CALGARY, Feb. 24 /CNW/ -- Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) announces its 2009 fourth quarter and year-end results. The Company reported net income for the fourth quarter of $1,533,575 ($0.01 income per share) and a loss of $28,524,604 ($0.19 loss per share) for the year ended October 31, 2009. The income earned in the fourth quarter results from the recognition of a future income tax reduction of $2,451,000 that had not been previously recorded. Included in the year end loss is a $31,000,000 write-down of its mineral property at Schaft Creek taken in the first quarter and a related future income recovery of $2,183,280 as well as stock based compensation charges $947,355. These amounts do not affect the operational cash flow of the Company for the year which was ($947,355) compared to ($2,183,280) for the year ended October 31, 2008. 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.
On January 21, 2010 the Company announced that it has awarded the contract to complete a feasibility study on the Schaft Creek copper-gold-molybdenum-silver deposit to Wardrop, a Tetra Tech Company (Wardrop). It is expected that the feasibility study will be completed in the fourth quarter 2010.
In conjunction with completion of the feasibility study, the Company is preparing the documentation necessary to file its environmental permit application for the development of the Schaft Creek project.
During the last quarter, the Company focused on completing all outstanding geotechnical studies completed during the 2008 field season. In addition to these studies sampling and collection of data for the ongoing environmental studies of the area around the Schaft Creek continued. The completion of the geotechnical studies and ongoing environmental sampling and data collection has allowed the Company to commence preparation of a feasibility study on the Schaft Creek deposit.
One significant highlight of the 2008 field work, the results of which were received in late 2009 was the identification of two large Induced Polarization/Resistivity ("IP Anomalies") anomalies on the Schaft Creek project located in northwest British Columbia, Canada. The Induced Polarization/ Resistivity Survey was completed over a 6.2 square kilometre (sq km) area located between the Schaft Creek copper-molybdenum-gold-silver deposit and Mess Creek a distance of 2,800 meters (m). Induced Polarization/ Resistivity ("IP") surveys are commonly used in the mineral industry to explore for copper porphyry style of mineralization similar to that at Schaft Creek.
Selected Financial Information
Net Gain/(loss) Net (loss)/income per share -
basic and diluted
Fourth Quarter $ 1,533,575.00 $ 0.01
Third Quarter $ (491,057) $ -
Second Quarter $ (431,763) $ -
First Quarter $ (29,135,359) $ (0.28)
Fourth Quarter $ 1,890,230 $ 0.02
Third Quarter $ (1,307,512) $ (0.01)
Second Quarter $ (720,878) $ (0.01)
First Quarter $ (598,554) $ (0.01)
Liquidity and Capital Resources:
During the fourth quarter the Company's working capital improved by $647,022 to $2,544,341. This was as a result of the Company completing a $1.9 million (net of $21,296 in selling costs) financing in October. This money is being used to continue with the feasibility study and for general corporate purposes. The Company has sufficient funds available to meet its current obligations. The cash requirements in the next year will be significant as the Company plans to complete a feasibility study. At the end of this fiscal year the Company has spent approximately $40 million toward this study. The Company will require additional capital to complete this study and to provide for the administration of its Calgary and Vancouver offices. The Company believes that it will raise this capital through the public markets and through the continued exercise of its outstanding options and share purchase warrants.
About Copper Fox
Copper Fox is a Canadian-based resource company listed on the TSX-Venture Exchange (CUU). The Company's activities are focused exclusively on the Schaft Creek deposit, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox holds mineral title to the 51,494 acres comprising the Schaft Creek Mineral Deposit subject to 30% net proceeds interest held by Liard Copper Mines Limited (78% owned by Teck Resources Limited (Teck)) and a earn-back option held by Teck.
The Schaft Creek Project is situated in northwest British Columbia. The Company has recently awarded a contract to Wardrop to complete the feasibility study on the Schaft Creek deposit. The results of a preliminary feasibility study ("PFS") on the Schaft Creek deposit dated September 15, 2008 have outlined a proven and probable mineral reserve of 821 million tonnes and a processing rate of 100,000 tonne of ore per day utilizing open pit mining and standard flotation to recover the copper-gold-molybdenum and silver. The PFS indicated Schaft Creek could produce approximately 4.8 billion pounds of Copper, 255.1 million pounds of molybdenum, and 4.5 million ounces of gold and 32.5 million ounces of silver over a 22.6 year mine life.
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 includes "forward-looking information" within the meaning of the Canadian securities laws. All statements, other than statements of historical fact, included herein and including, without limitation; anticipated dates for receipt, commencement or completion of permits, approvals, construction, production and other milestones; anticipated results of drilling programs, scoping, prefeasibility and feasibility studies and other analyses; anticipated availability and terms of future financings; estimated timing and amounts of future expenditures; Copper Fox's future production, operating and capital costs; operating or financial performance; geological interpretations and potential mineral recovery processes, are forward-looking statements. 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. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies. For any forward looking information given, management has assumed that the geological, metallurgical, engineering, financial and economic advice it has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from Copper Fox's expectations include: 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, production estimates and estimated economic return; the need for co-operation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; 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; and other risks and uncertainties disclosed in Copper Fox's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release is based on Copper Fox's current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law.