Copper Fox Metals Inc. - 2007 Year-end Financial Results



    CALGARY, Feb. 8 /CNW/ - Guillermo Salazar S., President and CEO of Copper
Fox Metals Inc. (TSX Venture: CUU) said, "We have made substantial progress in
2007. We completed $14.4 million of exploration and development work on our
Schaft Creek project which allowed us to acquire the direct interest in the
project early in our option agreement with Teck Cominco. We also raised
$17.3 million in 2007 of new equity; completed the preliminary economic
assessment of the Schaft Creek project; and signed key agreements with the
local Tahltan First Nation." Copies of the financial statements and notes and
related management discussion and analysis may be obtained on SEDAR at
www.sedar.com, our Company web site at www.copperfoxmetals.com or by
contacting the Company directly. All amounts are in Canadian dollars unless
otherwise stated.

    Highlights and Significant Items

    Copper Fox was very active in 2007. The Company spent $14.4 million on
the Schaft Creek property allowing the Company to earn a direct 70 percent
ownership interest in accordance with the Company's option agreement with
Teck Cominco. This agreement requires the Company to expend $15 million on the
Schaft Creek property by December 31, 2011 - a milestone that has been
completed more than 4 years in advance.
    With accumulated data obtained through its drilling programs, the Company
released a resource estimate, pit optimization plan, and preliminary economic
assessment for Schaft Creek. The assessment detailed the economic potential of
the mineral deposit using conservative pricing and capital cost assumptions. A
key recommendation of the assessment is expand its plan to put a 100,000 tonne
per day mine in operation by the end of 2011. The Company is forecasting a
capital outlay to construct a mine facility at Schaft Creek, including the
infrastructure for road access and power, of $1.4 billion.
    The Company expects to complete its bankable feasibility of Schaft Creek
by December 31, 2008. The Company is confident that on the release of this
study, the positive economics of the Schaft Creek deposit will be confirmed.
Management is also confident that matters pertaining to the effective
construction and operation of the project and financing will be proven on the
strength of the bankable feasibility study.
    The Company has made progress in building its relationship with the
Tahltan Nation with the signing of three key agreements. A memorandum of
understanding was signed between the Company and the Tahltan Nation
Development Corporation (TNDC), the economic development branch of the Tahltan
Nation, which provides for priority hiring and contracting through the TNDC.
This agreement will ensure that those close to the project will have access to
its employment and economic development benefits.
    The Company signed a Communications Agreement with the Tahltan Central
Council (TCC), the political branch of the Tahltan Nation, outlining topics
such as: on-going communication vehicles, community participation in the
Schaft Creek project and regular meetings with leadership at the band and
Nation levels. This agreement is evidence of the Company's commitment to
building an effective working relationship with the Tahltan Nation to advance
the development of Schaft Creek.
    The Company also signed a Tahltan Knowledge Agreement which is a key
agreement required to move baseline studies necessary for permitting forward
and awarded $85,000 in 2007 in bursaries to Tahltan scholars pursuing studies
in the areas of law and archaeology.
    During the year the Company announced the appointments of two executives,
Mr. Cam Grundstrom, Vice President of Operations and Mr. Shane Uren,
Vice-President of Environment and Permitting. Messrs. Grundstrom and Uren will
play significant roles in Company operations, in the completion of the
bankable feasibility study and future mine construction.


    
    Selected Financial Information

    -------------------------------------------------------------------------
                                                        Net loss per share -
                                             Net Loss    basic and diluted
    -------------------------------------------------------------------------
    2007
    ----
    First Quarter                      $     (407,802)        $        (0.01)
    Second Quarter                     $   (1,783,054)        $        (0.03)
    Third Quarter                      $   (1,012,528)        $        (0.01)
    Fourth Quarter                     $   (1,215,394)        $        (0.02)
    -------------------------------------------------------------------------
    Total                              $   (4,418,778)        $        (0.06)
    -------------------------------------------------------------------------
    2006
    ----
    First Quarter                      $     (124,522)        $        (0.01)
    Second Quarter                     $     (409,896)        $        (0.02)
    Third Quarter                      $     (929,939)        $        (0.02)
    Fourth Quarter                     $     (192,356)        $        (0.00)
    -------------------------------------------------------------------------
    Total                              $   (1,656,713)        $        (0.04)
    -------------------------------------------------------------------------
    

    Liquidity

    During the fourth quarter the Company's working capital improved by
$2,059,957 to $3,631,414. This was as a result of the Company completing an
$8.9 million (net of $700,000 in selling costs) financing in August and
through the exercise of approximately $900,000 of warrants in the fourth
quarter. This money is being used to continue the required expenditures at
Schaft Creek and for general corporate purposes. The Company has sufficient
funds available to meet its current obligations.
    The cash requirements in the next year will be significant as the Company
plans to complete a bankable feasibility study by December 31, 2008. At the
end of this fiscal year the company has spent approximately $22 million toward
this study. At the date of this release the Company has spent approximately
$24 million. The Company will require additional capital to complete this
study and to provide for the administration of its Calgary and Vancouver
offices. The Company believes that it will raise this capital through the
public markets and through the continued exercise of its outstanding options
and share purchase warrants.

    Copper Fox is a Junior Resource Mining Company listed on the TSX-Venture
Exchange (CUU). The company is involved in the exploration and development of
a world-class copper/gold porphyry mineral deposit located in north western
B.C. at Schaft Creek. Under the terms of an option agreement negotiated with
Teck Cominco Limited, Copper Fox can acquire up to a 94.3% aggregate (direct
and indirect) interest in the Schaft Creek mineral resource.

    ON BEHALF OF THE BOARD OF DIRECTORS


    Guillermo Salazar S., P. Geol.
    President and CEO

    The TSX Venture exchange has not reviewed the contents of this news
release and accepts no responsibility for the adequacy or the accuracy
thereof. This news release includes "forward-looking information" within the
meaning of the Canadian securities laws. Statements, other than statements of
historical fact, may constitute forward-looking information and include,
without limitation: anticipated timing and content of upcoming work programs,
geological interpretations, receipt of property titles, and potential mineral
recovery processes; anticipated dates for receipt of permits, approvals and
other milestones; anticipated results of drilling programs, feasibility
studies and other analyses; anticipated availability and terms of future
financing; future production, operating and capital costs; and operating or
financial performance. 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. For any forward looking information
given, management has assumed that the assay results it has received are
reliable, and has applied geological interpretation methodologies which are
consistent with industry standards. Forward-looking information involves
various risks and uncertainties. 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 management's
expectations include: fluctuations in 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 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 the company's other
filings with Canadian securities regulatory authorities at www.sedar.com. The
forward-looking information in this news release is based on management's
current expectations and Copper Fox assumes no obligations to update such
information to reflect later events or developments, except as required by
law. Additional information, about the risks and uncertainties of the
Company's business is provided in its disclosure materials, including its most
recent annual and quarterly filings, filed with the securities regulatory
authorities in Canada available at www.sedar.com. The forward-looking
information in this news release is based on management's current expectations
and Copper Fox assumes no obligations to update such information to reflect
later events or developments, except as required by law. Additional
information, about the risks and uncertainties of the Company's business is
provided in its disclosure materials, including its most recent annual and
quarterly filings, filed with the securities regulatory authorities in Canada
available at www.sedar.com.





For further information:

For further information: Jason Shepherd, investor relations, toll free
at telephone 1-866-913-1910, Email: investor@copperfoxmetals.com or visit our
web site at http://www.copperfoxmetals.com

Organization Profile

Copper Fox Metals Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890