Copper Fox Metals Inc. - Second Quarter Results - Three and Six Months Ended April 30, 2008



    CALGARY, June 3 /CNW/ - Copper Fox Metals Inc. (TSX Venture: CUU)
announced today its second quarter financial results. The Company reports a
loss of $719,874 (2007 - $540,473) for the three months ended April 30, 2008
and a loss of $1,318,428 (2007 - $948,275) for the six months ended April 30,
2008. The Company increased expenditures on its Schaft Creek property by
$1.4 million in the second quarter which represents accumulative expenditures
in excess of $25,000,000 on the project. The Company improved its working
capital position by $3,419,960 to $7,051,374 as a result of a successful
non-brokered financing at the end of the second quarter. At the close of this
financing on May 13, 2008 the Company increased its cash position to $11.9
million. "These new funds will be used to carry on with our efforts to
complete a bankable feasibility study on the economic viability of Schaft
Creek" said Guillermo Salazar S., President & CEO of Copper Fox Metals Inc.
Copies of the financial statements and notes thereof 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.

    Second Quarter Overview

    During the second quarter the Company spent $1.4 million on the Schaft
Creek Property and has now spent in excess of $25 million to date on this
project as the Company works toward the completion of a bankable feasibility
study.
    On May 13, 2008 the Company completed a non-brokered "flow-through" and
"non-flow-through" private placement financing of $11,771,565 (net of
commissions and finder's fees of $626,665).
    The Company is currently working on the completion of a pre-feasibility
report on Schaft Creek that will evaluate the economic potential of a 100,000
tonne per day producing mine that is expected to be in production by the end
of the year 2011.
    The Company announced that it has become a member and contributor to a
consortium that has commissioned an economic viability study for the Northwest
Power Line along Highway 37 by the Mining Association of BC and the Northern
Development Initiative Trust. The Company is confident that this study will
confirm that there is a strong business case for the power line's development
including power to support the Company's mine development plans at Schaft
Creek.

    
    Selected Financial Information

    -------------------------------------------------------------------------
                                                         Net loss per share -
                                            Net Loss        basic and diluted
    -------------------------------------------------------------------------
    2008
    ----
    First Quarter                       $   (598,554)           $      (0.01)
    Second Quarter                      $   (719,874)           $      (0.01)
    -------------------------------------------------------------------------
    2007
    ----
    First Quarter                       $   (407,802)           $      (0.01)
    Second Quarter                      $   (540,473)           $      (0.03)
    Third Quarter                       $ (2,255,109)           $      (0.01)
    Fourth Quarter                      $ (1,215,394)           $      (0.02)
    -------------------------------------------------------------------------
    2006
    ----
    Third Quarter                       $   (929,939)           $      (0.02)
    Fourth Quarter                      $   (192,356)           $      (0.00)
    -------------------------------------------------------------------------
    

    Liquidity

    During the second quarter the Company's working capital position improved
to $7,051,373 from $2,177,542 at the end of its first quarter. This was as a
result of the Company raising additional capital through a non-brokered
financing of flow -through and non-flow through common shares. The financing
closed on May 13, 2008 for net proceeds on the shares offered of $11,771,567
of which $5,598,739 were received at the end of the second quarter, April 30,
2008. This financing will be used to complete the remaining drilling activity
at Schaft Creek to provide the Company with additional core samples to be
analyzed to complete its bankable feasibility study.

    About Copper Fox

    Copper Fox is a Canadian-based mining company listed on the TSX-Venture
Exchange (CUU). The Company's activities are focused exclusively on the Schaft
Creek mineral property, one of the largest undeveloped copper, gold,
molybdenum and silver deposits in Canada. Schaft Creek comprises 20,932
hectares situated in northwest British Columbia, Canada at 57 degrees 21' N
latitude and 130 degrees 59' W longitude on the eastern slopes of the Coastal
Mountain ranges. Schaft Creek is situated between the highway and the glaciers
in the area, and benefits from a significantly lower average rain and snowfall
compared to the Pacific (west) side of these same ranges. The preliminary
mining plan utilized in the Preliminary Economic Assessment is designed to
extract a core of 713.3 million tonnes of a Measured and Indicated, 43-101
compliant, mineral resource grading 0.304% copper, 0.218 g/t gold, 1.77 g/t
silver, and 0.020% molybdenum, for a copper equivalent of 0.663% and a waste
to ore ratio of 1.66 over 31 years. The current NI 43-101 Mineral Resource has
been estimated to be 1.4 billion tonnes, using a 0.20% CuEq cut off. Copper
Fox holds the property pursuant to an option agreement with Teck Cominco
Limited and may acquire up to a 93.4% direct and indirect interest in the
property, subject to certain back-in rights to Teck Cominco. Copper Fox has
delivered notice to Teck Cominco that it has surpassed the $15,000,000
threshold of qualifying expenditures and has earned a direct 70% interest in
Schaft Creek. Title to the property is in good standing before the BC
Government until 2018.


    On behalf of the Board of Directors

    Guillermo Salazar S, 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.

    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.





For further information:

For further information: Investor inquiries: Jason Shepherd, Phoenix
Communications Group, Tel: 1-866-913-1910, E-mail:
investor@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