Friday, April 15, 2011

These a few other high potential winners

First, Copper Fox (TSXV:CUU) is a junior explorer near Stewart, BC. As their name would indicate they are in possession of what appears to be a massive deposit of copper. One thing that was truly an obstacle to contend with was the lack of power needed to operate but the Province of BC has approved the Environmental Assessment Certificate for the construction of the Northwest Power Line. This was announced on Feb. 28, 2011. The company is obviously thrilled with this decision as it is a huge milestone for the further development of the Schaft Creek project. This project is at present awaiting a feasibility study which should be completed by the end of June 2011.

A prefeasibility study (PFS) was completed in 2008 by Samuel Engineering of Denver, CO. The project was described as one of the largest undeveloped copper, gold, molybdenum, and silver deposits in North America. To view the entire contents of this document go to their website at This project has potential that is almost beyond belief as a deposit of this size is not a common find.

I would advise anyone to do their own DD on this before investing but I will say this is one company I believe is worth multiples more than what it is currently trading for. I would expect the next catalyst to drive the share price up will be the release of the feasibility study when it is completed. The company is also in the process of trying to acquire further land holdings to enlarge the area.

Another emerging copper play although not nearly as far advanced as CUU is Yellowhead Mining Inc. (TSXV:YMI). YMI has a project north of Kamloops in the area of Vavenby, BC. This project appears to have all the requirements to quite possibly make it to the advanced stages and including making it to the final stage of an actual mine. Infrastructure is not a problem as power, rail, and highway are all present. The following are some of the HARPER CREEK PROJECT HIGHLIGHTS
  • NI 43-101 Preliminary Economic Assessment completed March 2011
  • Detailed Feasibility Study to commence April 2011
  • Measured and Indicated resource of 532 million tonnes grading 0.31% copper, .032g/t gold and 1.08 g/t silver, plus an Inferred resource of 117.2 million tonnes grading 0.29% copper, .032 g/t gold and 1.32 g/t silver, containing 3.6 billion pounds and 0.7 billion pounds of copper respectively, at a 0.2% copper cut-off (**).
  • Estimated total production: 2.857 billion pounds copper, 256,000 oz. gold and 4.876 million oz. silver in concentrate
  • Mine life 22 years at a milling rate of 70,000 tonnes/day
  • Stripping ratio 0.88:1 life-of-mine
  • Projected capital cost of CDN$759 million in Q4-2010 dollars, including contingency
  • Site operating costs are estimated at C$1.40/lb before precious metal credits. The breakeven copper price including capital repayment (IRR=0%) is determined to be US$1.94/lb using US$1,058 for gold and US$16.57 for silver
  • Harper Creek is located adjacent to rail, highway, power, water and town-sites, resulting in capital and operating cost advantages.
  • Testwork indicates that the concentrate is clean with no smelter penalties expected
  • Senior management has extensive international experience with large scale open pit copper projects
  • Drilling data over 60,680 metres, including 29,701 metres by Noranda and US Steel in the 1960's and 1970's and a junior exploration company in 1996, 26,854 metres by Yellowhead in 2006 - 2008 and 5,173 metres in 10 holes in late 2010 through March 2011.
  • Excellent potential to significantly expand the resource: numerous exploration targets outside the resource envelope have been identified through airborne and ground geophysics and soil geochemistry.
I fully expect this company to gain momentum going forward. Unfortunately I cannot see into the future but with past experience and the time I spent researching this company I believe this to be worthy of the time spent researching it. If this company is of interest to you their web page is at

Please in all cases do your own DD before investing. For the purpose of public knowledge Neither of these companies has paid anything for this post. I currently own shares in CUU but I do not own any shares in YMI at present. I am not anticipating any change in this at this time but I do have YMI on my watchlist. If I decide to make an entry into YMI I will post this at that time.

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