VANCOUVER, Sept. 28, 2011 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to provide an overview of the work completed during the
quarter, including exploration, progress with advancing the feasibility
study of the Schaft Creek deposit, other activities and its 2011 third
quarter financial results. Technical information contained in this news
release was previously disseminated by way of news releases and posted
on SEDAR at www.sedar.com and on the Company's website at www.copperfoxmetals.com.
Elmer Stewart, President & CEO, stated, "The 2011 drilling program
continues to expand the higher-grade copper-gold-molybdenum-silver
mineralization in the Paramount zone to the east, along strike and at
depth. Based on the geophysical signature, it appears that a
considerable portion of the higher-grade zone remains to be tested by
diamond drilling. Work on the feasibility study including pit
optimization and pit slope design is progressing well. The receipt of
the updated resource estimate was a major milestone that allowed our
contractors to start the next phase of the feasibility study on the
Schaft Creek project. The recently acquired land covers the extensions
of the Schaft Creek Mineral Trend and at the same time provides extra
land for use in the proposed operations at Schaft Creek".
Quarterly Highlights
During the quarter, Copper Fox was active on a number of activities
including the receipt of the updated resource estimation for the Schaft
Creek deposit, land acquisitions, the acquisition of shares in Liard
Copper Mining and the 2011 Schaft Creek field program.
Resource Estimation
AMEC Americas Limited ("AMEC") completed the National Instrument 43-101
compliant report updating the current mineral resource estimate for the
Schaft Creek deposit. Copper Fox adopted a strategy of maximizing the
value of the resource by excluding low grade (potentially uneconomic)
material from the resource estimate.
Table-1: Mineral Resource Estimate - Schaft Creek Deposit - David Thomas
P. Geo., Effective Date: May 1, 2011
Resource | Tonnage | Copper | Molybdenum | Gold | Cu Eq. | Contained Metal |
Category | (Million Tonnes) | (%) | (%) | g/t | (%) | Cu (Mlbs) | Mo (Mlbs) | Au (Moz) |
Measured |
40.30
|
0.36
|
0.023
|
0.25
|
0.61
|
319.60
|
20.5
|
0.32
|
Indicated |
971.20
|
0.27
|
0.017
|
0.18
|
0.45
|
5,795.70
|
363.2
|
5.50
|
Measured and Indicated |
1,011.50
|
0.27
|
0.017
|
0.18
|
0.46
|
6,113.70
|
383.6
|
5.81
|
Inferred |
283.60
|
0.24
|
0.011
|
0.15
|
0.39
|
1,517.20
|
68.8
|
1.34
|
Mlbs = pounds expressed in millions
Moz = ounces expressed in million
Cu Eq. = copper equivalent grade
*The copper equivalent ("Cu Eq.") cut-off calculation is based on metal
prices of 1,200 US$/oz gold, 2.90 US$/lb of copper and 15.95 US$/lb of
molybdenum, a mining cost of $1.35 US$/t mined and a processing cost of
5.12 US$/t milled. The Mineral Resource is reported at a cut-off grade
of 0.20 % Cu Eq. contained within a Lerchs-Grossman resource pit shell
optimized on copper, gold and molybdenum grades. The contained metal
figures shown are in situ. All figures have been rounded to reflect
accuracy and to comply with securities regulatory requirements
following "best practice principles". AMEC undertook quality assurance
and quality control studies on the mineral resource data and concludes
that the collar, survey, assay and lithology data are adequate to
support resource estimation.
The silver content (estimated to range between 1 and 2 g/t) of the
deposit has not been included in the resource estimate due to legacy
data issues due to the number of exploration companies (including Teck
and Hecla) that explored the Schaft Creek deposit over the past 50
years.
Airborne Magnetic Survey
This high resolution survey identified a number of significant
structural features typical of a porphyry copper district within the
Schaft Creek Property. The Schaft Creek deposit, the ES and GK zones
of copper mineralization, the Mike chargeability anomaly and the
recently identified Schaft Creek Mineral Trend are located within the
area.
