Copper Fox Updates Activities At Schaft Creek
Highlights:
Diamond Drilling Program:
Cabo Drilling Limited have been contracted to complete a minimum of 2,000 metres (8 holes) of diamond core drilling as part of the feasibility study on the Schaft Creek deposit. The objectives of the drilling program are:
- two geotechnical holes in the area of the proposed mill site to test the bedrock stability.
- six inclined diamond drill holes to better define the distribution of the copper-gold-molybdenum-silver grades in the vertical dipping West Breccia zone (see News Release dated June1, 2010) as a possible higher-grade "starter pit".
- Contingent on the Quantec Titan-24 DCIP and MT survey confirming the Induced Polarization/Resistivity ("IP") anomalies outlined in 2008, two additional diamond drill holes are planned to test these anomalies.
Copper Fox is working with the Tahltan Heritage Resources Environmental Assessment Team and provincial and federal regulators to submit an Environmental Assessment (EA) Application for the Schaft Creek deposit in the fourth quarter of 2010. One aspect of the EA application will require authorizations under the Canadian Fisheries Act. The exhaustive studies completed by Copper Fox show that the tailings storage facility, the open pit and the waste rock storage areas, all three of which are major components of the feasibility study and the proposed mine site are not located within fish bearing waters. Naturally occurring barriers prevent fish from accessing to within 1, 2.5 and 6 kilometers of the tailings storage facility, waste rock storage area and open pit
Due to the absence of fish, approval under the British Columbia Environmental Assessment Act, the Canadian Environmental Assessment Act and the Canadian Fisheries Act will not be contingent upon the reclassification of fish habitat as mine waste disposal facilities. Copper Fox expects that due to the absence of fish in the area around the proposed mine site, a Schedule 2 Amendment under the Fisheries Act would not be required.
Copper Fox has selected the tailings and waste rock storage areas based on consultation with the regulatory agencies with the goal of minimizing impacts on the environment and is working with provincial, federal and Tahltan Heritage Resources Environmental Assessment Team representatives to develop the Schaft Creek Project in an environmentally responsible manner. Following the mandatory review period of the EA Application, Copper Fox expects to obtain a BC Environmental Assessment Certificate and an approval under the Canadian Environmental Assessment Act in the second quarter of 2011.
Financing:
Since June 10, 2010 (the date of the MD&A for the quarter ended April 30, 2010) a total of 67, 250,863 warrants issued pursuant to a private placement of securities (see News Release dated June 18, 2009) completed on July 13, 2009 have been exercised. As a result of the exercise of these warrants, Copper Fox received $5.04 million a portion of which has been used to fund the completion of the feasibility study on the Schaft Creek project. After exercise of the warrants, Copper Fox has 352.4 million common shares issued. As of July 13, 2010, Copper Fox has $3.3 million cash that will be principally used to fund completion of the feasibility study on the Schaft Creek project.
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). Copper Fox is focused exclusively on completing the Feasibility Study on Schaft Creek, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox has earned a 100% working interest in the Schaft Creek project subject to a 30% net proceeds interest held by Liard Copper Mines Limited ("Liard") a private company 78% owned by Teck Resources Limited ("Teck") and a 3.5% net profits interest held by International Royalty Corporation. Teck's 78% equity interest in Liard represents 23.4% of Liard's 30% net proceeds interest in the Schaft Creek project referred to as the "indirect interest". Copper Fox can earn the "indirect interest" by completing a "positive" Feasibility Study, under the terms of the 2002 Option Agreement with Teck.
Teck may at any time elect to exercise one of its "earn-back options" pursuant to the terms and conditions of 2002 Option Agreement. On receipt of a Positive Bankable Feasibility Study, as defined, Teck has 120 days in which to elect to either: i) exercise one of its earn-back options, or ii) retain a 1% net smelter return royalty, or iii) receive shares of Copper Fox to a value of $1,000,000.
