Copper Fox Drilling expands Paramount zone with intersection of 1.10% CuEq over 65m, and updates corporate activities
VANCOUVER, Dec. 12, 2011 /CNW/ - Copper Fox Metals Inc. (TSX-Venture: CUU) is pleased to announce additional diamond drilling assay results from the Paramount zone of the Schaft Creek copper-gold-molybdenum-silver deposit, an update on the status of feasibility study and other corporate activities. The 2011 field program was completed the last week of November. To view the location of 2011 drill holes completed to date, visit the Copper Fox website at www.copperfoxmetals.com. Highlights are:
-- Diamond drill hole (DDH) CF415-2011 located 284 metres (m)
north and 81m east of DDH CF409-2011, intersected 0.49% copper,
0.55g/t gold, 0.04% molybdenum and 8.79g/t silver (1.10% copper
equivalent) over an interval of 65.53m starting at a core
length of 99.00m,
-- DDH CF413-2011 located 119m north and 86m west of DDH
CF411-2011, intersected 0.34% copper, 0.21g/t gold, 0.03%
molybdenum and 2.25g/t silver (0.65% copper equivalent) over an
interval of 130.65m starting at a core length of 161.00m,
-- A significant amount of work has been accomplished towards
completion of the Schaft Creek Feasibility Study however it is
apparent the engineers involved will not be in a position to
finalize the report before month-end. Completion of the
feasibility study is now expected to be in the first quarter of
2012.
-- The Company intends to complete a revised resource estimate for
the Schaft Creek deposit which will incorporate all of the
favorable results reported during the 2011 drilling campaign
extending the mineralization and reporting significantly higher
grades than those currently reported for the Paramount Zone,
this report is anticipated by Q2 2012,
-- Pursuant to National Instrument 43-101 and its companion
policies; until the feasibility study is completed, there are
no current mineral reserves estimated for the Schaft Creek
deposit, and
-- Elmer Stewart has been elected a director of Liard Copper Mines
Limited.
Mr. Stewart, President of Copper Fox stated, 'DDH CF415 was drilled at the north end of the proposed open pit for essentially condemnation purposes. The results for this hole are a significant development in understanding the potential and size of the Paramount zone. The thickness of the mineralization and assays from this hole demonstrate that mineralization could extend a considerable distance to the north past this hole location. Most importantly, the results of DDH CF415 and DDH CF413 have extended the mineralization a considerable distance beyond that outlined in the current resource estimate which is being used to design the proposed open pit mine plan contemplated in the feasibility study. The Company has commissioned Tetra Tech WEI Inc. (formerly Wardrop) to prepare an updated resource estimate incorporating the significant new data provided by the results of the 2011 drilling campaign which extended the zones of mineralization and reported higher average grades than those currently reported for the Paramount Zone.'
Diamond Drilling Analytical Results:
The weighted average grades for DDH CF413-2011 and CF415-2011 were estimated using a zero cutoff grade, see table below. One core interval of 41m corresponding to a late basic dike in DDH CF413-2011 was not used in estimating the weighted average grade of the mineralization. A high-grade silver assay in DDH CF415-2011 (assayed 200 g/t silver over 2.0m) was cut to 31.1 g/t for purposes of estimating the weighted average grade of the silver in this drill hole. DDH CF414-2011 was a geotechnical hole completed to a depth of 192m to provide information on pit slope stability for use in the feasibility study. This hole intersected several intervals (2m) with anomalous concentrations of up to 0.013% copper and 0.169 g/t gold.
DDH CF413-2011: The mineralization commences at a core length of 38.7m and continues to the end of the hole at 576.68m. Disseminated and fracture/veinlet controlled chalcopyrite, bornite and molybdenite occur in potassic and phyllic altered granodiorite, andesite, intrusive breccia and feldspar porphyry dikes. The mineralization on this section has been extended an additional 110m west of the proposed open pit designed in 2008. This hole intersected a considerable number of un-mineralized late basic dikes.
DDH CF415-2011: This hole was drilled to the west and undercut several shallow (100m deep) pre 2005 drill holes that intersected weak copper mineralization. The mineralization commenced at a core length of 13.0m and continues to the bottom of the hole at 626.0m. Chalcopyrite, bornite and molybdenite occur as disseminations and as fracture/veinlet filling in potassic, phyllic and biotite altered brecciated granodiorite and andesite. This hole has extended the mineralization an additional 284m along strike and 340m below the floor of the proposed open pit designed in 2008 to a vertical depth of 470m below surface.
