Re: Teck’s admission- “I don’t think I would have done it”
in response toby
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%)
I emailed the office and asked some questions. Lynn responded but I assume that the answers were vetted through Elmer but who knows.
Is there one party that is holding this up or both. Can you even disclose who we are waiting on? All parties are working together, no one party is a hold up.
Once the Updated resource Estimate is filed on SEDAR, will we placing a value on this project or do we have one already. Are actively trying to sell or find a partner at this time? We have a current pre-tax NPV from the 2015 PEA of $US 213 million, the updated resource estimate has increased a portion of the mineral resource category from Inferred to Indicated as well as added 400 million lbs of soluble copper, we can do inhouse estimates to increase the NPV but wouldn’t be able to publish without an updated economic assessment. With regard to actively trying to sell or find a partner, being an explorer/developer our assets are up for sale or available for joint ventures to the majors at anytime, however, when it comes time to actively sell we would commission a third party valuation of the assets before soliciting them in the market.
So if I understand correctly, we have placed a value on our portion but can’t disclose without a NI 43-101. From my understanding, this is an expensive report that we don’t have funds for currently and TECK may not deem as material to their business. Is there any indication that this might be something that either partner in the SCJV is willing to undertake? Correct, we can’t disclose our valuation without an independent report confirming same due to regulatory restrictions. These reports can be expensive, however, the work that has been done on Schaft Creek is of NI 43-101 quality so in this case the cost to flip the report into a NI 43-101 compliant report could be lower than starting from scratch. There are deals that happen in the market based on companies not having technical reports done at all, an example would be when a company believes they have enough information without an independent report, anything and everything is possible. If Copper Fox felt a technical report was warranted to obtain a fair market value on the project the Board would pursue that avenue.