VANCOUVER, Sept. 25, 2012 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to provide an update on the status of the Feasibility Study being performed on the copper-gold-molybdenum-silver project located at Schaft Creek, British Columbia, Canada and to announce the results of the re-interpretation of airborne total field magnetic surveys and theTitan-24 DCIP surveys completed over the Schaft Creek mineral properties in 2011 and 2012..
Moose Mountain Technical Services has completed the "Mine Plan" for the Schaft Creek project. The optimized plan will be used to complete the economic analyses and project sensitivity. All other aspects of the Feasibility Study are complete. Merit Consultants International Inc. of Vancouver, British Columbia has been contracted by Copper Fox to perform a peer review of the Feasibility Study. Merit has been providing Project and Cost Management services to the mining sector on both domestic and internationally located projects for over 30 years. Simultaneously Copper Fox will be performing its own internal review to be led by Matt Bender, Registered Professional Engineer (Metallurgical), who has extensive background in this area and was the author and a "Qualified Person" of the 2008 Schaft Creek Pre-feasibility Study. Once these processes are complete the results will be announced by way of a news release. Mr. Elmer Stewart stated " It is evident the company is at the final stages of completing this important report, that being said, the company will diligently perform its internal review process to ensure completeness and accuracy and that the final report appropriately reflects the economic potential of the Schaft Creek resource. The completion of this Feasibility Study is the most significant event to occur in the Company in its eight year history.".
A geophysical re-interpretation generated by airborne magnetometer and Titan-24 surveys was completed by Mira Geoscience located in Vancouver, British Columbia. The purpose of the re-interpretation was to complete a geophysical characterization of the mineralization in the Schaft Creek Deposit by combining the geological, airborne magnetic and Titan-24 DCIP data sets in order to identify similar targets along strike within the Schaft Creek Mineral Trend and on other parts of the Schaft Creek project.
|a)||The mineralization in the Schaft Creek deposit is characterized by low to high chargeability and weak to moderate magnetic intensity,|
|b)||The untested chargeability signature associated with the copper mineralization in the Paramount zone has a strike length of 500m, extends to the East for an additional 300m under Mount LaCasse and represents a primary drill target,|
|c)||A wide zone of low to moderate chargeability extends from the north end of the Paramount zone for a distance of approximately 3.5 kilometres to the north-northwest encompassing the Mike zone, Discovery zone and the south end of the ES zone. The recently announced diamond drilling results from the 2012 drilling program are located within the Discovery zone, and|
|d)||The re-interpretation of the total field magnetic data has confirmed the preliminary interpretation of the 2011 data set and has not identified any additional targets to the north and south ends of the project area.|
The results of work by Mira Geosciences have fine tuned the previous interpretations of the Titan-24 data. Their interpretation continues to report a strong correlation of the mineralization in the Schaft Creek deposit and to the mineralization in the Discovery zone located approximately 2 kilometres north of the Schaft Creek deposit. The chargeability signature that extends from the north end of the Paramount zone for a distance of approximately 3.5 kilometres to the northwest could have impact on the exploration potential of the Schaft Creek project. The extension of the strong chargeability signature associated with the Paramount zone represents a priority drill target and has the potential of extending the mineralization in the Paramount zone an additional 500m to the east under Mount LaCasse.
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 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.
Copper Fox holds title and a 100% working interest in the Schaft Creek project consisting of 55,779.56 hectares (137,834 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 that are subject to the Teck Option Agreement, and 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 ($84.9 million to July 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 Copper Fox's registered interests in mineral tenures in British Columbia total 47,445.22 hectares (117,240 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.
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 results of the re-interpretation of the 2011 and 2012 airborne total field magnetic survey and the 2010 and 2011 Titan-24 DCIP surveys completed over the Schaft Creek project; the timing and scope of expected diamond drilling; the completion of the Feasibility Study for the Schaft Creek project and timing thereof; 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 interpretation of the results of the high resolution airborne magnetic survey over the Schaft Creek project; 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 re-interpretation of the results of the 2011 and 2012 airborne total field magnetic survey and the 2010 and 2011 Titan-24 DCIP survey may not locate additional mineralization on the Schaft Creek project; 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 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