Carmax Mining CXM.V / CAXPF

Bought & watching this stock for news, as the company has been drilling the Eaglehead since this summer.

As well, some real serious mines in the area.


*Eaglehead Deposit- Carmax Mining CXM.V (resource of over 100 million tonnes)



SchaftCreek Deposit - Teck TCK.T & Copper Fox CUU.V (resource estimate of 7.1 billion pounds copper)

"Ahead of the Herd" & Rick Mills Covering Carmax Mining (CXM.V)


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CXM.V Carmax Drills 521m Copper




Carmax Drilling Expands East Zone With Intersection of 0.37% CuEq Over 521.21m Including 1.53% CuEq Over 24m

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 14, 2014) - Carmax Mining Corp. ("Carmax") - Carmax (TSX VENTURE:CXM) is pleased to announce the analytical results for the first two drill holes from its 2014 diamond drilling program on its 100% owned Eaglehead copper-gold-molybdenum-silver project located in northwest British Columbia. To view the location of 2014 drill holes, visit the Carmax website at www.carmaxmining.com. Highlights for the two diamond drill holes are:

Highlights:

Diamond drill hole (DDH)0121 intersected 0.23% copper, 0.013% molybdenum, 0.06g/t gold and 0.91g/t silver (0.37% copper equivalent) over a core interval of 521.2m that included,

0.21% copper, 0.003% molybdenum, 0.02g/t gold and 0.51g/t silver over a core interval of 278.1m from the top of the hole at 29.87m to a core interval of 308.00m;

and

0.27% copper, 0.025% molybdenum, 0.09g/t gold and 1.36g/t silver over a core interval of 243.1m that extends from the core interval of 308.0m to the end of the hole at 551.08m.
DDH122 intersected 0.28% copper, 0.016% molybdenum, 0.14g/t gold and 1.52g/t silver (0.43% copper equivalent) over an interval of 116m starting at a core length of 141m,
DDH121 and DDH 122 exhibits two distinct styles of mineralization being; copper-silver+/-gold-molybdenum in the upper portions of the holes and copper-molybdenum-gold-silver in the lower portions of the holes suggesting that several phases of mineralization may be present at Eaglehead,
Analytical results for the last two diamond drill holes from the 2014 drilling program are expected to be received before the end of October.

Jevin Werbes, President of Carmax stated, "The results for these holes are a significant development in understanding the potential and size of the Eaglehead property. The thickness and styles of mineralization in these holes support the porphyry model and demonstrate that the mineralization is open at depth. Most importantly is the significant molybdenum and gold content in both drill holes at depth. The results of the 2014 drilling has extended the zones of mineralization and has returned higher average grades than those currently reported for the Eaglehead property."

Diamond Drilling Analytical Results:

The weighted average grades for DDH0121 and DDH0122 were calculated using a 0.10% copper cutoff grade as shown in the table below.


DDH ID Azimuth Dip From (m) To (m) Interval
(m) Copper
(%) Molybdenum
(%) Gold
(g/t) Silver
(g/t) CuEq
(%)
DDH0121 0 -60 29.87 551.08 521.21 0.23 0.013 0.06 0.91 0.37
Including 29.87 308.00 278.13 0.21 0.003 0.02 0.51 0.25
including 29.87 42.00 12.13 1.01 0.012 0.25 3.97 1.31
and 308.00 551.10 243.10 0.27 0.025 0.09 1.36 0.48
including 308.00 332.00 24.00 0.95 0.085 0.13 4.73 1.53
including 438.00 518.00 80.00 0.22 0.036 0.15 1.12 0.53
DDH0122 0 -65 73.00 377.00 304.00 0.18 0.005 0.07 0.82 0.27
including 141.00 257.00 116.00 0.28 0.010 0.14 1.20 0.43

Resource Stock Report - Copper

Carmax Mining Corp.
Stmbol: CXM.V
October, 2014

“With considerable historic work and recent work by Carmax their Eagle-head Copper/Moly project is well advanced so there is really no risk of discovery. It is really a matter of advancing the project to upgrade the resource tonnage and grade.”

“There is also a huge vote of confidence in the project and company with Copper Fox's investment.”




Carmax Mining Corp.

Shares outstanding 55.5 million Copper Fox (TSXV:CUU) owns 42%


What intrigues me about CXM is a number of things;


They have a very experienced Board in mineral exploration and the stock is cheap


They are in one of the best copper districts in British Columbia with many discoveries/deposits nearby.


There Eaglehead project is 100% owned and already advanced with a 43-101 inferred resource
approximately 662 million pounds copper, 22 million pounds molybdenum and 265,000 ounces gold.


The Inferred Mineral Resource estimate totals 102.5 million tonnes at an average grade of 0.29% Cu, 0.010% Mo, and 0.08 g/t Au. The resources were estimated at a cut-off grade of 0.16% copper equivalent ("CuEq")


The reported grades in the resource are most likely quite understated and I will explain that in the property section


From 1971 to 2011, a total of 33,202 metres has been drilled in 120 drill holes. However many of these holes were not assayed or only partially assayed and seldom for Moly, Gold and Silver.


