HIGH RESOLUTION MAGNETIC SURVEY AT SCHAFT CREEK CONFIRMS SIMILAR SIGNATURES FOR MINERALIZED ZONES, DIAMOND DRILLING UNDERWAY, RESOURCE ESTIMATE TABLES RECEIVED FROM AMEC
VANCOUVER, June 21, 2011 /CNW/ --
VANCOUVER, June 21, 2011 /CNW/ - ('Copper Fox' or the 'Company') (TSXV: CUU) is pleased to provide its shareholders an interpretation of the results
of the high resolution airborne magnetic survey over the Schaft Creek
project and an update on diamond drilling activities at the Schaft
Creek project.
Highlights:
a) Copper Fox has received from AMEC Americas Limited the tables
setting out at various copper cutoff grades the tonnes and
average metal grades in each resource category for the Updated
Resource Estimate and Block Model. Copper Fox is currently
reviewing the data with a view of releasing the results of the
Updated Resource Estimate as soon as possible,
b) The airborne magnetic survey has identified a linear positive
magnetic feature with a 20 kilometre (km) strike length. The
Schaft Creek deposit, the recently acquired ES and GK zones of
copper mineralization occur immediately adjacent to this positive
magnetic feature,
c) The airborne magnetic survey has identified three distinct
positive magnetic signatures that correlate with the Schaft Creek
deposit and the ES and GK zones of copper mineralization,
d) The airborne magnetic signature over the Schaft Creek deposit
correlates well with the Quantec Titan-24 DCIP and MT survey
results (see news release dated November 16, 2010) and suggests
that the Schaft Creek deposit could extend for an additional
1,000 metres (m) to the south, and
e) Diamond drill DDHCF407-2011 located in the Paramount zone has
been shut down at a depth of 735m in propylitic altered
volcanics. DDHCF407-2011 intersected visible copper
mineralization in the core from 5.3m to a depth of 653m. The
second drill has arrived on the property and is currently
drilling on the Paramount zone.
Elmer B. Stewart President and CEO of Copper Fox stated, 'The results of
the airborne survey identified a previously unknown 20km long positive
magnetic feature that is associated with the Schaft Creek deposit and
the ES and GK zones of copper mineralization. This feature is of
considerable interest from an exploration/mineral potential for the
Schaft Creek project. The survey identified three positive magnetic
signatures that correlate with the Schaft Creek deposit and the zones
of copper mineralization and has much better defined the limits of
Schaft Creek mineral trend. The copper mineralization observed in
DDHCF407-2011 has extended the mineralized zone an additional 125m to
the east and a further 136m below the mineralized interval [517m]
intersected in DDHCF399-2010. The drilling on the Paramount zone has
the objective of expanding the limits of the mineralization of the
Schaft Creek deposit by testing the large chargeability anomaly located
to the east under Mount LaCasse.'
Airborne Geophysical Survey:
The High Resolution Airborne Magnetic Survey covered a 25km long by 17km
wide area. A total of 2,520 line kilometres (including tie-lines) of
survey were completed. The preliminary interpretation of the Total
Field magnetic data (TF) and the Calculated Vertical Gradient (CVG)
magnetic data has identified a potential area of 'exploration interest'
that has a strike length of approximately 20 kilometres.
The area of 'exploration interest' is an elliptical shaped zone
(approximately 4kms wide by 20kms long) that is bounded on both sides
by narrow, linear, positive TF and CVG magnetic signatures. These
positive magnetic signatures are interpreted to be regional scale
faults. The Schaft Creek deposit, the ES and GK zones of copper
mineralization and the recently identified Schaft Creek mineral trend
are located immediately adjacent to the 20km long positive magnetic
feature located on the west side of the area of 'exploration interest'.
The correlation of the TF and CVG magnetic signatures and the Titan-24
DCIP and MT chargeability anomaly on the Schaft Creek deposit are
excellent. The TF and CVG magnetic signatures suggest that the Schaft
Creek deposit could extend to the south for an additional 1,000m. The
1,000m long area identified by the TF and CVG has not been surveyed by
the Titan-24 system. The Titan-24 DCIP and MT survey completed over
the Schaft Creek deposit in 2010 identified an open-ended, large,
positive chargeability anomaly at the south end of the interpreted
extension of the Schaft Creek deposit. The chargeability anomaly and
the magnetic signatures in this area have approximately the same width.
