Copper Fox Locates a New Zone of Copper Mineralization 1,200m North of the Known Schaft Creek Deposit; Drilling Extends the Paramount Zone to the South with an Intersection of 0.56% CuEq Over 324m
VANCOUVER, Feb. 16, 2012 /CNW/ - Copper Fox Metals Inc. (TSX-Venture: CUU) is pleased to announce the balance of the assay results from the 2011 diamond drilling program completed on the Schaft Creek deposit. The locations of 2011 drill holes are shown on the Copper Fox website at www.copperfoxmetals.com. Highlights are:
-- Diamond Drill Hole ('DDH') DDHCF418B-2011 intersected 0.30%
copper, 0.06g/t gold, 0.038% molybdenum and 1.57g/t silver
(0.56% CuEq) over a 324m core interval starting at a core
length of 255.6m. This hole also contains a 52m interval
grading 0.72g/t gold and 2.29g/t silver starting at a core
depth of 580.4m,
-- DDH CF422-2011 located 1,200m north of the Paramount zone
intersected a new zone of mineralization that averaged 0.15%
copper, 0.06g/t gold, 0.010% molybdenum and 1.01g/t silver
(0.25% copper equivalent) over an interval of 235m starting at
a core length of 83.0m,
-- DDH CF422-2011 intersected the western edge (a 75m wide
portion) of a large 1,800m long by 800m wide chargeability
anomaly located within the Schaft Creek Mineral Trend and
-- DDHCF420-2011 intersected 0.31% copper, 0.10g/t gold, 0.014%
molybdenum and 1.25g/t silver
-- (0.46% CuEq) over a core interval of 328.0m starting at a core
depth of 326.0m including a 127m interval of 0.42% copper, 0.15
g/t gold, 0.025% molybdenum and 2.44 g/t silver (0.67% CuEq)
starting at a core depth of 527.0m,
-- DDHCF425-2011intersected two intervals of mineralization
including 0.38% copper, 0.12g/t gold, 0.021% molybdenum and
2.20g/t silver (0.58% CuEq) over a core interval of 63.7m
starting at a core length of 566.0m.
Mr. Stewart, President of Copper Fox stated, 'The interpretation that the Schaft Creek Mineral Resource could host other deposits is strongly supported by the mineralization in DDHCF422-2011. Although a considerable amount of drilling is required to delineate and determine the significance of this discovery, the continuity of the mineralization and its location on the western edge of a large strong chargeability anomaly suggests that this zone has considerable potential. This discovery marks a significant milestone in understanding the mineral potential of the Schaft Creek project. DDHCF418B, DDHCF420-2011 and DDHCF425-2011 were drilled between the Paramount and Liard zones and demonstrate continuity of the mineralization along strike and at depth. These holes contain higher grade intervals which although narrowing to the south are hosted in broad zones of copper mineralization with lower gold and molybdenum concentrations.'
Diamond Drilling Analytical Results:
The weighted average grade for the mineralized intervals was estimated using a zero cutoff grade. Internal intervals that exceed 20 metres in length are excluded from the weighted average calculation, see table below. DDH418-2011 was terminated due to drilling difficulties. DDH418B-2011 is located at the same collar as DDH418-2011
__________________________________________________________________________________________
| | | | | | | | | | | |
| | | | | | | | | | | Cu |
| | | |From | To |Interval| |gold |silver|molybdenum|Eq |
| DDH ID |Dip| Azimuth | (m) | (m) | (m) | copper (%) |(g/t)|(g/t) | (%) |(%) |
|___________|___|_________|_____|_____|________|______________|_____|______|__________|____|
|CF418B-2011|-60| 270 |41.6 |117.6| 76.0 | 0.150 |0.030| 0.46 | 0.003 |0.19|
| | | |117.6|255.6| 138.0 | 0.214 |0.060| 1.08 | 0.017 |0.35|
| | | |255.6|580.4| 324.8 | 0.301 |0.060| 1.57 | 0.038 |0.56|
| | | |580.4|632.4| 52.0 | 0.065 |0.710| 2.29 | 0.002 |0.51|
|___________|___|_________|_____|_____|________|______________|_____|______|__________|____|
|CF422-2011 |-50| 90 |83.0 |318.0| 235.0 | 0.146 |0.060| 1.01 | 0.010 |0.25|
| | |including|119.3|157.4| 38.1 | 0.273 |0.092| 2.10 | 0.010 |0.36|
|___________|___|_________|_____|_____|________|______________|_____|______|__________|____|
|CF421-2011 |-60| 90 | | | |No Significant| | | | |
| | | | | | |Mineralization| | | | |
|___________|___|_________|_____|_____|________|______________|_____|______|__________|____|
|CF420-2011 |-55| 270 |326.0|654.0| 328.0 | 0.306 |0.100| 1.25 | 0.014 |0.46|
| | |including|527.0|654.0| 127.0 | 0.416 |0.150| 2.44 | 0.025 |0.67|
|___________|___|_________|_____|_____|________|______________|_____|______|__________|____|
|CF424-2011 |-55| 270 |31.3 |51.5 | 20.2 | 0.297 |0.034| 1.65 | 0.002 |0.34|
| | | |112.8|122.8| 10.0 | 0.154 |trace| 0.66 | trace |0.16|
|___________|___|_________|_____|_____|________|______________|_____|______|__________|____|
|CF425-2011 |-55| 260 |186.0|450.6| 264.6 | 0.247 |0.050| 0.86 | 0.007 |0.32|
| | | |502.3|566.0| 63.7 | 0.376 |0.120| 2.2 | 0.021 |0.58|
|___________|___|_________|_____|_____|________|______________|_____|______|__________|____|
Mineralized intervals included in the above table do not represent true thickness
DDH CF418B-2011: was completed to test the continuity of the mineralization in an area between the Paramount and Liard zones where very little information previously existed. This hole intersected a significant zone of higher-grade mineralization below DDHCF403-2010 (see News Release dated February 13, 2011). Disseminated and fracture/veinlet controlled chalcopyrite, bornite and molybdenite occur in phyllic altered polylithic breccia and andesite. The significant interval of higher grade gold-silver mineralization at the bottom of this hole appears to represent a new style of mineralization that was not previously intersected in the 2010 and 2011 drilling programs.
