Highlights:
| a) |
Copper Fox has been advised by AMEC to expect the updated
resource estimate on the Schaft Creek deposit later this month,
|
| b) |
The high resolution airborne survey of the Schaft Creek project
has commenced and is expected to be completed within 10 days subject
to weather conditions, and |
| c) |
Diamond drilling is expected to commence later this month
subject to snow conditions. The first drill hole of the 2011 season
will be the completion of DDH CF2101-406 which had to be capped due
to weather conditions at the end of the 2010 season.
|
Elmer B. Stewart President
and CEO of Copper Fox stated "The objectives of the 2011 program are to
expand the limits of the mineralization in the Paramount zone of the
Schaft Creek deposit and to try and locate another deposit of
copper-gold-molybdenum-silver mineralization. In addition to the Schaft
Creek deposit, two large zones of copper-gold mineralization and a large
chargeability anomaly are located within the Schaft Creek project none of
which have ever been tested by Diamond drilling. The potential for any one
of these zones to host a large copper-gold-molybdenum-silver deposit is
considered to be high".
Resource Estimate:
Copper Fox has been advised
by AMEC Americas Limited ("AMEC") to expect an updated resource estimate
on the Schaft Creek deposit later this month. Mr.
Stewart, President and CEO of Copper Fox stated, "While it is
disappointing the resource estimate has taken longer than originally
anticipated, we are pleased to report that AMEC continues to diligently
work towards finalizing this report. It is important always to keep in
mind, that given the nature of the work, it will continue to be difficult
to predict the precise date that AMEC will complete its work, and it may
well take until later in May before the Company receives delivery of the
report. We very much look forward to receiving the updated resource
estimate from AMEC as it marks a major milestone for Copper Fox and a very
important step in the development of the Schaft Creek project".
Airborne Geophysical Survey:
The drilling
completed in 2010 demonstrated that the copper-gold-molybdenum-silver
mineralization in the Paramount zone of the Schaft Creek deposit has a
positive magnetic signature. A compilation of historical exploration
results has identified a 15 kilometre long zone of favourable geology,
alteration and copper mineralization referred to as the Schaft Creek
mineral trend. In addition to the Schaft Creek deposit, this trend
hosts:
| a) |
the recently acquired ES zone (see News
Release dated April13, 2011) located approximately 3 kms north of
the Paramount zone of the Schaft Creek deposit measures at least
1,100m long by 300m wide. The average of 32 chip and grab samples
collected from this zone was 0.87% copper and 0.31 g/t gold, |
| b) |
the recently acquired GK zone located
approximately 3 kms north of the ES zone measures at least 1,700m
long by 250m wide. Reconnaissance sampling on the GK zone 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 |
| c) |
a large chargeability anomaly located
north of the Paramount zone. The limits of the zone of chargeability
have not been defined and this target has not yet been tested by
Diamond drilling. |
The mineral claims on which the ES and GK zones of copper
mineralization occur are contiguous to the Schaft Creek project.
These claims were acquired (see News Release dated March 24, 2011) by Copper Fox due to the geological
setting, widespread copper-gold mineralization and associated alteration
exposed on surface. These features are very similar to those of the
higher-grade mineralization in the Paramount zone of the Schaft Creek
deposit.
To better define the three zones listed above and to
identify additional targets that may occur within the Schaft Creek mineral
trend, a high resolution aeromagnetic survey has commenced as scheduled on
the Schaft Creek project. The exposed mineralization alteration and
geology on the ES and GK targets indicate potential for discovery of large
zones of copper-gold-molybdenum-silver mineralization Preliminary
exploration of magnetic targets in the aeromagnetic survey, will be
included in the 2011 program.
Diamond Drilling Program:
As previously announced, Copper Fox plans to complete an 8,000m
Diamond drilling program on the Schaft Creek project in 2011. Two
Diamond drill contractors have been retained to complete the work.
The primary objectives of the 2011 program are:
| a) |
to expand the limits of the zone of
higher-grade copper-gold-molybdenum-silver mineralization located in
2010 in the Paramount zone of the Schaft Creek deposit, |
| b) |
to complete geophysical surveying of
(Titan-24 surveys) and initial Diamond drill testing of the ES and
GK zones of mineralization, and |
| c) |
to complete geophysical surveying of
(Titan-24) and initial Diamond drill testing of the large
chargeability anomaly located north of the Paramount zone.
|
The majority of the 2011 drilling program is expected to
be completed in the Paramount zone. The 2011 drilling program also
contemplates completing one or two Diamond drill holes into the ES and GK
zones and the large chargeability anomaly to test each zone for its
copper-gold potential.
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 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% (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 24,003.5 hectare (59,311 acre) 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 ($58.1
million as of March 29, 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.
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.
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, has
reviewed the technical information disclosed in this news release.
*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