Copper Fox Announces Strategic Acquisitions to Enlarge Schaft
Creek Property and Purchase of Liard Copper Mines Ltd. Shares
Vancouver, British Columbia -- March 24, 2011 -- Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc. ("Copper
Fox" or the "Company") (TSX-V: CUU) announced today that
Copper Fox has completed the acquisition of two very significant mineral
properties and the purchase of shares of Liard Copper Mines Limited (Liard).
He stated that "both the Paget and the Greig/Kreft mineral claims cover the interpreted extension of
the mineralized trend that hosts the Schaft Creek
deposit. The widespread copper-gold mineralization, geology and apparent
control on the mineralization on these claims show many similarities to that
seen at Schaft Creek. Based on these criteria, the
potential to find additional mineralization to the north of the Schaft Creek deposit is considered excellent. Furthermore
the Company is delighted to have acquired a direct minority interest in
Liard, which holds a 30% NPI in the Schaft Creek
Highlights of Acquisitions:
mineralization that measures 1,100m long by 300m wide, based on
historical and current surface grab and chip sampling, has been outlined
on the Paget mineral claims.
average of the 32 samples collected from the Paget claims was 0.87%
copper and 0.31 g/t gold,
spaced reconnaissance sampling on the Greig/Kreft claims in 2008 consisted of 17 grab and chip
samples that averaged 1.24% copper, 16 g/t silver and 0.07g/t gold
according to a property assessment report filed in 2008, and
interpreted Schaft Creek mineralized trend
(including the Schaft Creek deposit) extends
for a distance of at least 10 kilometres to
the north end of the newly acquired Greig/Kreft claims.
Rationale for the Acquisitions:
To view the location of the interpreted Schaft
Creek mineral trend, visit the Copper Fox website at www.copperfoxmetals.com.
The Paget and Greig/Kreft
mineral claims located north of the Schaft Creek
deposit cover an area that extends over a distance of approximately 8 kilometres. The historical exploration of this 8 kilometre trend completed between 1960 (primarily in the
1960's) and 2008 confirmed the presence, where exposed in outcrop of
significant, widespread copper-gold-molybdenum-silver mineralization. The
copper mineralization is reported to be exposed primarily in the Mount LaCasse volcanics and is
associated with widespread argillic and propylitic alteration. Exploration and property
assessment reports indicate that the copper mineralization (disseminated and
fracture controlled bornite and chalcopyrite)
occurs along the contact between the Mount LaCasse volcanics and the underlying intrusive rocks. This is a
setting similar to that defined by Copper Fox in 2010 for the higher-grade
copper-gold-molybdenum-silver mineralization at the north end of the Schaft Creek deposit. The widespread mineralization,
geology, alteration and the apparent control of the mineralization show many
similarities to that seen at Schaft Creek. Based on
these criteria, the potential to find additional mineralization on the
recently acquired mineral properties is considered excellent.
Mineral Claim Acquisitions:
Details of the transactions are provided below and the Purchase agreements
will be filed on Sedar:
purchase of two mineral claims (2,786.54 hectares) from Charles James Greig and John Bernard Kreft
are contiguous to the Company's Schaft Creek
project. Consideration paid by Copper Fox was $250,000 cash, 1,250,000
common shares of Copper Fox and a 2% net smelter return (NSR) royalty on
the mineral claims subject to a "Partial NSR Buyout Option".
The Partial NSR Buyout Option allows Copper Fox at any time to purchase
half of the NSR for a cash payment of $1.5 million such that the net
smelter royalty is reduced from 2% to 1%.
purchase of one mineral claim (192 hectares) from Paget Resources Ltd
("Paget") that abuts the current Schaft
Creek mineral claims owned by Copper Fox. Copper Fox paid Paget $350,000
cash and granted Paget a 2% net smelter return royalty on the mineral
claim subject to a "Partial NSR Buyout Option". The Partial
NSR Buyout Option allows Copper Fox to purchase half of the NSR for a
cash payment of $1.5 million such that the net smelter royalty is
reduced from 2% to 1%.
Fox acquired 26,954 shares of Liard Copper Mines Ltd. (Liard), a private
company incorporated in BC from Mrs. Mary Elizabeth Dunn for a cash
payment of $269,540 and 245,000 common shares of Copper Fox. Liard holds
a 30% Net Profits Interest (NPI) royalty in the Schaft
Creek project. Teck Resources Limited (Teck) owns 78% of the issued and outstanding shares
of Liard. Upon completion of a positive Feasibility Study, Copper Fox
will acquire Teck's 78% interest in Liard. The
shares acquired by Copper Fox as a result of this transaction with Mrs.
