Copper Fox Extends Mineralized Zone to the East and Completes Strategic Acquisitions to Enlarge Schaft Creek Property
VANCOUVER, Sept. 23, 2011 /CNW/ - Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc. ('Copper Fox' or the 'Company')
announced additional diamond drill results from the Paramount zone and the acquisition of four strategically located groups of mineral tenures located adjacent to the Schaft Creek project. Mr. Stewart stated that 'DDH CF410-2011 extends the zone of higher-grade mineralization to the east beyond the limits of the 2008 open pit and further demonstrates the mineralized nature of the chargeability anomaly outlined in 2010. The acquired mineral claims provide additional coverage of the interpreted extension of the Schaft Creek mineral trend and the presence of low grade copper mineralization on these new claims increases the potential to find additional mineralization to the north and south of the Schaft Creek deposit.'Highlights of Acquisitions:
a) Diamond drill hole (DDH) CF410B-2011 located 104 metres (m)
east of DDH CF407-2011, intersected 0.30% copper, 0.10 g/t
gold, 0.02% molybdenum and 1.23 g/t silver (0.52% copper
equivalent) over an interval of 250.75m starting at a down hole
depth of 262.08m. The mineralized interval in DDH CF410B-2011
is open to the east and confirms the mineralized nature of the
chargeability anomaly identified in 2010,
b) DDH CF410B-2011 intersected a second interval of mineralization
that averaged 0.51% copper, 0.18 g/t gold, 0.026% molybdenum
and 1.42 g/t silver (0.78% copper equivalent) over a core
interval of 24.68m from a down hole depth of 544.60m to a depth
of 569.28m,
c) Approximately 6,115 hectares contiguous to the north, south and
west side of the Schaft Creek project has been acquired. The
mineral tenures located north of the Schaft Creek project cover
the extension of the magnetic trend outlined by Copper Fox. The
historical data from these tenures indicates up to 1,930 part
per million copper in soils, and
d) The results for the Titan-24 geophysical survey performed over
the Mike, ES and GK zones are expected to be received in early
October.
Diamond Drilling:
A total of 7 diamond drill holes have been completed in the Paramount zone to date in 2011. Three diamond drills are currently working on the Paramount zone collecting geotechnical information and testing the chargeability anomaly outlined in 2010 to the east. The weighted average grades for the mineralized intervals in DDH CF410B-2011 (at zero cut-off) and the estimated recoverable copper equivalent grades are set out below:
From Interval copper gold silver molybdenum Cu
DDH ID Dip Azimuth (m) To (m) (m) (%) (g/t) (g/t) (%) Eq
(%)
CF410B-2011 -70 90 262.08 514.85 250.75 0.304 0.10 1.23 0.020 0.52
and 544.6 569.28 24.68 0.514 0.18 1.42 0.026 0.78
The core intervals reported in the above table are not true widths
DDH CF410-2011 is located on the same section as DDH CF399-2010 and DDH CF407-2011 and is located 104m east of DDH CF407-2011. The upper 262.08m of this hole intersected pyritic altered andesite, granodiorite, hydrothermal breccias and thick mafic dikes as expected (in-line with the geological model). The core interval from 262.08m to 514.85m exhibits visible chalcopyrite, bornite and molybdenite in potassic and phylitic altered intrusive breccia, granodiorite, andesite and multiple thin un-mineralized mafic dikes.
The second interval of mineralization is higher grade and is interpreted to represent a second phase of mineralization at Schaft Creek.
Rationale for the Mineral Tenure Acquisitions:
To view the location of the interpreted Schaft Creek Mineral Trend, visit the Copper Fox website at www.copperfoxmetalsinc.com.
These mineral claims are located along strike of the interpreted Schaft Creek Mineral Trend and are immediately north of one of the strong aeromagnetic anomalies located by the high resolution airborne magnetic survey completed by Copper Fox earlier in 2011. Although the historical exploration data is limited, the data shows the presence of elevated concentrations of copper both in soil and in rock samples within these mineral claims. Based on these criteria, the potential to find additional mineralization on the recently acquired mineral properties is considered good to excellent.