DDH CF420-2011: was also completed to test the continuity of the mineralization in an area between the Paramount and Liard zones. This hole intersected a broad zone of copper mineralization which includes a 127.0m interval of higher-grade mineralization. Disseminated and fracture/veinlet controlled chalcopyrite, bornite and molybdenite occur in phyllic altered andesite including an interval of higher grade gold-silver mineralization in the interval from 527.0m to 654.0m.
DDH CF425-2011: was also completed to test the continuity of the mineralization in an area between the Paramount and Liard zones. This hole intersected two significant intervals of mineralization in phyllic altered andesite and tourmaline breccia. The 52m interval between the mineralized intervals reported in the above table contained low grade (<0.10%) copper values hosted in andesite. The extent of the mineralization in this hole to the west has been delineated.
DDH CF422-2011: is located approximately 1,200m north of the Paramount Zone and was drilled for geotechnical/exploration purposes. This hole intersected copper-molybdenum mineralization at a core interval of 83m and remained in a similar style mineralization to the bottom of the hole at 318m. The mineralization shows a strong correlation to the outer edge (and weaker chargeability) of a large (1,800m by 800m) Titan-24 chargeability anomaly, the strongest portion of which occurs east of the drill hole collar location and remains untested by drilling.
DDH CF421-2011: was drilled for geotechnical purposes south of the Liard zone to sterilize this area for waste dump planning for the feasibility study. This hole intersected several narrow (less than 4m apparent thickness) of low grade (0.10% to 0.15%) copper mineralization.
DDH CF424-2011: was completed to test the continuity of the mineralization intersected in DDHCF423-2011 (see News Release dated January 13, 2012). This hole intersected one significant interval of mineralization that appears to correlate with the mineralization in DDHCF423-2011.
Diamond Drilling and Sampling Procedures:
The diamond drilling was completed using an HQ and NQ core size. Overall core recovery was estimated to be greater than 99%. After cutting, one half of the core is 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 and ranged from 0.90 to 3.10 metres. The majority of the sample intervals were 2.0m. 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%, Silver values are determined by the 1EX with a lower detection limit of 0.1g/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.
Recoverable copper equivalent calculations are based on 88% for copper plus 81% for gold, 72% for molybdenum and 71% for silver. Metal prices are copper $US2.50/pound, gold $US1,075.00/ounce, molybdenum $US17.00/pound and silver $US16.10/ounce. Copper Fox is using these input data to allow the reader to relate the average grades of the mineralized intervals reported in 2010 and in 2011.
Quality Control
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-TSX-V) with a corporate office in Calgary and operations office in Vancouver.
The Company is working on completing a feasibility study on the 'giant porphyry' 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'). 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 ($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 diamond drill results of the 2011 drilling program which included the discovery of a new mineralization Zone 1,200 metres north of the Schaft Creek Deposit the resource estimate for the Schaft Creek deposit; the receipt and filing of a National Instrument 43-101 compliant report related to the updated resource estimate the timing and scope of expected diamond drilling; the 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; and the continued financing of the Feasibility Study; and the anticipated analytical results of the current drilling. 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 by the updated resource estimate; 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 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 and there is no guarantee that either additional drilling around DDHCF422-2011 or drilling of the Titan-24 chargeability anomaly will intersect significant mineralization, 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.
Copper Fox Metals Inc.
CONTACT: Investor line 1-866-913-1910 or J. Michael Smith, EVP, at
1-604-689-5080
