VANCOUVER, June 21, 2011 /CNW/ – (“Copper Fox” or the “Company”) (TSXV: CUU) is pleased to provide its shareholders an interpretation of the results of the high resolution airborne magnetic survey over the Schaft Creek project and an update on diamond drilling activities at the Schaft Creek project.
a) Copper Fox has received from AMEC Americas Limited the tables setting out at various copper cutoff grades the tonnes and average metal grades in each resource category for the Updated Resource Estimate and Block Model. Copper Fox is currently reviewing the data with a view of releasing the results of the Updated Resource Estimate as soon as possible,
b) The airborne magnetic survey has identified a linear positive magnetic feature with a 20 kilometre (km) strike length. The Schaft Creek deposit, the recently acquired ES and GK zones of copper mineralization occur immediately adjacent to this positive magnetic feature,
c) The airborne magnetic survey has identified three distinct positive magnetic signatures that correlate with the Schaft Creek deposit and the ES and GK zones of copper mineralization,
d) The airborne magnetic signature over the Schaft Creek deposit correlates well with the Quantec Titan-24 DCIP and MT survey results (see news release dated November 16, 2010) and suggests that the Schaft Creek deposit could extend for an additional 1,000 metres (m) to the south, and
e) Diamond drill DDHCF407-2011 located in the Paramount zone has been shut down at a depth of 735m in propylitic altered volcanics. DDHCF407-2011 intersected visible copper mineralization in the core from 5.3m to a depth of 653m. The second drill has arrived on the property and is currently drilling on the Paramount zone.
Elmer B. Stewart President and CEO of Copper Fox stated, “The results of the airborne survey identified a previously unknown 20km long positive magnetic feature that is associated with the Schaft Creek deposit and the ES and GK zones of copper mineralization. This feature is of considerable interest from an exploration/mineral potential for the Schaft Creek project. The survey identified three positive magnetic signatures that correlate with the Schaft Creek deposit and the zones of copper mineralization and has much better defined the limits of Schaft Creek mineral trend. The copper mineralization observed in DDHCF407-2011 has extended the mineralized zone an additional 125m to the east and a further 136m below the mineralized interval [517m] intersected in DDHCF399-2010. The drilling on the Paramount zone has the objective of expanding the limits of the mineralization of the Schaft Creek deposit by testing the large chargeability anomaly located to the east under Mount LaCasse.”
Airborne Geophysical Survey:
The High Resolution Airborne Magnetic Survey covered a 25km long by 17km wide area. A total of 2,520 line kilometres (including tie-lines) of survey were completed. The preliminary interpretation of the Total Field magnetic data (TF) and the Calculated Vertical Gradient (CVG) magnetic data has identified a potential area of “exploration interest” that has a strike length of approximately 20 kilometres.
The area of “exploration interest” is an elliptical shaped zone (approximately 4kms wide by 20kms long) that is bounded on both sides by narrow, linear, positive TF and CVG magnetic signatures. These positive magnetic signatures are interpreted to be regional scale faults. The Schaft Creek deposit, the ES and GK zones of copper mineralization and the recently identified Schaft Creek mineral trend are located immediately adjacent to the 20km long positive magnetic feature located on the west side of the area of “exploration interest”.
The correlation of the TF and CVG magnetic signatures and the Titan-24 DCIP and MT chargeability anomaly on the Schaft Creek deposit are excellent. The TF and CVG magnetic signatures suggest that the Schaft Creek deposit could extend to the south for an additional 1,000m. The 1,000m long area identified by the TF and CVG has not been surveyed by the Titan-24 system. The Titan-24 DCIP and MT survey completed over the Schaft Creek deposit in 2010 identified an open-ended, large, positive chargeability anomaly at the south end of the interpreted extension of the Schaft Creek deposit. The chargeability anomaly and the magnetic signatures in this area have approximately the same width.
The TF and CVG data has, in addition to the three distinct magnetic signatures associated with the Schaft Creek deposit and the ES and GK zones, outlined four other positive magnetic features within the area of exploration interest. Preliminary exploration of these areas in 2011 will include mapping and sampling to identify either zones of copper mineralization or alteration that would be indicative of porphyry style mineralization.
