CALGARY, March 31 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce an update on the feasibility study on the Schaft Creek deposit and its 2010 first quarter results. During the quarter the Company has spent a further $1,153,498 towards completion of the feasibility study on the Schaft Creek deposit and reported a loss for the first quarter of $446,822.
Elmer Stewart, President & CEO, stated, "The Company has made significant progress in the past year improving its financial stability and working toward completion of the feasibility study on the Schaft Creek project. The recent announcement by the government of the province of British Columbia and the federal government of Canada on construction of the northwest high voltage transmission line has removed one of the major obstacles to project development like Schaft Creek and others in northern British Columbia. The Company believes that the construction of the power line combined with completion of the feasibility study will demonstrate that the Schaft Creek deposit contains a significant resource with substantial economic value."
Teck Resources Limited ("Teck") has transferred the 100% ownership of the Schaft Creek project, which is subject to 30% net proceeds interest held by Liard Copper Mines Limited (78% owned by Teck) and an earn-back option held by Teck, to Copper Fox pursuant to an Option Agreement between the parties dated January 1, 2002.
To the end of December 2009, Copper Fox has incurred a total of $43,299,162 of expenditures that have been accepted by Teck as applicable expenditures pursuant to the Option Agreement on the Schaft Creek project.
Compilation of all geological and analytical information collected prior to 2006 and during the 2007 and 2008 field seasons is being incorporated into an updated geological model. The updated geological model is expected to be completed by the end of April 2010.
Additional metallurgical test work was completed to optimize recovery of the copper-gold-molybdenum-silver at Schaft Creek. The results of this test work when received will be incorporated into the feasibility study.
Copper Fox is required to ensure that a mineral inventory does not exist in areas where infrastructure related to the Schaft Creek project is proposed to be located. During the second quarter, Copper Fox plans to complete a deep penetrating TITAN-24 Direct Current Induced Potential (DCIP) and Magnetotelluric (MT) survey over the area where the processing plant (the mill) and the tailings storage facility are currently proposed to be located. The purpose of the TITAN-24 survey is to verify and more precisely define the limits of two large Induced Potential anomalies that were identified in 2008. Induced Potential is a common geophysical survey used in the exploration of porphyry copper molybdenum deposits. Contingent on the results of the TITAN-24 DCIP and MT survey, a diamond drilling program to test these IP anomalies for copper mineralization may be required.
Selected Financial Information
Net Loss Net (loss)/income per share -
basic and diluted
First Quarter $ (446,822) $ -
Fourth Quarter $ 1,533,575 $ 0.01
Third Quarter $ (491,057) $ -
Second Quarter $ (431,763) $ -
First Quarter $ (29,135,359) $ (0.26)
Fourth Quarter $ 1,890,230 $ 0.02
Third Quarter $ (1,307,512) $ (0.01)
Second Quarter $ (720,878) $ (0.01)
Liquidity and Capital Resources:
The Company's working capital was $1,303,090 at January 31, 2010. The Company has sufficient funds available to meet its current obligations. As of the date of this MD&A (March 31, 2010) 15,645,113 of the $0.075 warrants and 316,665 of the $0.115 warrants have been exercised. A total $1,209,781 was received by Copper Fox and resulted in the issuance of 15,961,778 common shares of the Company. It is expected that the exercise of these warrants should continue into the second quarter.
The cash requirements in the coming months will be significant as the Company works toward completing the feasibility study. At the end of this quarter the Company has spent approximately $43 million toward this study. The Company will require additional capital to complete this study and to provide for the administration of its Calgary and Vancouver offices. The Company believes that it will be able to raise the capital required to complete the Feasibility Study through the continued exercise of its outstanding options and warrants or through the public market if required.
Copies of the financial statements and notes and related management discussion and analysis may be obtained on SEDAR at www.sedar.com, our Company web site at www.copperfoxmetals.com or by contacting the Company directly. All amounts are in Canadian dollars unless otherwise stated.
About Copper Fox
Copper Fox is a Canadian-based resource company listed on the TSX-Venture Exchange (CUU) involved in the exploration and development of porphyry copper-molybdenum-gold mineral properties. The Company's activities are focused exclusively on the Schaft Creek deposit, one of the largest undeveloped porphyry copper, gold, molybdenum and silver deposits in Canada. Copper Fox holds mineral title to the 21,025 hectares comprising the Schaft Creek Mineral Deposit subject to 30% net proceeds interest held by Liard Copper Mines Limited (78% owned by Teck) and an earn-back option held by Teck.
The Schaft Creek Project is situated in northwest British Columbia. The Company has recently awarded a contract to Wardrop to complete the feasibility study on the Schaft Creek deposit. The results of a preliminary feasibility study ("PFS") on the Schaft Creek deposit dated September 15, 2008 have outlined a proven and probable mineral reserve of 821 million tonnes and a processing rate of 100,000 tonne of ore per day utilizing open pit mining and standard flotation to recover the copper, gold, molybdenum and silver. The PFS indicated Schaft Creek could produce approximately 4.8 billion pounds of Copper, 255.1 million pounds of molybdenum, and 4.5 million ounces of gold and 32.5 million ounces of silver over a 22.6 year mine life.
On behalf of the Board of Directors
Elmer B. Stewart P. Geol. MSc.
President and CEO
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 includes "forward-looking information" within the meaning of the Canadian securities laws. Statements, other than statements of historical fact, may constitute forward-looking information and include, without limitation: anticipated timing and content of upcoming work programs, geological interpretations, receipt of property titles, and proposed mineral recovery processes; anticipated dates for receipt of permits, approvals, anticipated results of drilling programs, technical studies and other economic analyses; anticipated availability and terms of future financing; future production, operating and capital costs; and operating or financial performance.
Information concerning mineral reserve and resource estimates also may be deemed to be forward-looking information in that it reflects an estimation of the quality of metals that could be encountered if a mineral deposit were developed and mined. For any forward looking information given, management has, in part, relied on its independent technical consultants and assumes that the conclusions and recommendation of the independent consultants related to and including assay results, proposed recovery procedures, mining methods, operating and capital costs it has received are reliable and that its consultants has applied geological and engineering interpretation methodologies which are consistent with industry standards.
Forward-looking information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from management's expectations include: fluctuations in metal prices, currency exchange rates; uncertainties relating to interpretation of drill results, the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for co-operation of government agencies in the exploration and development of properties and the receipt of permits; the need to obtain additional financing to fund activities and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in project construction; uncertainty as to timely receipt of permits and other governmental, regulatory and other approvals; and other risks and uncertainties disclosed in the company's filings with Canadian securities regulatory authorities at www.sedar.com.
The forward-looking information in this MD&A is based on management's current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law. Additional information, about the risks and uncertainties of the Company's business is provided in its disclosure materials, including its most recent annual and quarterly filings, filed with the securities regulatory authorities in Canada available at www.sedar.com.
SOURCE Copper Fox Metals Inc.
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