VANCOUVER, April 13 /CNW/ - ("Copper Fox" or the "Company") (TSXV: CUU) is pleased to announce completion of the 3D modeling of the two QuantecTitan-24 surveys completed over the Schaft Creek deposit in 2010 andthe awarding of a contract to complete a high resolution airbornemagnetometer survey over the entire Schaft Creek project including therecently acquired mineral properties (see news release dated March 24,2011).
Elmer B. Stewart President and CEO of Copper Fox stated "We are excitedabout commencing the 2011 work program that includes the Schaft Creekdeposit, the two very large, relatively unexplored zones of coppermineralization exposed in outcrop on the recently acquired mineralclaims and the 15 kilometre (kms) long Schaft Creek mineralized trend.The airborne geophysical survey is expected to be very helpful inoutlining the strike extent of the Schaft Creek mineral trend andidentifying additional targets within this trend consistent within theexisting mineralized zones. Planning for the 2011 diamond drillingprogram 8,000 metres (m) for the Schaft Creek deposit is underway. Thedrilling is expected to commence subject to weather conditions in earlyMay".
3D Modeling Quantec Geophysical Data:
To view the 3D model of the Quantec Titan-24 survey data over the SchaftCreek deposit, visit the Copper Fox website at www.copperfoxmetals.com. A brief explanation of the model is as follows; the dotted lines onthe model represent the topographic profiles for the lines on which theQuantec Titan-24 geophysical survey were completed. The solid shapesrepresent the outline of the 25 mrad chargeability anomaly. Aninterpreted cross-section (L1600N or 6360900mN) showing the relation ofthe 2010 diamond drilling and the chargeability anomaly was previouslyposted to the website.
Based on the 3D model the following observations can be made:
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a) |
Within the area of the 2010 diamond drilling (around L1600N), the chargeability anomaly has a depth extent of at least 1,000 metres and is interpreted to be the core (the Root Zone) of the Schaft Creek deposit, |
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b) |
The model shows a distinct departure between the topographic profile (the surface) and the underlying chargeability anomaly except on one line in the central area of the Schaft Creek deposit where the outline of the chargeability anomaly matches the topographic profile, |
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The large zone of chargeability (labeled Area B) at the south end of the block starts at a depth of approximately 100m below surface. Drill hole DDH CF404-2010 was intended to test this anomaly but intersected low-grade copper mineralization in volcanic before drilling into an interpreted steeply dipping late mafic dike, and was not able to reach its target. As a result, the chargeability anomaly has not yet been tested, and |
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The large zone of chargeability (labeled Area A) at the north end of the block (not yet tested by diamond drilling) is interpreted to represent the edge of a potential new zone of mineralization. Additional Quantec Titan-24 surveying will be required to delineate this zone of chargeability. |
Airborne Geophysical Survey:
Copper Fox has awarded a contract to complete a high sensitivityairborne magnetometer survey to Precision GeoSurveys Inc. of Vancouver,British Columbia. The purpose of the survey is to identify themagnetic signature of the Schaft Creek copper-gold-molybdenum-silverdeposit and use this signature to identify other potential mineralizedzones within the interpreted Schaft Creek mineral trend. This trendcurrently hosts the Schaft Creek deposit and two very large, unexploredzones of mineralization exposed in outcrop. These zones exhibit manysimilarities to the mineralization located in the Paramount Zone at thenorth end of the Schaft Creek deposit.
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a) |
The first zone (named the ES Zone) is located approximately 3 kms north of the Paramount Zone of the Schaft Creek deposit and measures at least 1,100m long by 300m wide. The 32 samples collected from this zone averaged 0.87% copper and 0.31 g/t gold, and |
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b) |
The second zone (named the GK Zone) is located approximately 3 kms north of the ES Zone and measures at least 1,700m long by 250m wide. The 17 grab and chip samples collected from the GK Zone averaged 1.24% copper, 16 g/t silver and 0.07g/t gold. |
The airborne survey is estimated to be 2,500 line kms (including flightlines and tie lines) at 200m line spacing over an area that measuresapproximately 25 kms long by 17 kms wide. This survey is expected tocommence in mid to late April 2011 and is expected to take one - twoweeks to complete, subject to weather conditions.
About Copper Fox
Copper Fox is a Canadian based resource company listed on theTSX-Venture Exchange (CUU-TSX-V). Copper Fox was recently recognizedby TSX Venture Exchange Inc. as a member of the distinguished TSXVenture 50® group where it had the distinction of being ranked firstoverall for 2010. The TSX Venture 50® are the top 10 companies listedon the TSX Venture Exchange, in each of five major industry sectors -mining, oil & gas, technology & life sciences, diversified industriesand clean technology - based on a ranking formula with equal weightinggiven to return on investment, market cap growth, trading volume andanalyst coverage. All data was as of December 31, 2010.
