Vancouver, BC, – October 17, 2011 – Copper Fox Metals Inc. (TSX-Venture: CUU) is very pleased to provide the results and interpretation of the Quantec Titan-24 DCIP and MT geophysical survey, (“the Survey”) completed on the Schaft Creek copper-gold-molybdenum-silver deposit located in Northwest British Columbia.
The 3D solids model shows that a previously unknown chargeability anomaly exists west of the Liard zone. The last three samples in DDH-HAS16, a shallow hole drilled into the top of this anomaly averaged 1.03% copper over a 10m interval,
The chargeability anomaly in the Paramount zone has been extended 1,800m to the north and is between 400m and 1,000m wide,
The chargeability anomaly in the Mike zone has been extended 600m to the north and is between 500 and 600m wide,
The chargeability anomalies in the Mike zone and the Paramount zone appear to define a circular feature with a zero chargeability core, suggesting the central portion of a porphyry system,
The ES zone contains two moderate chargeability anomalies, one of which corresponds to the mineralized zone outlined on surface, and
Only the western portion of the GK zone could be surveyed due to terrain issues. A 1,000m long by 200m wide weak chargeability anomaly has been detected along the western side of the mineralized zone exposed on surface.
Mr. Elmer Stewart, President of Copper Fox stated that “The results of the Titan-24 survey and the 3D modeling doubles the potential strike length of the Paramount zone and has located four other chargeability targets that support the concept of an emerging porphyry district. These targets considerably upgrade the potential to locate another porphyry style copper-gold-molybdenum-silver deposit within the boundaries of the Schaft Creek project. The Titan-24 survey has added another positive component to the possibility of locating another porphyry style copper-gold-molybdenum-silver deposit on any or all of these targets. Subject to weather conditions, the testing of one or more of these anomalies is expected to be completed before the end of the 2011 field program”.
Quantec Titan-24 DCIP and MT Survey:
Quantec Geosciences Limited (Quantec) completed the Titan-24 DCIP&MT survey over an area extending from the north end of the Paramount zone to the ES zone a distance of 3.0 kilometres and an 800m long portion of the GK zone. The survey lines were spaced at 400m intervals. In order to better interpret the chargeability anomalies lithologies, sulphide content and metal grades obtained from the diamond drilling (where possible) were used in the interpretation of the geophysical responses obtained by the Survey.
To view the plan view of the chargeability (Null Referenced) at a depth of 300m below surface and the 3Dimensional solid model of the Titan-24 survey; go to the Copper Fox website at www.copperfoxmetals.com. A brief discussion of the IP anomalies defined on each Section is presented below:
The survey has extended this strong chargeability anomaly (with corresponding resistivity low) a distance of 1,800m to the north of the current drilling. This chargeability anomaly in conjunction with the chargeability anomaly identified on the Mike Zone defines an interpreted circular feature that coincides with a large circular shaped resistivity low. The south side of this circular feature corresponds to the higher-grade zone of copper-gold-molybdenum-silver mineralization intersected by the drilling completed in 2010 and 2011. The northern side of this anomaly has not been tested by diamond drilling. This chargeability anomaly shows excellent correlation with the zone of argillic alteration within the Schaft Creek Mineral Trend.
This strong chargeability anomaly appears to be a separate anomaly that defines the northeast portion of the interpreted circular feature noted above. It appears that this feature is cut by several north-south oriented faults that exhibit a good correlation with the 20km long magnetic feature defined by the airborne magnetic survey completed in early 2011. This chargeability target appears to be truncated by a strong northwest trending interpreted fault.
Two moderate chargeability anomalies have been located on this zone. The centre of the chargeability anomaly (with moderate resistivity) that correlates with the mineralized zone outlined on surface exhibits a distinct low chargeability over a distance of approximately 300m, possibly due to an interpreted northwest trending fault zone. The second anomaly (with associated moderate-strong resistivity) is located to the west of the mineralized zone and is interpreted to be the extension of the chargeability anomaly defined on the Paramount zone. The chargeability signature is accompanied by a moderate to strong resistivity signature possibly due to alteration.
Only a limited portion of this zone was surveyed by the Titan-24 system. A broad zone (800m wide) of weak to sometime moderate chargeability (associated with a mixed low-moderate resistivity) was located at the interpreted southwest extension of the GK zone. The limited nature of the survey makes a thorough interpretation of this zone difficult. Additional surveying of this zone will be required to provide a better interpretation and significance of the chargeability anomaly and the mineralized outcrop on surface.
Quantec Titan-24 Survey Parameters:
The Quantec Titan-24 DCIP and MT system is a State of the Art geophysical tool used to explore for copper mineralization. The Survey was completed on 10 lines surveyed by differential GPS instrumentation. Survey Sections were completed at 100 m station intervals on 400 metre line spacing. Magneto telluric, Resistivity and Chargeability data were collected at 50 metres stations along each Section. The Titan-24 survey typically images DC resistivity to depths of 500-750 m and the IP typically images to 500-750 m, in sub-vertical tabular geologic settings and up to 50% more for sub-horizontal settings. The 3D inversion of the DC and IP data was completed using the UBC3D inversion code and is shown as Null referenced and DC referenced chargeability. In several cases, not all of the line could be surveyed due to hazardous terrain conditions. A 10 mRad contour on the UBC smoothed, Null Referenced pseudo-section was used to determine anomalous chargeability.
Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Corporation’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.
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 Exchange 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, silver and molybdenum deposits in North America. The feasibility study is being led by Wardrop, A Tetra Tech Company on a minimum 120,000 tpd open pit mine and is expected to be completed during the fourth quarter 2011.
Copper Fox holds title and a 100% working interest in a contiguous 21,024.96 hectare (51,954 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 Copper Fox interest in 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 ($63.6 million as of July 31, 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.
In March 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totalling 2,978.32 hectares (7,360 acres) (the “March 2011 Mineral Claims”) 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 the March 2011 Mineral Claims for a total purchase price of $3 million. In September 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totalling 6,115.11 hectares (15,111 acres) (the “September 2011 Mineral Claims”) which are subject to a 2% NSR. Copper Fox has the option to repurchase, at any time, one-half of the NSR on the September 2011 Mineral Claims for a purchase price of $1 million. The March 2011 Mineral Claims and the September 2011 Mineral Claims are subject to inclusion with the Schaft Creek project under the terms of the Area of Interest provisions of the Teck Option Agreement.
Additionally Copper Fox holds mineral claims totaling 3,947.06 hectares (9,753 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 principals”.
For additional information contact:
Investor line 1.866.913.1910 or J Michael smith 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.