Copper Fox provides Schaft Creek update

Copper Fox Metals (CVE:CUU) released an update Tuesday on its current activities, reminding investors of the feasibility study it expects to complete by the end of March.

The company said its 2011 program on the Schaft Creek deposit in British Columbia demonstrated the property’s potential to host a number of porphyry-style copper-gold-silver-molybdenum deposits.

Significant copper-gold-silver-molybdenum mineralization, located 1,200 metres north of the Paramount Zone and associated with a large Titan-24 chargeability anomaly, and in a geotechnical hole some 300 metres east of Paramount in an interpreted ‘leakage’ zone, supports this potential, Copper Fox said.

The feasibility study for the property is being completed by Tetra Tech WEI – expected by the end of March 2012.

During the fourth quarter, Copper Fox also completed a 38.8-kilometre Titan-24 DCIP& MT survey over an area extending from the north end of the Paramount zone to the ES zone, three kilometres away, and along an 800 metre-long portion of the GK zone.

The survey located large chargeability anomalies on the Mike, ES, and GK zones, and has extended the chargeability signature of the Paramount zone to the north along the mineralized corridor referred to as the Schaft Creek Mineral Trend, Copper Fox said.

The company also completed 22 diamond drill holes, totaling 9,662.3 metres, at the property during the fourth quarter.

Four rigs worked to complete the drill program, which located a new zone of copper mineralization that correlates with a chargeability anomaly located 1,200 metres north of the Paramount zone.

Hole CF415-2011, located 280 metres north of the previous drilling at Paramount, intersected 67 metres grading 1.1 percent copper.

Copper Fox holds title and a 100 percent working interest in a 21,024.96 hectare property that includes the Schaft Creek deposit, subject to a 3.5 percent Net Profits Interest held by Royal Gold, a 30 percent carried Net Proceed Interest held by Liard and an earn back option held by Teck Resources (TSE:TCK.B).

The company is currently earning a 78 percent interest in Liard from Teck. Teck’s earn back option to acquire 20 percent, 40 percent or 75 percent of the Copper Fox interest in the Schaft Creek project is triggered upon the completion of a positive feasibility study.

During 2011, Copper Fox raised a total of $18.7 million, including over $15 million in private placements, $1.1 million from the exercise of 2.24 million options, and $2.6 million from the exercise of 1.8 million warrants.

Additionally, a director of the company loaned $3.9 million to Copper Fox. The loan is unsecured, bears no interest, and there are no fixed terms of repayment, it said.