COPPER FOX ANNOUNCES COMPLETION OF 3D MODEL AND AWARD OF HIGH-RESOLUTION AIRBORNE GEOPHYSICAL CONTRACT
VANCOUVER, April 13 /CNW/ --
VANCOUVER, April 13 /CNW/ - ('Copper Fox' or the 'Company') (TSXV: CUU) is pleased to announce completion of the 3D modeling of the two Quantec
Titan-24 surveys completed over the Schaft Creek deposit in 2010 and
the awarding of a contract to complete a high resolution airborne
magnetometer survey over the entire Schaft Creek project including the
recently acquired mineral properties (see news release dated March 24,
2011).
Elmer B. Stewart President and CEO of Copper Fox stated 'We are excited
about commencing the 2011 work program that includes the Schaft Creek
deposit, the two very large, relatively unexplored zones of copper
mineralization exposed in outcrop on the recently acquired mineral
claims and the 15 kilometre (kms) long Schaft Creek mineralized trend.
The airborne geophysical survey is expected to be very helpful in
outlining the strike extent of the Schaft Creek mineral trend and
identifying additional targets within this trend consistent within the
existing mineralized zones. Planning for the 2011 diamond drilling
program 8,000 metres (m) for the Schaft Creek deposit is underway. The
drilling is expected to commence subject to weather conditions in early
May'.
3D Modeling Quantec Geophysical Data:
To view the 3D model of the Quantec Titan-24 survey data over the Schaft
Creek deposit, visit the Copper Fox website at www.copperfoxmetals.com. A brief explanation of the model is as follows; the dotted lines on
the model represent the topographic profiles for the lines on which the
Quantec Titan-24 geophysical survey were completed. The solid shapes
represent the outline of the 25 mrad chargeability anomaly. An
interpreted cross-section (L1600N or 6360900mN) showing the relation of
the 2010 diamond drilling and the chargeability anomaly was previously
posted to the website.
Based on the 3D model the following observations can be made:
a) Within the area of the 2010 diamond drilling (around L1600N),
the chargeability anomaly has a depth extent of at least
1,000 metres and is interpreted to be the core (the Root
Zone) of the Schaft Creek deposit,
b) The model shows a distinct departure between the topographic
profile (the surface) and the underlying chargeability
anomaly except on one line in the central area of the Schaft
Creek deposit where the outline of the chargeability anomaly
matches the topographic profile,
c) The large zone of chargeability (labeled Area B) at the south
end of the block starts at a depth of approximately 100m
below surface. Drill hole DDH CF404-2010 was intended to
test this anomaly but intersected low-grade copper
mineralization in volcanic before drilling into an
interpreted steeply dipping late mafic dike, and was not able
to reach its target. As a result, the chargeability anomaly
has not yet been tested, and
d) The large zone of chargeability (labeled Area A) at the north
end of the block (not yet tested by diamond drilling) is
interpreted to represent the edge of a potential new zone of
mineralization. Additional Quantec Titan-24 surveying will
be required to delineate this zone of chargeability.
Airborne Geophysical Survey:
Copper Fox has awarded a contract to complete a high sensitivity
airborne magnetometer survey to Precision GeoSurveys Inc. of Vancouver,
British Columbia. The purpose of the survey is to identify the
magnetic signature of the Schaft Creek copper-gold-molybdenum-silver
deposit and use this signature to identify other potential mineralized
zones within the interpreted Schaft Creek mineral trend. This trend
currently hosts the Schaft Creek deposit and two very large, unexplored
zones of mineralization exposed in outcrop. These zones exhibit many
similarities to the mineralization located in the Paramount Zone at the
north end of the Schaft Creek deposit.
a) The first zone (named the ES Zone) is located approximately 3
kms north of the Paramount Zone of the Schaft Creek deposit
and measures at least 1,100m long by 300m wide. The 32
samples collected from this zone averaged 0.87% copper and
0.31 g/t gold, and
b) The second zone (named the GK Zone) is located approximately
3 kms north of the ES Zone and measures at least 1,700m long
by 250m wide. The 17 grab and chip samples collected from the
GK Zone averaged 1.24% copper, 16 g/t silver and 0.07g/t
gold.
The airborne survey is estimated to be 2,500 line kms (including flight
lines and tie lines) at 200m line spacing over an area that measures
approximately 25 kms long by 17 kms wide. This survey is expected to
commence in mid to late April 2011 and is expected to take one - two
weeks to complete, subject to weather conditions.
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 TSX Venture 50® are the top 10 companies listed
on the TSX Venture Exchange, in each of five major industry sectors -
mining, oil & gas, technology & life sciences, diversified industries
and clean technology - based on a ranking formula with equal weighting
given to return on investment, market cap growth, trading volume and
analyst coverage. All data was as of December 31, 2010.
The Company is working 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
24,003.5 hectare (59,311 acre) property 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 ($58.1 million as of
March 29, 2011) 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.
Additionally Copper Fox holds mineral claims totaling 3,947 hectares
(9,752 acres) in the Liard mining district of BC not subject to the
Teck earn-back.
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.
*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
mineralization, airborne geophysical, surveys, 3D modeling of IP
surveys, geology, apparent control on the mineralization and
significance of the Pembrook and Greig/Kreft mineral claims; the
potential to find another deposit to the north of the Schaft Creek
deposit; the length of the interpreted Schaft Creek mineralized trend;
the historical exploration results of the Pembrook and Greig/Kreft
mineral claims; the timing of an updated resource estimate; the timing
and scope of the feasibility study for the Schaft Creek project;
statements about the results of the PFS, including tones per day
processing; 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.
In connection with the forward-looking information contained in this
news release, Copper Fox has made numerous assumptions, regarding,
among other things: the mineralization and significance of the Pembrook
and Greig/Kreft mineral claims; 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; 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: the interpresented extention that hosts the
Schaft Creek deposit may not extend into the Greig/Kreft and Pembrook
mineral claims; another deposit may never be discovered to the north of
the Schaft Creek deposit; the Greig/Kreft and Pembrook mineral claims
may not contain anticipated mineralization, or mineralization of any
significance at all; the updated resource estimate may not be completed
as anticipated; 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;
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.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/April2011/13/c3657.html
Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080