VANCOUVER, Sept. 4, 2012 /CNW/ - Copper Fox Metals Inc. (TSX-Venture: CUU) is pleased to announce assay results from two diamond drill holes from the Discovery zone at the Schaft Creek copper-gold-molybdenum-silver project, an update on the status of the feasibility study and other corporate activities. To view the location of 2012 drill holes completed to date, please visit the Copper Fox website at http://www.copperfoxmetals.com/i/pdf/2012_DDH_LOCATION_MAP.pdf
- Diamond drill hole (DDH) CF427-2012 intersected 0.625% copper, 0.59 g/t gold, 2.02 g/t silver and 0.006% molybdenum (1.01% copper equivalent) over a core length of 47 m starting at a core interval of 509.00 m;
- Diamond drill hole (DDH) CF427-2012 intersected 0.24% copper, 0.14g/t gold, 0.006% molybdenum and 0.58g/t silver (0.36% copper equivalent) over an interval of 336.72m m starting at a core interval of 428.12;
- Diamond drill hole (DDH) CF426-2012 intersected 0.16% copper, 0.04g/t gold, 0.003% molybdenum and 0.81g/t silver (0.21% copper equivalent) over an interval of 689.11m starting at a core length of 76.55m;
- Phase 1 of the 2012 exploration program including diamond drilling has been completed. Additional drilling may be undertaken in September; and
- Results of the interpretation of the airborne and Titan-24 surveys over the Schaft Creek project by Mira Geosciences are expected shortly.
Mr. Stewart, President of Copper Fox stated, "Although to date the drilling was limited in extent, it achieved the first Phase of the objectives of the 2012 exploration program. A Phase 11 program is currently being considered. The source of the Titan-24 chargeability anomaly on the Discovery zone is interpreted to be the copper-gold-silver mineralization intersected by the 2012 drilling. The higher grade nature of the copper-gold mineralization in certain portions in (DDH) CF427-2012 and the absence of molybdenum in both drill holes suggest a separate mineralizing event from that which formed the Schaft Creek deposit. The combination of these drill results, the chargeability anomalies and mineralization in outcrop lends considerable support to the mineral potential of the Schaft Creek mineral trend."
Discovery Zone Drilling:
The weighted average grades for (DDH) CF426-2012 and CF427-2012 were estimated using a zero cutoff grade, for copper, see table below.
|DDH ID||Azimuth||Dip||From||To||Interval||Copper (%)||Gold (g/t)||Silver (g/t)||Molybdenum (%)||CuEq (%)|
Note: The core intervals listed in the above table do not represent true widths.
Diamond drill hole (DDH) CF-426-2012 located 256m east of (DDH) CF-422-2011 was completed to test the Titan-24 chargeability anomaly associated with the Discovery zone. The analytical results show significant but variable concentrations of copper and low molybdenum concentrations over the majority of the core length of this drill hole. Individual samples returned higher assay results in areas where molybdenite was observed in core.
(DDH) CF-427-2012 located approximately 400m northwest of (DDH) CF-426-2012 was completed to test the northern portion of the chargeability anomaly associated with the Discovery Zone. The upper portion of this drill hole from 8.0m to 428.12m returned highly variable copper concentration ranging from 0.02 to 0.34% copper over individual sample intervals. The core interval from 428.12m to 764.84m returned relatively consistent copper values with certain zones showing higher grades of copper over variable intervals. The core interval from 511.0m to 523.0m contains significantly higher grades of copper, gold and silver. The molybdenum concentrations in this drill hole are low with individual samples returning higher assay results in areas where molybdenite was observed in core.
2012 Drilling Program:
The 2012 drilling program to date totaled 2,206 m completed in six diamond drill holes. This is the first year that drilling was completed in these areas. Difficult ground conditions encountered in the Mike zone, (DDH) CF-429-2012 and CF429B-2012, and portions of the Discovery zone, (DDH) CF428-2012 and CF-430-2012) resulted in early termination of four of the drill holes from the 2012 exploration program before reaching the chargeability anomaly on both the Discovery and Mike zones. Analytical results for these drill holes are pending.
The results of the feasibility study for the Schaft Creek project are expected to be delivered in September 2012. The optimized mine plan has been completed. Sensitivity studies related to capital recovery versus daily mill throughput are being completed to select the optimal start-up scenario for the Schaft Creek project. The final phase of the feasibility study, the economic analysis, is expected to be completed in early September. The majority of the sections of the feasibility study have been drafted and reviewed.
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 98%. 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 0.73 to 3.10m. 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/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 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 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 by late summer, 2012.
Copper Fox holds title and a 100% working interest in the Schaft Creek project consisting of 52,843.36 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 held 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 ($80.8 million to June 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 44,509.02 hectares (109,484 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 Teck Option Agreement.
Copper Fox is a Canadian based resource company listed on the TSX-Venture Exchange (CUU-TSX-V). Copper Fox was recently recognized by TSX Venture Exchange Inc. as a member of the distinguished TSX Venture 50® group where it had the distinction of being ranked first overall for 2010.
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 the recently completed drilling program; mineralization in the Discovery zone; expected results of the in-depth interpretation of the airborne and Titan-24 surveys over the Schaft Creek project; the timing and scope of expected diamond drilling; the completion of the Feasibility Study for 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 recoveries. 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: 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 future drilling on either the Schaft Creek project may not occur on a timely basis, or at all; additional drilling may not located additional mineralization, or at all; the Discovery zone may not contain a separate mineralizing event from that which formed the Schaft Creek deposit; fluctuations in copper, 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:
For additional information contact: Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080