Copper Fox Metals Inc. DDH CF405 Tests Chargeability Anomaly And Expands Zone Of Deep, Higher Grade Mineralization At Schaft Creek
23.02.2011 | CNW
VANCOUVER, Feb. 23 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or "the Company") (TSXV: CUU) is very pleased to announce the balance of the assay results from its 2010 diamond drilling program at the Schaft Creek porphyry deposit located in north western British Columbia. The objectives of the drilling program were to establish a higher grade starter pit to improve the economics of the feasibility study and to test at depth the IP chargeability anomaly defined in July and September 2010. Highlights are as follows:Highlights:
- The higher grade mineralization intersected in DDH CF405 has significantly extended the mineralization intersected in DDH CF398, by 175m to the east, and 100m below the mineralized intersection reported in DDH CF398. The zone is open at depth, to the north and to the east. DDHCF405 intersected 0.473% copper, 0.344 g/t gold, 0.023% molybdenum and 2.22 g/t silver (0.82% copper equivalent) from 164.0m to the bottom of the hole at 648.31m a core interval of 484.31m.
- The chargeability anomaly, defined by the 14Mv contour, corresponds with the intersection of higher grade mineralization at 164m in DDH CF405. Lower grade mineralization at shallower depths is associated with a weaker chargeability response.
- DDH CF406 is located 250m south and 137m east of DDH CF399. Drilling was suspended in low-grade mineralization similar to that intersected in the upper 164m of DDH CF405. DDH CF406 intersected 0.54% copper, 0.10g/t gold, 0.023% molybdenum and 1.54g/t silver (0.73% copper equivalent) over 15.4m from 126.6m to 142.5m. The hole is cased and will be completed when drilling resumes in 2011.
- The deeper portion of the higher grade mineralization located to the east and at depth below pre-2010 drill holes averages 0.447% copper, 0.327 g/t gold, 0.029% molybdenum and 2.51 g/t silver (0.81% copper equivalent).
- The chargeability anomaly extends for a distance of at least 600m east of DDH CF402, DDH CF405 and DDH CF399. The untested extension to the chargeability anomaly is interpreted to be an extension to the mineralization intersected in these holes. This chargeability anomaly extends an additional 800m to the north and suggests a depth extent of greater than 800m in this portion of the Schaft Creek deposit.
Mr. Stewart, President of Copper Fox stated, "DDH CF405 contains the highest copper equivalent grade intersected in the 2010 drilling program. DDH CF405 extended the higher grade mineralization an additional 175m to the east into the chargeability anomaly confirming the relationship between the higher grade mineralization and the chargeability anomaly. The portion of the anomaly that has not been drilled suggests considerable potential to expand the size and average grade of the Schaft Creek deposit is encouraging and suggests that the majority of the Schaft Creek deposit occurs to the east under Mount LaCasse."
Diamond Drilling Results:
The weighted average grades (using a zero percent copper cutoff) for the mineralized intervals in DDH CF405 and DDH CF406 are set out below.
Cu
From Interval Copper Gold Molybdenum Silver Eqv
DDH ID Dip Azimuth (m) To (m) (m) (%) (g/t) (%) (g/t) (%)
CF-405 -55 90 10.90 164.00 153.10 0.23 0.03 0.02 0.92 0.34
164.00 648.31 484.31 0.47 0.34 0.02 2.22 0.82
including 236.50 603.66 367.16 0.51 0.38 0.03 2.37 0.89
CF406 -55 90 9.44 199.95 190.51 0.21 0.04 0.01 0.75 0.28
including 126.60 142.48 15.88 0.54 0.10 0.02 1.65 0.73
Note: Mineralized intervals reported in the above table are not true thickness
DDH CF405 is located 154m east of DDH CF398. The mineralization in the top 164m of this hole is a lower grade zone (essentially the outer edge of the deposit) above the higher grade mineralization. Starting at a depth of 164m the copper-gold-molybdenum-silver grades increase significantly. Mineralization is hosted in a series of potassically altered andesite, granodiorite and aplite dikes overprinted in places by phyllic alteration and late-stage, vein-controlled propylitic alteration. The intrusive breccias that host the mineralization in the other holes drilled in 2010 were not intersected in DDH CF405. Mineralization is open to the north, at depth, and to the east under Mount La Casse.
DDH CF406 intersected the interpreted lower grade mineralization to a depth of 200m. The hole was suspended for the holidays and is cased to allow resumption of this hole when drilling commences in mid-May 2011.