Diamond Drilling Program:
Two diamond drills are currently working on the Paramount zone of the Schaft Creek deposit. DDHCF407-2011 (azimuth 090, dip-70 to the east) is an HQ diameter hole and was completed with a core length of 735m (vertical depth of 550m). Visible copper mineralization (chalcopyrite and bornite) was continuously observed in the core from the start of bedrock at 5.3m to a depth of 653m. In addition to the bornite and chalcopyrite mineralization; visible molybdenite mineralization occurs sporadically throughout the core length in quartz veinlets, along shear planes and in some instances also with bornite-chalcopyrite mineralization. The bornite-chalcopyrite mineralization occurs as disseminations, veins and veinlets. The copper mineralization is hosted in Potassic and Phyllic altered Intrusive Breccia, Granodorite, Quartz Feldspar Porphyry and Andesite. Both drills are being used to define the limits of the zone of higher-grade copper-gold-molybdenum-silver mineralization located in 2010 in the Paramount zone by testing the large chargeability anomaly located under Mount LaCasse.
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 or molybdenum grades.
The majority of the 2011 drilling program is expected to be completed in the Paramount zone. The 2011 drilling program also contemplates completing one or two diamond drill holes into each of the ES and GK zones and the large chargeability anomaly to test each zone for its copper-gold potential.
Updated Resource Estimate:
Copper Fox has received from AMEC Americas Limited the tables setting out at various copper cutoff grades the tonnes and average metal grades in each resource category for the Updated Resource Estimate and Block Model. Copper Fox is currently reviewing the data with a view of releasing the results of the Updated Resource Estimate as soon as possible. Mr. Stewart, President and CEO of Copper Fox stated: “Now that the Updated Resource Estimate has been completed, Copper Fox needs to identify the correct base case for the copper cut-off grade and tonnes from the resource estimate to be used in the forthcoming Feasibility Study which is being completed by Wardrop. Our objective is to select a base case that provides optimal economics with an early payout on the project and at the same time provides maximum return from the deposit over the first 7 years. Copper Fox now can move forward to complete the Feasibility Study and the Environmental Assessment Application for the development of the Schaft Creek project.”
Specification for Airborne Magnetometer Survey:
The airborne survey was flown at 200m spaced flight lines at an average altitude above ground level of 39m. Tie lines were flown at 2km intervals. The magnetic data was collected using a Scintrex cesium vapor CS-3 magnetometer, a high sensitivity/low noise magnetometer. The magnetometer and the base station used in the survey have absolute accuracy range of 0.1nT (gamma) and a sensitivity of 0.1nT (gamma) at a 2 second sampling rate. Precision GeoSurveys Inc. from Vancouver, British Columbia performed the survey.
About Copper Fox
Copper Fox is a Canadian based resource company listed on the TSX-Venture Exchange (CUU-TSX-V). Copper Fox was recently recognized by TSX Venture Exchange Inc. as a member of the distinguished TSX Venture 50® group where it had the distinction of being ranked first overall for 2010.
The Company is working 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 Feasibility Study is being led by Wardrop, A Tetra Tech Company on a minimum 120,000 tpd open pit mine and is expected to be completed during the fourth quarter 2011.
Copper Fox holds title and a 100% working interest in a contiguous 24,003.5 hectare (59,311 acre) property which includes the Schaft Creek deposit subject to certain royalty agreements, a 30% carried interest held by Liard Copper and an earn back option held by Teck Resources Limited (“Teck”). Copper Fox is currently earning a 78% interest in Liard Copper from Teck. Teck’s earn back option to acquire 20%, 40% or 75% of the Copper Fox interest in the Schaft Creek project is triggered upon completion of a positive Feasibility Study. Should Teck elect to exercise its option for 75% they are required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox ($62.1 million as at June 15, 2011) 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.
Additionally Copper Fox holds mineral claims totaling 3,947 hectares (9,752 acres) in the Liard Mining District of BC not subject to the Teck earn-back.
Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Company’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.
*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.