If Teck exercises its earn-back option, then Teck can elect to acquire either 20%, 40% or 75% of Copper Fox's interest in the Schaft Creek Project from Copper Fox by solely funding subsequent expenditures equal to either 100%, 300% or 400% of Copper Fox's prior expenditures of which approximately $43 million have been incurred to date. If Teck elects to earn-back a 75% working interest, Teck will be responsible for arranging Copper Fox's share of project financing and will recover such project financing funds from Copper Fox's share of metal sales until payout is reached.
The Schaft Creek Project is a contiguous land package of claims that comprises 21,025 hectares and a further contiguous group of 3,947 hectares that is not subject to Teck's earn-back, situated in northwest British Columbia, Canada. On September 15, 2008, Copper Fox announced the results of a Preliminary Feasibility Study ("PFS") on the Schaft Creek deposit that contemplated processing 100,000 tonne per day 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.
*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
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
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 results of the Quantec Titan-24 DCIP and MT survey to further define two large Induced Polarization anomalies; anticipated timing and results of feasibility studies, geophysical surveys and drilling programs; the possible higher grade starter pit in the West Breccia zone; the environmental implications of the Schaft Creek project; the timing, approvals and anticipated results of an Environmental Assessment Application for 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.
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 positive environmental impact that the watershed areas around the Schaft Creek deposit being non fish bearing and the existence of low net acid generating potential from waste rock mined will have on obtaining an Environmental Assessment Certificate; and the continued financing of the Feasibility Study; and the anticipated drilling program in the event that the recently completed Quantec Titan-24 DCIP and MT survey confirms the Induced Polarization/Resistivity anomalies outlined in 2008. 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 Quantec Titan-24 DCIP and MT survey do not confirm the Induced Polarization/Resistivity anomalies outlined in 2008; the Feasibility Study may not be completed within the contemplated time frame, or at all; the possibility of higher than estimated percentages of net acid generating waste rock; 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.
View News Release in PDF Format:
| File: | http://www.copperfoxmetals.com/i/pdf/2010-07-15_NR.pdf |
| 229 KB, approx. 44 seconds at 56.6Kbps |
COPPER FOX files an amended Preliminary Feasibility Study on SEDAR
The Amended PFS includes the following changes:
a) responsibility of Technical Contributors to the Amended PFS shown on the title page and in sections 4.1, 4.2, 4.3, 5.1, 5.2 of the Amended PFS and the PFS; and
b) the certificates of qualification of the Independent Qualified Persons who prepared the Amended PFS.
Copper Fox advises that the conclusions and recommendations of the Amended PFS are the same as those contained in the PFS filed on SEDAR on October 30, 2008. The PFS projects a $2.76 billion NPV after recovery of capital costs and before taxes discounted at 8%, and a pre tax cash flow of $11.37 billion over a 22.6 year mine life.
About Copper Fox
Copper Fox is a Canadian-based resource company listed on the TSX-Venture Exchange (CUU). Copper Fox is focused exclusively on completing the feasibility study on Schaft Creek, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox has earned a 100% working interest in the Schaft Creek project subject to a 30% net proceeds interest held by Liard Copper Mines Limited (Liard) a private company 78% owned by Teck Resources Limited ("Teck") and a 3.5% net profits interest held by International Royalty Corporation. Teck's 78% equity interest in Liard represents 23.4% of Liard's 30% net proceeds interest in the Schaft Creek project (referred to as the "indirect interest"). Copper Fox can also earn Teck's 23.4% "indirect interest" by completing a "positive" Feasibility Study, under the terms of the 2002 Option Agreement with Teck.
Teck may at any time elect to exercise one of it's "earn back options" pursuant to the terms and conditions of the 2002 Option Agreement. On receipt of a Positive Bankable Feasibility Study, as defined, Teck has 120 days in which to elect to either: i) exercise one of its earn-back options, or ii) retain a 1% net smelter return royalty, or iii) receive shares of Copper Fox to a value of $1,000,000.
If Teck exercises its earn back option, then Teck can elect to acquire either a 20%, a 40% or a 75% of Copper Fox's interest in the Schaft Creek Project from Copper Fox by solely funding subsequent expenditures equal to either 100%, 300% or 400% of Copper Fox's prior expenditures (of which approximately $46 million expenditures have been incurred to date). If Teck elects to earn-back a 75% working interest, Teck will be responsible for arranging Copper Fox's share of project financing and will recover the project financing funds from Copper Fox's share of metal sales until payout is reached.
