CALGARY, Feb. 2 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce that Teck Resources Limited ("Teck") has transferred its ownership in the Schaft Creek Project to Copper Fox pursuant to an agreement between the parties dated January 1, 2002 (the "Agreement"). The Schaft Creek Project comprises the Liard, Paramount and West Breccia mineral deposits (the "Schaft Creek deposit") contained within the 21,025 contiguous hectares (or 51,954 acres) of land conveyed by Teck. Copper Fox has also acquired 3,947 hectares of land for mine planning and access purposes bringing its total land holding to 24,972 hectares (or 61,706 acres) in the Schaft Creek area.
Copper Fox now holds a 100% interest in the Schaft Creek Project, subject to a 30% net proceeds interest royalty held by Liard Copper Mines Limited ("Liard") and Teck's earn-back options. Teck owns 78% of Liard which equates to a 23.4% indirect interest in the Schaft Creek Project ("the indirect interest"). Under the Agreement Copper Fox can also acquire Teck's Liard shareholding (indirect 23.4% interest in the Schaft Creek Project) by completing a Positive Bankable Feasibility Study (as defined in the Agreement) on the Schaft Creek deposit thereby increasing its direct and indirect ownership in the Schaft Creek Project to 93.4%. Teck may at any time elect to exercise its earn-back option and upon receipt of the Positive Bankable Feasibility Study on the Schaft Creek deposit, Teck must elect within 120 days to make an election to: i) exercise its earn-back option, ii) retain a 1% net smelter return royalty, or iii) receive shares of Copper Fox to a value of $1,000,000.
The earn-back options allow Teck the right to elect to acquire a 20%, a 40%, or a 75% project interest from Copper Fox by respectively incurring either 100%, 300% or 400% of Copper Fox's expenditures on the Schaft Creek project under the Agreement. In the event Teck elects to earn-back a 75% interest in the Schaft Creek Project, Teck will also be responsible for arranging Copper Fox's share of project financing.
"This transaction represents a milestone achievement for Copper Fox says Elmer Stewart CEO and President. The Copper Fox team is working "flat out" to complete the feasibility on this large copper, gold, molybdenum and silver resource by the latter part of 2010. The critical path required for development of the Schaft Creek deposit is finding considerable support from the Government of British Columbia, the Tahltan First Nation and local communities for developing the infrastructure necessary, such as the recently announced Northwest transmission power line which is key for the development of Schaft Creek".
About Copper Fox
Copper Fox is a Canadian-based resource company listed on the TSX-Venture Exchange (CUU). The Company's activities are focused exclusively on the Schaft Creek deposit, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox holds a 100% interest in the Schaft Creek Project subject to 30% net proceeds interest held by Liard (78% owned by Teck) and a earn-back option held by Teck.
The Schaft Creek Project is situated in northwest British Columbia. The Company has recently awarded a contract to Wardrop, A TETRA TECH company ("Wardrop") to complete the feasibility study on the Schaft Creek deposit. The results of a preliminary feasibility study ("PFS") on the Schaft Creek deposit dated September 15, 2008 have outlined a proven and probable mineral reserve of 821 million tonnes and a processing rate of 100,000 tonne of ore per day utilizing open pit mining and standard flotation to recover the copper-gold-molybdenum and silver. The PFS indicated Schaft Creek could produce approximately 4.8 billion pounds of Copper, 255.1 million pounds of molybdenum, and 4.5 million ounces of gold and 32.5 million ounces of silver over a 22.6 year mine life.
On behalf of the Board of Directors
Elmer B. Stewart P. Geol. MSc.
President and CEO
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 includes "forward-looking information" within the meaning of the Canadian securities laws. All statements, other than statements of historical fact, included herein and including, without limitation; anticipated dates for receipt, commencement or completion of permits, approvals, construction, production and other milestones; anticipated results of drilling programs, scoping, prefeasibility and feasibility studies and other analyses; anticipated availability and terms of future financings; estimated timing and amounts of future expenditures; Copper Fox's future production, operating and capital costs; operating or financial performance; geological interpretations and potential mineral recovery processes, are forward-looking statements. 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. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies. For any forward looking information given, management has assumed that the geological, metallurgical, engineering, financial and economic advice it has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from Copper Fox's expectations include: 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, production estimates and estimated economic return; the need for co-operation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; 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; and other risks and uncertainties disclosed in Copper Fox's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release is based on Copper Fox's current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law.
SOURCE Copper Fox Metals Inc.
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