VANCOUVER, Feb. 3, 2012 /CNW/ - Copper Fox Metals Inc. (TSX-Venture: CUU) is pleased to announce further assay results from four diamond drill holes completed for geotechnical purposes as part of the 2011 drill program and recently completed metallurgical testwork on the Paramount zone of the Schaft Creek deposit. The locations of 2011 drill holes can be viewed on the Copper Fox website at www.copperfoxmetals.com. Highlights are:
- Diamond drill hole (DDH) CF419-2011 located in the Liard zone intersected 0.46% copper, 0.41g/t gold, 0.043% molybdenum and 2.15g/t silver (0.96% copper equivalent) over an interval of 110.8m starting at a core length of 10.2m,
- DDH CF419-2011 also intersected 0.55% copper, 0.20g/t gold, 0.013% molybdenum and 1.88g/t silver (0.76% copper equivalent) over an interval of 136.7m starting at a core length of 121.0m,
- DDH CF417-2011 intersected 0.24% copper, 0.08g/t gold and 1.27g/t silver over a 21m interval starting a core length of 399.0m,
- DDH CF423-2011 located 650m west of the Liard zone of the Schaft Creek deposit intersected three significant intervals of copper-silver mineralization, and
- Metallurgical testwork on composite samples of the mineralization from the Paramount zone has yielded an average recovery of 89% for copper, 64% for molybdenum, 73% for gold and 58% for silver to a bulk concentrate grading between 31 and 32% copper.
Mr. Stewart, President of Copper Fox stated, "DDH CF419-2011 was drilled for geotechnical purposes in one of the proposed starter pits and intersected significant intervals of higher grade copper mineralization and of note, higher gold and molybdenum values closer to surface. The geotechnical holes DDH CF417-2011 and DDH CF423-2011 have intersected significant intervals of copper mineralization a considerable distance outside the current limits of the Schaft Creek deposit which suggests a considerable amount of additional drilling is required to define the outer limits of the Schaft Creek deposit. Upon receipt of the assay results from the remaining seven diamond drill holes of the 2011 program, expected shortly, the Company will initiate the preparation of an updated "Resource Estimate" to include the results of the 2011 program. The metallurgical test work results for the Paramount zone are very encouraging, showing a high percentage recovery for the various metals including silver."
Diamond Drilling Analytical Results
Three of the four geotechnical drill holes intersected significant copper mineralization. The weighted average grade for the mineralized intervals was estimated using a zero cutoff grade, see table below.
|DDH ID||Dip||Azimuth||From (m)||To (m)||Interval (m)||copper (%)||gold (g/t)||silver (g/t)||molybdenum (%)||Cu Eq (%)|
DDH CF419-2011: was completed for geotechnical purposes at the south end of the proposed Liard zone starter pit and intersected continuous mineralization starting at a core length of 10.2m to a depth of 257.7m where the mineralization is cut off by a flat lying mylonitic fault zone. Assays of samples from below the mylonite zone yielded background concentrations of all metals. Disseminated and fracture/veinlet controlled chalcopyrite, bornite and molybdenite occur in potassic and phyllic altered andesite. The upper 110.2m of the hole contains significantly higher concentrations of molybdenum and gold.
DDH CF417-2011: was drilled for geotechnical purposes approximately 300m east of the Paramount zone to obtain information for pit slope design purposes. This hole intersected two significant intervals of copper mineralization in andesite. The first interval commences at a core length of 226.0m, is 16m long and contained anomalous concentrations of copper (from 0.01% to 0.13%), gold (0.01 to 0.043 g/t) and silver (0.1 to 0.9 g/t). The second interval is 21m long and contained individual samples of up to 1.9% copper, 0.66g/t gold, 15.6g/t silver and 0.065% molybdenum. These mineralized intervals are interpreted to represent either "leakage zones" from a deeper source or a separate mineralizing event.
DDH CF416-2011: was drilled for geotechnical purposes east of the Paramount zone to obtain information for pit slope design purposes. This hole intersected a 13.8m core length interval starting at 252.1m with significant, anomalous concentrations of copper (from 0.01% to 0.036%), gold (0.014 to 0.164 g/t) and silver (0.1 to 0.8 g/t). Five other narrow intervals of anomalous (> 0.01%) copper concentrations occur throughout this hole.
DDH CF423-2011: was completed for geotechnical purposes approximately 650m west of the Liard zone to test a coincident chargeability anomaly outlined in 2011 and copper mineralization intersected in DDH HAS16 (see news release dated October 17, 2011). The mineralization in this hole is mainly copper-silver with low concentrations of gold and molybdenum which suggest that this mineralization is different from that in the Liard and Paramount zones. The mineralization in this hole is open along strike and at depth.
