|February 03, 2011|
Latest Assay Results Expands Zone of Deep, Higher Grade Mineralization at Schaft Creek; Additional Assays Pending
|Vancouver, British Columbia - February 3, 2011 - Copper Fox Metals Inc. ("Copper For" or "the Company") (TSX-Venture: CUU) is very pleased to announce additional assay results from its 2010 diamond drilling program at the Schaft Creek "giant porphyry deposit" located in north western British Columbia. The objectives of the drilling program were to establish a higher grade starter pit to improve the economics of the feasibility study and to test the IP chargeability anomaly defined in July and September 2010. Highlights are as follows:|
Mr. Stewart, President of Copper Fox stated, "Higher grade mineralization has been intersected over a distance of at least 600m long and to a vertical depth of 475m below surface. This zone is open along strike, at depth and to the east. The IP surveys completed in July and September 2010 suggest a potential depth of mineralization in this part of the deposit of at least 800m, being the limit of penetration of the Titan 24 DCIP system. The IP anomaly is interpreted to represent the full extent of the Schaft Creek deposit, which suggests that a considerable portion of the deposit remains to be tested by drilling."
Diamond Drilling Results:
To view the locations of the 2010 diamond drill holes as shown on the 3D geophysical model of the Schaft Creek deposit, please click here:
The weighted average grades (using a zero copper cutoff) for the mineralized intervals in DDH CF402, DDH CF403 and DDH CF404 are set out below.
DDH CF402 is located 154m north of DDH CF398. The mineralization is primarily hosted in potassic altered intrusive breccia overprinted by argillic and abundant vein controlled propylitic alteration. The mineralization is open to the north, at depth and to the east under Mount La Casse. This drill hole has deepened the mineralization on this section an additional 140m.
The mineralization in DDH CF403 is hosted in altered andesite overprinted by abundant vein controlled propylitic alteration. This hole is located 152m south and 78m west of DDH CF 399 and intersected the interpreted western edge of the higher grade zone of mineralization.
The upper 82m of DDH CF404 intersected andesite and thereafter was completed to a depth of 255m in a series of late, post mineralization porphyritic, dioritic to gabbroic intrusive dikes.
Assay results for DDH CF405 and DDH CF406 have not been received and will be released on receipt thereof.
The weighted average grades of DDH CF398, DDH CF399 and DDH CF401 (previously reported) are set out below for reference purposes:
Re-sampling Historical Drill Holes;
Continued re-sampling of some of the historical diamond drill holes (drilled between 1960 and 1985) recommenced on January 11, 2011 and was completed by the end of January, 2011. The results of the re-sampling program will be released when the assays are available. These results will be included in the updated resource estimate.
Due to safety conditions related to unusually heavy snow conditions, the drilling program planned for January, 2011 has been re-scheduled until Quarter 2 2011. The additional drilling planned for 2011 will not delay completion of either the resource estimate or the feasibility study. The work required to update the resource estimate has been completed. The objectives of the Company (working with its main contractors) over the next few months will be to: i) complete an updated resource estimate that will include all the results from the 2010 drilling and re-sampling programs, ii) work toward completing the feasibility study by the end of the second quarter 2011, and iii) preparation of the environmental assessment application.
The geophysics and drilling completed in 2010 strongly suggests that a substantial portion of the Schaft Creek deposit, as represented by the chargeability anomaly, has not been yet tested by diamond drilling. The purpose of the 2011 drilling is to try and increase the size and grade of the Schaft Creek deposit by continuing to drill with the aid of the resource block model the strike extent and most importantly at depth; the zone of deep, higher grade mineralization intersected in the five drill holes reported to date from the 2010 drill program.
The Schaft Creek property comprises a contiguous block of land covering over 50,000 acres. The majority of the work completed on the Schaft Creek property over the past 60 years was concentrated in the vicinity of the Schaft Creek deposit which covers approximately 1,500 acres. The Company is considering the merits of completing a high sensitivity airborne geophysical survey consisting of magnetic, radiometrics and electromagnetics over the entire 50,000 acre Schaft Creek project prior to commencing its 2011 diamond drilling program.
Diamond Drilling and Sampling Procedures:
The diamond drilling was completed using HQ, NQ and BQ core sizes. Core recovery was estimated to be greater than 97%. After cutting with a diamond saw, one half of the core was 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. Sample intervals ranged from 0.64 to 3.93 metres. 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%, Ag >2 g/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 a 9001:2008 International Standard Organization rating.
Copper equivalent calculations are based on 100% of the copper content plus 81% of the gold content, 72% of the molybdenum content and 71% of the silver content. Metal prices used for the purposes of the equivalency calculations are copper $US2.50/pound, gold $US1,075.00/ounce, molybdenum $US17.00/pound and silver $US16.10/ounce.
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 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.
About Copper Fox
Copper Fox is a Canadian based resource company listed on the TSX-Venture Exchange (CUU) focused 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 results of the PFS were extremely "robust" reporting a NPV @ 8% (before tax) of $2.8 billion dollars over a 23 year mine life. They contemplated processing 100,000 tonne per day ("tpd") from an open pit mine using a standard flotation recovery process. The PFS estimated the current Mineral Resources (using a 0.2% copper equivalent cutoff) at Schaft Creek includes; Measured Resources of 436.5 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 on a minimum 120,000 tpd open pit mine is expected to be completed in early 2011.
Copper Fox holds title and a 100% working interest in a contiguous 21,025 hectares (51,954 acres) property which includes the Schaft Creek deposit subject to certain royalty agreements, a 30% carried interest held by Laird 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 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 ($55 million to date) 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.
*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 principals".
For additional information contact: Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080
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 anticipated analytical results of the core sampling of current diamond drill holes and historical diamond drill holes; the possible higher grade starter pit; the nature of the previously identified chargeability anomaly; the scope of mineralization identified in testing of recent IP anomalies; the potential depth of mineralization; future drilling potential at Schaft Creek; the timing and availability of assay results; the timing and anticipated results of the proposed updated resource estimate; the timing and scope of the feasibility study for the Schaft Creek project; the timing, approvals and anticipated results of an Environmental Assessment Application for the Schaft Creek project; the timing and possibility of completing a high sensitivity airborne geophysical survey; 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.
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 obtaining of an Environmental Assessment Certificate; 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: anticipated assays results may not prove expected extensions of mineralization on a timely basis, or at all; the Feasibility Study 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; the possibility that an Environmental Assessment Certificate may not be obtained on a timely basis, or at all, or that additional approvals will be necessary in order to obtain an Environmental Assessment Certificate; 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.
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