The Shaft Creek project’s life-of-mine average annual production of metal in con-centrates is estimated at 105,000 mt/y cop-per, 10.2 million lb/y molybdenum, 201,000 oz/y gold, and 1.2 million oz/y silver.

Based on drill data through May 23, 2012, proven and probable mineral reserves at Schaft Creek total 940.8 million mt con-taining 5.6 billion lb of copper, 363.5 mil-lion lb of molybdenum, 5.7 million oz of gold, and 51.7 million oz of silver. Metal grades in the proven and probable reserves are 0.27% copper, 0.0176% molybdenum, 0.19 g/mt gold, and 1.72 g/mt silver.

Mining of the Schaft Creek deposit is planned as a conventional truck-shovel open-pit operation. Ore from the pit will be conveyed to the process plant approxi-mately 8 km northeast of the pit. Ore pro-cessing will utilize a conventional grinding and flotation circuit to produce a high-quality copper concentrate with significant gold and silver credits and a separate molybdenum concentrate.

Trucks will transport the copper con-centrate to the port facility at Stewart, British Columbia, and the molybdenum concentrate to the Fairview Terminals in Prince Rupert, British Columbia.

The Schaft Creek feasibility study out-lines a five-year development period based on the following schedule: permitting com-pleted June 2014; engineering completed February 2016; access road construction completed March 2016; construction Phase I completed July 2019 and Phase II March 2020; and commercial production Phase I start December 2019 and Phase II August 2020.

Copper Fox is currently preparing the Province of British Columbia Environ-mental Assessment (EA) Application and a Federal Environmental Impact Statement (EIS). The company anticipates submitting the EA Application and EIS as early as the third quarter of 2013.

The Schaft Creek deposit has 171.16 million mt of inferred resources within the pit shell, grading 0.25% copper, 0.018% molybdenum, 0.164 g/mt gold, and 1.58 g/mt silver. For purposes of the feasibility study, these resources were treated as waste rock; however, additional infill drilling has the potential to upgrade these resources to reserves. Additional explo-ration of the Schaft Creek deposit to the east and north and of the project’s recent-ly discovered Discovery zone also have the potential to extend the life of the mine.

The Schaft Creek feasibility study pro-vides for expansion of the project based on the current mineral resource and the explo-ration potential of the Schaft Creek miner-al trend. The potential to significantly expand the tailings storage facility, the cur-rent concentrate storage and shipping agreement with Stewart Bulk Terminals, and, most importantly, access to electrical power are positive features that support possible future expansion of the Schaft Creek project.