Copper Fox completes land acquisitions covering positive magnetic lineament at Schaft Creek property
VANCOUVER, March 27, 2012 /CNW/ - Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) announced the acquisition of two groups of mineral tenures. One group is located adjacent the Schaft Creek project and the second group is located in the Mess Creek area. Mr. Stewart stated "the purpose for the acquisition of these mineral claims is to provide additional coverage of the interpreted extension of the Schaft Creek mineral trend and its associated positive magnetic feature. The second group of claims expands the Company's acreage in this important mining district and road access".
|a)||Group one - (Marko/Mott) Approximately 4,741 hectares (24 mineral tenures) contiguous to the north and south of the Schaft Creek project have been acquired. These mineral tenures cover the extension of the positive magnetic lineament outlined in 2011 that show a strong correlation to the Schaft Creek deposit and two other zones of copper-gold-molybdenum-silver mineralization exposed on surface. These mineral tenures are subject to the Option Agreement with Teck Resources Limited ("Teck"), and|
|b)||Group two - (Ruzo) Approximately 700 hectares (2 mineral tenures) in the Mess Creek area. These mineral tenures are not subject to the Option Agreement with Teck.|
Rationale for the Mineral Tenure Acquisitions:
To view the location of the interpreted Schaft Creek Mineral Trend, visit the Copper Fox website at www.copperfoxmetalsinc.com.
The Marko/Mott mineral claims are located along strike of the interpreted Schaft Creek Mineral Trend and the positive magnetic lineament located by the high resolution airborne magnetic survey completed by Copper Fox earlier in 2011. The historical exploration data on both groups of land packages shows the presence of elevated concentrations of copper both in soil and in rock samples. The work completed by Copper Fox in 2011 suggests that the positive magnetic feature may represent the main structure that controls the location of the mineralization within the Schaft Creek project.
Mineral Tenure Acquisitions:
Details of the transactions are provided below and the Purchase Agreements will be filed on SEDAR.
The two mineral claim blocks (consisting of 24 mineral tenures totaling 4,741.55 hectares) from Randy Marko and Paul Mott ("Marko/Mott") are contiguous to the Company's Schaft Creek project. Consideration paid by Copper Fox was $25,000 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%.
The two mineral tenures totaling 700.52 hectares located east of the Mess Creek mineral claims held by Copper Fox were purchased from V. Ruzo. These mineral tenures are not subject to the Option Agreement with Teck. Consideration paid by Copper Fox was $7,000 cash and a 1% net smelter return (NSR) royalty on the mineral tenures. The NSR Buyout Option allows Copper Fox at any time to purchase the NSR for a cash payment of $0.25 million.
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 development company listed on the TSX-Venture Exchange (CUU-TSX-V) with a corporate office in Calgary and an operations office in Vancouver.
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 mid-summer of 2012.
Copper Fox holds title and a 100% working interest in a contiguous 21,024.96 hectare (51,954 acre) property which includes the Schaft Creek deposit subject to a 3.5% Net Profits Interest held by Royal Gold, Inc., a 30% carried Net Proceed Interest held by Liard and an earn back option held by Teck Resources Limited ("Teck"). Copper Fox is currently earning a 78% interest in Liard 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. In the event Teck elects 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 ($74.2 as of December 1, 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.
In March 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totaling 2,978.32 hectares (7,360 acres) (the "March 2011 Mineral Claims") which are subject to a 2% Net Smelter Return ("NSR"). Copper Fox has the option to repurchase, at any time, one-half of the NSR on the March 2011 Mineral Claims for a total purchase price of $3 million. In September 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totaling 6,115.11 hectares (15,111 acres) (the "September 2011 Mineral Claims") which are subject to a 2% NSR. Copper Fox has the option to repurchase, at any time, one-half of the NSR on the September 2011 Mineral Claims for a purchase price of $1 million. The March 2011 Mineral Claims and the September 2011 Mineral Claims are subject to inclusion with the Schaft Creek project under the terms of the Area of Interest provisions of the Teck Option Agreement.
Additionally Copper Fox holds mineral claims totaling 3,947.06 hectares (9,753 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 includes statements about the acquisition of mineral tenures of approximately 4,741.55 hectares from Randy Marko and Paul Mott and mineral tenures of 700.52 hectares from V Ruzo; the correlation of the acquired mineral tenures to the Schaft Creek deposit and two other zones of copper-gold-molybdenum-silver mineralization exposed on surface; 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 potential mineralization in the newly acquired mineral tenures; 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: the newly acquired mineral tenures may not contain any significant mineralization or be of any benefit to Copper Fox; the Feasibility Study may not be completed in the anticipated timeframe, or at all; the actual mineralization in the Schaft Creek deposit may not be as favorable as suggested; another deposit may never be discovered on Copper Fox's property, or contain anticipated mineralization, or mineralization of any significance 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, the completed drill holes for which analytical results are not available may not return significant concentrations of either copper, gold, molybdenum or silver; 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