VANCOUVER, May 10, 2012 /CNW/ - Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) announced the Company's 2012 exploration plan for the Schaft Creek project, the acquisition of additional mineral tenures contiguous to the Schaft Creek project, and the completion of an option to acquire the Jay/Scotch mineral tenures contiguous to Schaft Creek. Mr. Stewart stated "Since discovery of the Schaft Creek deposit in 1957, approximately less than 10% of the project area has been explored. The work Copper Fox completed in 2010 and 2011 suggests a potential to locate additional porphyry style deposits along strike of the Schaft Creek deposit. The 2012 exploration program will focus on the regional evaluation and exploration of the project outside the limits of the Schaft Creek deposit and is expected to cost approximately $10.0 million".
2012 Exploration Program Highlights:
|a)||A Total Field airborne magnetic survey (approximately 2,500 line kms) to extend the limits of the 2011 survey to the north and south and a spectral imagery survey,|
|b)||Titan-24 DCIP & MT surveys are planned to survey the area between the ES zone and the GK zone to follow-up the positive results obtained in 2011,|
|c)||Diamond drilling of three (Mike, ES and GK zones) untested Titan-24 chargeability anomalies outlined in 2011,|
|d)||Diamond drilling to follow-up the copper-gold-molybdenum-silver mineralization intersected in diamond drill hole 2011CF422 (the Discovery zone) located approximately 1,200m north of the Schaft Creek deposit, and|
|e)||Diamond drilling will be conducted in two phases, phase one consists of 5,000m of drilling to test the targets outlined in item d) above. Phase two will consist of at least 5,000m to follow-up zones of mineralization intersected during phase one drilling.|
Rationale for the Mineral Tenure Acquisitions:
To view the location of the interpreted Schaft Creek Mineral Trend, visit the Copper Fox website at www.copperfoxmetals.com. Details of the transactions are provided below and the Purchase Agreement will be filed on SEDAR.
The acquired mineral tenures (consisting of 16 mineral tenures totaling 4,514.78 hectares) were purchased from Randy Marko and Paul Mott ("Marko/Mott") and are contiguous to the Company's Schaft Creek project. Consideration paid by Copper Fox was $25,000 cash and a 2% net smelter return (NSR) royalty on the mineral claims subject to a "Partial NSR Buyout Option". The Partial NSR Buyout Option allows Copper Fox at any time to repurchase half of the NSR for a cash payment of $1.0 million such that the NSR is reduced from 2% to 1%.
Copper Fox has acquired an option to purchase two separate mineral tenures and a contiguous group of five mineral tenures located south and west of the Schaft Creek project. The group of five mineral tenures is referred to as the Jay/Scotch group and has had a considerable amount of historical exploration (prospecting, sampling, trenching and chip sampling) completed. The copper mineralization is reported to occur as disseminations and veinlets in potassic altered quartz monzonite, syenite, quartz stockwork, tourmaline stockwork, carbonate veining and amphibolite (possibly mafic dikes). Copper grades reported from the sampling of trenches, outcrop, veinlets, veins and amphibolite range from less than 0.01% to 10%, gold values range from less than 0.01 g/t to 2.7 g/t and silver values range from less than 0.5 g/t to 24.1 g/t. Recent sampling by the vendor (four samples-not described) of the Scotch claims shows molybdenum values that range from 0.017% to 0.038%. The historical samples were not assayed for molybdenum. The alteration, copper-gold-silver metal signature, host rocks and tourmaline stockwork show many similarities to the southern portion of the Paramount zone in the Schaft Creek deposit. A cash payment of $25,000 was made to the vendor to hold the mineral tenures until such time as a property visit can be completed to assess and confirm the historical analytical results.
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-molybdenum-gold-silver deposit located in northwest British Columbia, Canada.
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 44,022.46 hectares (108,782 acres). Included in this total are the "Schedule A" mineral tenures 8,334.34 hectares (20,594 acres) originally conveyed to Copper Fox pursuant to the 2002 Option Agreement. 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 an earn back option held by Teck Resources Limited ("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%, they are required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox ($75.9 million to January 31, 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 the mineral tenures totaling 35,688.11 hectares (88,187 acres) has been obtained by Copper Fox through mineral tenure acquisitions and mineral tenure purchase agreements. Some of these mineral tenures are subject to inclusion within the Schaft Creek project under the terms of the Area of Interest provisions of the 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 includes statements about the proposed 2012 exploration program for the Schaft Creek project; the potential to locate additional porphyry style deposits along strike of the Schaft Creek project; the estimates cost of the 2012 exploration program; a total field airborne magnetic survey; titan-24 DCIP & MT surveys; diamond drilling of untested chargeability anomalies; diamond drilling to follow-up the copper-gold-molybdenum-silver mineralization; the estimated course of execution of the 2012 diamond drilling program; acquisition of additional mineral tenures from Marko/ Mott; and negotiation of an option to acquire the Jay/Scotch mineral tenures contiguous to the Schaft Creek deposit, the timing and amounts of future expenditures and "earn-back" options; geological interpretations and potential mineral recovery processes. 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: 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. 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: an updated Resource Estimate for the Paramount and Liard zones2012 exploration program may not be completed as anticipated, or at all; no further additional porphyry style deposits along strike of the Schaft Creek project may not be completed on a timely basis, or at all, or have results that are favorable to Copper Fox; be located; the assay results for costs of the 2012 exploration program may significantly exceed expectations; diamond drill holes completed in the Paramount and Liard zones of Schaft Creek during the 2011 drilling program may not have a positive impact on the average grade for the Liard and Paramount zones; silver content programs may not commence or be completed as anticipated, or at all; the additional Marko/Mott mineral tenures may not be included in the Resource Estimate contain any mineralization of value to Copper Fox; Copper Fox may not acquire the Jay/Scotch mineral tenures; the Jay/Scotch mineral tenures may not contain any mineralization of value to Copper Fox; the Feasibility Study may not be completed in the anticipated timeframe, or at all; the mine plan may not be completed on a timely basis, or at all; the updated 2011 drilling results from the Paramount and Liard zones may not be included in the mine plan; silver may not be incorporated into the updated Resource Estimate; the actual mineralization in the Schaft Creek deposit may not be as favorable as suggested; another deposit may never be discovered on Copper Fox's property, or contain anticipated mineralization, or mineralization of any significance 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, the completed drill holes for which analytical results are not available may not return significant concentrations of either copper, gold, molybdenum or silver; commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; the uncertainty of the 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.
For further information:
For additional information contact: Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080