VANCOUVER, Feb. 28, 2012 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce its operating results for the 2011 fourth quarter
and year-end results. During the year, Copper Fox acquired additional
mineral tenures around the Schaft Creek project, completed a large
Titan-24 DCIP& MT survey, purchased shares in Liard Copper Mines,
completed metallurgical test work on the mineralization from the
Paramount zone and completed a 22 hole diamond drilling program of
various purposes totaling 9,662.3m at Schaft Creek.
During the quarter, Copper Fox also made considerable progress toward
completing the feasibility study. Copper Fox incurred a net loss for
the fourth quarter of $692,576 ($0.00 loss per share) and a loss of
$3,882,381 ($0.01 loss per share) for the year ended October 31, 2011.
Copies of the financial statements and notes and related management
discussion and analysis may be obtained on SEDAR at www.sedar.com, the Company web site at www.copperfoxmetals.com or by contacting the Company directly. All amounts are in Canadian
dollars unless otherwise stated.
Highlights
Schaft Creek - An Emerging Porphyry Copper District
The 2011 program demonstrated that the Schaft Creek property has the
potential to host a number of porphyry style copper +/-
gold-silver-molybdenum deposits. The intersection of significant
copper-gold-silver-molybdenum mineralization located 1,200m north of
the Paramount zone associated with a large Titan-24 chargeability
anomaly and the intersection of copper-gold-silver-molybdenum
mineralization in a geotechnical hole located 300m east of the
Paramount in an interpreted "leakage" zone supports the mineral
potential of the Schaft Creek property. These mineralized intervals in
conjunction with the technical aspects of the Schaft Creek Mineral
Trend strongly indicate considerable potential to host additional
deposits at Schaft Creek.
Feasibility Study:
Tetra Tech WEI Inc. (formerly Wardrop) the main contractor on the Schaft
Creek feasibility study, is working to complete this study by the end
of March of 2012. Feasibility studies are complex and require a
substantial amount of detailed engineering work with very narrow
estimation limits. Copper Fox holds a 100% working interest in the
Schaft Creek property subject to a 30% Net Proceeds Interest held by
Liard Copper Mines Limited. The Option Agreement between Copper Fox
and Teck requires Copper Fox to deliver Teck Resources Limited ("Teck")
a feasibility study to earn the 78% interest in Liard Copper Mines held
by Teck and start the 120 day period for Teck to make its election
regarding participation in the Schaft Creek project. Tetra Tech WEI
Inc. is currently working on a detailed mine plan including the first
five years of mining operations. The mine plan includes, for example,
detailed estimates of material movement, haulage distances and waste
dumping locations. Mine planning is a fundamental part of the
feasibility study and has a significant impact on the economics of the
Schaft Creek deposit. Until this work is completed, completion of the
feasibility study is not possible. Work related to all other aspects
of the feasibility study, except the economic sensitivity analysis,
have essentially been completed.
Quantec Titan-24 DCIP and MT Survey:
During the quarter, a total of 38.8 kilometres of a Titan-24 DCIP& MT
survey was completed over an area extending from the north end of the
Paramount zone to the ES zone (a distance of 3.0 kilometres) and an
800m long portion of the GK zone. This survey located large
chargeability anomalies on the Mike, ES and GK zones and has extended
the chargeability signature of the Paramount zone to the north along
the mineralized corridor referred to as the Schaft Creek Mineral Trend.
2011 Diamond Drilling Program:
During the fourth fiscal quarter, four diamond drills worked on the
Schaft Creek property collecting geotechnical data for the feasibility
study and delineating the zone of higher grade mineralization in the
Paramount zone. At the end of the 2011 drilling program, two
significant aspects of the Schaft Creek project are notable, i) the
size of the zone of high grade mineralization in the Paramount zone has
not yet been defined and, ii) a new zone of copper mineralization that
correlates with a chargeability anomaly approximately 1,200m north of
the Paramount zone has been located. To provide an example of the
potential size of the Paramount zone, DDH CF415-2011, located 280m
north of the previous drilling on the Paramount zone, intersected a
582m interval of mineralization including a 67m interval that averaged
1.10% copper equivalent.