Mineral Tenure Acquisitions:
Details of the transactions are provided below and the Purchase Agreements will be filed on Sedar. The four mineral claim blocks (consisting of 41 mineral tenures totaling 6,115.11 hectares) from Randy Marko and Paul Mott ('Marko/Mott') are contiguous to the Company's Schaft Creek project. Consideration paid by Copper Fox was $20,000 cash, 25,200 common shares of Copper Fox and a 2% net smelter return (NSR) royalty on the mineral claims subject to a 'Partial NSR Buyout Option'. The Partial NSR Buyout Option allows Copper Fox at any time to purchase half of the NSR for a cash payment of $1.0 million such that the NSR is reduced from 2% to 1%.
Diamond Drilling and Sampling Procedures:
The diamond drilling was completed using an HQ and NQ core size. Core recovery was estimated to be greater than 96%. After cutting with a diamond saw, one half of the core was collected for sample preparation and analysis and the other half is retained for future reference. Sample intervals were selected based on lithology changes/alteration intensity/estimated mineral content and ranged from 0.55 to 3.00 metres. The majority of the samples were collected on a 2.0m sample interval. Sample preparation was completed by ACME Analytical Laboratories Ltd ('ACME') located in Smithers, British Columbia and analyses were completed by ACME in Vancouver, British Columbia.
Base metals were assayed using the ACME's 7TD package which includes 4-acid digestion and ICP-ES finish. Lower detection limits are as follows: Cu >0.001%, Mo >0.001%, Silver values are determined by the 1EX with a lower detection limit of 0.1g/t. Gold is assayed by the G6 fire assay package - fusion of a 30-gram followed by ICP-ES finish; with a lower detection limit of 0.005 g/t. ACME has an 9001:2008 International Standard Organization rating.
Recoverable copper equivalent calculations are based on 88% of the copper content plus 81% of the gold content, 72% of the molybdenum content and 71% of the silver content. Metal prices are copper $US2.50/pound, gold $US1,075/ounce, molybdenum $US17.00/pound and silver $US16.10/ounce.
Quality Control
Copper Fox follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards, blanks and duplicates into the sample stream submitted to the laboratory for analysis.
Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Corporation'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.
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, silver and molybdenum deposits in North America. 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 21,024.96 hectare (51,954 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 ($61.8 million as of June 30, 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.
In March 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totalling 2,978.32 hectares (7,360 acres) (the 'March 2011 Mineral Claims') which are subject to a 2% Net Smelter Return ('NSR'). Copper Fox has the option to repurchase, at any time, one-half of the NSR on the March 2011 Mineral Claims for a total purchase price of $3 million. In September 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totalling 6,115.11 hectares (15,111 acres) (the 'September 2011 Mineral Claims') which are subject to a 2% NSR. Copper Fox has the option to repurchase, at any time, one-half of the NSR on the September 2011 Mineral Claims for a purchase price of $1 million. The March 2011 Mineral Claims and the September 2011 Mineral Claims are subject to inclusion with the Schaft Creek project under the terms of the Area of Interest provisions of the Teck Option Agreement.
Additionally Copper Fox holds mineral claims totaling 3,947.06 hectares (9,753 acres) in the Liard Mining District of BC not subject to the Teck earn-back.
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 and the significance of the Marko/Mott 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 Marko/Mott mineral claims; the timing and scope of the feasibility study for the Schaft Creek project; estimated timing and amounts of future expenditures and 'earn-back' options.
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 Marko/Mott mineral claims. 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 interpreted extension that hosts the Schaft Creek deposit may not extend into the Marko/Mott mineral claims; another deposit may never be discovered to the north of the Schaft Creek deposit; the Marko/Mott 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.
Copper Fox Metals Inc.
CONTACT: Investor line 1-866-913-1910 or J. Michael Smith, EVP, at
1-604-689-5080