CALGARY, July 15 /CNW/ – Copper Fox Metals Inc. (TSX-Venture: CUU) is pleased to provide its shareholders with an update of activities on the Schaft Creek copper-gold-molybdenum-silver deposit located in Northwest British Columbia. Copper Fox also advises that the report on the Quantec Titan-24 DCIP and MT survey completed at Schaft Creek is expected shortly.
– Diamond drilling has commenced with the following objectives; i) geotechnical testing of the proposed mill site, ii) to better define a possible higher grade starter pit on the West Breccia zone and iii) test the 2008 Induced Polarization anomalies,
– The watershed areas around the Schaft Creek deposit are non fish bearing,
– Six hydro-geological test holes have been completed to better define and monitor the subsurface water flow in the area of the proposed waste piles, and
– Since June 10, 2010; a total of 67,250,863 representing the balance of the outstanding July 13, 2010 warrants have been exercised resulting in $5.04 million being received by Copper Fox. Currently Copper Fox has $3.3 million in cash.
Mr. Stewart, President of Copper Fox stated that “I am pleased that the fish habitat portion of the environmental studies on the Schaft Creek deposit concluded that no fish species have been found from 1 to 6 kilometer radius of the deposit. The lack of fish habitat and low acid generating potential of the waste rock to be mined are very positive environmental features of the Schaft Creek deposit. The exercise of the warrants provides cash to continue our feasibility study on the Schaft Creek deposit which is expected to be completed before the end of 2010”.
Diamond Drilling Program:
Cabo Drilling Limited have been contracted to complete a minimum of 2,000 metres (8 holes) of diamond core drilling as part of the feasibility study on the Schaft Creek deposit. The objectives of the drilling program are:
– two geotechnical holes in the area of the proposed mill site to test the bedrock stability.
– six inclined diamond drill holes 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”.
– Contingent on the Quantec Titan-24 DCIP and MT survey confirming the Induced Polarization/Resistivity (“IP”) anomalies outlined in 2008, two additional diamond drill holes are planned to test these anomalies.
Environmental Assessment Update:
Copper Fox is working with the Tahltan Heritage Resources Environmental Assessment Team and provincial and federal regulators to submit an Environmental Assessment (EA) Application for the Schaft Creek deposit in the fourth quarter of 2010. One aspect of the EA Application will require authorizations under the Canadian Fisheries Act. The exhaustive studies completed by Copper Fox show that the tailings storage facility, the open pit and the waste rock storage areas, all three of which are major components of the feasibility study and the proposed mine site are not located within fish bearing waters. Naturally occurring barriers prevent fish from accessing to within 1, 2.5 and 6 kilometers of the tailings storage facility, waste rock storage area and open pit.
Due to the absence of fish, approval under the British Columbia Environmental Assessment Act, the Canadian Environmental Assessment Act and the Canadian Fisheries Act will not be contingent upon the reclassification of fish habitat as mine waste disposal facilities. Copper Fox expects that due to the absence of fish in the area around the proposed mine site, a Schedule 2 Amendment under the Fisheries Act would not be required.
Copper Fox has selected the tailings and waste rock storage areas based on consultation with the regulatory agencies with the goal of minimizing impacts on the environment and is working with provincial, federal and Tahltan Heritage Resources Environmental Assessment Team representatives to develop the Schaft Creek Project in an environmentally responsible manner. Following the mandatory review period of the EA Application, Copper Fox expects to obtain a BC Environmental Assessment Certificate and an approval under the Canadian Environmental Assessment Act in the second quarter of 2011.
Since June 10, 2010 (the date of the MD&A for the quarter ended April 30, 2010) a total of 67,250,863 warrants issued pursuant to a private placement of securities (see News Release dated June 18, 2009) completed on July 13, 2009 have been exercised. As a result of the exercise of these warrants, Copper Fox received $5.04 million a portion of which has been used to fund the completion of the feasibility study on the Schaft Creek project. After exercise of the warrants, Copper Fox has 352.4 million common shares issued. As of July 13, 2010, Copper Fox has $3.3 million cash that will be principally used to fund completion of the feasibility study on the Schaft Creek project.
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 the “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 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 results of the Quantec Titan-24 DCIP and MT survey to further define two large Induced Polarization anomalies; anticipated timing and results of feasibility studies, geophysical surveys and drilling programs; 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 drilling program in the event that the recently completed Quantec Titan-24 DCIP and MT survey confirms the Induced Polarization/Resistivity anomalies outlined in 2008. 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 confirm the Induced Polarization/Resistivity anomalies outlined in 2008; the Feasibility Study may not be completed within the contemplated time frame, or at all; the possibility of higher than estimated percentages of net acid generating waste rock; 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.
For further information: Investor line, 1.866.913.1910