Dunn represent approximately 1.47% of the issued and outstanding shares
AMEC has advised that the resource estimate originally scheduled for
completion at the end of March has been temporarily delayed. Copper Fox is
working with AMEC to resolve database issues identified during the data
verification. AMEC have established there is an inconsistency between the
silver analysis of core samples analyzed by Asarco, Hecla, Teck and Copper Fox over approximately 60 years of
exploration on the Schaft Creek property. The
inconsistency in the silver concentrations may require that the silver
content of the mineralization not be reported in the pending resource
estimate which is expected before the end of April, 2011. Mr. Stewart stated
"the majority of the data from the Schaft
Creek deposit was collected before 1985. The issues we are dealing with are
typical of deposits with a considerable amount of historical data where
verification of the historical data is challenging. Re-sampling of between 5%
and 10% of the historical core (approximately 3,000m) combined with a geostatistical analysis of the silver data base will be
required to obtain the confidence necessary to estimate the average silver
content of the mineralization. This work is expected to commence in mid May
2011 in conjunction with the start of the planned 2011 diamond drilling
program. On completion of the re-sampling and 2011 diamond drilling program,
the resultant data will be included in an updated resource estimate.
The re-sampling and additional diamond drilling proposed above would not
affect the completion date for the feasibility study on the Schaft Creek deposit which is expected to be completed
either by the end of June or early July.
About Copper Fox
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 Inc.
as a member of the distinguished TSX Venture 50(r) group where it had the
distinction of being ranked first overall for 2010.
The Company is focused on completing a Feasibility Study on the Schaft Creek deposit, one of the largest undeveloped
copper, gold, molybdenum and silver deposits in North America. Categorized as
a "giant porphyry deposit" this project is at the advanced
development stage with a Preliminary Feasibility Study ("PFS")
prepared by Samuel Engineering, Inc. of Denver, Colorado, in September 2008. The
results of the PFS were extremely "robust" reporting a NPV @ 8%
(before tax) of $2.8 billion dollars over a 23 year mine life. They
contemplated processing 100,000 tonne per day
("tpd") from an open pit mine using a
standard flotation recovery process. The PFS estimated the current Mineral
Resources (using a 0.2% copper equivalent cutoff) at Schaft
Creek includes; Measured Resources of 463.5 million tonnes
grading 0.30% copper, 0.23 g/t gold, 0.02% molybdenum and 1.55 g/t silver,
Indicated Resources of 929.8 million tonnes grading
0.23% copper, 0.15 g/t gold, 0.02% molybdenum and 1.56 g/t silver.
A Feasibility Study is being led by Wardrop, A
Tetra Tech Company on a minimum 120,000 tpd open
pit mine and the study is expected to be completed by the end of June 2011.
Copper Fox holds title and a 100% working interest in a contiguous 21,025
hectares (51,954 acres) property which includes the Schaft
Creek deposit subject to certain royalty agreements, a 30% carried 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 Copper from Teck.
Teck's earn back option to acquire 20%, 40% or 75%
of 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
($57.2 million as of December 31, 2010) 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.
*United States investors are advised that current Mineral Resources are not
current Mineral Reserves and do not have demonstrated economic viability. All
figures are rounded to reflect the relative accuracy of the estimate and in
keeping with "best practice principles".
For additional information contact: Investor line 1-866-913-1910 or J.
Michael Smith, EVP,
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 mineralization, geology, apparent control on the
mineralization and significance of the Paget and Greig/Kreft mineral claims; the potential to find another
deposit to the north of the Schaft Creek deposit;
the length of the interpreted Schaft Creek
mineralized trend; the historical exploration results of the Paget and Greig/Kreft mineral claims; the
timing of an updated resource estimate; the timing and scope of the
feasibility study for the Schaft Creek project;
statements about the results of the PFS, including tones per day processing;
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 mineralization and significance of the Paget and Greig/Kreft mineral claims; 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
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 interpretation of the extension that hosts
the Schaft Creek deposit may not extend into the Greig/Kreft and Paget mineral
claims; another deposit may never be discovered to the north of the Schaft Creek deposit; the Greig/Kreft and Paget mineral claims may not contain
anticipated mineralization, or mineralization of any significance at all; the
updated resource estimate may not be completed as anticipated; the
Feasibility Study may not be completed within the contemplated time frame, or
at all; the possibility that the analytical results from the core sampling
does not return significant grades 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 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.
