Copper Fox Metals (TSX-V:CUU):

A realistic look ahead (Nov '10)

The Copper Fox Metals feasibility study should be out mid to late Q1 2011. The resource estimate is expected to be somewhat improved over the 2007 estimate with the greatest improvement coming from reduced costs. Since 2007 however, the outstanding shares have increased significantly limiting the upside buyout potential compared to 2007.

Teck has a 120 day period to exercise a conditional 75% buy back option provision and expectation is Teck will exercise the provison as they are on the hunt for a copper stream and Copper Fox should fit that need.

Important to note is that the feasibility study will not include any resources contained in the extension zone where CUU drilled last summer. For them to do that they would have needed to drill dozens of holes and they are not going to do that I was informed. While the price of gold and copper have increased the hundreds of millions of new shares have contributed to keeping the per share value down. Consequently we are looking at a potential buyout price generally thought by those in the know to be between $1.50 and $2.00 a share possibly.

Other considerations:
Coper Fox management would like to see an outright buyout of the company. They don't want to get involved with mining the Shaft Creek deposit, that is Teck's domain. In a best case scenario Teck would simply buy Copper Fox outright. If they don't buy CUU then there exists the possibility that Teck would just mothball the project until such time as they need it and currently we know from the news recently they have their hands full with existing projects. It would not be in the interests of Copper Fox shareholders to have Teck mothball the project. Copper Fox management would be free to sell their 25% portion to any buyer who is willing to wait until Teck decided to finance and commission a mine at Shaft Creek but that may have a detrimental effect on the selling price. With Copper Fox trading near the .75c range there appears to be a double in store or a little better for shareholders willing to wait for another year for the various decisions and their effects to unfold and learn which direction Copper Fox is heading in. It all rests with Teck at this point in time. Teck for their part has been doing their due diligence vetting the numbers during the current ongoing feasibility study and we can expect an answer likely before June 2011 whether or not Teck will buy back in and to what extent'

JMHO