The weighted average grades of the mineralized holes completed over a strike length of 600m in 2010 (previously reported) are set out below for reference purposes:
Cu
DDH From Interval Copper Gold Molybdenum Silver Eqv
ID Dip Azimuth (m) To (m) (m) (%) (g/t) (%) (g/t) (%)
CF398 -55 90 7.10 539.20 532.10 0.42 0.27 0.02 2.00 0.67
including 7.10 61.40 54.30 0.70 0.42 0.04 2.80 1.13
including 325.50 539.20 213.70 0.47 0.37 0.02 3.00 0.78
CF399 -55 90 9.14 517.24 508.10 0.39 0.10 0.05 2.09 0.67
including 9.14 159.70 150.56 0.53 0.05 0.04 2.87 0.77
including 462.74 517.24 54.50 0.45 0.33 0.06 3.01 0.94
CF401 -55 90 5.66 495.90 489.53 0.43 0.25 0.03 2.40 0.75
including 158.00 442.49 283.78 0.55 0.38 0.03 3.15 0.98
including 345.40 429.20 83.80 0.66 0.50 0.04 3.10 1.17
CF402 -55 90 4.57 581.25 576.68 0.31 0.32 0.03 2.27 0.70
including 247.67 475.17 227.50 0.36 0.43 0.05 2.64 0.89
including 421.42 475.17 53.75 0.45 0.53 0.06 3.74 1.12
CF403 -55 90 34.42 204.60 170.18 0.23 0.11 0.01 1.52 0.36
including 38.42 89.00 50.25 0.46 0.29 0.02 3.31 0.76
CF404 -80 270 21.10 82.33 61.23 0.18 0.04 0.00 0.36 0.22
CF405 -58 90 10.90 164.00 153.10 0.23 0.03 0.02 0.92 0.34
164.00 648.31 484.31 0.47 0.34 0.02 2.22 0.82
including 236.5 603.66 367.16 0.51 0.38 0.03 2.37 0.89
CF406 -60 90 9.44 199.95 190.51 0.21 0.04 0.01 0.75 0.28
including 126.60 142.48 15.88 0.54 0.10 0.02 1.65 0.73
Note: Mineralized intervals reported in the above table are not true thickness
Higher Grade Zone:
The holes completed in 2010 intersected higher-grade copper-gold-molybdenum-silver mineralization to the east and below the pre-2010 drill holes. The upper portions of the 2010 holes drilled through an area that was previously tested by diamond drilling. Due to the lack of depth, the majority of the pre-2010 holes intersected lower grade mineralization, comparable to the upper portions of the 2010 holes (click here to see Figure 1 on Copper Fox website). The average grade of the of the deeper parts of the 2010 drill holes that extended the mineralization to the east toward Mount LaCasse and at depth into a previously untested area past the pre-2010 drill holes is 0.447% copper, 0.327 g/t gold, 0.029% molybdenum and 2.51 g/t silver (0.81% copper equivalent).
The area included in the extension of the mineralization to the east and at depth is at least 600m long and varies, from 80m to 200m in width and from 50m to 330m in depth.
Future Plans:
All deliverables required to complete the updated resource estimate have been delivered to AMEC. The resource estimate is expected to be completed by the end of March 2011.
The company plans to complete a high sensitivity airborne geophysical survey consisting of magnetic, electromagnetic and radiometrics over the entire Schaft Creek property covering approximately 51,000 acres. The company is currently sourcing a contractor to complete this survey.
The objective of the proposed 2011 drilling program is to continue testing the strike extent and most importantly the interval between 500m and 800m below surface in the zone of higher-grade mineralization. The block model generated by the updated resource estimate and the chargeability anomaly will be used to locate the collars of the 2011 drill holes. An 8,000m drill program is planned and is expected to commence in mid May 2011.
Diamond Drilling and Sampling Procedures:
The diamond drilling was completed using HQ, NQ and BQ core sizes. Core recovery was estimated to be greater than 97%. After cutting with a diamond saw, one half of the core was collected for sample preparation and analysis and the other half is retained for future reference. Sample intervals were selected based on lithology changes/alteration intensity/estimated mineral content. Sample intervals ranged from 0.75 to 3.00 metres. Sample preparation was completed by ACME Analytical Laboratories Ltd ("ACME") located in Smithers, British Columbia and analyses were completed by ACME in Vancouver, British Columbia.
Base metals were assayed using the ACME's 7TD package which includes 4-acid digestion and ICP-ES finish. Lower detection limits are as follows: Cu >0.001%, Mo >0.001%, Ag >2 g/t. Gold is assayed by the G6 fire assay package - fusion of a 30-gram followed by ICP-ES finish; with a lower detection limit of 0.005 g/t. ACME has a 9001:2008 International Standard Organization rating.
Copper equivalent calculations are based on 88% of the copper content plus 81% of the gold content, 72% of the molybdenum content and 71% of the silver content. Metal prices used for the purposes of the equivalency calculations are copper $US2.50/pound, gold $US1,075.00/ounce, molybdenum $US17.00/pound and silver $US16.10/ounce.
