Copper Fox Metals Inc. Set to Move Higher

Jun 15th, 2011 – 1 Comment

With the 2011 drilling program underway and the expected completion of a new resource estimate to support the feasibility study there appears to be ample fuel for another advance.

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Hi Lou,
I am looking to buy some venture stocks and wanted to know your opinion on CUU?
I would appreciate your comments


Hi Ravish,

Copper Fox Metals Inc. (CUU TSXV) is totally focused on developing their Schaft Creek Project in north western British Columbia. The 2011 milestones for the company  include completing the feasibility study for the project and drilling eight thousand meters to further extend their understanding of the resource. The feasibility study is forecast to be completed by end of the third quarter of 2011.

Schaft Creek is touted as one of the largest undeveloped copper, gold, molybdenum, silver deposits in Canada. Based on historical estimates of the resource the company believes that the proposed mine would operated for 22.6 years.

The charts will provide further insight in helping you decide if CUU is the type of investment that meets your profile.

The three year chart outlines the wealth created by the shares as they advanced from the late 2008 lows below $0.06. I have always said that when you grab hold of a thirty four bagger, members of your immediate family should stand stand and applaud when you enter the room and call out “El rey”.

What is observable on the chart is that the shares have formed pennants twice over the advance and it appears that a third is currently forming. A pennant is a continuation pattern that informs investors that there is more to come.

 The first pennant started to form in April of 2010 with a breakout August. The second pennant began to form in September of 2010 with a breakout in late December. The third pennant started in March of 2011 and has yet to make a move higher.

Now the only question that needs to be answered is if there is more in the tank for investors who are just now thinking of getting on the ride.

The six month chart depicts the sell signals generated by the RSI and MACD as the shares hit the April 2011 highs in the $2.60 range.  Currently CUU caught a bounce off support at $2.00 and the RSI and MACD look to be indicating a move up.

With the 2011 drilling program underway and the expected completion of a new resource estimate to support the feasibility study there appears to  be ample fuel for another advance. But please make sure you understand the risk associated with a junior exploration company. They are working towards a mine but they don’t have one yet. In the mining game no mine means no revenue. 


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