COPPER FOX ADVANCES FEASIBILITY STUDY AND REPORTS 2011 SECOND QUARTER FINANCIAL RESULTS
VANCOUVER, June 29, 2011 /CNW/ --
VANCOUVER, June 29, 2011 /CNW/ - Copper Fox Metals Inc. ('Copper Fox' or the 'Company') (TSXV: CUU) is pleased to provide an overview of the work completed during the
quarter on the feasibility study of the Schaft Creek deposit and its
2011 second quarter financial results. During the quarter the Company
spent an additional $1,798,235 towards completion of the feasibility
study. The loss for the second quarter is ($2,378,649). Technical
information contained in this news release was previously disseminated
by way of news releases and posted on SEDAR at www.sedar.com and on the Company's website at www.copperfoxmetals.com.
Elmer Stewart, President & CEO, stated, 'The 2011 field program is
underway with two drills working on the Paramount zone testing the
large chargeability anomaly under Mount LaCasse. The first hole
successfully extended the copper mineralization associated with this
chargeability anomaly an additional 125 metres ('m') to the east and
the zone remains open. The airborne magnetic survey has not only better
defined the targets contained within the Schaft Creek mineral trend, it
also suggests that the Schaft Creek deposit could extend a considerable
distance to the south. Work on the outstanding sections of the
feasibility study is expected to increase substantially over the next
few months with an expected delivery date in the fourth quarter 2011.
Quarterly Highlights
During the quarter, Copper Fox's activities focused on completion of the
resources estimation, the airborne magnetic survey and finalizing
various aspects of the 2011 field program. Due to the delay in
completing the resource estimation a number of major components of the
feasibility study are behind schedule. Highlights for activities of
the Company to date are:
-- 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.
-- The airborne magnetic survey has identified an area of
'exploration interest' located within the Schaft Creek property
that measures 20 kms long by 4 kms wide that includes the
Schaft Creek deposit and the ES and GK zones of copper
mineralization each of which exhibits a distinct positive
magnetic signature.
-- 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 m to the south.
-- Diamond drill DDHCF407-2011 located in the Paramount zone has
extended the zone of copper mineralization an additional 125 m
to the east. This hole intersected visible copper
mineralization (chalcopyrite and bornite) from the start of
bedrock at 5.3 m to a depth of 653 m. Visible molybdenite
mineralization occurs sporadically throughout the core length
in quartz veinlets, along shear planes and in some instances
with the bornite-chalcopyrite mineralization.
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.
Operating Activities:
To the end of April 2011, Copper Fox incurred approximately $59.7
million (excluding $2.88 million in new property acquisitions) that
qualify as applicable expenditures pursuant to the Option Agreement
with Teck Resources Limited on the Schaft Creek property. An overview
of the components of the feasibility study completed during the quarter
is set out below.
A small amount of work was completed by Wardrop, a Tetra Tech Company,
the main contractor for the feasibility study, Knight Piésold Ltd. and
Stantec Consulting Ltd. on the feasibility study during the quarter.
On receipt of the resource estimate from AMEC Americas Limited, all
three contractors are scheduled to significantly increase their work on
the feasibility study with an expected time of completion during the
fourth quarter 2011.
During the quarter, Copper Fox raised an additional $6,567,349 in cash
by way of a private placement and exercise of outstanding warrants and
options.
Selected Financial Information
Net (loss)/income per
Net Loss share -
basic and diluted
2011
Second Quarter $ (2,378,649) $ (0.01)
First Quarter $ (358,211) $ 0.00
2010
Fourth Quarter $ (421,346) $ 0.00
Third Quarter $ (436,792) $ 0.00
Second Quarter $ (309,067) $ 0.00
First Quarter $ (446,822) $ 0.00
2009
Fourth Quarter $ 1,533,575 $ 0.01
Third Quarter $ (491,057) $ 0.00
Liquidity and Capital Resources:
The Company's working capital, defined as current assets less current
liabilities, was $3,355,887 at April 30, 2011. The Company has
sufficient funds available to meet its current obligations.
During the six months ended April 30, 2011, the Company completed
private placements for total proceeds of $7,755,000, 1,435,000 options
were exercised for total proceeds of $675,750, 1,548,665 warrants were
exercised for total proceeds of $2,286,499 and a Director loaned
$1,500,000 to the Company. The loan bears no interest and there are no
fixed terms of repayment.
The Company has in place a budgeting process to help determine the funds
required for the completion of the feasibility study. To April 30,
2011, the Company has spent $59.7 million (excluding $2.88 million in
new property acquisitions) of qualifying expenditures toward this
study. The Company will require additional capital to complete this
study and to provide for the administration of its Vancouver and
Calgary offices. The Company believes that it will be able to raise
the capital required to complete the feasibility study through the
continued exercise of its outstanding options or through the public
market as required. Circumstances that could affect liquidity are
early positive or negative results from the feasibility study, the
general state of the equity markets for junior exploration companies
and the overall state of the economy.
Copies of the financial statements and notes and related management
discussion and analysis may be obtained on SEDAR at www.sedar.com, our Company web site at www.copperfoxmetals.com or by contacting the Company directly. All amounts are in Canadian
dollars unless otherwise stated.
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 net
proceeds 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 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 British Columbia 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 P. Geol. MSc.
President and CEO
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 completion of a feasibility study; the chargeability anomalies at
the Shcft Creek project; the scope and timing of work on the
outstanding sections of the feasibility study; the release of the
updated resource estimate; expected capital requirements to continue
planned activities; expected sources and the adequacy of required
capital resources; 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
feasibility study may not be completed within the expected timeframe,
or at all; the updated resource estimate may not be completed and
released within the expected timeframe, or at all; 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