The TF and CVG data has, in addition to the three distinct magnetic
signatures associated with the Schaft Creek deposit and the ES and GK
zones, outlined four other positive magnetic features within the area
of exploration interest. Preliminary exploration of these areas in 2011
will include mapping and sampling to identify either zones of copper
mineralization or alteration that would be indicative of porphyry style
mineralization.
Diamond Drilling Program:
Two diamond drills are currently working on the Paramount zone of the
Schaft Creek deposit. DDHCF407-2011 (azimuth 090, dip-70 to the east)
is an HQ diameter hole and was completed with a core length of 735m
(vertical depth of 550m). Visible copper mineralization (chalcopyrite
and bornite) was continuously observed in the core from the start of
bedrock at 5.3m to a depth of 653m. In addition to the bornite and
chalcopyrite mineralization; visible molybdenite mineralization occurs
sporadically throughout the core length in quartz veinlets, along shear
planes and in some instances also with bornite-chalcopyrite
mineralization. The bornite-chalcopyrite mineralization occurs as
disseminations, veins and veinlets. The copper mineralization is hosted
in Potassic and Phyllic altered Intrusive Breccia, Granodorite, Quartz
Feldspar Porphyry and Andesite. Both drills are being used to define
the limits of the zone of higher-grade copper-gold-molybdenum-silver
mineralization located in 2010 in the Paramount zone by testing the
large chargeability anomaly located under Mount LaCasse.
The reader is cautioned that visible copper and molybdenite
mineralization does not necessarily equate to significant
concentrations of either copper or molybdenum and there is no assurance
that the assay results of the samples from this drill hole will yield
significant copper or molybdenum grades.
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 each of the ES and GK
zones and the large chargeability anomaly to test each zone for its
copper-gold potential.
Updated Resource Estimate:
Copper Fox has received from AMEC Americas Limited the tables setting
out at various copper cutoff grades the tonnes and average metal grades
in each resource category for the Updated Resource Estimate and Block
Model. Copper Fox is currently reviewing the data with a view of
releasing the results of the Updated Resource Estimate as soon as
possible. Mr. Stewart, President and CEO of Copper Fox stated: 'Now
that the Updated Resource Estimate has been completed, Copper Fox needs
to identify the correct base case for the copper cut-off grade and
tonnes from the resource estimate to be used in the forthcoming
Feasibility Study which is being completed by Wardrop. Our objective is
to select a base case that provides optimal economics with an early
payout on the project and at the same time provides maximum return from
the deposit over the first 7 years. Copper Fox now can move forward to
complete the Feasibility Study and the Environmental Assessment
Application for the development of the Schaft Creek project.'
Specification for Airborne Magnetometer Survey:
The airborne survey was flown at 200m spaced flight lines at an average
altitude above ground level of 39m. Tie lines were flown at 2km
intervals. The magnetic data was collected using a Scintrex cesium
vapor CS-3 magnetometer, a high sensitivity/low noise magnetometer. The
magnetometer and the base station used in the survey have absolute
accuracy range of 0.1nT (gamma) and a sensitivity of 0.1nT (gamma) at a
2 second sampling rate. Precision GeoSurveys Inc. from Vancouver,
British Columbia performed the survey.
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 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 Feasibility Study is being led by Wardrop, A Tetra Tech Company on a
minimum 120,000 tpd open pit mine and is expected to be completed
during the fourth quarter 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 Copper Fox interest in 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 ($62.1 million as at June 15, 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 results
and interpretation of the high resolution airborne magnetic survey over
the Schaft Creek project; the timing and scope of expected diamond
drilling; the completion of the Feasibility Study and Environmental
Assessment application for the development of the Schaft Creek project;
potential existence and size of mineralization within 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 interpretation of the results of the high
resolution airborne magnetic survey over the Schaft Creek project; 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 actual
mineralization in the Schaft Creek deposit may not be as favourable as
suggested by the interpretation of the results of the high resolution
airborne magnetic survey; 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 or the
Environmental Assessment 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