As 2016 comes to an end, begins a new era for Copper Fox Metals. With the 4th quarter rapping up its session we come closer to the completion of the updated resource model for the Schaft Creek deposit. There is great reason to be optimistic for the near future as I see 2017 as a year of rebound. We are 2 weeks away from the new year, which also means Teck should be about finished with compiling the data into a final report/model. In months prior I would talk about factors that could change the face of our company and this moment comes closer by the day. The facts (directly stated by the company itself):

-Over the past three years Teck has tested a number of the blocks of Inferred Resources contained within the pit shell outlined in the 2013 Feasibility Study and re-logged a considerable number of the historical drill holes within the Schaft Creek deposit.

-The re-model of the Schaft Creek resource is a significant project parameter required to assess the economic viability of the Schaft Creek project. 

-Signs are starting to appear suggesting the five year decline in commodity prices that started in 2011 may be coming to an end. The decline in commodity prices has resulted in substantially operating cash flows which has in turn significantly reduced share values and delayed capital investment in new projects.

-Our number one priority in 2016 is to stay focussed and to continue building value by adding metal to Copper Fox's balance sheet. If successful, this work combined with a return to a positive commodity cycle is expected to increase our asset valuation leading to a more robust company valuation and shareholder returns.

-Copper Fox's 25% share of Schaft Creek equates to a NPV (discounted at 8% and 5%) ranging from $C128 to $C424 million, or $C0.31 per share to $C1.04 per share

-The 2016 work program for the Schaft Creek project consists mainly of a remodel of the 2012 resource estimate by incorporating the drilling completed in 2013 and the extensive re-logging program completed in 2013, 2014 and 2015.  This work is expected to better constrain the resource block model for the Schaft Creek deposit.

-Mr. Echavarria's long term objective is to continue supporting Copper Fox in its growth and in seeing the market value of the company more in line with its net asset value.

These are the facts as stated above! In speaking about a project's NAV as Big EE wants to achieve in value and asset sale, you can read this again:

This is vital to understand as the company itself is stating this claim on their public website so they must have strong confidence in the future value of our shares. Big E wants our market value to be in line with the asset's NAV. Currently we (as shareholders) do not know what the real NAV (Net Asset Value) of the Schaft Creek mine is. Elmer stated once in a corporate presentation slide, based off the 2012 BFS we were below 0.25 NAV but companies with advanced projects wanting to sell their interests get closer to 0.75 NAV valuations. I read a report that stated companies typically want above 1.00 NAV of a project (probably in good times of an industry cycle). So based on that information, we are greatly undervalued and I continue to buy.

At the moment, Teck is working on the SC project and over the last 3 years have been systematically checking the project and analyzing the numbers/data. Now is not the time to sell at these depressed levels especially when these plans could update the model. Before anyone commits to spending an immense amount of money on a product (car, house, mineral deposit) you look at it and do not buy it blind.

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After looking at the news, this work program is a positive. It has taken longer than we thought but we are going in the right direction. The JV will update the Schaft Creek resource model after 3 years of data collection (this involves geotechnical, geo-met, core re-logging, structure zoning, etc). With all this information being incorporated from previous work plans this seems to be the nearing a final product in relation to the structure of the deposit. The JV plans to put everything from previous work programs together to form a new entity, culminating all efforts. This is basically the resource estimate as this will lead to a new resource block model. This new block model should upgrade the inferred resources and expand the pit to the east which improves the economics of the project. Once they update the resource model which is reviewing the precious metal content (as stated in the news), we get an updated resource estimate.

Resource Model

This aspect of the 2016 work program includes incorporating the work completed in 2014 and 2015 to update the resource model for the Schaft Creek deposit. This phase of the program will emphasize getting a better understanding of the precious metals content of the deposit.

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I guess I was correct then as the company recently announced this in a news release:

Copper Fox has retained the services of Amec Foster Wheeler to advise Copper Fox on the resource modelling work. A decision will be made by the SCJV on completion of the modelling to determine if an updated resource estimate for the Schaft Creek deposit is required. The resource modelling work commenced in the fourth quarter of 2016 and the results of which should be available during the first quarter of 2017.

Teck, on behalf of and as operator of the SCJV, has completed a number of activities on the Schaft Creek project including a limited amount of diamond drilling within the Schaft Creek deposit, re-logging of approximately 43,000m of diamond drill core, and a series of studies to review the major components of the Schaft Creek feasibility study completed by Copper Fox. These studies, referred to as "optimization studies", had the objective of enhancing the value of the Schaft Creek project.