VANCOUVER, July 9, 2012 /CNW/ - Mr. Elmer Stewart, President and CEO of
Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce that Copper Fox has entered into a binding offer
to purchase (the "Offer") with Bell Copper Corporation ("Bell Copper")
whereby Copper Fox will acquire 100% of Bell Copper's interests in the
Van Dyke copper deposit located in Miami, Arizona and the Sombrero
Butte property located in Pinal County, Arizona (together, the
"Properties"). Under the terms of the Offer; Copper Fox will acquire
100% of the Properties by paying to Bell Copper CDN$2,000,000 in cash
and assuming Bell Copper's continuing obligations in respect of the
The Offer is subject to Bell Copper completing the acquisition of the
Van Dyke property pursuant to the terms of the purchase and sale and
royalty agreement between Bell Resources (Nevada) Corporation, a
wholly-owned subsidiary of Bell Copper, and Bennu Properties, LLC,
Albert W. Fritz Jr. and Edith Spencer Fritz (collectively, the
"Vendors"), including payment by Bell Copper of US$500,000 in cash to
the Vendors on closing (see the news release issued by Bell Copper on
March 12, 2012). Completion of the purchase is subject to approval of
Copper Fox's Board of Directors and completion of legal and technical
due diligence to the satisfaction of Copper Fox.
A historical resource* of 112 million tons with an average grade of
0.52% copper (estimated to contain 1.2 billion pounds of copper)
prepared by Occidental Minerals Corporation in 1973 is reported for the
Van Dyke deposit,
Primary sulphide copper mineralization occurs beneath and to the east of
the oxide mineralization in the Van Dyke deposit,
A satellite porphyry area to the west of the Van Dyke deposit where
azurite (copper oxide mineralization) is reported to occur in outcrop
over an area measuring 400m X 500 m,
The Sombrero Butte property contains several clusters of copper bearing
breccia pipes, which elsewhere in the district host economic deposits,
29 of 34 holes drilled to test 8 breccia pipes intersected significant
intercepts of copper mineralization over core intervals ranging from 2m
to 72m and average copper grades ranging from 0.37% to 5.85%.
*The historical resource reported for the Van Dyke deposit is historical
in nature and cannot be relied upon. Copper Fox wishes to clarify that
insufficient work has been completed to verify the reported historical
data and that no mineral resource occurs within the Van Dyke property.
The reported historical mineralized intersections have not been
verified and the historical data has not been adequately reviewed by an
independent Qualified Person and cannot and should not be relied upon.
Mr. Stewart, President of Copper Fox stated, "The proposed acquisitions
are "strategic" for Copper Fox which if verified expands Copper Fox's
resource base separate from the large Schaft Creek
copper-gold-molybdenum-silver deposit and provides the Company advanced
projects located in the two major copper producing districts in
Arizona. The acquisition of these projects provides Copper Fox
corporate flexibility as it completes the feasibility study on the
Schaft Creek deposit."
Van Dyke Project:
The 1,100 acre Van Dyke project is located in the Globe-Miami Mining
district of Arizona at the town of Miami, 90 miles east of Phoenix,
Arizona. The Van Dyke property was developed in the early 1900s when a
shaft was sunk to a depth of 1,692 feet. The mine is reported to have
produced 11.8 million pounds of copper between 1929 and 1945 from
copper oxide mineralization with a reported grade of 5.0 % copper.
Between 1968 and 1980 Occidental Minerals Corporation ("Occidental")
drilled 70 exploration holes (sixty-two of which encountered
measureable copper mineralization) on the Van Dyke property of which 46
of these were used to estimate a historical resource of 112,000,000
tons at a grade of 0.52% copper. Occidental uses a polygonal method to
complete the historical resource estimate.
Occidental also completed preliminary metallurgical testwork to
determine if the copper mineralization in the Van Dyke deposit was
amendable to in-situ leaching, with a pilot program of two 1,000 foot
deep holes, 75 feet apart. The reports on the in-situ leaching
metallurgical testwork indicated copper recoveries up to 80% using
hydrofracturing to improve fluid circulation.
Encumbrances to the original vendors of the Van Dyke property consists
of total cash payments of $2.5 million (with $0.5 million ((included in
the $CDN2,000,000 purchase price)) at closing and the balance allocated
equally over the subsequent eight years). The annual payments are
prepayments against a 2.5% Net Smelter Return ("NSR") production
royalty and will be deducted from the amounts owing under the royalty,
upon initiation of production from the Van Dyke property. 2% of the
NSR may be purchased for a period of three years by the payment of
US$1.5 million for each 1% NSR purchased.
