VANCOUVER, July 28 /CNW/ – Copper Fox Metals Inc. (TSX-Venture: CUU) is very pleased to provide an update on the results and interpretation of the Quantec Geosciences Ltd. “State of the Art” Quantec Titan-24 DCIP and MT geophysical survey, (“the Survey”) on the Schaft Creek copper-gold-molybdenum-silver deposit located in Northwest British Columbia.
– the Induced Polarization/Resistivity (IP) anomalies outlined by the Survey strongly suggest that the Schaft Creek mineral deposit extends a significant distance to the east and at depth beyond the limits of the current diamond drilling,
– the Survey indicates that the IP anomalies that correspond to the Main, Paramount and Breccia Zones of the Schaft Creek mineral deposit are open to the north and south, and
– the Induced Polarization anomalies outlined in 2008 have been confirmed by the Survey but these responses are interpreted to represent a geological feature, not mineralization.
Mr. Elmer Stewart, President of Copper Fox stated that “Our primary objective is to complete the feasibility study by the end of 2010. If the IP anomalies are an indication of the size of the Schaft Creek deposit, then the deposit is substantially larger than what has been defined to date. A substantial amount of diamond drilling would be required to define the limits of the deposit. Our 2010 diamond drilling program; although not designed for exploration has been adjusted to test the large IP anomaly identified on Section 6361000 under Mount LaCasse”.
Schaft Creek Deposit:
The Schaft Creek mineral deposit consists of three mineralized zones, being the Main, West Breccia and Paramount (see About Copper Fox for resource estimate of the Schaft Creek deposit).
Quantec Titan-24 DCIP and MT Survey:
Quantec Geosciences Limited (Quantec) was retained to further define two Induced Polarization anomalies located in the area of the proposed mill site in 2008. In order to better interpret any anomalies located by the Survey, the scope of the Survey was extended to include the portions of the Schaft Creek deposit where diamond drilling had been completed. The lithologies, sulphide content and metal grades obtained from the diamond drilling completed on the geophysical Sections were used in the interpretation of the geophysical responses obtained by the Survey.
A comparison of the geophysical response for the Null referenced, DC referenced, Resistivity and MT pseudo-sections shows excellent correlation. To view a geophysical model of the Schaft Creek mineral deposit based on the Null reference chargeability; 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 on this line was completed as a west and east portion due to hazardous terrain conditions. On the west side of the line, the IP anomaly is approximately 1,200 m wide and extends to a depth of 750 m. The western 400 m wide portion of this anomaly corresponds to the Paramount/West Breccia Zone (see About Copper Fox for resource estimation) where significant copper-molybdenum-gold-silver mineralization has been defined to an average depth of 400 m below surface. The 800 m wide portion of the IP anomaly located east of the Paramount/West Breccia Zone dips to the east under Mount LaCasse, is open at depth and requires testing by diamond drilling.
The east side of Section 6361000 covers the area of the proposed mill site where the two IP anomalies were located in 2008. The Quantec Survey located the 2008 IP anomalies and based on the diamond drilling information and the strength of the geophysical response, these anomalies are interpreted to represent a geological feature, not sulphide mineralization.
The IP anomaly is 1,500 m wide and extends to a depth of at least 750 m below surface. The western 550 m wide portion of this anomaly corresponds to the Paramount/West Breccia Zone where copper-molybdenum-gold-silver mineralization has been drilled to an average depth of 500 m below surface. The 850 m wide portion of this IP anomaly located east of the Paramount/West Breccia Zone dips to the east under Mount LaCasse and requires testing by diamond drilling.
The IP anomaly is 1,600 m wide and extends to a depth of 800 m at the center of the anomaly. This anomaly corresponds to the Main and West Breccia Zones where significant copper-molybdenum-gold-silver mineralization and has been intersected by drilling to an average depth of 500 metres below surface. The IP anomaly indicates that copper-molybdenum-gold-silver mineralization extend to a considerable depth below the 500 metre level. A 500 m wide portion of this anomaly located east of the Main Zone requires testing by diamond drilling.
Two IP anomalies have been located on this Section. The first anomaly is approximately 250 m wide, has a depth of 300 m and requires testing by diamond drilling. The second IP anomaly is 1,450 m wide; has a depth of approximately 600 m on the western side and a depth of 450 m on the east side. The IP anomaly corresponds to the Main and West Breccia Zones where significant copper-molybdenum-gold-silver mineralization has been drilled to a depth of 250 m. The portion of the IP anomaly below the 250 m level requires testing by diamond drilling.
The IP anomaly is 1,500 m wide and has an average thickness of 400 m. The western portion of this anomaly measures 300 m wide by 450 m deep and is located at a depth of 200 m below surface (interpreted to be faulted downward). The remaining 1,200 m wide portion of the anomaly is relatively flat lying and has an average depth of approximately 400 m. This anomaly corresponds to the Main and West Breccia Zones where significant copper-molybdenum-gold-silver mineralization has been drilled to a depth of 250 m below surface. A 250 m wide section on the east side of this anomaly requires testing by diamond drilling. The IP anomaly is open along strike to the south.
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 five lines surveyed by differential GPS instrumentation over the area of the proposed mill site and further to the west over the Schaft Creek deposit where a substantial amount of diamond drilling had been completed. Survey Sections were completed at 100 m station intervals and 400 metre line spacing. A total of 28.2 kms of DC/IP survey line (plus current extensions) and 22 kms of MT data were collected. Magnetotelluric, 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 interpretation of the data was completed by Quantec utilizing the lithology, estimated sulphide content and analytical results from the diamond drill holes completed on or near the geophysical Sections. 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. The 14 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). Copper Fox is focused exclusively on completing the Feasibility Study on Schaft Creek, 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 International Royalty Corporation. 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 the “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 $43 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 September15, 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 the interpretation of the results of the Quantec Titan-24 DCIP and MT survey, the dimensions and interpretations of the IP anomalies, the correlation of the Titan-24 DCIP and MT survey with the mineralized zones at the Schaft Creek deposit, anticipated timing and results of the current drilling program; 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. Copper Fox’s future production, operating and capital costs; operating or financial performance; geological interpretations and potential mineral recovery processes, are forward-looking statements. 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. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies. For any forward looking information given, management has assumed that the geological, metallurgical, engineering, financial and economic advice it has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from Copper Fox’s expectations include: 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, production estimates and estimated economic return; the need for co-operation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; 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; and other risks and uncertainties disclosed in Copper Fox’s continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release is based on Copper Fox’s current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law.