, our conversation went along the lines of "why get pushy". Yes, I know we are dealing with a very old set of subclauses going back decades and some of the reporting rules were changed by outside forces.  Yes, our FS builder threw a major wrench in things. But, how about coming out with some statements to clear the air about where we stand?

Looking at how buyers view deposits does it not make sense to clear the air and set the company on the right path by getting the news out?

Both Teck and CUU expect to release news soon. But we've heard "soon" before. I think we should put out a drilling plan. I think we need to indicate where we will take this. A corporate update is appropriate.