CALGARY, Sep. 17, 2010 (Canada NewsWire via COMTEX) — Copper Fox Metals Inc. (TSX-Venture: CUU | PowerRating) is pleased to provide its shareholders with an update on the current diamond drilling program, on the feasibility study of the Schaft Creek copper-gold-molybdenum-silver deposit located in Northwest British Columbia and future plans to further test the mineral potential of the Schaft Creek project and extensions of the Schaft Creek deposit.
Highlights:
— Diamond drill hole (DDH) 2010CF398 with a core length of 539.5m intersected visible bornite-chalcopyrite mineralization over approximately 90% of its core length. The diamond drill hole ended in visible chalcopyrite-bornite +/- molybdenite mineralization and the mineralization remains open at depth.
— DDH 2010CF398 intersected visible copper mineralization to a vertical depth of 450 m below surface thereby confirming the mineralized nature of the chargeability anomaly identified in July 2010. This nomaly and the mineralization remains open at depth.
— An updated National Instrument 43-101 compliant resource estimate with an effective date of December 31, 2009 is expected to be completed in October 2010,
— Stantec has been retained to manage the Environmental Assessment application process for the Schaft Creek deposit, and
— A Quantec Titan-24 deep penetrating DCIP and MT survey is planned to explore the area situated between the apparent north end of the Schaft Creek deposit and the property boundary a distance of 1,600 m for potential extensions of the Schaft Creek.
Mr. Stewart, President of Copper Fox stated that “I am pleased with the progress to date on the feasibility study and the Environmental Assessment of the Schaft Creek deposit. The 2010 field work and the Titan-24 DCIP and MT survey strongly suggest that the Schaft Creek deposit is open along strike to the north, to the east under Mount La Casse and at depth. The recently completed drill hole intersected visible copper +/- molybdenite mineralization to a vertical depth of 450 m below surface, twice the average depth of previous drill holes on this section of the Schaft Creek deposit.
Diamond Drilling Update:The objectives of the current diamond drilling program are:
— to better define the distribution of the copper-gold-molybdenum-silver grades in the vertical dipping West Breccia zone (see News Release dated June 1, 2010) as a possible higher-grade “starter pit”, and
— test the deep Induced Polarization/Resistivity (“IP”) anomalies recently identified by the Quantec Titan-24 survey completed and announced in July 2010.
Diamond drill hole (DDH) 2010CF 398 is an inclined (-55 degrees) HQ diameter hole that has been completed to core length of 539.5 m (vertical depth of 450m). This hole intersected variable concentrations of visible bornite and chalcopyrite over 90% of the core length of the hole. In addition to the bornite and chalcopyrite mineralization; visible molybdenite mineralization occurs sporadically throughout the core length in quartz veinlets and in some instances also with bornite-chalcopyrite mineralization. The bornite-chalcopyrite mineralization occurs as disseminations, veins and veinlets in variably potassic altered volcanic and intrusive rocks.
DDH 2010CF398 was completed to test the upper 200 m of this section of the Schaft Creek deposit as a potential higher-grade “starter pit”. This drill hole is also located on one of the Titan-24 chargeability anomalies identified in July 2010. This drill hole has extended the copper mineralization on this section from an average vertical depth of 225 m to a vertical depth of 450 m. DDH2010CF398 ended in visible copper +/- molydenite mineralization and remains open at depth. Core logging, sawing and sampling of DDH 2010CF398 is in progress and analytical results will be reported on receipt thereof.
The reader is cautioned that visible copper and molybdenite mineralization does not necessarily equate to significant concentrations of either copper or molybdenum and there is no assurance that the assay results of the samples from this drill hole will yield significant copper or molybdenum grades.
Resource Estimation:
AMEC Americas Limited is working toward completion of a National Instrument 43-101 compliant resource estimation for the Schaft Creek deposit which is expected to be received in October 2010. The effective date of the updated resource estimate is December 31, 2009 and will not include any of the analytical results from the current diamond drilling program. The data base used in the resource estimate covers the analytical data base collected from the deposit from 1957 to 2008.
Environmental Assessment Update:
Copper Fox is pleased to announce that it has engaged Stantec Consulting Ltd. (Stantec) to assemble the environmental data collected to date and prepare the EA Application for Schaft Creek. Copper Fox continues to advance the Schaft Creek Project through the British Columbia (BC) and federal environmental assessment (EA) process. Copper Fox is working closely with the Canadian Environmental Assessment Agency and the BC Environmental Assessment Office to harmonize the EA process for Schaft Creek. A draft Application Information Requirements (AIR) document that meets both the federal and provincial requirements of the EA Application will be released for a formal 30 day public comment period in October 2010.
