CALGARY, June 17 /CNW/ - As a result of ongoing reviews by the Alberta Securities Commission of reporting issuer compliance with disclosure requirements under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), Copper Fox Metals Inc. ("Copper Fox") (TSX-Venture: CUU) is issuing the following news release to announce that Copper Fox has filed today on SEDAR an amended NI 43-101 compliant Technical Report entitled "Preliminary Feasibility Study on the Development of the Schaft Creek Project Located in Northwest British Columbia, Canada" (the "Amended PFS")" with an effective date of September 15, 2008. The Amended PFS was prepared by Samuel Engineering, Inc. The Amended PFS replaces the original preliminary feasibility study (the "PFS") of the same date that was filed on SEDAR October 30, 2008.
The Amended PFS includes the following changes:
a) responsibility of Technical Contributors to the Amended PFS shown on the title page and in sections 4.1, 4.2, 4.3, 5.1, 5.2 of the Amended PFS and the PFS; and
b) the certificates of qualification of the Independent Qualified Persons who prepared the Amended PFS.
Copper Fox advises that the conclusions and recommendations of the Amended PFS are the same as those contained in the PFS filed on SEDAR on October 30, 2008. The PFS projects a $2.76 billion NPV after recovery of capital costs and before taxes discounted at 8%, and a pre tax cash flow of $11.37 billion over a 22.6 year mine life.
About Copper Fox
Copper Fox is a Canadian-based resource company listed on the TSX-Venture Exchange (CUU). Copper Fox is focused exclusively on completing the feasibility study on Schaft Creek, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox has earned a 100% working interest in the Schaft Creek project subject to a 30% net proceeds interest held by Liard Copper Mines Limited (Liard) a private company 78% owned by Teck Resources Limited ("Teck") and a 3.5% net profits interest held by International Royalty Corporation. Teck's 78% equity interest in Liard represents 23.4% of Liard's 30% net proceeds interest in the Schaft Creek project (referred to as the "indirect interest"). Copper Fox can also earn Teck's 23.4% "indirect interest" by completing a "positive" Feasibility Study, under the terms of the 2002 Option Agreement with Teck.
Teck may at any time elect to exercise one of it's "earn back options" pursuant to the terms and conditions of the 2002 Option Agreement. On receipt of a Positive Bankable Feasibility Study, as defined, Teck has 120 days in which to elect to either: i) exercise one of its earn-back options, or ii) retain a 1% net smelter return royalty, or iii) receive shares of Copper Fox to a value of $1,000,000.
If Teck exercises its earn back option, then Teck can elect to acquire either a 20%, a 40% or a 75% of Copper Fox's interest in the Schaft Creek Project from Copper Fox by solely funding subsequent expenditures equal to either 100%, 300% or 400% of Copper Fox's prior expenditures (of which approximately $46 million expenditures have been incurred to date). If Teck elects to earn-back a 75% working interest, Teck will be responsible for arranging Copper Fox's share of project financing and will recover the project financing funds from Copper Fox's share of metal sales until payout is reached.
The Schaft Creek Project is a contiguous land package of claims that comprises 21,025 hectares and a further contiguous group of 3,947 hectares that is not subject to Teck's earn-back, situated in northwest BC Canada. On September 15, 2008, Copper Fox announced the results of a Preliminary Feasibility Study on the Schaft Creek deposit that contemplated processing 100,000 tonne per day 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 463.5 million tonnes grading 0.30% copper, 0.23 g/t gold, 0.02% molybdenum and 1.55 g/t silver and 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.
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 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 the projected net present value, pre tax cash flow and mine life of the Schaft Creek Project; anticipated timing and results of feasibility studies; the size of the copper, gold, molybdenum and silver deposits at the Schaft Creek Project; and the earn-back options with Teck Resources Limited. 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.
With respect to 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 calculation of net present value, pre tax cash flow and mine life of the Schaft Creek Project; and the ability to realize the earn-back options with Teck Resources Limited. 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 Schaft Creek Project's net present value and mine life may be significantly lower than projected; the Schaft Creek Project may not generate anticipated cash flows, or any at all; the Feasibility Study may not be completed within the contemplated timeframe, or at all; 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: For further information: For additional information contact: J Michael Smith telephone 604 689 5080 or Investorline 1 866 913 1910