Sombrero Butte Property:
The Sombrero Butte property consists of 2,887 acres located in the
Bunker Hill Mining District 44 miles northeast of Tucson, Arizona. The
project is located 9 miles east of the San Manuel Mine (14 billion lbs
Cu), and 2 miles south of Redhawk Resources' Copper Creek project (1.1
billion lbs Cu), and both Redhawk and Millrock Resources have recently
conducted drilling within 1 mile of the northern property boundary.
The Sombrero Butte property contains at least two main clusters of
mineralized breccia pipes which elsewhere in the district overlie
associated porphyry copper systems. The mineralized breccia pipes are
believed to be associated with one or more underlying porphyry copper
systems. At least 25 breccia pipes were located in the Sombrero Butte
area and between 2006 and 2008; 34 drillholes were completed to test 8
of the mineralized breccia pipes. The mineralization in these breccia
pipes remains open at depth.
Some of the mineralized interval from the 34 holes completed are as
Drill Hole ID
The mineralized intervals listed in the above table do not represent true widths.
Field work has also identified 12 breccia pipes exhibiting dickite in
the altered breccia matrix. Dickite is an indicator mineral which forms
under acidic and high temperature conditions, and occurs in multiple
porphyry copper deposits, including the nearby San Manuel mine.
These additional breccia pipes occur in a separate cluster located three
kilometers further south covering an area of 1 kilometer by 1.6
kilometers. These breccias exhibit hydrothermal alteration (dickite)
filling open spaces between angular breccia clasts and sheeted
The Sombrero Butte property is subject to an option agreement to earn a
100% interest in the property by making cash payments of US$60,000 in
January 2013 and US$650,000 in January 2014.
Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the
Company'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 (TSX-V:CUU) with a corporate office in Calgary
and an operations office in Vancouver and is involved in the
exploration and development of the Schaft Creek
copper-gold-molybdenum-silver deposit located in northwest British
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 mid-late summer, 2012.
Copper Fox holds title and a 100% working interest in the Schaft Creek
project consisting of 52,843.34 hectares (130,579 acres). Included in
this total are the "Schedule A" mineral tenures originally conveyed to
Copper Fox pursuant to the option agreement dated January 1, 2002
between Teck Resources Limited ("Teck") and Copper Fox (the "Teck
Option Agreement"), which consist of 8,334.34 hectares (20,594 acres).
The "Schedule A" mineral tenures are subject to a 3.5% Net Profits
Interest held by Royal Gold, Inc., a 30% carried Net Proceeds Interest
held by Liard Copper Mines Limited ("Liard") and, together with the
additional mineral tenures obtained by Copper Fox within the "Area of
Interest" provided for in the Teck Option Agreement, an earn back
option held by Teck. On completion of the feasibility study, Copper Fox
will earn Teck's 78% interest in Liard. Teck's earn back option to
acquire either, 20%, 40% or 75%, of Copper Fox's interest in the Schaft
Creek property is triggered upon delivery of a positive feasibility
study to Teck. Should Teck elect to exercise its option for 75%, Teck
is required to fund subsequent property expenditures up to a total of
400% of those incurred by Copper Fox ($76.6 million to April 30, 2012)
and arrange for project financing, including the Copper Fox portion.
For full details of the Teck earn back option please refer to the
Company's website www.copperfoxmetals.com.
The remainder of Copper Fox's registered interests in mineral tenures in
British Columbia total 44,509 hectares (109,984 acres). These interests
have been acquired by Copper Fox through mineral tenure acquisitions
and mineral tenure purchase agreements subsequent to Copper Fox
entering into the Teck Option Agreement. Certain portions of these
registered mineral tenures are subject to inclusion within the Schaft
Creek project pursuant to the terms of the "Area of Interest"
provisions of the Teck Option Agreement.
On behalf of the Board of Directors
Elmer B. Stewart
President and 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 include statements about: historical
resource estimates and results of metallurgical test work on the Van
Dyke property and exploration drilling results on the Sombrero Butte
property, the completion of the feasibility study for the Schaft Creek
project; estimated timing and amounts of future expenditures and
"earn-back" options; geological interpretations and potential mineral
recovery processes. There can be no assurance that the purchase of the
Van Dyke and Sombrero Butte properties will be completed. 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: that the closing of the purchase will occur, that
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; and
the anticipated analytical results of the current drilling program.
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 number of closing conditions that the purchase of the Van
Dyke and Sombrero Butte properties are subject to, including, but not
limited to, the satisfactory due diligence of Copper Fox and the
approval of the TSX Venture Exchange; that investigation and
verification may show that the historical estimate on the Van Dyke
property may not be accurate or exist at all; that the metallurgical
testwork completed on leaching the copper mineralization reported to
occur within the Van Dyke deposit may not be accurate; that the
exploration drilling results from the Sombrero Butte property may not
be related to an underlying porphyry system; that the feasibility study
on the Schaft Creek project may not be completed within the
contemplated time frame, or 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 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, 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:
Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080