COPPER FOX METALS INC. - MEASURED AND INDICATED RESOURCE ESTIMATE EXCEEDS 1 BILLION TONNES AT SCHAFT CREEK DEPOSIT
VANCOUVER, July 11, 2011 /CNW/ --
(CONTAINING 6.1 BILLION POUNDS COPPER, 383 MILLION POUNDS MOLYBDENUM AND 5.8 MILLION OUNCES GOLD)
VANCOUVER, July 11, 2011 /CNW/ - ('Copper Fox' or the 'Company') (TSX-V: CUU) is pleased to provide its shareholders the results of the recently
completed National Instrument 43-101 compliant resource estimate for
the Schaft Creek copper-gold-molybdenum-silver deposit located in
northwest British Columbia, Canada. The resource estimate was prepared
by AMEC Americas Limited ('AMEC') and the National Instrument 43-101
compliant report related to the resource estimation will be filed on
SEDAR within 45 days. Highlights of the resource estimate using a
0.20% copper equivalent cut-off (Base Case) are as follows:
Highlights:
a) The Measured mineral resource for the Schaft Creek deposit (at
a 0.20% copper equivalent cut-off) is estimated to be 40.3
million tonnes grading 0.36% copper, 0.023% molybdenum and
0.25g/t gold (copper equivalent of 0.61%) containing 319.6
million pounds copper, 20.5 million pounds molybdenum and 0.32
million ounces gold,
b) The Indicated mineral resource for the Schaft Creek deposit
(at a 0.20% copper equivalent cut-off) totals 971.2 million
tonnes grading 0.27% copper, 0.017% molybdenum and 0.18g/t
gold (copper equivalent 0.45%) containing 5.8 billion pounds
copper, 363 million pounds molybdenum and 5.5 million ounces
gold,
c) The Measured and Indicated mineral resource for the Schaft
Creek deposit (at a 0.20% copper equivalent cut-off) totals
1.01 billion tonnes grading 0.27% copper, 0.017% molybdenum
and 0.18g/t gold (copper equivalent 0.46%) containing 6.1
billion pounds copper, 383 million pounds molybdenum and 5.8
million ounces gold,
d) The Inferred mineral resource for the Schaft Creek deposit (at
a 0.20% copper equivalent cut-off) totals a further 283.6
million tonnes grading 0.24% copper, 0.011% molybdenum and
0.15 g/t gold (copper equivalent 0.39%) containing 1.5 billion
pounds copper, 69 million pounds molybdenum and 1.3 million
ounces gold,
e) The silver grade of the Schaft Creek deposit is estimated to
range between 1 and 2 g/t. The silver content of the deposit
has not been included in the resource estimate due to legacy
data issues, and
f) This resource estimate reports significantly higher average
copper grade in the Measured mineral resource (0.36%)
category, the Indicated mineral category (0.27%) and the
Inferred mineral resource (0.24%) category compared to the
Measured mineral resource category (0.30%), the Indicated
mineral category (0.23%) and Inferred mineral resource
category (0.14%) set out in the preliminary feasibility study
on the Schaft Creek deposit dated September 2008.
Elmer B. Stewart President and CEO of Copper Fox stated, 'The completion
of the resource estimate is a great milestone for Copper Fox. Our
primary objective now is to complete the feasibility study for the
Schaft Creek project as soon as possible. The strategy for the resource
estimate was to eliminate areas of very low grade mineralization and
therefore reduce grade smoothing. The updated resource estimate shows
that the average metal grades for the deposit remain relatively
constant up to a 0.25% copper equivalent cut-off, above which the
tonnes decrease significantly with a corresponding increase in the
average metal grades. The 2011 drilling program is focusing on the
higher-grade mineralization intersected in the Paramount zone in 2010
with the objective of defining a higher-grade 'starter pit' and
increasing the tonnage and average grade of the metals in this zone.
Copper Fox expects to complete a resource estimate update for this zone
after completion of the 2011 drilling program.'
Base Case:
Copper Fox has selected the 0.20% copper equivalent ('Cu Eq.') cut-off
for its base case resource estimate. A 0.12% Cu Eq. cut-off was the
minimum grade of copper equivalent estimated by AMEC required (using
the estimated copper recovery rate, the milling and sales cost) to
break-even on an operating cost per tonne basis. In adopting a more
conservative approach to optimize the economics, Copper Fox has
selected a higher cut-off grade to increase the average copper grade
per tonne while reducing tonnage.