Quality Control:
Copper Fox follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards, blanks and duplicates into the sample stream submitted to the laboratory for analysis.
Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Company's nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, has reviewed the technical information disclosed in this news release.
About Copper Fox
Copper Fox is a Canadian based resource company listed on the TSX-Venture Exchange (CUU-TSX-V). Copper Fox was recently recognized by TSX Venture Exchange Inc. as a member of the distinguished TSX Venture 50® group where it had the distinction of being ranked first overall for 2010.
The Company is focused on completing a Feasibility Study on the Schaft Creek deposit, one of the largest undeveloped copper, gold, molybdenum and silver deposits in North America. Categorized as a "giant porphyry deposit" this project is at the advanced development stage with a Preliminary Feasibility Study ("PFS") prepared by Samuel Engineering, Inc. of Denver, Colorado, in September 2008. The results of the PFS were extremely "robust" reporting a NPV @ 8% (before tax) of $2.8 billion dollars over a 23 year mine life. They contemplated processing 100,000 tonne per day ("tpd") from an open pit mine using a standard flotation recovery process. The PFS estimated the current Mineral Resources (using a 0.2% copper equivalent cutoff) at Schaft Creek includes; Measured Resources of 463.5 million tonnes grading 0.30% copper, 0.23 g/t gold, 0.02% molybdenum and 1.55 g/t silver, Indicated Resources of 929.8 million tonnes grading 0.23% copper, 0.15 g/t gold, 0.02% molybdenum and 1.56 g/t silver.
A Feasibility Study is being led by Wardrop, A Tetra Tech Company on a minimum 120,000 tpd open pit mine and the study is expected to be completed by the end of June 2011.
Copper Fox holds title and a 100% working interest in a contiguous 21,025 hectares (51,954 acres) property located in north west British Columbia, Canada which includes the Schaft Creek deposit subject to certain royalty agreements, a 30% carried interest held by Liard Copper and an earn back option held by Teck Resources Limited ("Teck"). Copper Fox is currently earning a 78% interest in Liard Copper from Teck. Teck's earn back option to acquire 20%, 40% or 75% of the Schaft Creek project is triggered upon completion of a positive Feasibility Study. Should Teck elect to exercise its option for 75% they are required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox ($57.2 million as of December 31, 2010) and arrange for project financing, including the Copper Fox portion? For full details of the option please refer to the Company's website www.copperfoxmetals.com.
*United States investors are advised that current Mineral Resources are not current Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate and in keeping with "best practice principles".
On behalf of the Board of Directors
Elmer B. Stewart
President & Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of the Canadian securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "budgets", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about anticipated analytical results of the core sampling of current diamond drill holes and historical diamond drill holes; the possible higher grade starter pit; the nature of the previously identified chargeability anomaly; the scope of mineralization identified in testing of recent IP anomalies; the potential depth of mineralization; future drilling potential at Schaft Creek; the timing and availability of assay results; the timing and anticipated results of the proposed updated resource estimate; the timing and scope of the feasibility study for the Schaft Creek project; the timing, approvals and anticipated results of an Environmental Assessment Application for the Schaft Creek project; the timing and possibility of completing a high sensitivity airborne geophysical survey; estimated timing and amounts of future expenditures and "earn-back" options; geological interpretations and potential mineral recovery processes. Information concerning mineral reserve and resource estimates also may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined.
The forward-looking information contained in this news release, Copper Fox has made numerous assumptions , regarding, among other things: the geological, metallurgical, engineering, financial and economic advice that Copper Fox has received is reliable, and is based upon practices and methodologies which are consistent with industry standards, the obtaining of an Environmental Assessment Certificate; and the continued financing of the Feasibility Study; and the anticipated analytical results of the current drilling program. While Copper Fox considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Copper Fox's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: anticipated assays results may not prove expected extensions of mineralization on a timely basis, or at all; the Feasibility Study may not be completed within the contemplated time frame, or at all; the possibility that the analytical results from the core sampling does not return significant grades of copper mineralization; the possibility that future drilling on the Schaft Creek project may not occur on a timely basis, or at all; the possibility that an Environmental Assessment Certificate may not be obtained on a timely basis, or at all, or that additional approvals will be necessary in order to obtain an Environmental Assessment Certificate; fluctuations in copper and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, and estimated economic return; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals
A more complete discussion of the risks and uncertainties facing Copper Fox is disclosed in Copper Fox's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Copper Fox disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
For further information:
Investor line 1-866-913-1910 or
J. Michael Smith, EVP
at 1-604-689-5080
www.copperfoxmetals.com