Copper Fox provides update on Schaft Creek project
VANCOUVER, May 24, 2012 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce completion of the planned 2012 airborne magnetic survey and the acquisition of additional mineral tenures contiguous to the Schaft Creek project. Mr. Elmer B Stewart, President & CEO of Copper Fox stated, "We are pleased to have completed the airborne survey in advance of the commencement of the 2012 field exploration program. The data resulting from this survey is expected to identify exploration targets thereby allowing the Company to concentrate exploration efforts in areas with potential for porphyry style copper mineralization. The land acquisition is in line with Copper Fox's interpretation of the porphyry copper potential along strike of the Schaft Creek deposit."
|a)||A total field airborne magnetic survey (approximately 2,500 line kms) has been completed for a distance of 7 kms to the north and 17 kms to the south of the area surveyed in 2011. The survey is expected to cover a portion of the recently announced Jay/Scotch option,|
|b)||The data from the 2011 and 2012 airborne magnetic surveys will be merged into one map and submitted to Mira Geosciences Limited for interpretation,|
|c)||Seven mineral tenures have been acquired at the north end of the Schaft Creek project. One of these mineral tenures covers the interpreted northern extension of the Schaft Creek Mineral Trend, and|
|d)||Diamond drilling of the Discovery Zone (DDH CF422-2011) located approximately 1,200m northwest of the Schaft Creek deposit is expected to commence in early June, subject to snow conditions.|
A preliminary interpretation of the airborne data will be provided on receipt of the data and maps from Precision GeoSurveys Inc. The final interpretation of the data will be completed by Mira Geosciences Limited. The magnetic survey will be used as an exploration tool to aid in the evaluation of a number of copper occurrences reported to be located within the lands purchased by Copper Fox over the past year.
The diamond drilling is planned to commence on the Discovery Zone located approximately 1,200m north of the Schaft Creek deposit to test the width and strike extent of the mineralization intersected in 2011 associated with a large Titan-24 chargeability anomaly. Three to four drill holes are planned to confirm the extent and continuity of the copper-gold-molybdenum-silver mineralization in this zone. A similar drill strategy will be utilized for testing the Titan-24 chargeability anomalies associated with the Mike, ES and GK zones. Detailed mapping and sampling of the ES and GK zones is planned to establish the relationship between the mineralization on surface and the chargeability anomaly prior to drilling.
Mineral Tenure Acquisitions:
To view the location of the interpreted Schaft Creek Mineral Trend, visit the Copper Fox website at www.copperfoxmetals.com. Details of the transactions are provided below and the Purchase Agreement will be filed on SEDAR.
The acquired mineral tenures (consisting of 7 mineral tenures totaling 520.85 hectares) were purchased from Thomas Patterson ("Patterson") and are either within or contiguous to the Company's Schaft Creek project. Consideration paid by Copper Fox was $5,000 cash.
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 mid-late summer, 2012.
Copper Fox holds title and a 100% working interest in the Schaft Creek project consisting of 44,022.46 hectares (108,782 acres). Included in this total are the "Schedule A" mineral tenures 8,334.34 hectares (20,594 acres) originally conveyed to Copper Fox pursuant to the 2002 Option Agreement. 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 an earn back option held by Teck Resources Limited ("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%, they are required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox ($75.9 million to January 31, 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 the mineral tenures totaling 35,688.11 hectares (88,187 acres) has been obtained by Copper Fox through mineral tenure acquisitions and mineral tenure purchase agreements. Some of these mineral tenures are subject to inclusion within the Schaft Creek project under the terms of the Area of Interest provisions of the 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 includes statements about the 2012 airborne magnetic survey, the proposed 2012 exploration and drilling program for the Schaft Creek project; the preliminary and final interpretation of data from the 2012 airborne magnetic survey; the potential to locate additional porphyry style deposits along strike of the Schaft Creek project; the commencement of diamond drilling activities to follow-up the copper-gold-molybdenum-silver mineralization in the Discovery Zone; detailed mapping and sampling of the ES and GK zones; the acquisition of additional mineral tenures from Patterson contiguous to the Schaft Creek deposit, the "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. 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: data from the 2012 airborne magnetic survey may not identify any exploration targets; the 2012 exploration program may not be completed as anticipated, or at all; no additional porphyry style deposits are discovered along strike of the Schaft Creek project; the proposed drilling may not yield results that are favorable to Copper Fox; the assay results for costs of the 2012 exploration program may significantly exceed expectations; the additional Patterson mineral tenures may not contain any mineralization of value to Copper Fox; the Feasibility Study may not be completed in the anticipated timeframe, or at all; the mine plan may not be completed on a timely basis, or at all; detailed mapping and sampling of the ES and GK zones may not establish any relationship between the minderalization on surface and the chargeability anomaly; commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; the uncertainty of the 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, EVP, at 1-604-689-5080