Resource Estimate:
The effective date of the mineral resource estimate is May 1, 2011.
Mineral resources were estimated for the Liard (also referred to as the
Main) Zone and the Paramount (also referred to as the
Paramount-Breccia) Zone separately. The mineral resources were
estimated using criteria consistent with the CIM Definition Standards
(2010) and in conformity with CIM 'Estimation of Mineral Resources and
Mineral Reserves Best Practice' (2003) guidelines. The estimated
mineral resources (Table-1) using a 0.20% Cu Eq. cut-off grade were
categorized and tabulated within an economic resource pit shell based
on operating costs and metal prices shown in Table-3 and Table-4.
Table-1: Mineral Resource Estimate - Schaft Creek Deposit (David Thomas
P. Geo., Effective Date: May 1, 2011
Resource Tonnage Copper Molybdenum Gold Cu Eq. Contained Metal
Category (Million (%) (%) g/t (%) Cu Mo Au
Tonnes) (Mlbs) (Mlbs) (Moz)
Measured 40.30 0.36 0.023 0.25 0.61 319.60 20.5 0.32
Indicated 971.20 0.27 0.017 0.18 0.45 5,795.70 363.2 5.50
Measured
and 1,011.50 0.27 0.017 0.18 0.46 6,113.70 383.6 5.81
Indicated
Inferred 283.60 0.24 0.011 0.15 0.39 1,517.20 68.8 1.34
Mlbs = pounds
expressed in
millions
Moz = ounces
expressed in
million
Cu Eq. = copper
equivalent grade
*The copper equivalent ('Cu Eq.') cut-off calculation is based on metal
prices of 1,200 US$/oz gold, 2.90 US$/lb of copper and 15.95 US$/lb of
molybdenum, a mining cost of $1.35 US$/t mined and a processing cost of
5.12 US$/t milled. The Mineral Resource is reported at a cut-off grade
of 0.20 % Cu Eq. contained within a Lerchs-Grossman resource pit shell
optimized on copper, gold and molybdenum grades. The contained metal
figures shown are in situ. All figures have been rounded to reflect
accuracy and to comply with securities regulatory requirements
following 'best practice principles'. AMEC undertook quality assurance
and quality control studies on the mineral resource data and concludes
that the collar, survey, assay and lithology data are adequate to
support resource estimation.
Resource Estimation Methodology:
A total of 387 drill holes (approximately 88,685 metres) were used by
AMEC in estimating the mineral resources for the Schaft Creek deposit.
The impact of the high-grade samples on the resource estimate for the
Schaft Creek deposit was completed using uncapped and capped grade
models. The capping grade thresholds and the estimated percentage of
metal removed from the resource estimate are shown below in Table-2.
Table-2: Cap Grade Thresholds and Estimated Metal Removed
Main Zone Cap Grade Number Metal Removed Mean No Cap Mean Capped
Capped
Copper 1.30% 23 0.20% 0.26065 0.26025
Gold 2.0 g/t 13 0.80% 0.18185 0.18045
Moly > 0.01% 0.30% 9 0.70% 0.02259 0.02244
Moly < 0.01% 0.05% 41 4.70% 0.00575 0.00548
Breccia Zone Cap Grade Number Metal Removed Mean No Cap Mean Capped
Capped
Copper 2.00% 10 0.40% 0.27754 0.27653
Gold 2.0 g/t 13 3.40% 0.16103 0.15552
Moly > 0.01% 0.31% 4 0.50% 0.02526 0.02513
Moly < 0.01% 0.05% 13 5.90% 0.00696 0.00655
The procedures used for the purposes of the resource estimate (at a
0.12% Cu Eq. cut-off) are:
a) Sample assays were composited to fifteen metre intervals for
grade interpolation.
b) Grade shell solids using 0.1% copper and 0.01% molybdenum
cut-off grades were chosen based on the estimated economic
cut-off of 0.12% Cu Eq. Polygons were digitised on 50 and 100
m spaced east-west sections linked together from section to
section to form solids and then reconciled on a second set of
orthogonal sections.
c) Grade shells developed for the Schaft Creek deposit defined
two broad domains, namely the Main (Liard) zone and the
Breccia (Paramount) zone. The Main zone has a bowl shaped
geometry, whereas the Breccia zone has a tabular elongate
sub-vertical geometry.
d) Where gold assays were missing from the database, gold values
were assigned to these intervals using a linear regression
analysis against copper grades.
e) No significant statistical differences exist in copper, gold
and molybdenum grades between lithological rock types within
the Main zone. Significant differences exist between the metal
grades of the rock types present in the Breccia zone.
