|June 21, 2011|
High Resolution Magnetic Survey at Schaft Creek Confirms Similar Signatures for Mineralized Zones, Diamond Drilling Underway, Resource Estimate Tables Received From AMEC
Vancouver, British Columbia - June 21, 2011. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to provide its shareholders an interpretation of the results of the high resolution airborne magnetic survey over the Schaft Creek project and an update on diamond drilling activities at the Schaft Creek project.
Elmer B. Stewart President and CEO of Copper Fox stated "The results of the airborne survey identified a previously unknown 20km long positive magnetic feature that is associated with the Schaft Creek deposit and the ES and GK zones of copper mineralization. This feature is of considerable interest from an exploration/mineral potential for the Schaft Creek project. The survey identified three positive magnetic signatures that correlate with the Schaft Creek deposit and the zones of copper mineralization and has much better defined the limits of Schaft Creek mineral trend. The copper mineralization observed in DDHCF407-2011 has extended the mineralized zone an additional 125m to the east and a further 136m below the mineralized interval [517m] intersected in DDHCF399-2010. The drilling on the Paramount zone has the objective of expanding the limits of the mineralization of the Schaft Creek deposit by testing the large chargeability anomaly located to the east under Mount LaCasse."
Airborne Geophysical Survey:
The High Resolution Airborne Magnetic Survey covered a 25km long by 17km wide area. A total of 2,520 line kilometres (including tie-lines) of survey were completed. The preliminary interpretation of the Total Field magnetic data (TF) and the Calculated Vertical Gradient (CVG) magnetic data has identified a potential area of "exploration interest" that has a strike length of approximately 20 kilometres.
The area of "exploration interest" is an elliptical shaped zone (approximately 4kms wide by 20kms long) that is bounded on both sides by narrow, linear, positive TF and CVG magnetic signatures. These positive magnetic signatures are interpreted to be regional scale faults. The Schaft Creek deposit, the ES and GK zones of copper mineralization and the recently identified Schaft Creek mineral trend are located immediately adjacent to the 20km long positive magnetic feature located on the west side of the area of "exploration interest".
The correlation of the TF and CVG magnetic signatures and the Titan-24 DCIP and MT chargeability anomaly on the Schaft Creek deposit are excellent. The TF and CVG magnetic signatures suggest that the Schaft Creek deposit could extend to the south for an additional 1,000m. The 1,000m long area identified by the TF and CVG has not been surveyed by the Titan-24 system. The Titan-24 DCIP and MT survey completed over the Schaft Creek deposit in 2010 identified an open-ended, large, positive chargeability anomaly at the south end of the interpreted extension of the Schaft Creek deposit. The chargeability anomaly and the magnetic signatures in this area have approximately the same width.
The TF and CVG data has, in addition to the three distinct magnetic signatures associated with the Schaft Creek deposit and the ES and GK zones, outlined four other positive magnetic features within the area of exploration interest. Preliminary exploration of these areas in 2011 will include mapping and sampling to identify either zones of copper mineralization or alteration that would be indicative of porphyry style mineralization.
Diamond Drilling Program:
Two diamond drills are currently working on the Paramount zone of the Schaft Creek deposit. DDHCF407-2011 (azimuth 090, dip-70 to the east) is an HQ diameter hole and was completed with a core length of 735m (vertical depth of 550m). Visible copper mineralization (chalcopyrite and bornite) was continuously observed in the core from the start of bedrock at 5.3m to a depth of 653m. In addition to the bornite and chalcopyrite mineralization; visible molybdenite mineralization occurs sporadically throughout the core length in quartz veinlets, along shear planes and in some instances also with bornite-chalcopyrite mineralization. The bornite-chalcopyrite mineralization occurs as disseminations, veins and veinlets. The copper mineralization is hosted in Potassic and Phyllic altered Intrusive Breccia, Granodorite, Quartz Feldspar Porphyry and Andesite. Both drills are being used to define the limits of the zone of higher-grade copper-gold-molybdenum-silver mineralization located in 2010 in the Paramount zone by testing the large chargeability anomaly located under Mount LaCasse.
The reader is cautioned that visible copper and molybdenite mineralization does not necessarily equate to significant concentrations of either copper or molybdenum and there is no assurance that the assay results of the samples from this drill hole will yield significant copper or molybdenum grades.
The majority of the 2011 drilling program is expected to be completed in the Paramount zone. The 2011 drilling program also contemplates completing one or two diamond drill holes into each of the ES and GK zones and the large chargeability anomaly to test each zone for its copper-gold potential.
Updated Resource Estimate:
Copper Fox has received from AMEC Americas Limited the tables setting out at various copper cutoff grades the tonnes and average metal grades in each resource category for the Updated Resource Estimate and Block Model. Copper Fox is currently reviewing the data with a view of releasing the results of the Updated Resource Estimate as soon as possible. Mr. Stewart, President and CEO of Copper Fox stated: "Now that the Updated Resource Estimate has been completed, Copper Fox needs to identify the correct base case for the copper cut-off grade and tonnes from the resource estimate to be used in the forthcoming Feasibility Study which is being completed by Wardrop. Our objective is to select a base case that provides optimal economics with an early payout on the project and at the same time provides maximum return from the deposit over the first 7 years. Copper Fox now can move forward to complete the Feasibility Study and the Environmental Assessment Application for the development of the Schaft Creek project."
Specification for Airborne Magnetometer Survey:
The airborne survey was flown at 200m spaced flight lines at an average altitude above ground level of 39m. Tie lines were flown at 2km intervals. The magnetic data was collected using a Scintrex cesium vapor CS-3 magnetometer, a high sensitivity/low noise magnetometer. The magnetometer and the base station used in the survey have absolute accuracy range of 0.1nT (gamma) and a sensitivity of 0.1nT (gamma) at a 2 second sampling rate. Precision GeoSurveys Inc. from Vancouver, British Columbia performed the survey.
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(r) 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, 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 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 24,003.5 hectare (59,311 acre) property which includes the Schaft Creek deposit subject to certain royalty agreements, a 30% carried interest held by Liard 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 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 ($62.1 million as at June 15, 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.
Additionally Copper Fox holds mineral claims totaling 3,947 hectares (9,752 acres) in the Liard Mining District of BC not subject to the Teck earn-back.
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.
*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 principles".
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 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 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 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.
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