Stantec, founded in 1954, provides professional environmental and engineering services across Canada and the United States. Stantec’s Environmental Management practice specializes in environmental assessments under the Canadian Environmental Assessment Act and the British Columbia Environmental Assessment Act and has exceptional experience in the mining sector from regulatory approvals through construction, operation, closure, and decommissioning. Stantec brings strong environmental experience in the mineral industry to the Schaft Creek Project.
Additional Quantec Titan-24 DCIP and MT survey:
Copper Fox plans to complete an additional Quantec Titan-24 DCIP and MT survey over the area that extends from the apparent north end of the Schaft Creek deposit to the northern boundary of the Schaft Creek Project a horizontal distance of 1,600 m. The Titan-24 survey is scheduled to commence before the end of September and preliminary results are expected before mid-October. Contingent on the results of the Quantec Titan-24 survey, diamond drilling of identified chargeability anomalies is planned immediately thereafter.
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). Copper Fox is focused exclusively on completing the Feasibility Study on Schaft Creek located in Northwest British Columbia, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox has earned a 100% working interest in the Schaft Creek project subject to a 30% net proceeds interest held by Liard Copper Mines Limited (“Liard”) a private company 78% owned by Teck Resources Limited (“Teck”) and a 3.5% net profits interest held by Royal Gold Inc. Teck’s 78% equity interest in Liard represents 23.4% of Liard’s 30% net proceeds interest in the Schaft Creek project referred to as ” Teck’s indirect interest”. Copper Fox can earn Teck’s “indirect interest” by completing a “positive” Feasibility Study, under the terms of the 2002 Option Agreement with Teck.
Teck may at any time elect to exercise one of its “earn-back options” pursuant to the terms and conditions of 2002 Option Agreement. On receipt of a Positive Bankable Feasibility Study, as defined, Teck has 120 days in which to elect to either: i) exercise one of its earn-back options, or ii) retain a 1% net smelter return royalty, or iii) receive shares of Copper Fox to a value of $1,000,000.
If Teck exercises its earn-back option, then Teck can elect to acquire either 20%, 40% or 75% of Copper Fox’s interest in the Schaft Creek Project from Copper Fox by solely funding subsequent expenditures equal to either 100%, 300% or 400% of Copper Fox’s prior expenditures of which approximately $50. Million have been incurred to date. If Teck elects to earn-back a 75% working interest, Teck will be responsible for arranging Copper Fox’s share of project financing and will recover such project financing funds from Copper Fox’s share of metal sales until payout is reached.
The Schaft Creek Project is a contiguous land package of claims that comprises 21,025 hectares and a further contiguous group of 3,947 hectares that is not subject to Teck’s earn-back, situated in northwest British Columbia, Canada. On September 15, 2008, Copper Fox announced the results of a Preliminary Feasibility Study (“PFS”) on the Schaft Creek deposit that contemplated processing 100,000 tonne per day 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 436.5 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.
*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”.
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 anticipated analytical results of the core sampling of the current diamond drill hole, the anticipated timing and results of the proposed Quantec Titan-24 DCIP and MT survey being able to located additional anomalies, anticipated results of the proposed updated resource estimate, of feasibility studies, ; the possible higher grade starter pit in the West Breccia zone; the environmental implications of the Schaft Creek project; the timing, approvals and anticipated results of an Environmental Assessment Application 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.
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 the positive environmental impact that the watershed areas around the Schaft Creek deposit being non fish bearing and the existence of low net acid generating potential from waste rock mined will have on obtaining an Environmental Assessment Certificate; and the continued financing of the Feasibility Study; and the anticipated analytical results of the current drilling program, the ability of the proposed Quantec Titan-24 DCIP and MT survey to extend the geophysical anomalies. 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 Quantec Titan-24 DCIP and MT survey do not extend the Induced Polarization/Resistivity anomalies outlined in 2010; 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 minerlaization; the possibility that an Environmental Assessment Certificate may not be obtained on a timely basis, or at all, or that additional approvals will be necessary in order to obtain an Environmental Assessment Certificate; 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.
SOURCE: Copper Fox Metals Inc.
For additional information contact: Investor line
1.866.913.1910
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