2013-01-22_GENERAL DOCUMENTS - C1981012

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ry intriguing is the geologi- :ing. The Batchawana proj- )cated on the northeastern f the Mid- Cor ;tinental Rift the Keweenawan group of xerozoic Southern Prov- the Canadian Shield. The :)ntinental Rift is the same re that formed Lake Supe- d the famous Keweenawan ala copper - mining region in >, which housed the initial rush in the mid- 1800s, and pined for more than 150 the 46- year -old mining ex- says. r has about 20 years of ex- :e in the junior - exploration Equipped wi! *, � -- ivt,.i+.A. eological engineering de- , worked as a mining before being employed by companies, where she ap- er business acumen to run ocus firms such as Canada m (CLQ -T), formerly Black linerals. rly 2010, Baker began pro - onsulti:ng for Cenit, then a impany, and was soon asked See SUPERIOR, Page 2 silver track before releasing an updated :e estimate on the project in cember.. icruz had a head start in the f 25,000 metres of historic completed by the Servicio pco Mexicano, which al- the company to graduate a n of its resource into the red and indicated categories D production. ario's updated resource 270,000 measured tonnes g 210 grams silver per tonne, -am gold per tonne, 3.69% id 11796 lead for 3.3 million ned equivalent oz. silver. ted resources clock in at tonnes grading 163 grams 0.88 gram gold, 2.6% zinc L80/6 lead, for 6.9 million con - i equivalent oz. silver. ie new [resource estimate] e Rosario project reaffirms gemen:'s expectations based ploration to date," president ,EO Arturo Prestamo says. resource classification up- provides us with more cer- r that the [project] will be an See SANTACRU7, Page ll PHOTO BY SALMA TARIKH Superior Copper lead geologist Delio Tortosa and vice - president of corporate development Morgan Quinn examine a sample at Superior Copper's Batchawana copper project, 90km north of Sault Ste. Marie, Ontario. Cline keeps its head above water BY MATTHEW KEEVIL VANCOUVER — Six months after Toronto -based Cline Mining (CMK -T) suspended operations at its wholly owned New Elk metal- lurgical coal mine outside of Trini- dad, Colo., the company is still searching for answers. Cline announced New Elk's closure in mid -July after tumultu- ous global economic conditions triggered a free fall in met coal demand. The company had pre- dicted a 60 -day suspension, but New Elk remains inactive heading into 2013. "We have taken all the neces- sary actions so that we preserve our capital position and conserve our working capital," director and CEO Ken Bates commented in September. "The implementation of the [coal marketing] strategy is also key, and we are firmly com- mitted to this process and achiev- ing a financially viable and eco- nomic rate of return for our coal product. The New Elk mine is an asset with long -term potential as markets recover." Despite dropping overhead costs at New Elk to US$650,000 per month, Cline succumbed to cash shortages in mid - December when it defaulted on a semi -an- nual bond interest payment totalling US$2.5 million. The company borrowed US$50 mil- lion through senior secured bonds in December 2011. On Dec. 27, Cline tried alleviat- ing the pressure by reaching a fi- nancial restructuring agreement with Marret Asset Management. The agreement covers an adjust- ment to the outstanding senior bonds and incorporates a change to the company's share - purchase warrants, priced at C$1.15 through May 14, 2015. Marret agreed to purchase US$7 million in new bonds under the same terms as the existing loan, which would go towards general operating expenses and the out- standing semi - annual bond pay- ment. The exercise price of the company's outstanding warrants would also be amended to 100% of the weighted- average trading price for Cline's shares during the five See CLINE. Page n teasibility BY GWEN PRESTON VANCOUVER — After four years of drilling, designing, con- sulting and number crunching, Copper Fox Metals (CUU -V) has produced a feasibility study for its planned Schaft Creek mine in B.C. that increases throughput by 30% compared to earlier plans, while only boosting capi- tal costs by 20 %. Investors, however, were not impressed — perhaps because the expected cost to develop the cop- per -gold- silver - molybdenum mine sits at a sizeable $3.3 billion. The feasibility study news sparked a four -day sell off that left Copper Fox shares down 24% at 81¢. Before the fall, shares had dropped below $1 only a handful of times since early 2011, and were worth as much as $1.35 a few months earlier. Schaft Creek is home to a sub- stantial reserve: 940.8 million proven and probable tonnes grad- ing 0.27% copper, 0.0176% molyb- denum, 0.19 gram gold per tonne and 1.72 grams silver per tonne. Plans for the project envision an open -pit mine and conventional mill churning through 130,000 tonnes per day. See COPPER FOX, Page 3 M r � LU n u cc rm Myw-- �1 I�I�Illil'd�i'�IIII CL CL ZZ o ""74470 70331