Apr. 13, 2011 (Canada NewsWire Group) --
VANCOUVER, April 13 /CNW/ - ("Copper Fox" or the "Company") (TSXV: CUU) is pleased to announce completion of the 3D modeling of the two Quantec Titan-24 surveys completed over the Schaft Creek deposit in 2010 and the awarding of a contract to complete a high resolution airborne magnetometer survey over the entire Schaft Creek project including the recently acquired mineral properties (see news release dated March 24, 2011).
Elmer B. Stewart President and CEO of Copper Fox stated "We are excited about commencing the 2011 work program that includes the Schaft Creek deposit, the two very large, relatively unexplored zones of copper mineralization exposed in outcrop on the recently acquired mineral claims and the 15 kilometre (kms) long Schaft Creek mineralized trend. The airborne geophysical survey is expected to be very helpful in outlining the strike extent of the Schaft Creek mineral trend and identifying additional targets within this trend consistent within the existing mineralized zones. Planning for the 2011 diamond drilling program 8,000 metres (m) for the Schaft Creek deposit is underway. The drilling is expected to commence subject to weather conditions in early May".
3D Modeling Quantec Geophysical Data:
To view the 3D model of the Quantec Titan-24 survey data over the Schaft Creek deposit, visit the Copper Fox website at www.copperfoxmetals.com. A brief explanation of the model is as follows; the dotted lines on the model represent the topographic profiles for the lines on which the Quantec Titan-24 geophysical survey were completed. The solid shapes represent the outline of the 25 mrad chargeability anomaly. An interpreted cross-section (L1600N or 6360900mN) showing the relation of the 2010 diamond drilling and the chargeability anomaly was previously posted to the website.
Based on the 3D model the following observations can be made:
|a)||Within the area of the 2010 diamond drilling (around L1600N), the chargeability anomaly has a depth extent of at least 1,000 metres and is interpreted to be the core (the Root Zone) of the Schaft Creek deposit,|
|b)||The model shows a distinct departure between the topographic profile (the surface) and the underlying chargeability anomaly except on one line in the central area of the Schaft Creek deposit where the outline of the chargeability anomaly matches the topographic profile,|
|c)||The large zone of chargeability (labeled Area B) at the south end of the block starts at a depth of approximately 100m below surface. Drill hole DDH CF404-2010 was intended to test this anomaly but intersected low-grade copper mineralization in volcanic before drilling into an interpreted steeply dipping late mafic dike, and was not able to reach its target. As a result, the chargeability anomaly has not yet been tested, and|
|d)||The large zone of chargeability (labeled Area A) at the north end of the block (not yet tested by diamond drilling) is interpreted to represent the edge of a potential new zone of mineralization. Additional Quantec Titan-24 surveying will be required to delineate this zone of chargeability.|
Airborne Geophysical Survey:
Copper Fox has awarded a contract to complete a high sensitivity airborne magnetometer survey to Precision GeoSurveys Inc. of Vancouver, British Columbia. The purpose of the survey is to identify the magnetic signature of the Schaft Creek copper-gold-molybdenum-silver deposit and use this signature to identify other potential mineralized zones within the interpreted Schaft Creek mineral trend. This trend currently hosts the Schaft Creek deposit and two very large, unexplored zones of mineralization exposed in outcrop. These zones exhibit many similarities to the mineralization located in the Paramount Zone at the north end of the Schaft Creek deposit.
|a)||The first zone (named the ES Zone) is located approximately 3 kms north of the Paramount Zone of the Schaft Creek deposit and measures at least 1,100m long by 300m wide. The 32 samples collected from this zone averaged 0.87% copper and 0.31 g/t gold, and|
|b)||The second zone (named the GK Zone) is located approximately 3 kms north of the ES Zone and measures at least 1,700m long by 250m wide. The 17 grab and chip samples collected from the GK Zone averaged 1.24% copper, 16 g/t silver and 0.07g/t gold.|
The airborne survey is estimated to be 2,500 line kms (including flight lines and tie lines) at 200m line spacing over an area that measures approximately 25 kms long by 17 kms wide. This survey is expected to commence in mid to late April 2011 and is expected to take one - two weeks to complete, subject to weather conditions.
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 TSX Venture 50® are the top 10 companies listed on the TSX Venture Exchange, in each of five major industry sectors - mining, oil & gas, technology & life sciences, diversified industries and clean technology - based on a ranking formula with equal weighting given to return on investment, market cap growth, trading volume and analyst coverage. All data was as of December 31, 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. 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 results of the PFS were extremely "robust" reporting a NPV @ 8% (before tax) of $2.8 billion dollars over a 23 year mine life. They contemplated processing 100,000 tonne per day ("tpd") from an open pit mine using a standard flotation recovery process. The PFS estimated the current Mineral Resources (using a 0.2% copper equivalent cutoff) at Schaft Creek includes; Measured Resources of 463.5 million tonnes grading 0.30% copper, 0.23 g/t gold, 0.02% molybdenum and 1.55 g/t silver, Indicated Resources of 929.8 million tonnes grading 0.23% copper, 0.15 g/t gold, 0.02% molybdenum and 1.56 g/t silver.
A Feasibility Study is being led by Wardrop, A Tetra Tech Company on a minimum 120,000 tpd open pit mine and the study is expected to be completed by the end of June 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 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 ($58.1 million as of March 29, 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.
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.
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 mineralization, airborne geophysical, surveys, 3D modeling of IP surveys, geology, apparent control on the mineralization and significance of the Pembrook and Greig/Kreft 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 Pembrook and Greig/Kreft mineral claims; the timing of an updated resource estimate; the timing and scope of the feasibility study for the Schaft Creek project; statements about the results of the PFS, including tones per day processing; 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 mineralization and significance of the Pembrook and Greig/Kreft mineral claims; 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 interpresented extention that hosts the Schaft Creek deposit may not extend into the Greig/Kreft and Pembrook mineral claims; another deposit may never be discovered to the north of the Schaft Creek deposit; the Greig/Kreft and Pembrook 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.
Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080