DRILLING CONTINUES TO INTERSECT DEEP HIGHER GRADE COPPER-GOLD-MOLYBDENUM MINERALIZTION AT SCHAFT CREEK - ENVIRONMENTAL ASSESSMENT PROCESS REACHES MILESTONE
VANCOUVER , Dec. 14 /CNW/ - Copper Fox Metals Inc. (TSX-Venture: CUU) is very pleased to announce additional assay results from the ongoing diamond drilling program at the Schaft Creek porphyry deposit located in north western British Columbia. The drilling program is concentrating on an area of the deposit that is 600 metres (m) long by 200m wide to: i) establish a higher grade starter pit on surface and ii) to test for higher grade copper-gold mineralization at depth. Highlights are as follows:
diamond drill hole (DDH) CF399 has extended the mineralization 175m to
the east and 125m at depth. DDH CF401 has extended the mineralization a
further 130m to the east and 100m at depth. The mineralization on both
sections is open at depth and to the east,
DDH CF399 intersected 0.39% copper, 0.10 g/t gold and 0.05% molybdenum
and 2.09 g/t silver (0.67% copper equivalent) from 9.14m to 517.24m a
core interval of 508.1m,
DDH CF399 includes a higher grade interval of 0.45% copper, 0.33 g/t
gold and 0.06% molybdenum and 3.01 g/t silver (0.94% copper equivalent)
from 462.7m to 517.24m, a core interval of 54.5m at the bottom of the
DDH CF401 intersected 0.43% copper, 0.25g/t gold, 0.04% molybdenum and
2.40 g/t silver (0.75% copper equivalent) from 5.66m to 495.9m a core
interval of 489.5m,
DDH CF401 includes a higher grade interval of 0.66% copper, 0.50g/t
gold, 0.04% molybdenum, 3.10 g/t silver (1.17% copper equivalent) from
345.4m to 429.2m, a core interval of 83.8m at the bottom of the hole,
- copper and gold grades increase substantially in the lower portions of DDH CF399 and DDH CF401 similar to that seen in DDH CF398 and both holes are open at depth.
Mr. Stewart, President of Copper Fox stated, "We are very encouraged with the higher grades and significant extension of the mineralization to depth and to the east. The first three drill holes completed in 2010 indicate that the IP anomaly correlates to the significantly higher copper and gold grades intersected at depth. We are currently waiting for the assays results of DDH CF402 located 150m north of DDH CF398 to determine if this trend continues along strike. Of significant interest to the potential of the Schaft Creek deposit is a 600m wide portion of the IP anomaly located east of the current drilling that remains to be tested."
Diamond Drilling Update:
The weighted average grades for the mineralized intervals in DDH CF398 (previously reported) DDH CF399 and DDH CF401 are set out below in Table-1.
|DDH ID||Dip||Azimuth||From (m)||To (m)||Interval (m)||Copper (%)||Gold (g/t)||Molybdenum (%)||Silver (g/t)||Cu Eqv (%)|
|Note: Results for DDH CF398 were reported in a News Release dated November 4, 2010|
|Note: Mineralized intervals reported in the above table are not true thickness|
DDH CF399 was terminated earlier than expected due to drilling difficulties. The mineralization in DDH CF399 is hosted in potassic altered intrusive breccia overprinted by abundant vein controlled prophylitic alteration. The last sample in this hole at a vertical depth of 433m below surface assayed 1.03 % copper, 0.11% molybdenum, 0.26 g/t gold and 2.0 g/t silver over an interval of 0.5m. The molybdenum concentrations at the bottom of this hole are significantly higher than in DDH CF398 and DDH CF401.
The mineralization in DDH CF401 is also hosted in potassic altered intrusive breccia overprinted by abundant vein controlled prophylitic alteration. Three very thick (approximately 15m to 30m) barren post mineralization mafic dikes were intersected in this hole. The inclusion of these un-mineralized intervals has reduced the weighted average grade of the drill hole. The average copper and gold grades in the bottom portion of this hole are the highest intersected to date in the 2010 drilling program. The core interval from 429.2m to 459m is a barren post mineralization mafic dike. From 459m to the end of the hole is mineralized. Mineralization was intersected in this hole to a vertical depth of 399m below surface.
Table-2: 2010 Diamond drill status Schaft Creek:
|DDH ID||Easting||Northing||Dip||Azimuth||Core Length (m)||Verticle Depth (m)||Status|
* Projected Depth
**Core logging, sawing and sampling of the completed diamond drill holes CF402, CF403, CF404 and CF405 is in progress and analytical results will be reported on receipt thereof.
Re-sampling Historical Drill Holes;
The re-sampling of some of the historical diamond drill holes (completed between 1960 and 1985) is progressing well. The results of the re-sampling program will be released when a sufficient number of assays are available. These results will be included in the updated resource estimate.
Environmental Assessment Update:
Copper Fox is pleased to announce that the 30 day public comment period for the draft Application Information Requirements (AIR) ended on November 5, 2010. Copper Fox expects to finalize the AIR by the end of the year. This is the last major milestone in the pre-Application stage of the environmental assessment process for the Schaft Creek project. Copper Fox will now focus on completing the Environmental Assessment Application for review by the British Columbia Environmental Assessment Office, the Canadian Environmental Assessment Agency and the Tahltan Nation.
Future Drilling Plans:
The current drilling program is expected to continue until December 22, at which time drilling will be temporarily suspended for the holidays. Plans for resumption of the drilling program in January 2011 are underway, contingent on assay results from the outstanding drill holes of the 2010 drilling program. DDH CH406 is currently in progress and is expected to be completed before the holiday break. The re-sampling program is also expected to resume in early January 2011.
Diamond Drilling and Sampling Procedures:
The diamond drilling was completed using 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. Sample intervals ranged from 0.58m to 2.49m. 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%, Ag >2 g/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 a 9001:2008 International Standard Organization rating.
Copper equivalent calculations are based on 100% 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 $US1,075.00/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) focused 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 436.5 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. The PFS projected a recovery of 4.8 billion pounds of copper, 255 million pounds of molybdenum, 4.5 million ounces of gold and 32.5 million ounces of silver.
A Feasibility Study on a minimum 120,000 tpd open pit mine is expected to be completed in early 2011.
Copper Fox holds title and a 100% working interest in a contiguous 21,025 hectares (51,954 acres) property which includes the Schaft Creek deposit subject to certain royalty agreements and an earn back option. Teck Resources Limited ("Teck") has an option to acquire 20%, 40% or 75% of the Schaft Creek project which is triggered upon completion of the 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 ($55 million to date) 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.
*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 principals".
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 anticipated timing and analytical results of the core sampling of historical diamond drill holes and current diamond drill holes, the assays results and extensions of the mineralization, anticipated results and timing of the proposed updated resource estimate, and feasibility studies; the possibility of a higher grade starter pit; the timing, approvals and anticipated results of an Environmental Assessment Application 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.
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, the obtaining of an Environmental Assessment Certificate; 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 assay results does not extend the area of mineralization outlined in the 2010 diamond drilling; drilling programs may not continue or proceed in accordance with previously announced schedules and timing; 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 minerlaization; the possibility that an Environmental Assessment Certificate may not be obtained on a timely basis, or at all, or that additional approvals will be necessary in order to obtain an Environmental Assessment Certificate; 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.For further information:
Investor line 1-866-913-1910
or J. Michael Smith, Executive Vice President, at 1-604-689-5080.