Copper Fox drilling extends mineralization in discovery zone and acquired additional land at Schaft Creek
VANCOUVER, Aug. 2, 2012 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to provide its shareholders with an update of exploration activities on the Schaft Creek copper-gold-molybdenum-silver project located in northwestern British Columbia, Canada. Diamond drill hole ("DDH") 2012CF426 and DDH 2012CF427 tested the 1800m long by 900m wide chargeability anomaly referred to as the Discovery zone. Two diamond drills continue to work on the Discovery zone. Highlights are as follows:
Diamond drill hole (DDH) 2012CF426 with a core length of 788.1m
intersected visible chalcopyrite mineralization over approximately 90%
of its core length along with three intervals of molybdenite
mineralization. The drill hole bottomed in weak
DDH 2012CF427 located 400m north of DDH 2012CF426 with a core length of
769.3m intersected visible copper +/- molybdenite mineralization from a
core interval of 250.0m to the end of the drill hole at 769.9m. The
chalcopyrite+/-molybdenite mineralization is open at depth,
The ASTER Imagery study has identified two zones of clay alteration in
the area between the GK zone and the ES zone and an area located
approximately 4 kms southwest of the Schaft Creek deposit, and
The work on the feasibility study and preparation of the Environmental
Assessment Application for the Schaft Creek project is progressing well
with an expected delivery time of late summer for the feasibility
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 or molybdenum grades.
Mr. Stewart, President of Copper Fox stated that, "I am very pleased with the results of the first two holes completed in the Discovery Zone. The mineralization in the drill core combined with the results of the ASTER study and field mapping support the existence of additional zones of copper-molybdenite mineralization to the north along the previously identified Schaft Creek mineral trend. The area should be looked as a district which could host a number of deposits and not a single deposit".
Diamond Drilling Update:
The objectives of the 2012 diamond drilling program are:
|a)||to follow up the copper-gold-molybdenum-silver mineralization intersected in DDH 2011CF422 to the east toward the center of the approximately 1800m long by 900m wide chargeability anomaly that is designated as the Discovery zone,|
|b)||test the chargeability anomalies that represent the Discovery and Mike zones, and|
|c)||continue to assess the mineral potential of that part of the Schaft Creek mineral trend located between the ES and GK zones by ASTER Imagery studies, field mapping and prospecting in conjunction with the Titan-24 anomalies identified in 2011 in these areas.|
Discovery Zone Drilling:
Diamond drill hole (DDH) 2012CF426 an inclined (-60 degrees, azimuth 090) HQ diameter hole located approximately 300m east of DDH 2011CF422 was completed to test the chargeability anomaly referred to as the Discovery zone. This hole intersected variable concentrations of visible chalcopyrite mineralization over approximately 90% of the core length of the hole. In addition to the chalcopyrite mineralization; visible molybdenite mineralization occurs sporadically throughout the core in quartz veinlets and in some instances also with chalcopyrite mineralization. The chalcopyrite-molybdenite mineralization occurs as disseminations, veins and veinlets in variably altered andesite.
DDH 2012CF427 an inclined (-60 degrees, azimuth 090) HQ diameter hole located approximately 400m northwest of DDH 2012CF426 was completed to test the strike extension of the chargeability anomaly referred to as the Discovery zone that was located in 2011. This hole intersected variable concentrations of visible chalcopyrite and sporadic molybdenite mineralization from a core interval of 250.0m to the end of the drill hole at 769.9m. The chalcopyrite+/-molybdenite mineralization occurs as disseminations, veins and veinlets in a granodiorite intrusive which exhibit a number of thin basic dikes. This hole contains large intervals of silicification.
Assay results for these drill holes will be released on receipt thereof.
Mike Zone Drilling:
DDH 2012CF429 and DDH 2012CF429B were attempted to test the 1,000m long by 500m wide strong chargeability anomaly that defines the Mike zone. Both drill holes reached depths of approximately 140m when extremely difficult ground conditions caused termination of both drill holes. These holes did not reach the chargeability anomaly.
ASTER Imagery Study:
ASTER (Advanced Spaceborne Thermal Emission Reflection) Imagery is commonly used to map specific types of alteration in bedrock that indicated the possible presence of mineralization. The ASTER study completed at Schaft Creek identified two zones of clay alteration. The first zone occurs in an area that extends from the north end of the GK zone to the ES zone. Mapping and prospecting within this zone of clay alteration has located chalcopyrite mineralization in outcrop and chalcopyrite-bornite mineralization in boulders and stream beds draining the zone. The second zone is located approximately 4 kms southwest of the Schaft Creek deposit, is roughly circular in shape and covers an area that measures 3.0kms by 1.5kms.