Validation of the grade estimates shows no global or local
bias. Some over smoothing in the kriged model is observed.
f) The legacy data corrections and regressions do not have a
significant impact on the estimation of copper, molybdenum and
gold grades.
g) The drill hole spacings for blocks in the Measured and
Indicated categories were based on confidence limits of
copper, gold and molybdenum grades determined by kriging for
the Liard (Main) zone and the Paramount (Breccia) zone
separately. Blocks included in the Measured category required
three drill holes within a 70 metre radius and Indicated
blocks required at least two drill holes within a 135 metre
radius. Blocks in the Measured category required that more
than two thirds of the ordinary kriging weight used in grade
interpolation came from the higher confidence Copper Fox drill
holes. Extrapolation of Inferred resource blocks is restricted
to the limits of the copper grade shells.
h) A total of 2,784 specific gravity determinations were used to
assign a constant specific gravity value of 2.69 g/cm(3) to
all lithological rock types. A constant value of 1.8 g/cm(3)
was assigned to all overburden material.
i) The estimated copper, gold and molybdenum grades were
determined using ordinary kriging using multiple estimation
passes with incrementally increasing search distances. In the
Main zone, five separate subdomains were used to split the
bowl shape into volumes with an approximately consistent
orientation.
Resource Statement:
For constraining the blocks to be reported as mineral resources, an
economic resource pit shell was developed using a Lerchs-Grossman
resource pit shell optimized on copper, gold and molybdenum grades
based on the parameters listed in Table-3. Metal prices used to
determine the pit shell were copper (US$2.90/lb), gold (US$1,200/oz)
and molybdenum (US$15.95/lb).
AMEC's marginal cut-off value of 0.12% Cu Eq. was determined based on
the parameters set out in Table-4.
The copper equivalent formula is derived below:
Cu Eq (%) = Cu (%) Mo (%) x Mo factor Au (g/t) x Au factor where:
Mo factor (%Cu per %Mo) 4.0568 Recovered $ from 1 % in-situ
Mo converted to % in-situ Cu
Au factor (%Cu per g/t 0.6243 Recovered $ from 1 g/t
Au) in-situ Au converted to %
in-situ Cu
Table-3: Optimization Parameters for Resource Pit Shell - Source: AMEC,
2011
Mining Costs Unit Value (US$)
Waste Mining Reference Cost $/t mined 1.35
Total Reference Mining Costs $/t mined 1.35
Process Tailings G&A Cost $/t milled 5.12
Mill Sustaining Capex $/t milled 0
Allowance
Closure Costs Allocation $/t milled 0.0
Total Ore Based Costs $/t milled 5.12
Cu Price US$/lb 2.90
Au Price US$/oz 1,200.00
Mo Price US$/lb 15.95
Selling Cost US$/lb Cu 0.53
US$/oz Au 6.00
US$/lb Mo 2.74
Cu Recovery % 86.5%
Au Recovery % 73.3%
Mo Recovery % 60.9%
Pit Slope(s) Degrees East 40°, West 44°
Table 4: Copper Equivalent Cut-off Calculation Parameters
Parameters Value
Processing (US$/t) Cost 5.12
Recovery (%) 86.5%
Price (US$/lb) 2.90
Mining Cost 0
Selling Cost (US$/lb) 0.53
Cut-off Cu equivalent (%) 0.12
The sensitivity of the mineral resource in the Schaft Creek deposit
(includes the Liard and Paramount zones) to either a reduction or
increase in copper equivalent cut-off is shown in Table-5. The base
case mineral resource above a 0.20% Cu Eq. cut-off is reported
separately within the Paramount zone (in Table-6) and within the Liard
zone (in Table-7).
Table-5: Sensitivity of Mineral Resource to Cut-Off Grade (David Thomas
P. Geo., Effective Date: May 1, 2011)
Resource Cut-Off Tonnage Copper Molybdenum Gold Cu Contained Metal
Eq.
