VANCOUVER, March 24 /CNW/ - 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 project."
Highlights of Acquisitions:
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Copper-gold 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. |
| b) |
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The average of the 32 samples collected from the Paget claims was 0.87% copper and 0.31 g/t gold, |
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Wide 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 |
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The 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:
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The purchase of two mineral claims (2,786.54 hectares) from Charles James Greig and John Bernard Kreft ("Greig/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%. |
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The 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%. |
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Copper 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 of Liard. |
Resource Estimate:
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® 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.
Additionally Copper Fox holds mineral claims totaling 3,947 hectares (9,752 acres) in the Liard mining district of BC not subject to the Teck earn-back.
*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".
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 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 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.