They just completed a financing and are probably the only TSXV company I have seen in some time that was forced to raise the price of their financing from $0.05 to $0.07


Currently a $1.2 million exploration budget completed that includes about 5 deep drill holes


They released preliminary data on 3 holes and all were in mineralization for several 100 metres,
roughly close to surface down to 450 to 620 metres or so. All bottomed in containerization.

The chargeability signature from the 2014 Quantec survey suggests continuity of the
mineralization in the East zone to the northeast towards the Bornite zone. This area between the two mineralized zones which has not been drill tested – but is in current program


The biggest factor however is the support of Copper Fox, with the Teck Cominco connection.


Copper Fox took down 20 million units of the recent 24 million unit financing and now owns a 42%interest in CMX


I would say Copper Fox TSXV:CUU is an expert in copper and in British Columbia. At $0.20 Copper Fox has a market cap of about $80 million. They own 25% of Schaft Creek (Teck 75%). Teck is paying $60M for their 75% and incurring the cost to go to production. This BC project has about 1 billion pounds of copper with Moly and Gold, and similar grades to CXM's Eaglehead,even though CXM Eaglehead grades are understated.


Copper Fox – Schaft Creek - Combined Measured and Indicated Mineral Resource of 1,035.3 Mt grading 0.27% Cu, 0.017% Mo, 0.18 g/t Au and 0.45% CuEq


- Inferred Mineral Resource of 301.3 Mt grading 0.24% Cu, 0.011% Mo, 0.14 g/t Au and 0.37% CuEq.


The property hosts an NI 43-101 Inferred Mineral Resource of 102.5 million tonnes at an average grade of 0.29% Cu, 0.010% Mo, 1.9 g/t Ag, and 0.08 g/t Au. The resources were estimated at a cut-off grade of 0.16% copper equivalent (“CuEq”) and contain approximately 662 million pounds copper, 22 million pounds molybdenum and 265,000 ounces gold.

However, there is a lot of historic drill holes that have not been confirmed, so when the resource
estimate was made, the engineering firm gave credit for the tonnage outlined with historic holes but assigned a grade of ZERO – this had the effect of lowering the average grade.

Copper Fox knows this and I think they got involved here because they know the grades here are probably higher that what they have at Schaft Creek that Teck is bringing into production.


I am pretty confident that grades are very good, we just need more tonnage


The Mineral Resources are contained within two conceptual open pits, the East and Bornite zones, and constitute approximately 69% of total mineralization above the grade cut-off.

The chargeability signature from the 2014 Quantec survey suggests continuity of the mineralization the East zone to the northeast towards the Bornite zone. This area between the two mineralized zones which has not been drill tested.


One of the drill holes in the current program is testing in between these two zones, if it hits? That will indicate strong potential that this deposit is a lot larger.


Other drill holes are in known zones


From 1971 to 2011, a total of 33,202 metres has been drilled in 120 drill holes.


The 2011 drill program, was conducted by CXM which was 25 holes totalling 8,300 meters.


The 2011 program indicated extensions to previously known mineralization in the East and Bornite zones, with Cu, Mo, and Au values with grades ranging from 0.16% Cu to 3.33% Cu over drill core intervals ranging from 3 m to 161 m.


The NI 43-101 report Inferred Mineral Resources estimate includes only two of the six mineralized target areas that have been identified on the property. The resources are based on program of diamond drilling 8,300 meters in 25 holes in 2011, as well as historical drilling.

The historic drill core is all on the property and the company plans on re logging this core, assaying sections that were not completed and upgrading this all in a modern data base.

Historically for the most part, the majors only assayed sections that showed visible signs of
mineralization. They were looking more for higher grade instead of the bulk tonnage that is common today.


Once CXM brings this historic data into the model, typically if they twin a number of the historic holes and data is consistent the engineering firm will then except the historic data in the resource model.


If done today, this historic drilling of over 90 holes would easily be valued between $15 to $20 million while Carmax only has a $5 million market cap.


Summary


With considerable historic work and recent work by Carmax their Eagle-head Copper/Moly project is well advanced so there is really no risk of discovery. It is really a matter of advancing the project to upgrade the resource tonnage and grade.


There is also a huge vote of confidence in the project and company with Copper Fox's investment.


Even at today's depressed prices at a bottom, Copper Fox has a market cap of $73 million with 25% of their Schaft Creek project so the market has a valuation on that project of $292 million.

This gives an idea of the potential of Carmax's Eaglehead project that is located in the same area of B.C, perhaps about 100kms from Schaft Creek.

It will take further funding to advance the Eaglehead project to feasibility and just exercise of Copper Fox's warrants would help in this regard, but if we assume further dilution from the current 55 million shares to 100 million or 150 million shares


To be conservative we could assume a valuation around half of Copper Fox's Schaft Creek so lets say $150 million.


With dilution to 100 million shares we are looking at a stock price of $1.50

With dilution to 150 million shares we are looking at a stock price of $1.00 per share


I might add that Copper Fox was up around $0.60 /$0.70 a share in 2013 when the completed their Feasibility and deal with Teck Cominco and $1.20 per share in 2012. So obvious if we see an improved mining market we could see much higher valuations.