VANCOUVER, March 19, 2012 /CNW/ - Copper Fox Metals Inc. (TSX-Venture: CUU) announces an update of activities on the Schaft Creek copper-gold-molybdenum-silver project located in north west British Columbia. At the suggestion of the Investment Industry Regulatory Organization Of Canada ("IIROC"), Copper Fox advises that due to an unfortunate internal error, information was disseminated to a limited number of people and IIROC further advises that all trades made prior to this news release will be expunged.
Resource Estimate - Preparation of an updated Resource Estimate for the Paramount and Liard zones is currently underway. The Resource Estimate is being performed by Tetra Tech Wardrop (Tetra Tech) and will include all assay results for the diamond drill holes completed in the Paramount and Liard zones at Schaft Creek during the 2011 program. The updated resource estimate will be included in the feasibility study. The 2011 assay results are expected to have a positive impact on the average grade Paramount zone. Additionally Copper Fox has asked Tetra Tech to review the data related to the silver content of the mineralization for possible inclusion in the resource estimate.
Feasibility Study - Mining Plan - Copper Fox has been advised by Tetra Tech that due to manpower shortages and scheduling difficulties of staff the March 31st timeline for completion of the Feasibility Study will not be achieved. The main difficulty being encountered lies with the completion of the Mine Plan, the most critical component in the Feasibility Study, which now appears to be six to eight weeks behind schedule. Due to the fact many important components of the Feasibility Study cannot be finalized until the mine plan is completed, a further delay will ensue. It is now expected that completion of the Feasibility study will be delayed until mid-late summer, 2012.
Copper Fox senior management has had a series of high level meetings with senior representatives of Tetra Tech to review in detail all aspects of the Feasibility Study with particular emphasis on completion of the Mine Plan. Copper Fox has retained Jim Gray of Moose Mountain Technical Services (MMTS) as its Company Representative to work in-house with Tetra Tech's mining team. Mr. Gray and the MMTS team have a considerable amount of experience in the planning and optimizing of large open pit projects over the past 30 years, including a number of projects in North Western BC, also the detailed mine plan for the Schaft Creek Preliminary Feasibility Study completed in September 2008, was performed by his group.
Elmer Stewart President and CEO of Copper Fox said, "The delay is disappointing as it will add further delay in completion of the Feasibility Study on our Schaft Creek project. Our objective has always been to complete a realistic and practical feasibility study to maximize the economics of the project. The addition of Jim Gray will complement the Tetra Tech mine planning group to efficiently complete the most economic mine plan for the Schaft Creek project. We are confident that the combined efforts will get this project back on track. Fortunately the other components of the feasibility study outside the Mine Plan are well advanced. This unexpected delay provides an opportunity to allow inclusion of the updated 2011 drilling results from the Paramount and Liard zones into the mine plan and an opportunity to re-visit the possibility of incorporating the silver into the updated resource estimate."
About Copper Fox
Copper Fox is a Canadian based resource development company listed on the TSX-Venture Exchange (CUU-TSX-V) with a corporate office in Calgary and an operations office in Vancouver.
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 mid-summer 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% carried Net Proceed Interest held by Liard 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 ($74.2 as of December 1, 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 includes statements about the preparation of an updated Resource Estimate for the Paramount and Liard zones of the Schaft Creek project; the impact that the assay results for the diamond drill holes completed in the Paramount and Liard zones of Schaft Creek during the 2011 drilling program will have; the silver content of the mineralization and possible inclusion thereof in the Resource Estimate; the timing and completion of a Feasibility Study; the effect of having MMTS work with Tetra Tech WEI to advance the mine plan and completion of the Feasibility Study; the inclusion of updated 2011 drilling results from the Paramount and Liard zones into the mine plan; the possibility of incorporating silver into the updated Resource Estimate; 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 zones 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; the assay results for the 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 may not be included in the Resource Estimate; 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:
Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080