Copper Fox Commences 2011 Drilling Program, Updates Other Activities at Schaft Creek,
Vancouver, British Columbia - May 31, 2011. ("Copper Fox" or the
"Company") (TSX-V: CUU) is pleased to announce that diamond
drilling of DDH CF407-2011 at Copper Fox's 100% owned Schaft
Creek copper-gold-molybdenum-silver porphyry deposit located in northwest
British Columbia has commenced. This hole is designed to test the eastern
extension of the large chargeability anomaly associated with the zone of
higher-grade mineralization intersected in 2010. An update on the progress of
the resource estimate and airborne magnetic survey is also provided.
Highlights:
a) Diamond drill hole ("DDH") CF407-2011 is underway and is located
on the same site as DDH CF406-2010. A second diamond drill is expected to
arrive at Schaft Creek by mid June 2011,
b) The primary objective of the 2011 drilling program is to test at depth a 1,200m
long by 600m wide portion of the large chargeability anomaly associated with
the higher-grade mineralization located in 2010 and test the ES and GK zones
of mineralization that are on the recently acquired lands located immediately
north of the Schaft Creek deposit,
c) Completion of the high resolution aeromagnetic survey of the Schaft Creek project has been delayed due to adverse
weather conditions. The survey is approximately 60% complete and results of
this survey will be announced upon receipt of the surveyor's reports
following completion, and
d) AMEC are working toward delivery of the updated resource estimation. The
receipt of this report is expected shortly.
Elmer B. Stewart President and CEO of Copper Fox
stated that "Our first priority for 2011 is to complete the feasibility
study on the Schaft Creek deposit and to do this we
must first receive the updated resource estimation. The delay in receiving
this report has been frustrating but resource estimations are complex
in-depth studies especially when dealing with a substantial amount of legacy
data such as at Schaft Creek. I am confident that
this report will be completed soon and we can then move quickly to complete
the feasibility study. The delay in completing the airborne magnetic survey
is a function of the weather conditions around Schaft
Creek but has not affected the other portions of the 2011 program. I am
pleased that we re-started the testing of the extensions of the large
chargeability anomaly associated with the higher-grade mineralization located
in 2010. This anomaly is interpreted to have the best potential to
substantially expand the limits of the mineralization in the Schaft Creek deposit".
Diamond Drilling Program:
The drilling of DDH CF407-2011 has commenced. This hole is collared on the
same site as DDH CF406-2010 but is being drilled at a steeper angle and has a
minimum target depth of 800m. The final depth of this hole will be determined
based on observation of the core as drilling progresses. The objectives of
the 8,000m diamond drilling program are to:
a) test the lateral and depth extensions of the
large chargeability anomaly associated with higher-grade mineralization
located in 2010,
b) subject to the results of the planned Titan-24 survey, diamond drill test
the ES and GK zones of mineralization that are located on the recently
acquired lands, and
c) diamond drill test the large chargeability anomaly located north of the
Paramount zone.
A second drill is expected to arrive at Schaft Creek in mid June. Depending on snow conditions,
this drill may be used to test the separate large chargeability anomaly
located north of the Paramount Zone. The 2011 drilling program has been
modified slightly to allow testing of the western wall of the proposed
starter pit. The majority of the drilling is dedicated to testing the strike,
depth and eastern extension of the large chargeability anomaly associated
with the higher-grade mineralization located in 2010. Contingent on the
results of the drilling of the chargeability anomaly, the size of the 2011
drilling program may be expanded by increasing the metres
to be drilled and adding a third diamond drill to the program.
Airborne Geophysical Survey:
Adverse weather conditions have contributed to a lower than expected number
of kilometers that can be flown in a day. This decrease in daily productivity
has increased the number of days required to complete the high resolution
airborne magnetic survey over the Schaft Creek
project. This delay does not affect the other activities associated with the
2011 program. The survey is approximately 60% complete and due to improving
weather conditions the survey is expected to be completed within 10 days
assuming good weather conditions.
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, and has
reviewed the technical information disclosed in this news release.
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 working 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%
discount rate (before tax) of $2.8 billion over a 23 year mine life. The
study 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 concentrator and the study is expected to be completed by the
end of the third quarter, 2011.
Copper Fox holds title and a 100% working interest in a contiguous 24,003.5
hectare (59,311 acre) property. The Schaft Creek
deposit comprising 21,025 hectares (51,954 acres) is 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 either, 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
($61.2 million to date) 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.
The Company recently acquired adjacent mineral claims from Pembrook Mining Corp. and from Messrs Greig
and Kreft totaling 2,978.5 hectares (7,360 acres)
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 one or both
of the mineral claims for a purchase price of $1.5 million each.
In addition Copper Fox owns a further contiguous group of mineral claims
encompassing 3,937 hectares (9,753 acres) not subject to the Teck option agreement.
*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, at 1-604-689-5080
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 timing and scope of expected diamond drilling; the
timing of the delivery of an updated resource estimate on the Schaft Creek deposit; the timing to complete the high
resolution airborne survey of the Schaft Creek
project; potential existence and size of mineralization within the Schaft Creek project; the timing and scope of the
feasibility study for 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 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 possibility that the updated resource estimate may not be
completed on a timely basis, or at all; the high resolution airborne survey
of the Schaft Creek project may not be completed on
a timely basis; 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 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.