VANCOUVER, Nov. 16 /CNW/ – Copper Fox Metals Inc. (TSX-Venture: CUU; “Copper Fox”, “the Corporation”) is very pleased to announce the results for the recently completed Quantec Titan-24 DCIP and MT survey at Schaft Creek. To view the 3D geophysical model of the Schaft Creek deposit, go to the Copper Fox website at www.copperfoxmetals.com. Copper Fox also advises that it has extended the expected completion date for the updated resource estimate to allow inclusion of the assay results for the 2010 diamond drilling and the re-sampling of selected historical diamond drill holes that is currently underway. Highlights are as follows:
the chargeability anomaly that reflects the Schaft Creek deposit has been extended an additional 800 metres (m) to the north and 800 m to the south. This anomaly now has a strike length of 3,200 m and significantly increases the potential size of the deposit, at a depth of 700 m below surface, the chargeability anomaly located in the center of the Schaft Creek deposit measures 1,000 m long by 500 m wide and is open to depth, the diamond drilling program is continuing to prove up a higher grade starter pit, test the depth extent of the chargeability anomaly, and test the higher grade copper-gold mineralization intersected at the bottom of DDH CF398, the chargeability anomaly suggests that the majority of the historical drilling was completed on a possible flank of the deposit (Liard Zone) and was too shallow to test the deeper part of the chargeability anomaly, and the resource estimate scheduled to be completed in December 2010 has been extended to Quarter 1, 2011 and will include the analytical results of the 2010 diamond drilling program and the re-sampling of historical drill holes.
Mr. Elmer Stewart, President of Copper Fox stated, “The recent geophysical and diamond drilling results suggest that this deposit has potential to host substantial additional quantities of copper-gold-molybdenum mineralization at depth and along strike. The geophysical data suggests that the majority of the drilling, which was completed on the south flank of the deposit, was too shallow to test the deeper part of the new chargeability anomaly coincident with the higher copper and gold grades intersected at the bottom of DDH 398. The positive drill results could have a significant effect on several key areas of the feasibility study and cannot be excluded if the real value of the Schaft Creek deposit is to be established.”
Diamond Drilling Update:
The diamond drilling program at Schaft Creek has been extended to complete at least three more diamond drill holes to test and delineate a potential higher grade “starter pit” and test the deeper part of the chargeability anomaly that extends to a depth of greater than 700 m under this portion of the Schaft Creek deposit. A list of holes completed to date is shown in Table-1 below:
Table-1: 2010 Diamond drill status at Schaft Creek:
DDH ID EastingNorthing Dip Azimuth Total Depth (m) Status
CF399 379413 6360654 -55 90 517.3) Completed
CF400 379962 6360823 -90 na 239.9 Completed
CF401 379415 6360800 -55 90 495.9 Completed
CF402 379313 6361056 -55 90 na In progress
CF403 379347 6360502 -80 90 212.5 Completed
CF404 380024 6358546 -80 270 255.1 Completed
CF405 379418 6360908 -60 90 na In progress
Core logging, sawing and sampling of the completed diamond drill holes is in progress and analytical results will be reported on receipt thereof. DDH CF402 and DDH CF405 are currently being drilled to test the strike and depth extension of the copper-gold-molybdenum-silver mineralization intersected in DDH CF398 and DDH CF399.
Quantec Titan-24 DCIP and MT Survey:
Quantec Geosciences Limited (Quantec) completed an additional 22.4 kilometers (five lines) of DCIP and MT survey over the Schaft Creek deposit in late September and October 2010. The results of both Quantec surveys completed in 2010 have been combined into a three dimensional (3D) geophysical model of the Schaft Creek deposit. To view the 3D geophysical model of the Schaft Creek deposit, go to the Copper Fox website at www.copperfoxmetals.com.
The chargeability anomaly that represents the Schaft Creek deposit (see About Copper Fox below) has been tested with over 400 diamond drill holes. A brief discussion of the extensions to the chargeability anomaly outlined by the recent survey is presented below:
Section 6361400N and Section 6361800N:
The survey has extended the previously defined chargeability anomaly an additional 800 m to the north, past the limit of the diamond drilling. The anomaly measures 1,400 m wide and extends to a minimum depth of 500 m. The western 400 m wide portion of the chargeability anomaly corresponds to the Paramount/West Breccia Zone (see About Copper Fox for resource estimation) of the Schaft Creek deposit. The eastern portion of the chargeability anomaly dips to the east under Mount LaCasse is open at depth and along strike.
Section 6359000N and Section 6358600N:
The survey has extended the chargeability anomaly an additional 800 m to the south. The anomaly is approximately 800 m wide and extends to a depth of at least 500 m below surface. The historical diamond drilling did not test this recently identified extension to the chargeability anomaly. The chargeability anomaly is open to the south along strike.
This line was completed in a north-south direction along the strike length of the Schaft Creek deposit to demonstrate continuity of the chargeability anomaly between the nine east-west oriented sections surveyed.
This section confirms the extension of the anomaly indicated in Sections 6359000N and 6358600N and shows a 900 m long (and open to the south) chargeability anomaly at a depth of approximately 150 m below surface. The historical drilling in this area is considered too shallow to intersect this anomaly.
In the area of the Schaft Creek deposit previously referred to as the Paramount Zone (see About Copper Fox below), the chargeability anomaly plunges to the north to a depth of at least 500 m and is open along strike and at depth. The chargeability anomaly was defined on Sections 6361400N and 6361800N and confirms the extension of the chargeability anomaly to the north.
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 sulphide mineralization. The survey was completed on five lines surveyed using differential GPS instrumentation. Survey sections were completed at 400 m line spacing. 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. The 14 mRad contour on the UBC smoothed, Null Referenced pseudo-section was used to determine anomalous chargeability.
The higher grade assay results in DDH CF398, the visible bornite-chalcopyrite-molybdenite mineralization observed in DDH CF399 and CF401 and the results of the re-sampling program need to be included in the current resource estimate to arrive at an accurate estimate of the tonnes and average grade of the metals in the Schaft Creek deposit. Therefore the Corporation is extending the completion date of the resource estimate which is now expected to be completed in the first quarter 2011.
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, and 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) 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. The PFS 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 which included; 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. The PFS projected a recovery of 4.8 billion pounds of copper, 255 million pounds of molybdenum, 4.5 million ounces of gold and 32.5 million ounces of silver.
A Feasibility Study on a minimum 120,000 tpd open pit mine is expected to be completed in early 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 and an earn back option. Teck Resources Limited (“Teck”) has an option to acquire up to 75% of the Schaft Creek project which is triggered upon completion of the Feasibility Study. Should Teck elect to exercise their option for the full amount (75%) they are required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox ($55 million to date) 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.
*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 anticipated analytical results of the core sampling of the historical diamond drill holes and the current diamond drill holes, the anticipated timing and results of the proposed Quantec Titan-24 DCIP and MT survey being able to locate 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.
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