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|10/24/2012||ANNOUNCES the Closing of a $2,500,000 Financing by an Inside...
|9/14/2012||Announces the Closing of a $4,025,000 Financing by an Inside...
|7/23/2012||ANNOUNCES a $4,025,000 Private Placement Unit Offering, Insi...
|6/18/2012||Announces A $4,480,000 Private Placement Unit Offering Insid...
|1/30/2012||Announces The Closing Of $2,200,000 Financing By An Insider
|1/19/2012||Announces a $2,200,000 Private Placement Unit Offering Insid...
|12/14/2011||Announces the Closing of $4,000,000 Financing by an Insider
|12/7/2011||Announces Increase of $2,000,000 to previously announced Pri...
|11/21/2011||announces a $2,000,000 Private Placement Unit Offering. Ins...
|10/18/2011||announces a $2,000,000 Private Placement Unit Offering.
|10/5/2011||Announces the Closing of $5,000,000 Financing by an Insider
|9/13/2011||Announces an Additional $2,000,000 Private Placement Unit Of...
|9/8/2011||announces a $3,000,000 Private Placement Unit Offering. Ins...
|3/31/2011||ANNOUNCES THE ACCELERATION TERM TO BE APPLIED TO THE EXPIRY ...
|3/17/2011||CLOSING OF A $3,750,000 NON BROKERED PRIVATE PLACEMENT FLOW-...
|2/17/2011||Announces a $3,750,000 Non Brokered Private Placement Flow-T...
|12/16/2010||Announces the Closing of a $4,005,000 Non Brokered Private P...
|11/18/2010||$4,005,000 NON BROKERED PRIVATE PLACEMENT FLOW-THROUGH OFFER...
|10/22/2009||closing of a $2,000,000 Private Placement Unit Offering
|9/28/2009||$2,000,000 Private Placement
|6/23/2009||Provides Update on its $6,000,000 Private Placement
|6/19/2009|| Updates on its $6,000,000 private placement
|6/2/2009||announces a $6,000,000 non-brokered Private Placement of whi...
|12/16/2008||Announces the Withdrawal of a Private Placement Financing
|11/7/2008||ANNOUNCES PRIVATE PLACEMENT FINANCING
|11/7/2008||Announces Private Placement Financing
|5/15/2008||closes Non Brokered Private Placement Financing of $12,398,2...
|7/17/2007||to raise $10,000,000 in flow-through and non-flow-through fu...
|7/17/2007||Intends to offer a brokered private placement
|Option Grants of Copper Fox Metals Inc.
|Nominations of Copper Fox Metals Inc.
|Financials of Copper Fox Metals Inc.
|Project news of Copper Fox Metals Inc.
|Corporate news of Copper Fox Metals Inc.
|9/25/2012||(Schaft Creek)Reports the Status of the Schaft Creek Feasibility Study and...
|9/17/2010||Updates activities and plans at Schaft Creek
|9/20/2010||Next Leg of Growth in the Copper Supply Chain
|9/9/2010||Comments on Trading of its Common Shares
|6/17/2010||June 17 2010 news release
|6/1/2010||June 1 2010 News release
|2/2/2010||Feb 2 2010 news release
|1/21/2010||Jan 21, 2010
|10/23/2009||New release attached
|10/22/2009||announces the closing of a $2,000,000 Private Placement Unit...
|9/17/2009||Applauds Federal Government’s Support for British Columbia N...
|9/17/2009||Applauds Federal Government's Support for British Columbia N...
|7/13/2009||Special Shareholders Meeting Approves a New control Person -...
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|6/30/2009||Three and Six Months Ended April 30, 2009
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|2/27/2009||Feb 26, 2009 News release
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|2/12/2009||Correct News release
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|2/12/2009||provides an update of Corporate Activities
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|1/22/2009||Cambridge House Invitation - Vancouver
|12/18/2008||December 17 2008 News release
|12/18/2008||Announces Resignation Of A Director
|10/23/2008||NR Oct 23 2008
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|10/16/2008||Copper Fox Metals Inc. to be featured on The Biography Chann...
|10/3/2008||BTV features Copper Fox
|9/29/2008||Applauds Advancement of Northwest Power Line
|9/29/2008||Applauds Advancement of Northwest Power Line
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|9/2/2008||LV Hard Assets Conference Personalized Html
|7/17/2008||from the Ministry of Energy, Mines and Petroleum Resources r...
|6/26/2008||June 26 2008 Options
|6/26/2008||June 26, 2008
|6/13/2008||June 13/08 Standard & Poor
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|5/26/2008||Register Today for a Discounted Rate to the New Orleans 2008...
|4/4/2008||Applauds Advancement of Northwest Power Line Study
|11/15/2007||announces the renewal of the engagement of Jason Shepherd fo...
|10/12/2007||Announces is has earned a 70% Direct Interest in the World C...
|10/2/2007||$400 million to empower B.C.'s far northwest
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|4/22/2007||Adopts a Shareholder Rights Plan.
|2/27/2007||Welcomes New Executive to the Team