________________________________________________________________________________
|DDHID |Azimuth|Dip|From |To (m)|Interval|Copper|Gold|Molybdenum|Silver|CuEq|
| | | |(m) | |(m) |(%) |( |(%) |(g/t) |(%) |
| | | | | | | |g/t)| | | |
|__________|_______|___|______|______|________|______|____|__________|______|____|
|CF413-2011|270 |-64|38.70 |161.00|122.29 |0.24 |0.04|0.007 |0.94 |0.31|
| | | |161.00|291.65|130.65 |0.34 |0.21|0.030 |2.25 |0.65|
| | | |334.40|576.68|242.28 |0.17 |0.23|0.009 |0.91 |0.36|
|__________|_______|___|______|______|________|______|____|__________|______|____|
|CF415-2011|270 |-67|13.00 |99.00 |86.00 |0.23 |0.04|0.013 |1.81 |0.35|
| | | |99.00 |164.53|65.53 |0.49 |0.55|0.040 |8.79 |1.10|
| | | |164.35|286.90|122.55 |0.07 |0.13|0.010 |0.59 |0.22|
| | | |286.90|595.15|308.25 |0.18 |0.17|0.020 |0.94 |0.40|
|__________|_______|___|______|______|________|______|____|__________|______|____|
Note: The core intervals listed in the above table do not represent true widths.
Feasibility Study:
Although significant work has been completed on most of the important segments of the Feasibility Study of the Schaft Creek Mineral Deposit there remain some key elements yet to be finalized by the engineers. This will result in a delay of its completion until the 1(st) quarter of 2012. Additionally the Company has commissioned Tetra Tech to prepare an update to the July 26, 2011 Resource Estimate prepared by AMEC which will include all of the drilling results reported in the Paramount Zone as a result of the Schaft Creek 2011 drilling campaign
The assay results received from the 2011 drilling program have extended in three directions the limits of the mineralization in the Paramount zone. In addition, assay results for five additional drill holes completed in the Paramount zone are yet to be received.
a) DDH CF415-2011 has extended the mineralization in the Paramount zone an additional 250m to the north; the mineralized zone remains open to the north;
b) DDH CF413-2011 and DDH CF408-2011 have extended the mineralization to the west an additional distance that ranges from 55m to 110 m. The western extent of the mineralization has been established;
c) DDH CF410B-2011 has extended the mineralization in the Paramount zone approximately 140m to the east, the mineralized zone remains open to the east under Mount LaCasse; and
d) the grade of the 2011 diamond drill results received to date from the Paramount zone is 0.34% copper, 0.22 g/t gold, 0.034% molybdenum and 1.99 g/t silver which exceeds the average grade of the metals as set out in the current indicated mineral resource estimate (0.27% copper, 0.18g/t gold and 0.017% molybdenum) completed by AMEC Americas Limited.
On July 26, 2011 AMEC completed an Updated Resource Estimate for the Schaft Creek Project, which is contained in a NI 43-101 technical report. The AMEC technical report supercedes the Resource and Reserve Estimates set out in the technical report referred to as the Preliminary Feasibility Study. Copper Fox is currently working on the feasibility study for the Schaft Creek Project and there is no certainty that results of the Preliminary Feasibility Study will be realized. Until the feasibility study is completed, there are no current mineral reserves for the Schaft Creek Project.
Liard Copper Mines Limited:
Teck Resources Limited invited Elmer B. Stewart to join the board of directors of Liard Copper Mines Limited ('Liard'). The annual general meeting of shareholders of Liard was held on November 30, 2011 at which time, Mr. Stewart's appointment as director was approved by the shareholders of Liard.
Diamond Drilling and Sampling Procedures:
The diamond drilling was completed using an 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 is 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 $US1,075.00/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 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 first quarter of 2012.
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 and an earn back option held by Teck Resources Limited ('Teck'). Copper Fox is currently earning a 78% interest in Liard 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 ($70.8 million as of October 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 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 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, molybdenum 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