https://www.mining-journal.com/resourcestocks/resourcestocks/1432297/copper-fox-is-brim-full-of-potential

Copper Fox's CEO Elmer Stewart tells Resource Stocks that the company will look to exit the project before it moves into production, but he believes that, based on identified project enhancements, there is still more value to be uncovered.

The 2021 drilling programme was conducted within the first five-year pit outlined in the Schaft Creek PEA. The drilling programme was only partially completed due to bad weather, however, it intersected several near surface zones of higher-grade copper-gold mineralisation, which is encouraging.

"If positive results are received from the 2022 programme, then we think we can surface more value in the project, higher than what it is right now," said Stewart.

As operator, Teck is responsible for the pre-production costs for the Schaft Creek project. Last year they spent CS$2.5 million while this year the planned figure is C$6.6 million.

"Teck are reopening the Schaft Creek camp for 2022, making it a solely dedicated programme this year. The plan is to get 5,000m of drilling done, focusing inside the first five-year pit for additional metallurgical and geotechnical investigations," said Stewart.

Copper Fox's joint-venture agreement with Teck contains a first right of offer clause - as opposed to first right of refusal, and Copper Fox believe's this is a better mechanism to deal with the disposition of the 25% interest in the Schaft Creek project. This puts the company in a strong position to extract maximum value from the asset.

"If Copper Fox want to sell the 25% interest in Schaft Creek , it must deliver to Teck the notice letter pursuant to the joint-venture agreement, setting out the terms of the offer. If Teck accepts the offer, there's no negotiating on the terms. If they decline, then Copper Fox has six months to find a partner to at least match the terms in the offer provided to Teck," explained Stewart.