Letter to Minster of Mines
posted on
Mar 12, 2018 06:48PM
CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)
Years ago I was talking to a woman that was a secretary to a well known politician. I told her I am always sending letters to politicians that rarely got answered. When I did get a response it was as though they had not even read what I had wrote. She told me that staffers usually are the ones to respond and they make sure they do not say anything that will create an issue. But the politician is usually briefed about the letter. So she claimed it was worth my efforts because I would have raised the profile of the subject I was concerned about.
It would be nice to raise the profile of Schaft Creek even if Teck would prefer to keep it quiet. But I don't really know how. Maybe an Elvis sighting on Mt Lacasse but who would see him.
My bottle of brandy and I did write some politicians about different things and included our project in the letters. I wasn't going to post them but maybe it will bring out ideas. (besides quit drinking)
I wrote this letter Minister of Mines and sent copies to a few MLA's, the Tahltan administration and Teck.
Michelle Mungall
Minister of Energy, Mines and Petroleum Resources
Hello
As you are probably aware, there is a projected world copper shortage expected in the near future. BC will have a great opportunity to supply copper to the world. Unfortunately many of our deposits are tied up by large corporations that have no near term plans to put them in to production. Often these companies secure deposits throughout the world just to have them in their queue of possible maybe projects. In BC they pay a yearly fee, or are required to do work, which allows them to retain the mineral rights. This fee is a pittance compared to the economic benefits that a mine would bring.
We will lose out on a great economic boost if we allow our minerals to be controlled by companies that have no near term plans to develop them. When you obtain mineral rights, it is made clear that your intentions must be to mine the deposit. The province of BC should require the holder of the mineral rights to provide a timeline showing when they plan on doing this. Of course there needs to be allowances for mineral prices and environmental reviews but those factors should not stop them from making a working plan that the public can see.
Too often these companies obtain rights on far more mineral deposits than they can ever hope to mine. A person can reserve tables in a number of different restaurants just so they have a choice at dinner time. But they know the tables will go to someone else if they don’t show. Not so with mineral claims. The company may not have the financial resources to develop even a fraction of their holdings but they can hold them anyway. B.C. needs to take a “use it or lose it “attitude with our resources. And the mining companies need to be reminded that they do not own the minerals.
I think the Gold Commissioner should check out the status of the Schaft Creek deposit south of Telegraph Creek. The minerals were discovered in 1957. In 2012 the junior explorer, Copper Fox Metals, completed a positive Bankable Feasibility Study. Teck Resources then took majority control and the two companies formed a joint venture.
I am sure progress has been made since, but it is not evident to the original investors. These people took the financial risk to explore the potential of the project, yet after six years have not heard whether Teck is interested in mining this deposit or not. Should not the Province, Tahltan and all stakeholders know, by now, what Teck’s plans are? If it is not doable because of environmental or economic concerns then Teck should not have a problem relinquishing the claims. If they are unable to carry on because they would rather invest in other projects, have a different partner or even different government then they should move on. If they need higher mineral prices or confirmed customers then that should be in a document that all people in this province can read.
This appears to be a huge deposit, that would bring hundreds of jobs to the area. Not to mention the benefits to the First Nations and rest of the Province. Teck should not be allowed to just put this project on hold.
Thank you
Xxx Xxx
(I received this response)
Dear Xxx Xxx:
Thank you for your February 5, 2018 email regarding the Schaft Creek mineral deposit and for taking the time to write and share your views with me.
As you may be aware, there is presently ongoing work at the Schaft Creek copper-molybdenum-gold-silver-porphyry project. The project is owned by Teck Resources Ltd. (75 percent) and Copper Fox Metals Inc. (25 percent). In 2017, exploration work included updating resource models and collecting environmental baseline data. Further, the companies report they are continuing their engagement with First Nations to keep them informed of work on their project.
The Province is encouraged by this activity and will welcome any reapplication for an environmental assessment certificate when the companies decide they are in a position to renew their application.
You may be interested to review the documents related to the companies’ previous environmental assessment submission at https://projects.eao.gov.bc.ca/p/schaft-creek-mine/detail.
Once again, thank you for writing. I appreciate the opportunity to hear from you about this important issue. It helps inform my work within the Ministry, and your engagement is crucial to our democracy.
Sincerely,
Xxx
(I then replied)
Michelle Mungall
Minister of Energy, Mines and Petroleum Resources
Dear Michelle Mungal
Thank you for replying to my email and adding the information you provided. I am not going to burden you with lots of letters but just want to make sure my opinion is understood. I am sometimes long winded and do not communicate my original intention of the letter.
The point I hope to relate is that (in my humble opinion) mineral rights need to have an expiry date. This would ensure that large corporations do not take control of BC's resources while not intending on doing business here.
I only use the Schaft Creek as an example. I have also invested in other explorers. And I have also seen good deposits put on hold by large miners that buy out the junior entity and then don't do anything with the deposit.
Copper Fox was doing a stellar job at locating minerals and studying whether it was plausible to mine the site or not. Once they determined the deposit was rich enough to justify development Teck took 75% control of the venture. Progress seems to have stopped. Copper Fox had reservations on the NTL and the Port of Stewart. They were both dropped. Schaft Creek shows as being under care and maintenance on Teck's website.
It might be argued that the price of minerals are too low to justify investment. That would be questionable as the same company is investing in Peru and Chile. Of course it is Teck's decision whether to put money into a project or not. But I think your Ministry should ensure that the intention is to mine not just hold.
Thanks again.
Xxx Xxx.