May 5, 2011 (Canada NewsWire Group) --
VANCOUVER, May 5 /CNW/ - ("Copper Fox" or the "Company") (TSXV: CUU) is pleased to provide its shareholders an update of activities as well as its 2011 plans for the Schaft Creek project.
|a)||Copper Fox has been advised by AMEC to expect the updated resource estimate on the Schaft Creek deposit later this month,|
|b)||The high resolution airborne survey of the Schaft Creek project has commenced and is expected to be completed within 10 days subject to weather conditions, and|
|c)||Diamond drilling is expected to commence later this month subject to snow conditions. The first drill hole of the 2011 season will be the completion of DDH CF2101-406 which had to be capped due to weather conditions at the end of the 2010 season.|
Elmer B. Stewart President and CEO of Copper Fox stated "The objectives of the 2011 program are to expand the limits of the mineralization in the Paramount zone of the Schaft Creek deposit and to try and locate another deposit of copper-gold-molybdenum-silver mineralization. In addition to the Schaft Creek deposit, two large zones of copper-gold mineralization and a large chargeability anomaly are located within the Schaft Creek project none of which have ever been tested by diamond drilling. The potential for any one of these zones to host a large copper-gold-molybdenum-silver deposit is considered to be high".
Copper Fox has been advised by AMEC Americas Limited ("AMEC") to expect an updated resource estimate on the Schaft Creek deposit later this month. Mr. Stewart, President and CEO of Copper Fox stated, "While it is disappointing the resource estimate has taken longer than originally anticipated, we are pleased to report that AMEC continues to diligently work towards finalizing this report. It is important always to keep in mind, that given the nature of the work, it will continue to be difficult to predict the precise date that AMEC will complete its work, and it may well take until later in May before the Company receives delivery of the report. We very much look forward to receiving the updated resource estimate from AMEC as it marks a major milestone for Copper Fox and a very important step in the development of the Schaft Creek project".
Airborne Geophysical Survey:
The drilling completed in 2010 demonstrated that the copper-gold-molybdenum-silver mineralization in the Paramount zone of the Schaft Creek deposit has a positive magnetic signature. A compilation of historical exploration results has identified a 15 kilometre long zone of favourable geology, alteration and copper mineralization referred to as the Schaft Creek mineral trend. In addition to the Schaft Creek deposit, this trend hosts:
|a)||the recently acquired ES zone (see News Release dated April13, 2011) located approximately 3 kms north of the Paramount zone of the Schaft Creek deposit measures at least 1,100m long by 300m wide. The average of 32 chip and grab samples collected from this zone was 0.87% copper and 0.31 g/t gold,|
|b)||the recently acquired GK zone located approximately 3 kms north of the ES zone measures at least 1,700m long by 250m wide. Reconnaissance sampling on the GK zone in 2008 consisted of 17 grab and chip samples that averaged 1.24% copper, 16 g/t silver and 0.07g/t gold according to a property assessment report filed in 2008, and|
|c)||a large chargeability anomaly located north of the Paramount zone. The limits of the zone of chargeability have not been defined and this target has not yet been tested by diamond drilling.|
The mineral claims on which the ES and GK zones of copper mineralization occur are contiguous to the Schaft Creek project. These claims were acquired (see News Release dated March 24, 2011) by Copper Fox due to the geological setting, widespread copper-gold mineralization and associated alteration exposed on surface. These features are very similar to those of the higher-grade mineralization in the Paramount zone of the Schaft Creek deposit.
To better define the three zones listed above and to identify additional targets that may occur within the Schaft Creek mineral trend, a high resolution aeromagnetic survey has commenced as scheduled on the Schaft Creek project. The exposed mineralization alteration and geology on the ES and GK targets indicate potential for discovery of large zones of copper-gold-molybdenum-silver mineralization Preliminary exploration of magnetic targets in the aeromagnetic survey, will be included in the 2011 program.
Diamond Drilling Program:
As previously announced, Copper Fox plans to complete an 8,000m diamond drilling program on the Schaft Creek project in 2011. Two diamond drill contractors have been retained to complete the work. The primary objectives of the 2011 program are:
|a)||to expand the limits of the zone of higher-grade copper-gold-molybdenum-silver mineralization located in 2010 in the Paramount zone of the Schaft Creek deposit,|
|b)||to complete geophysical surveying of (Titan-24 surveys) and initial diamond drill testing of the ES and GK zones of mineralization, and|
|c)||to complete geophysical surveying of (Titan-24) and initial diamond drill testing of the large chargeability anomaly located north of the Paramount zone.|
The majority of the 2011 drilling program is expected to be completed in the Paramount zone. The 2011 drilling program also contemplates completing one or two diamond drill holes into the ES and GK zones and the large chargeability anomaly to test each zone for its copper-gold potential.
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 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. 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 the timing and scope of expected diamond drilling; the timing of the delivery of an updated resource estimate on the Schaft Creek deposit; the timing to complete the high resolution airborne survey of the Schaft Creek project; potential existence and size of mineralization within the Schaft Creek project; the timing and scope of the feasibility study for 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 possibility that the updated resource estimate may not be completed on a timely basis, or at all; the high resolution airborne survey of the Schaft Creek project may not be completed on a timely basis; 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 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