VANCOUVER, Nov. 4 /CNW/ – Copper Fox Metals Inc. (TSX-Venture: CUU) is very pleased to announce the assay results for the recently completed diamond drill hole CF398. Two diamond drills are currently working at Schaft Creek to test the extensions of the mineralization intersected in DDH CF398 and to test the deposit at depth for higher grade copper-gold mineralization. Highlights of activities are as follows:
Diamond drill hole (DDH) CF398 has intersected 0.70% copper, 0.42 g/t gold, 2.80 g/t silver and 0.04% molybdenum (1.13% copper equivalent) over an interval of 54.3 metres (m) of copper mineralization starting at 7.1 m below surface confirming the potential to outline a higher-grade “starter pit”,
DDH CF398 intersected a higher grade of mineralization that assayed 0.47% copper, 0.37g/t gold, 3.00 g/t silver and 0.02% molybdenum (0.78% copper equivalent) over a 213.7 m interval from 325 m to the bottom of the hole at a depth of 538.7 m. The copper-gold-molybdenum-silver mineralization is open at depth and the assay results confirm the mineralized nature of the chargeability anomaly identified in July 2010,
The analytical results show that the copper grades and notably the gold grades increase significantly toward the bottom of DDH CF398,
The re-sampling of approximately 40 historical diamond drill holes that contain higher grade copper mineralization is progressing well,
Held public open house sessions on the draft Application Information Requirements (AIR) in Tahltan communities, Terrace and Stewart B.C. The public comment period on the draft AIR will close on November 5, 2010, and
The Quantec Titan-24 deep penetrating DCIP and MT survey over the interpreted north and south extensions of the Schaft Creek deposit has been completed.
Mr. Stewart, President of Copper Fox stated that “The decision to add another diamond drill at Schaft Creek was based on the visible mineralization encountered in DDH CF398 and DDH CF399. DDH CF398 has confirmed two very significant aspects of the Schaft Creek deposit being a zone of high grade copper mineralization at surface; potentially a “starter pit” and a substantial increase in the copper and gold grades towards the bottom of the hole. Drilling is now underway to test the down dip extension of the mineralization at the bottom of DDH CF398.
Diamond Drilling Update:
The weighted average grades for the mineralized intervals in DDH CF398 are set out below in Table-1.
DDH ID Dip Azimuth From (m) To (m) Interval (m) Copper (%) Gold (g/t) Molybdenum (%) Silver (g/t) Cu Eqv (%)
2010CF398-5590 7.1 539.2 532.10.420.270.022.00 0.67
including 7.1 61.4 54.3 0.70 0.42 0.04 2.80 1.13
including 325.5 539.2 213.7 0.47 0.37 0.02 3.00 0.78
Note: The core intervals listed in Table-1 above do not represent true widths.
DDH CF398 is located in an area that is approximately 500 metres long by 200 metres wide that is being tested as a potential higher grade “starter pit” for the feasibility study that is currently underway.
The mineralization in DDH CF398 is hosted potassic altered upper intrusive breccia, in andesite, granodiorite and an intrusive breccia at the bottom of the hole. The potassic alteration is overprinted by abundant vein controlled prophylitic alteration.
The copper-gold-molybdenum-silver mineralization located below the 325.5 metres in DDH CF398 corresponds to a moderate Induced Potential response that is open at depth. The Quantec survey shows that this anomaly extends for at least an additional 600 metres to the east of DDH CF398. The 600 m wide eastern portion of the Induced Polarization anomaly has not yet been tested by diamond drilling.
Table-2: 2010 Diamond drill status Schaft Creek:
DDH ID Easting Northing Dip Azimuth Total Depth (m) Status
CF399379413 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 379353 6360512 -80 270 na In progress
DDH CF399 located approximately 250 metres south of DDH CF398 intersected variable concentrations of visible bornite-chalcopyrite and chalcopyrite mineralization along with sporadic molybdenite over the length of the hole. The hole stopped in visible copper mineralization.
DDH CF400 is located approximately 650 metres east of DDH CF398 to test a strong induced polarization anomaly identified earlier in 2010. The hole was lost due to drilling difficulties before reaching the upper edge of the anomaly.