2011 Diamond Drilling Program
Three diamond drills are currently working on the Paramount zone of the
Schaft Creek deposit and have extended the higher-grade mineralization
to the east past the limits of the 2008 proposed open pit into an area
that was previously considered to be waste rock. This area measures
1,200m long by 800m wide and is identified by a large chargeability
anomaly identified in 2010. The weighted average grades for the
mineralized intervals (at zero cut-off) and the estimated recoverable
copper equivalent grades are set out below:
DDH ID | Dip | Azimuth | From (m) | To (m) | Interval (m) | copper (%) | gold (g/t) | silver (g/t) | molybdenum (%) | Cu Eq (%) |
CF407-2011
|
-70
|
90
|
5.3
|
524,47
|
519.17
|
0.4
|
0.24
|
1.98
|
0.025
|
0.69
|
|
|
including
|
264.26
|
424,62
|
160.36
|
0.65
|
0.53
|
3.8
|
0.034
|
1.18
|
CF408-2011
|
-60
|
270
|
11.05
|
350.57
|
339.52
|
0.36
|
0.07
|
1.90
|
0.03
|
0.57
|
|
|
including
|
114.78
|
191.48
|
76.70
|
0.42
|
0.07
|
2.45
|
0.05
|
0.74
|
CF409-2011
|
-60
|
85
|
116.00
|
473.66
|
357.31
|
0.36
|
0.26
|
1.83
|
0.03
|
0.71
|
|
|
including
|
319.13
|
473.66
|
154.33
|
0.43
|
0.27
|
1.70
|
0.04
|
0.81
|
CF401B-2011
|
-70
|
90
|
262.08
|
514.85
|
250.75
|
0.30
|
0.10
|
1.23
|
0.02
|
0.52
|
|
|
and
|
544.6
|
569.28
|
24.68
|
0.51
|
0.18
|
1.42
|
0.03
|
0.78
|
The above intervals are not true widths. The recoverable copper
equivalent calculations are based on 88% 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/ounce, molybdenum $US17.00/pound and silver $US16.10/ounce.
Titan-24 DCIP & MT Survey
The Titan-24 survey over the Mike zone and the recently acquired ES and
GK zones (all within a 6 kilometre strike length) located north of the
Schaft Creek deposit has been completed. Results are pending.
Feasibility Study
During the quarter, Wardrop, a TETRA TECH Company, commenced work on
selecting the optimal pit based on a number of scenarios using various
input parameters and metal prices. Knight Piesold are currently
working on the geotechnical aspect of the proposed open pit
concentrating on the pit slope design and overall pit slope angle. This
work would result in the design of the proposed production pit used as
the basis for completion of the feasibility study as well as a mineral
reserve, mine plan and overall strip ratio.
Environmental Studies
During the quarter, progress was made on the environmental assessment
application and the environmental impact statement through the
advancement of a transportation study for both operations and
construction of the mine. Work has also progressed on the Tahltan
Traditional Use and Knowledge studies which will be finalized in 2011.
Finally, Copper Fox continues to work closely with representatives from
the Tahltan Nation on the economic, social and cultural impact
assessment.
Selected Financial Information
|
|
|
|
|
|
|
Net Loss
|
|
Net (loss)/income per share
- basic and diluted
|
2011 |
|
|
|
|
Third Quarter
|
$
|
(502,944)
|
$
|
0.00
|
Second Quarter
|
$
|
(2,378,650)
|
$
|
(0.01)
|
First Quarter
|
$
|
(358,211)
|
$
|
0.00
|
2010 |
|
|
|
|
Fourth Quarter
|
$
|
(421,346)
|
$
|
0.00
|
Third Quarter
|
$
|
(436,792)
|
$
|
0.00
|
Second Quarter
|
$
|
(309,067)
|
$
|
0.00
|
First Quarter
|
$
|
(446,822)
|
$
|
0.00
|
2009 |
|
|
|
|
Fourth Quarter
|
$
|
1,533,575
|
$
|
0.01
|
Liquidity and Capital Resources
The Company's working capital deficit, defined as current assets less
current liabilities, was $878,689 at July 31, 2011.