Metallurgical test work including; rougher flotation, locked cycle testing by closed circuit flotation and concentrate quality was completed on six samples of mineralization from the Paramount zone. The test work was completed by G&T Metallurgical Services Ltd. Six samples (totaling 810 kgs) were tested for metallurgical performance. These samples were prepared using 80% passing 150 micron grind size, tested individually and then composited for similar test work. Results of the test work on the two master composite samples (with average copper grades of 0.42% copper) yielded average recoveries of 89% copper, 64% molybdenum, 73% gold and 58% silver. Concentrate produced from this testwork averaged 31% copper, 1.30% molybdenum, 16 g/t gold and 131 g/t silver. The concentrate was low in other base metals and other common penalty elements. These results will be combined with the previous metallurgical test work from the Schaft Creek deposit to determine the estimated average metal recoveries to be used in the feasibility study that is expected to be completed in the first quarter of 2012.
Diamond Drilling and Sampling Procedures
The diamond drilling was completed using an HQ and NQ core size. Overall core recovery was estimated to be greater than 99%. After cutting with a diamond saw, one half of the core is collected for sample preparation and analysis and the other half is retained for future reference. Sample intervals were selected based on lithology changes/alteration intensity/estimated mineral content and ranged from 0.90 to 3.00 metres. The majority of the sample intervals were 2.0m. Sample preparation was completed by ACME Analytical Laboratories Ltd ("ACME") located in Smithers, British Columbia and analyses were completed by ACME in Vancouver, British Columbia.
Base metals were assayed using the ACME's 7TD package which includes 4-acid digestion and ICP-ES finish. Lower detection limits are as follows: Cu >0.001%, Mo >0.001%, Silver values are determined by the 1EX with a lower detection limit of 0.1g/t. Gold is assayed by the G6 fire assay package - fusion of a 30-gram followed by ICP-ES finish; with a lower detection limit of 0.005 g/t. ACME has an 9001:2008 International Standard Organization rating.
Recoverable copper equivalent calculations are based on 88% of the copper content plus 81% of the gold content, 72% of the molybdenum content and 71% of the silver content. Metal prices are copper $US2.50/pound, gold $US1,075.00/ounce, molybdenum $US17.00/pound and silver $US16.10/ounce.
Copper Fox follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards, blanks and duplicates into the sample stream submitted to the laboratory for analysis.
Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Corporation'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 company listed on the TSX-Venture Exchange (TSX-V: CUU). The Company is working on the development of the Schaft Creek (giant porphyry) copper-gold-molybdenum-silver mineral deposit, one of the largest undeveloped mineral deposits in North America. A feasibility study is being led by Tetra Tech WEI Inc. (formerly Wardrop) on a minimum 120,000 tpd open pit mine and it is expected to be completed during the first quarter of 2012.
Copper Fox holds title and a 100% working interest in a contiguous 21,024.96 hectare (51,954 acre) property which includes the Schaft Creek deposit subject to a 3.5% Net Profits Interest held by Royal Gold, Inc., a 30% Net Proceeds Interest held by Liard Copper and an earn back option held by Teck Resources Limited ("Teck"). Copper Fox is currently earning a 78% interest in Liard from Teck. Teck's earn back option to acquire 20%, 40% or 75% of the Copper Fox interest in the Schaft Creek project is triggered upon completion of a positive feasibility study. 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 ($72.9 million as at November 30, 2011) and arrange for project financing, including the Copper Fox portion. For full details of the option please refer to the Company's website www.copperfoxmetals.com.
In March 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totaling 2,978.32 hectares (7,360 acres) (the "March 2011 Mineral Claims") which are subject to a 2% Net Smelter Return ("NSR"). Copper Fox has the option to repurchase, at any time, one-half of the NSR on the March 2011 Mineral Claims for a total purchase price of $3 million. In September 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totaling 6,115.11 hectares (15,111 acres) (the "September 2011 Mineral Claims") which are subject to a 2% NSR. Copper Fox has the option to repurchase, at any time, one-half of the NSR on the September 2011 Mineral Claims for a purchase price of $1 million. The March 2011 Mineral Claims and the September 2011 Mineral Claims are subject to inclusion with the Schaft Creek project under the terms of the Area of Interest provisions of the Teck Option Agreement.
Additionally Copper Fox holds mineral claims totaling 3,947.06 hectares (9,753 acres) in the Liard Mining District of BC not subject to the Teck earn-back.
On behalf of the Board of Directors
Elmer B. Stewart
President & 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 further assay results from diamond drill holes completed during the 2012 diamond drill campaign; results of recently completed metallurgical test work on the Paramount Zone of the Schaft Creek deposit; the receipt of assay results from the remaining diamond drill holes of the 2012 campaign; the initiation of the Resource Update; the completion of the Feasibility Study of the Schaft Creek project; potential existence and size of mineralization within the Schaft Creek project; estimated 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; and the anticipated analytical results of the current drilling and metallurgical testing programs. 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 actual mineralization in the Schaft Creek deposit may not be as favourable as suggested by the updated resource estimate; another deposit may never be discovered on Copper Fox's property, or contain anticipated mineralization, or mineralization of any significance at all; the Feasibility Study or the Environmental Assessment may not be completed within the contemplated time frame, or at all; the possibility that the metallurgical test work on the core samples does not recover significant percentages of copper mineralization; 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; uncertainty of the metallurgical testwork, 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:
Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080