Drilling intersects 0.91% copper equivalent over 387m at Schaft Creek
VANCOUVER, Nov. 15, 2011 /CNW/ - Copper Fox Metals Inc. (TSX-Venture: CUU) is pleased to announce additional assay results for two diamond drill holes completed in the Paramount zone of the Schaft Creek copper-gold-molybdenum-silver deposit. An update on diamond drilling and geotechnical activities related to open pit slope design for the feasibility study is also presented. We also advise that two diamond drills are currently working at Schaft Creek to test the northern extension of the copper-gold-molybdenum-silver mineralization in the Main zone and to sterilize areas around the deposit designated for waste storage. To view the location of 2011 drill holes completed to date, visit the Copper Fox website at www.copperfoxmetals.com. Highlights of the drilling activities are:
Highlights:
-- Diamond drill hole (DDH) CF411-2011 located 140 metres (m)
north of DDH CF410B-2011, intersected 0.49% copper, 0.30 g/t
gold, 0.04% molybdenum and 2.43 g/t silver (0.91% copper
equivalent (CuEq)) over an interval of 387.8m starting at a
core length of 287.0m.
-- The 387.8m interval in DDH CF411-2011 is included in a 590.4m
interval that averaged 0.39% copper, 0.25 g/t gold, 0.031%
molybdenum and 2.06 g/t silver (0.73% CuEq). This drill hole
stopped in 0.72% CuEq mineralization at a vertical depth of
615m below surface.
-- DDH CF412B-2011 located 50m south and 75m east of DDH
CF402-2010, intersected 0.48% copper, 0.27 g/t gold, 0.038%
molybdenum and 3.61 g/t silver (0.89% CuEq) over an interval of
145.2m starting at a core length of 106.58m.
-- The 145.2m interval in DDH CF412B-2011 is included in a 529.5m
interval that averaged 0.38% copper, 0.28 g/t gold, 0.023%
molybdenum and 2.30 g/t silver (0.70% CuEq) over a core
interval of 529.5m from 106.58m to the end of the hole. This
drill hole stopped in 0.45% CuEq mineralization at a vertical
depth of 670m below surface,
-- The interval from 6.58m to 106.58m in DDH CF412B-2011 averaged
0.33% CuEq as expected from the morphology of the deposit. and
-- The mineralized intervals in both DDH CF411-2011 and
CF412B-2011 are open at depth, to the east and to the west.
Mr. Stewart, President of Copper Fox stated, 'We are very pleased to report that the 2011 drill results continue to expand the limits of the higher-grade mineralization with all drill holes containing significantly higher metal and copper equivalent grades than reported in the updated resource estimate for the Paramount zone. Diamond drill holes CF411-2011 and CF412B-2011 have intersected multiple thick zones of higher-grade and extended mineralization to the east, west and at depth'.
Diamond Drilling Analytical Results:
The weighted average grades for DDH CF411-2011 and CF412B-2011 were estimated using a zero cutoff grade, see table below. A high-grade silver assay in DDH CF411-2011 (assayed 1,689 g/t silver (54.3 ozs) over 3.0m) was cut from 1,689 g/t to 31.1 g/t for purposes of estimating the weighted average grade of the silver in the mineralized interval in this drill hole.
DDH CF411-2011 was drilled to a total depth of 745.5m. The mineralization commences at a core length of 155.1m and continues to the end of the hole at 745.5m. The last sample in this hole returned 0.72% copper equivalent mineralization. Disseminated and fracture/veinlet controlled chalcopyrite, bornite and molybdenite occur in potassic and phyllic altered Intrusive Breccia and Granodiorite. The interval from 206.0 to 209.0 (core recovery of less than 20%) assayed 1,689 g/t silver (54.3 ozs). The upper 155.1m of this hole was not mineralized as expected based on the morphology of the mineralized zone. This drill hole has extended the mineralization at depth an additional 175m.
From To Interval Copper Gold Molybdenum Silver CuEq
DDH ID Dip Azimuth (m) (m) (m) (%) (g/t) (%) (g/t) (%)
CF411-2011 -70 270 155.10 745.54 590.44 0.39 0.246 0.031 2.06 0.73
including 155.10 287.00 131.90 0.17 0.047 0.006 1.26 0.24
and 287.00 674.80 387.80 0.49 0.300 0.040 2.43 0.91
CF412-2011 - 60 90 6.58 106.58 100.00 0.16 0.165 0.010 1.80 0.33
106.58 636.12 529.54 0.38 0.280 0.023 2.30 0.70
including 106.58 252.10 145.21 0.48 0.274 0.038 3.61 0.89
and 367.00 512.41 145.41 0.40 0.424 0.018 2.39 0.78
Note: The core intervals listed in the above table do not represent true widths.
