VANCOUVER, Sept. 6, 2011 /CNW/ - Copper Fox Metals Inc. (TSX-Venture: CUU) is pleased to provide an update on activities at its Schaft Creek copper-gold-molybdenum-silver porphyry project including diamond drill hole assays and other exploration activities. Two diamond drills are currently working on the Paramount zone to test the extensions of the coincident higher-grade copper-gold-molybdenum-silver mineralization and the large chargeability anomaly identified in 2010. A third diamond drill has been added to accelerate the drilling program. To view the location of drill holes CF408-2011 and CF409-2011 in relation to the chargeability anomaly outlined by the Quantec Titan-24 survey over a portion of the Schaft Creek deposit, visit the Copper Fox website at www.copperfoxmetals.com. Highlights of activities are as follows:
- Diamond drill hole (DDH) CF409-2011 located 147 metres (m) east of DDH CF402-2010 (see News Release dated February 3, 2011), intersected 0.43% copper, 0.27 g/t gold, 0.04% molybdenum and 1.70 g/t silver (0.81% copper equivalent) over an interval of 154.30m starting at a core length of 319.13m. The 154.30m interval is included in the 357.31m mineralized interval set out in Table-1 below,
- The mineralization in DDH CF409-2011extended the higher-grade mineralization on this section an additional 147m to the east and confirms the mineralized nature of the chargeability anomaly identified in 2010. The mineralization on this section is open to the east, along strike and at depth,
- DDH CF408-2011 is located at the collar of DDHCF407B-2011 and was drilled to the west and intersected 0.42% copper, 0.07 g/t gold, 0.05% molybdenum and 2.45 g/t silver (0.74% copper equivalent) over a core interval of 76.98m from 114.78m to a depth of 191.76m,
- The Titan-24 survey over the Mike zone and the recently acquired ES and GK zones (all within a 6 kilometre strike length) located north of the Schaft Creek deposit has been completed. Results are pending, and
- The third diamond drill arrived at Schaft Creek over the week-end and will be used for combined geotechnical and exploration purposes.
Mr. Stewart, President of Copper Fox stated, "The results from the 2011 drilling program including DDH CF409-2011 continues to extend the zone of higher-grade mineralization to the east and demonstrates the mineralized nature of the chargeability anomaly located east of the Paramount zone. DDH CF408-2011 extended the mineralization an additional 50 metres further to the west than was previously known. The 2011 drilling and assay results to date continue to confirm that the zone of higher-grade mineralization is associated with a 1,200m long by 600m wide chargeability anomaly located to the east of the Paramount zone; the main target of the 2011 drilling program".
Diamond Drilling Update:
Copper Fox is currently drilling DDH CF414-2011 and DDH CF415-2011. The four drill holes completed subsequent to DDH CF409-2011 intersected visible copper and molybdenite mineralization over variable core widths. Analytical results for these holes are pending.
The reader is cautioned that visible copper and molybdenite mineralization does not necessarily equate to significant concentrations of either copper or molybdenum and there is no assurance that the assay results of the samples from these drill holes will yield significant copper, gold, molybdenum or silver grades.
The weighted average grades for the mineralized intervals in DDH CF408 and DDH CF409 (at zero cut-off grade) and the estimated recoverable copper equivalent grades are set out below:
|DDH ID||Dip||Azimuth||From (m)||To (m)||Interval (m)||copper (%)||gold (g/t)||silver (g/t)||molybdenum (%)||Cu Eq (%)|
Note: The core intervals listed in Table-1 above do not represent true widths.
DDH CF408-2011 (azimuth 270) is located at the collar of DDH CF407-2011 and was completed to a depth of 377m to locate the western limits of the mineralization in the Paramount zone for geotechnical purposes. This hole intersected mineralization an additional 50m to the west beyond the western limits of the open pit design completed in 2008, thereby expanding the size of the zone of mineralization to the west. The mineralization is hosted in potassic and phyllic altered granodiorite, intrusive breccia and andesite.
DDH CF409-2011 (azimuth 085) is located 147m east of DDH CF402-2010 and was designed to test the extension of the higher-grade mineralization in DDH CF402-2010 (see News Release dated February 3, 2011) and the chargeability anomaly located east of the Paramount zone. The upper 116m of this drill hole intersected low-grade mineralization which was expected based on the geometry of the mineralized zone and the geophysical and geological model. After penetrating the low-grade mineralization, this hole intersected higher grade mineralization (the intended target) starting at a core depth of 116.0m to the end of the hole at 473.66m. From a core depth of 319.13m to the end of the hole at 473.66m, this hole intersected significantly higher copper and molybdenum grades. The mineralization is hosted in potassic and phyllic altered granodiorite and intrusive breccia and is open at depth and to the east.
Quantec Titan-24 DCIP and MT survey:
The Titan-24 DCIP and MT survey over the Mike, ES and GK zones has been completed. The survey covered 2.8 kilometers of strike length over the Mike and ES zones at a 400m spaced lines and 0.8 kilometers (3 lines spaced at 400m intervals) over the GK zone. Results of the survey are expected by mid to late September.
Diamond Drilling and Sampling Procedures:
The diamond drilling was completed using an HQ and NQ core size. Core recovery was estimated to be greater than 97%. After cutting with a diamond saw, one half of the core was 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 0.55 to 6.00 metres. The majority of the samples were collected on a 2.0m sample interval. 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.
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 Wardrop, A Tetra Tech Company on a minimum 120,000 tpd open pit mine and is expected to be completed during the fourth quarter 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 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 and arrange for project financing, including the Copper Fox portion. Copper Fox has incurred a total of $61.8 million in qualifying expenditures on the Schaft Creek project as at June 30, 2011. 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.
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 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.