In addition to a previous land acquisition made earlier this year, 9 mineral tenures totaling 2,936.2 hectares were purchased from Randy Marko and Paul Mott ("Marko/Mott") and are contiguous to the Company's Schaft Creek project. Consideration paid by Copper Fox was $10,000 cash and a 2% net smelter return (NSR) royalty on the mineral claims subject to a "Partial NSR Buyout Option". The Partial NSR Buyout Option allows Copper Fox at any time to purchase half of the NSR for a cash payment of $1.0 million such that the NSR is reduced from 2% to 1%.
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.
About Copper Fox
Copper Fox is a Canadian-based resource development company listed on the TSX Venture Exchange (TSX-V:CUU) with a corporate office in Calgary and an operations office in Vancouver and is involved in the exploration and development of the Schaft Creek copper-gold-molybdenum-silver deposit located in northwest British Columbia, Canada.
The Company is working on completing a feasibility study on the Schaft Creek mineral deposit, one of the largest undeveloped copper, gold, molybdenum and silver deposits in North America. The feasibility study is being led by Tetra Tech Wardrop on a minimum 120,000 tpd open pit mine and is expected to be completed by late summer, 2012.
Copper Fox holds title and a 100% working interest in the Schaft Creek project consisting of 52,843.36 hectares (130,579 acres). Included in this total are the "Schedule A" mineral tenures originally conveyed to Copper Fox pursuant to the option agreement dated January 1, 2002 between Teck Resources Limited ("Teck") and Copper Fox (the "Teck Option Agreement"), which consist of 8,334.34 hectares (20,594 acres). The "Schedule A" mineral tenures are subject to a 3.5% Net Profits Interest held by Royal Gold, Inc., a 30% carried Net Proceeds Interest held by Liard Copper Mines Limited ("Liard") and, together with the additional mineral tenures obtained by Copper Fox within the "Area of Interest" provided for in the Teck Option Agreement, an earn back option held by Teck. On completion of the feasibility study, Copper Fox will earn Teck's 78% interest in Liard. Teck's earn back option to acquire either, 20%, 40% or 75%, of Copper Fox's interest in the Schaft Creek property is triggered upon delivery of a positive feasibility study to Teck. Should Teck elect to exercise its option for 75%, Teck is required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox ($80.8 million to June 30, 2012) and arrange for project financing, including the Copper Fox portion. For full details of the Teck earn back option please refer to the Company's website www.copperfoxmetals.com.
The remainder of Copper Fox's registered interests in mineral tenures in British Columbia total 44,509.02 hectares (109,984 acres). These interests have been acquired by Copper Fox through mineral tenure acquisitions and mineral tenure purchase agreements subsequent to Copper Fox entering into the Teck Option Agreement. Certain portions of these registered mineral tenures are subject to inclusion within the Schaft Creek project pursuant to the terms of the "Area of Interest" provisions of the Teck Option Agreement.
On behalf of the Board of Directors
Elmer B. Stewart
President and 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: DDH 2012CF426 and DDH 2012CF427; the possibility of additional zones of copper-molybdenite mineralization to the north along the previously identified Schaft Creek mineral trend, and the possibility that this targeted area is a porphyry district rather than a single porphyry deposit; the completion and timing of delivery of the feasibility study and Environmental Assessment Application for the Schaft Creek project; assay result and potential mineralization for DDH 2012CF426 and DDH 2012CF427; estimated timing and amounts of future expenditures and "earn-back" options; geological interpretations and potential mineral recovery processes. There can be no assurance that the purchase of the Van Dyke and Sombrero Butte properties will be completed. 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: that the closing of the purchase will occur, that 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; DDH 2012CF426 and DDH 2012CF427 may not be indicative of any significant mineralization; there may be no additional zones of copper-molybdenite mineralization to the north along the previously identified Schaft Creek mineral trend; the targeted area to the north of Schaft Creek may not be a porphyry district; mineralization observed in the drill core may not yield significant concentrations of copper or molybdenite, that additional drilling may not intersect addition copper-molybdenite mineralization; that the ASTER anomaly may not be indicative of copper-molybdenite mineralization;; that the feasibility study and/or the Environmental Assessment Application on the Schaft Creek project may not be completed within the contemplated time frame, or at all; 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.
SOURCE: Copper Fox Metals Inc.For further information:
Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080