Copper Fox Provides Update on 2011 Plans for Schaft
Creek, Diamond Drilling Expected to Commence Mid-May
("Copper Fox" or the "Company")
(TSX-V: CUU) is pleased to provide its shareholders an update of
activities as well as its 2011 plans for the Schaft
Creek project.
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.
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(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%
(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".
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.
You can also view this
News Release on our website at:
http://www.copperfoxmetals.com/s/NewsReleases.asp?ReportID=455295