COPPER FOX PROVIDES UPDATE ON 2011 PLANS FOR SCHAFT CREEK, DIAMOND DRILLING EXPECTED TO COMMENCE MID-MAY
VANCOUVER, May 5 /CNW/ --
VANCOUVER, May 5 /CNW/ - ('Copper Fox' or the 'Company') (TSXV: CUU) is pleased to provide its shareholders an update of activities as well
as its 2011 plans for the Schaft Creek project.
Highlights:
a) Copper Fox has been advised by AMEC to expect the updated resource
estimate on the Schaft Creek deposit later this month,
b) The high resolution airborne survey of the Schaft Creek project has
commenced and is expected to be completed within 10 days subject to
weather conditions, and
c) Diamond drilling is expected to commence later this month subject
to snow conditions. The first drill hole of the 2011 season will be
the completion of DDH CF2101-406 which had to be capped due to
weather conditions at the end of the 2010 season.
Elmer B. Stewart President and CEO of Copper Fox stated 'The objectives
of the 2011 program are to expand the limits of the mineralization in
the Paramount zone of the Schaft Creek deposit and to try and locate
another deposit of copper-gold-molybdenum-silver mineralization. In
addition to the Schaft Creek deposit, two large zones of copper-gold
mineralization and a large chargeability anomaly are located within the
Schaft Creek project none of which have ever been tested by diamond
drilling. The potential for any one of these zones to host a large
copper-gold-molybdenum-silver deposit is considered to be high'.
Resource Estimate:
Copper Fox has been advised by AMEC Americas Limited ('AMEC') to expect
an updated resource estimate on the Schaft Creek deposit later this
month. Mr. Stewart, President and CEO of Copper Fox stated, 'While it
is disappointing the resource estimate has taken longer than originally
anticipated, we are pleased to report that AMEC continues to diligently
work towards finalizing this report. It is important always to keep in
mind, that given the nature of the work, it will continue to be
difficult to predict the precise date that AMEC will complete its work,
and it may well take until later in May before the Company receives
delivery of the report. We very much look forward to receiving the
updated resource estimate from AMEC as it marks a major milestone for
Copper Fox and a very important step in the development of the Schaft
Creek project'.
Airborne Geophysical Survey:
The drilling completed in 2010 demonstrated that the
copper-gold-molybdenum-silver mineralization in the Paramount zone of
the Schaft Creek deposit has a positive magnetic signature. A
compilation of historical exploration results has identified a 15
kilometre long zone of favourable geology, alteration and copper
mineralization referred to as the Schaft Creek mineral trend. In
addition to the Schaft Creek deposit, this trend hosts:
a) the recently acquired ES zone (see News Release dated April13, 2011)
located approximately 3 kms north of the Paramount zone of the
Schaft Creek deposit measures at least 1,100m long by 300m wide. The
average of 32 chip and grab samples collected from this zone was
0.87% copper and 0.31 g/t gold,
b) the recently acquired GK zone located approximately 3 kms north of
the ES zone measures at least 1,700m long by 250m wide.
Reconnaissance sampling on the GK zone in 2008 consisted of 17 grab
and chip samples that averaged 1.24% copper, 16 g/t silver and
0.07g/t gold according to a property assessment report filed in
2008, and
c) a large chargeability anomaly located north of the Paramount zone.
The limits of the zone of chargeability have not been defined and
this target has not yet been tested by diamond drilling.
The mineral claims on which the ES and GK zones of copper mineralization
occur are contiguous to the Schaft Creek project. These claims were
acquired (see News Release dated March 24, 2011) by Copper Fox due to
the geological setting, widespread copper-gold mineralization and
associated alteration exposed on surface. These features are very
similar to those of the higher-grade mineralization in the Paramount
zone of the Schaft Creek deposit.
To better define the three zones listed above and to identify additional
targets that may occur within the Schaft Creek mineral trend, a high
resolution aeromagnetic survey has commenced as scheduled on the Schaft
Creek project. The exposed mineralization alteration and geology on the
ES and GK targets indicate potential for discovery of large zones of
copper-gold-molybdenum-silver mineralization Preliminary exploration of
magnetic targets in the aeromagnetic survey, will be included in the
2011 program.
Diamond Drilling Program:
As previously announced, Copper Fox plans to complete an 8,000m diamond
drilling program on the Schaft Creek project in 2011. Two diamond
drill contractors have been retained to complete the work. The primary
objectives of the 2011 program are:
a) to expand the limits of the zone of higher-grade
copper-gold-molybdenum-silver mineralization located in 2010 in the
Paramount zone of the Schaft Creek deposit,
b) to complete geophysical surveying of (Titan-24 surveys) and initial
diamond drill testing of the ES and GK zones of mineralization, and
c) to complete geophysical surveying of (Titan-24) and initial diamond
drill testing of the large chargeability anomaly located north of
the Paramount zone.
The majority of the 2011 drilling program is expected to be completed in
the Paramount zone. The 2011 drilling program also contemplates
completing one or two diamond drill holes into the ES and GK zones and
the large chargeability anomaly to test each zone for its copper-gold
potential.
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 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 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 the timing
and scope of expected diamond drilling; the timing of the delivery of
an updated resource estimate on the Schaft Creek deposit; the timing to
complete the high resolution airborne survey of the Schaft Creek
project; potential existence and size of mineralization within the
Schaft Creek project; the timing and scope of the feasibility study for
the Schaft Creek project; 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 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 possibility that the updated resource
estimate may not be completed on a timely basis, or at all; the high
resolution airborne survey of the Schaft Creek project may not be
completed on a timely basis; another deposit may never be discovered on
Copper Fox's property, or contain anticipated mineralization, or
mineralization of any significance 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; 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.
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Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080