The Company is working on completing a Feasibility Study on the SchaftCreek deposit, one of the largest undeveloped copper, gold, molybdenumand silver deposits in North America. Categorized as a "giant porphyrydeposit" this project is at the advanced development stage with aPreliminary Feasibility Study ("PFS") prepared by Samuel Engineering,Inc. of Denver, Colorado, in September 2008. The results of the PFSwere extremely "robust" reporting a NPV @ 8% (before tax) of $2.8billion dollars over a 23 year mine life. They contemplated processing100,000 tonne per day ("tpd") from an open pit mine using a standardflotation recovery process. The PFS estimated the current MineralResources (using a 0.2% copper equivalent cutoff) at Schaft Creekincludes; Measured Resources of 463.5 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.
A Feasibility Study is being led by Wardrop, A Tetra Tech Company on aminimum 120,000 tpd open pit mine and the study is expected to becompleted by the end of June 2011.
Copper Fox holds title and a 100% working interest in a contiguous24,003.5 hectare (59,311 acre) property which includes the Schaft Creekdeposit subject to certain royalty agreements, a 30% carried interestheld by Liard Copper and an earn back option held by Teck ResourcesLimited ("Teck"). Copper Fox is currently earning a 78% interest inLiard Copper from Teck. Teck's earn back option to acquire 20%, 40% or75% of the Schaft Creek project is triggered upon completion of apositive Feasibility Study. Should Teck elect to exercise its optionfor 75% they are required to fund subsequent property expenditures upto a total of 400% of those incurred by Copper Fox ($58.1 million as ofMarch 29, 2011) and arrange for project financing, including the CopperFox portion. For full details of the option please refer to theCompany'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 theTeck earn-back.
Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is theCompany's nominated Qualified Person pursuant to National Instrument43-101, Standards for Disclosure for Mineral Projects, has reviewed thetechnical information disclosed in this news release.
*United States investors are advised that current Mineral Resources arenot current Mineral Reserves and do not have demonstrated economicviability. All figures are rounded to reflect the relative accuracy ofthe 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 (asthat 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 themeaning of the Canadian securities laws. Forward-looking informationis generally identifiable by use of the words "believes," "may,""plans," "will," "anticipates," "intends," "budgets", "could","estimates", "expects", "forecasts", "projects" and similarexpressions, and the negative of such expressions. Forward-lookinginformation in this news release include statements aboutmineralization, airborne geophysical, surveys, 3D modeling of IPsurveys, geology, apparent control on the mineralization andsignificance of the Pembrook and Greig/Kreft mineral claims; thepotential to find another deposit to the north of the Schaft Creekdeposit; the length of the interpreted Schaft Creek mineralized trend;the historical exploration results of the Pembrook and Greig/Kreftmineral claims; the timing of an updated resource estimate; the timingand scope of the feasibility study for the Schaft Creek project;statements about the results of the PFS, including tones per dayprocessing; estimated timing and amounts of future expenditures and"earn-back" options; geological interpretations and potential mineralrecovery processes. Information concerning mineral reserve andresource estimates also may be deemed to be forward-looking informationin that it reflects a prediction of the mineralization that would beencountered if a mineral deposit were developed and mined.
In connection with the forward-looking information contained in thisnews release, Copper Fox has made numerous assumptions, regarding,among other things: the mineralization and significance of the Pembrookand Greig/Kreft mineral claims; the geological, metallurgical,engineering, financial and economic advice that Copper Fox has receivedis reliable, and is based upon practices and methodologies which areconsistent with industry standards; and the continued financing of theFeasibility Study; and the anticipated analytical results of thecurrent drilling program. While Copper Fox considers these assumptionsto be reasonable, these assumptions are inherently subject tosignificant uncertainties and contingencies. Additionally, there areknown and unknown risk factors which could cause Copper Fox's actualresults, performance or achievements to be materially different fromany future results, performance or achievements expressed or implied bythe forward-looking information contained herein. Known risk factorsinclude, among others: the interpresented extention that hosts theSchaft Creek deposit may not extend into the Greig/Kreft and Pembrookmineral claims; another deposit may never be discovered to the north ofthe Schaft Creek deposit; the Greig/Kreft and Pembrook mineral claimsmay not contain anticipated mineralization, or mineralization of anysignificance at all; the updated resource estimate may not be completedas anticipated; the Feasibility Study may not be completed within thecontemplated time frame, or at all; the possibility that the analyticalresults from the core sampling does not return significant grades ofcopper mineralization; the possibility that future drilling on theSchaft Creek project may not occur on a timely basis, or at all;fluctuations in copper and other commodity prices and currency exchangerates; uncertainties relating to interpretation of drill results andthe geology, continuity and grade of mineral deposits; uncertainty ofestimates of capital and operating costs, recovery rates, and estimatedeconomic return; the need to obtain additional financing to developproperties and uncertainty as to the availability and terms of futurefinancing; the possibility of delay in exploration or developmentprograms or in construction projects and uncertainty of meetinganticipated program milestones; uncertainty as to timely availabilityof permits and other governmental approvals
A more complete discussion of the risks and uncertainties facing CopperFox is disclosed in Copper Fox's continuous disclosure filings withCanadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entiretyby this cautionary statement, and Copper Fox disclaims any obligation