During the nine month period, the Company raised a total of $12,902,625
due to the completion of private placements totaling $7,755,000,
2,235,000 options exercised for total proceeds of $1,053,750, 1,828,500
warrants exercised for total proceeds of $2,593,875 and a Director
loaned $1,500,000 to the Company. The loan is unsecured, bears no
interest and there are no fixed terms of repayment.
To July 31, 2011, the Company has spent approximately $63.6 million of
qualifying expenditures toward the feasibility study. The Company will
require additional capital to complete this study and to provide for
the administration of its Vancouver and Calgary offices. The Company
believes that it will be able to raise the capital required to complete
the feasibility study through the continued exercise of its outstanding
options or through the public market as required. Circumstances that
could affect liquidity are early positive or negative results from the
feasibility study, the general state of the equity markets for junior
exploration companies and the overall state of the economy.
Copies of the financial statements and notes and related management
discussion and analysis may be obtained on SEDAR at www.sedar.com, our Company web site at www.copperfoxmetals.com or by contacting the Company directly. All amounts are in Canadian
dollars unless otherwise stated.
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, silver and
molybdenum deposits in North America. 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
21,024.96 hectare (51,954 acre) property which includes the Schaft
Creek deposit subject to a 3.5% Net Profits Interest held by Royal Gold
Inc., a 30% carried interest held by Liard Copper Mines Ltd. ("Liard")
and an earn back option held by Teck Resources Limited ("Teck").
Copper Fox is currently earning a 78% interest in Liard 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 ($63.6 million as of
July 31, 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.
In March 2011, the Company acquired mineral claims located adjacent to
the Schaft Creek property totalling 2,978.32 hectares (7,360 acres)
(the "March 2011 Mineral Claims") which are subject to a 2% Net Smelter
Return ("NSR"). Copper Fox has the option to repurchase, at any time,
one-half of the NSR on the March 2011 Mineral Claims for a total
purchase price of $3 million. In September 2011, the Company acquired
mineral claims located adjacent to the Schaft Creek property totalling
6,115.11 hectares (15,111 acres) (the "September 2011 Mineral Claims")
which are subject to a 2% NSR. Copper Fox has the option to
repurchase, at any time, one-half of the NSR on the September 2011
Mineral Claims for a purchase price of $1 million. The March 2011
Mineral Claims and the September 2011 Mineral Claims are subject to
inclusion with the Schaft Creek project under the terms of the Area of
Interest provisions of the Teck Option Agreement.
Additionally Copper Fox holds mineral claims totaling 3,947.06 hectares
(9,753 acres) in the Liard Mining District of BC not subject to the
Teck earn-back.
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 the timing
and completion of a feasibility study; the chargeability anomalies at
the Schaft Creek project; the scope and timing of work on the
outstanding sections of the feasibility study; the potential to find
additional porphyry style copper deposits within the Schaft Creek
property; expected capital requirements to continue planned activities;
expected sources and the adequacy of required capital resources; the
results and interpretation of the high resolution airborne magnetic
survey over the Schaft Creek project; the timing and scope of expected
diamond drilling; the timing and completion of the Feasibility Study
and Environmental Assessment application for the development of the
Schaft Creek project; potential existence and size of mineralization
within 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.
In connection with the forward-looking information contained in this
news release, Copper Fox has made numerous assumptions, regarding,
among other things: the interpretation of the results of the high
resolution airborne magnetic survey over the Schaft Creek project; 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; and the
continued financing of the Feasibility Study; 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
feasibility study may not be completed within the expected timeframe,
or at all; the actual mineralization in the Schaft Creek deposit may
not be as favourable as suggested by the interpretation of the results
of the high resolution airborne magnetic survey; another deposit may
never be discovered on Copper Fox's property, or contain anticipated
mineralization, or mineralization of any significance at all; the
Feasibility Study or the Environmental Assessment may not be completed
within the contemplated time frame, or at all; the possibility that the
analytical results from the core sampling does not return significant
grades of copper mineralization; the possibility that future drilling
on the Schaft Creek project may not occur 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, 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.
<p> <b>For additional information contact</b>: Investor line 1-866-913-1910 or J. Michael Smith, Executive VP, at 1-604-689-5080 </p>