DDH CF412B-2011 was drilled to a depth of 636.1m. The mineralization commenced at a core length of 6.58m and continues to the bottom of the hole at 636.1m. Chalcopyrite, bornite and molybdenite occur as disseminations and as fracture/veinlet filling in potassic, phyllic and biotite altered brecciated Granodiorite, Andesite and polylithic Intrusive Breccia. This hole was stopped in 0.45% copper equivalent mineralization. This hole has extended the mineralization an additional 85m to the east and 65m below the mineralization intersected at the bottom of DDH CF402-2010. This hole contains two intervals of higher grade mineralization with the upper interval containing higher grades of molybdenite and the lower interval higher gold grades.
2011 Diamond Drilling Summary:
The 2011 diamond drilling summary is set out below. Several holes were terminated due to difficult ground conditions. DDH CF425-2011 is the last hole for the 2011 field season. The assay results for DDH CF407-2011 through DDH CF412B-2011 have been reported. The assays for the remainder will be reported when received.
2011 Diamond Drilling Summary
Final
HoleID Northing Easting RL Depth Azimuth Dip Purpose
2011CF407 6360654 379549 944 735.8 95 -70° Delineation Drilling
2011CF408 6360654 379547 944 377.4 274 -60° Delineation
Drilling/Geotechnical
2011CF409 6361039 379466 995 473.7 7 -60° Delineation Drilling
2011CF410 6360658 379652 975 41.8 90 -70° Delineation Drilling
2011CF410B 6360660 379654 975 678.8 90 -70° Delineation Drilling
2011CF411 6360801 379741 1035 745.5 272 -70° Delineation Drilling
2011CF412 6360991 379380 962 63.7 90 -60° Delineation
Drilling/Geotechnical
2011CF412B 6360990 379381 962 636.1 90 -60° Delineation
Drilling/Geotechnical
2011CF413 6360921 379654 1033 576.7 270 -64° Delineation Drilling
2011CF414 6361273 379775 1198 192.0 90 -60° Geotechnical/Exploration
2011CF415 6361324 379547 1100 626.0 270 -67° Delineation
Drilling/Geotechnical
2011CF416 6361436 379885 1341 331.3 47 -60° Geotechnical/Exploration
2011CF417 6361273 379775 1198 700.0 65 -70° Geotechnical/Exploration
2011CF418 6360510 379705 963 69.2 270 -60° Delineation
Drilling/Geotechnical
2011CF418B 6360513 379703 963 693.1 270 -60° Delineation
Drilling/Geotechnical
2011CF419 6359456 380302 1037 398.7 205 -64° Delineation
Drilling/Geotechnical
2011CF420 6360350 379949 1025 in 270 -55° Delineation
progress Drilling/Geotechnical
2011CF421 6358853 380066 966 327.0 90 -60° Geotechnical/Exploration
2011CF422 6362562 377977 863 318.0 90 -50° Geotechnical/Exploration
2011CF423 6359498 379185 874 253.3 272 -55° Delineation
Drilling/Geotechnical
2011CF424 6359383 379169 881 154.2 270 -55° Delineation
Drilling/Geotechnical
2011CF425 6360258 3797760 943 in 260 -60° Delineation
progress Drilling/Geotechnical
Diamond Drilling and Sampling Procedures:
The diamond drilling was completed using a HQ and NQ core size. Overall core recovery was estimated to be greater than 98%. After cutting with a diamond saw, one half of the core is collected for sample preparation and analysis and the other half retained for future reference. Sample intervals were selected based on lithology changes/alteration intensity/estimated mineral content and ranged from 0.73 to 3.10 metres. The majority of the sample intervals were 2.0m. 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, molybdenum and silver deposits in North America. The feasibility study is being led by Tetra Tech WEI Inc. on a minimum 120,000 tpd open pit mine and is expected to be completed during the fourth quarter of 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 a 3.5% Net Profits Interest held by Royal Gold, Inc., 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 ($63.6 million as of July 31, 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 totaling 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 totaling 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 the timing and scope of expected diamond drilling; the completion of the Feasibility Study; 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 may not be completed within the contemplated time frame, or at all; the possibility that the analytical results of the core samples 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, the completed drill holes for which analytical results are not available may not return significant concentrations of either copper, gold, molybdenite or silver; 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