Selected Financial Information
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Net Loss
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Net (loss)/income per share -
basic and diluted
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2011 |
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Fiscal Year
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$
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(3,882,381)
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$
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(0.01)
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Fourth Quarter
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$
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(642,576)
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$
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0.00
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Third Quarter
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$
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(502,944)
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$
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0.00
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Second Quarter
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$
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(2,378,650)
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$
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(0.01)
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First Quarter
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$
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(358,211)
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$
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0.00
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2010 |
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Fiscal Year
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$
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(1,614,027)
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$
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0.00
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Fourth Quarter
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$
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(421,346)
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$
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0.00
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Third Quarter
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$
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(436,792)
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$
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0.00
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Second Quarter
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$
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(309,067)
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$
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0.00
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First Quarter
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$
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(446,822)
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$
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0.00
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Liquidity and Capital Resources
Copper Fox operates in a capital intensive industry in which the demands
for capital to finance exploration and development of mineral
properties as well as its corporate overheads generally occur far in
advance of projects being put in production and generating cash flow.
The Company's working capital deficit, defined as current assets less
current liabilities, was $1,811,392 at October 31, 2011.
During the year, the Company raised a total of $18,685,671 from the
completion of private placements totaling $15,038,046, 2,235,000
options exercised for total proceeds of $1,053,750 and 1,828,500
warrants exercised for total proceeds of $2,593,875. In addition, a
Director loaned $3,900,000 to the Company. The loan is unsecured,
bears no interest and there are no fixed terms of repayment. In
October 2011 the Company issued 1,851,852 shares for repayment of
$2,500,000 of this debt. Subsequent to year end, in January 2012, the
Company issued 1,272,727 for repayment of the balance of this loan of
$1,400,000.
At December 31, 2011, the Company had spent $74.2 million of qualifying
expenditures towards 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 through the
continued exercise of its outstanding options and warrants or through
the public market. Although management has been successful in raising
capital in the past, there is no assurance that these initiatives will
be successful in the future. Circumstances that could affect liquidity
include 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 development company listed on
the TSX-Venture Exchange (CUU-TSX-V) with a corporate office in Calgary
and operations office in Vancouver.
The Company is working on completing a feasibility study on the Schaft
Creek Mineral Deposit, one of the largest undeveloped copper, gold,
molybdenum and silver deposits in North America. The feasibility study
is being led by Tetra Tech WEI Inc. on a minimum 120,000 tpd open pit
mine and is expected to be completed during the first quarter of 2012.
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 Net Proceed Interest held by Liard and an
earn back option held by Teck Resources Limited ("Teck"). On delivery
of a positive feasibility study on the Schaft Creek property, Copper
Fox will earn a 78% interest in Liard from Teck. On receipt of a
positive feasibility study Teck, has 120 days in which to elect to
exercise its earn back option to acquire 20%, 40% or 75% of the Copper
Fox interest in the Schaft Creek project. 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 ($74.2 as of December 1, 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 totaling 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 totaling
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 quantum
and quality of porphyry style copper=/- gold-silver-molybdenum deposits
at the Schaft Creek property; results of recently competed
metallurgical testwork on the Paramount zone of the Schaft Creek
deposit; the size of the zone of high grade mineralization in the
Paramount zone; a new zone of copper mineralization north of the
Paramount zone; the completion of a detailed mine plan by Tetra Tech; a
Resource Estimate update by Tetra Tech; the commencement of activities
such as power and road access on the Schaft Creek property; 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; completion of an
Environmental Assessment Application / Environmental Impact Statement;
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 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 continued financing of the Feasibility Study
and Copper Fox' operations; the anticipated analytical results of the
current drilling and metallurgical testing programs. 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 actual
mineralization in the Schaft Creek deposit may not be as favourable as
suggested; another deposit may never be discovered on Copper Fox's
property, or contain anticipated mineralization, or mineralization of
any significance at all; a detailed mine plan may not be completed in a
timely manner, or at all; the Feasibility Study may not be completed
within the contemplated time frame, or at all; the Environmental
Assessment Application / Environmental Impact Statement may not be
obtained in a timely manner, or at all; an updated Resource Estimate
may not be obtained in a timely manner, or at all; commencement of
activities such as power and road access on the Schaft Creek property
may not occur on a timely basis, or at all; the possibility that the
metallurgical test work on the core samples does not recover
significant percentages 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, the completed drill holes for
which analytical results are not available may not return significant
concentrations of either copper, gold, molybdenum or silver; commodity
prices and currency exchange rates; uncertainties relating to
interpretation of drill results and the geology, continuity and grade
of mineral deposits; uncertainty of the metallurgical testwork, the
uncertainty of the 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> Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080 </p>