Category Cu eq. (Million (%) (%) g/t (%) Cu Mo Au
Tonnes) (Mlbs) (Mlbs) (Moz)
Measured 0.10% 40.4 0.36 0.023 0.24 0.61 319.9 20.5 0.32
0.12% 40.4 0.36 0.023 0.24 0.61 319.9 20.5 0.32
0.15% 40.4 0.36 0.023 0.24 0.61 319.9 20.5 0.32
0.20% 40.3 0.36 0.023 0.25 0.61 319.6 20.5 0.32
0.25% 40.2 0.36 0.023 0.25 0.61 319.1 20.5 0.32
0.30% 39.4 0.36 0.023 0.25 0.61 316.0 20.3 0.32
Indicated 0.10% 995.3 0.27 0.017 0.17 0.44 5855.1 365.7 5.55
0.12% 994.9 0.27 0.017 0.17 0.44 5,854.5 365.7 5.55
0.15% 992.5 0.27 0.017 0.17 0.44 5850.1 365.5 5.54
0.20% 971.2 0.27 0.017 0.18 0.45 5795.7 363.2 5.50
0.25% 898.6 0.28 0.018 0.18 0.47 5558.3 353.0 5.29
0.30% 785.8 0.29 0.019 0.20 0.50 5105.9 333.7 4.93
Measured 0.10% 1035.7 0.27 0.017 0.18 0.45 6175.0 386.2 5.87
& 0.12% 1035.3 0.27 0.017 0.18 0.45 6174.4 386.2 5.87
Indicated
0.15% 1032.9 0.27 0.017 0.18 0.45 6169.8 386.0 5.86
0.20% 1011.5 0.27 0.017 0.18 0.46 6113.7 383.6 5.81
0.25% 938.8 0.28 0.018 0.19 0.47 5871.1 373.0 5.60
0.30% 825.3 0.30 0.019 0.20 0.50 5411.0 353.4 5.23
Inferred 0.10% 301.5 0.24 0.011 0.14 0.37 1562.4 70.3 1.38
0.12% 301.3 0.24 0.011 0.14 0.37 1562.1 70.3 1.38
0.15% 299.5 0.24 0.011 0.14 0.38 1558.5 70.2 1.38
0.20% 283.6 0.24 0.011 0.15 0.39 1517.2 68.8 1.34
0.25% 244.1 0.26 0.012 0.16 0.41 1385.4 64.2 1.24
0.30% 186.8 0.28 0.014 0.17 0.46 1150.6 56.6 1.05
Table-6: Mineral Resource Reported within the Paramount Zone (at 0.20%
Cu Eq. cut-off)
Resource Tonnage Copper Molybdenum Gold Cu Contained
eq. Metal
Category (million % % (g/t) % Cu Mo (Mlbs) Au
Tonnes) (Mlbs) (Moz)
Measured 16.1 0.32 0.024 0.21 0.55 114.1 8.5 0.11
Indicated 382.2 0.28 0.020 0.16 0.47 2,397.7 167.2 1.99
Measured
& 398.4 0.29 0.020 0.16 0.47 2,511.7 175.7 2.10
Indicated
Inferred 141.2 0.26 0.013 0.14 0.40 797.9 38.9 0.64
Table-7: Mineral Resource Reported within the Main Zone (Liard) at 0.20%
Cu Eq. cut-off
Resource Tonnage Copper Molybdenum Gold Cu Contained
eq. Metal
Category (million % % (g/t) % Cu Mo (Mlbs) Au
Tonnes) (Mlbs) (Moz)
Measured 24.2 0.39 0.022 0.27 0.65 205.5 12.0 0.21
Indicated 588.9 0.26 0.015 0.19 0.44 3,398.0 196.0 3.50
Measured
& 613.1 0.27 0.015 0.19 0.45 3,604.1 208.0 3.71
Indicated
Inferred 142.4 0.23 0.010 0.15 0.38 719.3 29.9 0.70
AMEC determined that the silver should not be reported as a part of the
mineral resource estimate due to data quality issues which preclude the
classification of Measured and Indicated resources including silver.
The silver grades within the Schaft Creek deposit range between 1 g/t
and 2 g/t.
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, and
molybdenum 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 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.
David Thomas P. Geo., of AMEC is the Qualified Person who prepared the
mineral resource estimate disclosed in this news release. 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 recently
completed resource estimate for the Schaft Creek deposit; the receipt
and filing of a National Instrument 43-101 compliant report related to
the updated resource estimate 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 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 updated resource
estimate; 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