DDH CF401 is located 104 m south of DDH CF398 has intersected variable concentrations of visible bornite-chalcopyrite and chalcopyrite mineralization along with sporadic molybdenite over the length of the hole.
Core logging, sawing and sampling of the completed DDH CF399 and DDH CF401 is in progress and analytical results will be reported on receipt thereof. DDH CF402 and DDH CF403 are currently being drilled to test the strike extension of the copper-gold-molybdenum-silver mineralization intersected in DDH CF398 and DDH CF399.
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, gold or molybdenum grades.
Re-sampling Historical Diamond Drill Holes;
Copper Fox has commenced the re-sampling of 40 historical diamond drill holes (completed between 1960 and 1985) to check the previously reported copper-gold-molybdenum-silver content. The samples from these holes were not systematically assayed for gold possibly due to the low value of gold at that time. The historical analytical results for these holes contain high grade copper mineralization which shows a positive correlation with gold content.
Quantec Titan-24 DCIP and MT survey:
The recently announced Titan-24 DCIP and MT survey to test the possible extension of the Schaft Creek deposit to the north and south has been completed. The survey covered an additional 800 metres to the north and 800 metres south of the Schaft Creek deposit. Results for the survey are expected to be received by mid November.
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 December 2010. The Corporation is currently considering extending the time to complete the updated resource estimate to include the analytical results from the current diamond drilling and re-sampling programs.
Environmental Assessment Update:
Copper Fox is pleased to announce that the 30 day public comment period for the draft Application Information Requirements (AIR) will end on November 5, 2010. In support of the draft AIR, Copper Fox held public open house sessions in Telegraph Creek, Dease Lake, Iskut, Terrace and Stewart. Copper Fox will incorporate comments from the public and the Tahltan Nation into the draft AIR and seek to finalize the document in November 2010. The final AIR will be used to prepare the Environmental Assessment application.
Diamond Drilling and Sampling Procedures:
The diamond drilling was completed using an HQ core barrel. Core recovery was estimated to be greater than 97%. After cutting with a diamond saw, one half of the core was collected for sample preparation and analysis and the other half is retained for future reference. Sample intervals were selected based on lithology changes/alteration intensity/estimated mineral content. Sample intervals ranged from 0.58 to 2.49 metres. Sample preparation was completed by ACME Analytical Laboratories Ltd (“ACME”) located in Smithers, British Columbia and analyses were completed by ACME in Vancouver, British Columbia.
Base metals were assayed using the ACME’s 7TD package which includes 4-acid digestion and ICP-ES finish. Lower detection limits are as follows: Cu >0.001%, Mo >0.001%, Ag >2 g/t. Gold is assayed by the G6 fire assay package – fusion of a 30-gram followed by ICP-ES finish; with a lower detection limit of 0.005 g/t. ACME has an 9001:2008 International Standard Organization rating.
Copper equivalent calculations are based on 100% of the copper content plus 81% of the gold content, 72% of the molybdenum content and 71% of the silver content. Metal prices are copper $US2.50/pound, gold $US1,075.00/ounce, molybdenum $US17.00/pound and silver $US16.10/ounce.
Copper Fox follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards, blanks and duplicates into the sample stream submitted to the laboratory for analysis.
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. (previously held by International Royalties 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 $55 million has 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 (51,932 acres) and a further contiguous group of 3,947 hectares (9,749 acres) 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 assay results from DDH CF 398 confirming high grade copper mineralization, the potential to outline a higher “starter pit” and the mineralized nature of the previously identified chargeability anomaly; copper and gold grade increases towards the bottom of DDH CF 398; higher grade copper mineralization from re-sampling of approximately 40 historical diamond drill holes; the Environmental Assessment application for the Schaft Creek deposit; the Quantec Titan-24 deep penetrating DCIP and MT survey; the completion of a NI 43-101 compliant resource estimation for the Schaft Creek deposit; 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; assay results for DDH CF 398 are indicative of the mineralization at the Schaft Creek deposit; and the anticipated analytical results of the current drilling program. 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 risk that copper and gold mineralization will not equate to concentrations of either copper or gold nor yield significant copper or gold grades; the possibility of negative environmental impact of continued activities; the possibility that an Environmental Assessment Certificate may not be obtained on a timely basis, or at all; 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 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 timeframe or at all; the need for co-operation of government agencies and affected First Nations 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.
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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