The Schaft Creek Project is a contiguous land package of claims that comprises 21,025 hectares and a further contiguous group of 3,947 hectares that is not subject to Teck's earn-back, situated in northwest BC Canada. On September15, 2008, Copper Fox announced the results of a Preliminary Feasibility Study on the Schaft Creek deposit that contemplated processing 100,000 tonne per day 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 463.5 million tonnes grading 0.30% copper, 0.23 g/t gold, 0.02% molybdenum and 1.55 g/t silver and 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.
For additional information contact: J Michael Smith telephone 604 689 5080 or Investorline 1 866 913 1910
On behalf of the Board of Directors
Elmer B. Stewart P. Geol. MSc.
President and CEO
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 projected net present value, pre tax cash flow and mine life of the Schaft Creek Project; anticipated timing and results of feasibility studies; the size of the copper, gold, molybdenum and silver deposits at the Schaft Creek Project; and the earn-back options with Teck Resources Limited. 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.
With respect to 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 calculation of net present value, pre tax cash flow and mine life of the Schaft Creek Project; and the ability to realize the earn-back options with Teck Resources Limited. 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 Schaft Creek Project's net present value and mine life may be significantly lower than projected; the Schaft Creek Project may not generate anticipated cash flows, or any at all; the Feasibility Study may not be completed within the contemplated timeframe, or at all; 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.
Copper Fox Advances Feasibility Study And Reports 2010 Second Quarter Financial Results
Elmer Stewart, President & CEO, stated, "We are very pleased with the results and progress to date on the feasibility study for the Schaft Creek deposit. The technical data related to the ongoing environmental studies and the conclusions of the updated geological model significantly advance these aspects of the feasibility study, which is expected to be completed in the fourth quarter of 2010".
Quarterly Highlights
Highlights of the work related to the completion of the feasibility study as of the date of the MD&A are outlined below.
- An estimate of 3.6% to 5.1% of the total waste rock mined could potentially be net acid generating, a very low percentage compared to other porphyry copper deposits,
- a Section 11 Order has been received regarding the public consultation process for the Environmental Assessment process, and
- a higher-grade zone of copper-gold-molybdenum-silver mineralization previously referred to as the West Breccia has been extended over a distance of 2,500 metres ("m") and is open to the north, south and at depth,
- the results of the recently completed TITAN-24 DCIP and MT Survey are expected to be received before the end of June
To the end of December 2009, Copper Fox incurred a total of $43,299,162 that has been accepted by Teck as applicable expenditures pursuant to the Option Agreement on the Schaft Creek Project. A brief overview of the components of the feasibility study completed during the quarter is set out below.
Environmental Studies:
Copper Fox has been collecting environmental baseline information on the Schaft Creek area since mid 2005. As part of the environmental baseline studies, 634 Acid/Base Accounting Samples and numerous Humidity Cell Tests were performed. Copper Fox's consultant, Dr Kevin Morin, has concluded that an estimated from 3.6 to 5.1% of the total rock mined from the Schaft Creek deposit could potentially be net acid generating which is low compared to other porphyry copper deposits.
The Section 11 Order from the Government of British Columbia is an important milestone that allows Copper Fox to commence the public consultation process as part of its ongoing environmental and the socio-economic impact studies related to development of the Schaft Creek deposit. The Section 11 Order allows consultation with interested parties, the Tahltan Nations and federal and provincial regulatory bodies and is a significant milestone in the environmental assessment process.
Geological Model:
The updated geological model for the Schaft Creek deposit was prepared by Cambria Geosciences Ltd.,
and has identified the following:
- the copper-molybdenum-gold-silver mineralization is constrained within a 1,200 m wide fault bounded north-northwest trending structure,
- the Paramount Zone and the West Breccia Zone are interpreted to be one zone Paramount-West Breccia Zone,
- the Paramount -- West Breccia Zone hosts higher-grade, steeply dipping to vertical disseminated, fracture and breccia-hosted copper-molybdenum-gold-silver mineralization that average about 100 to 150 m in width with a 2500 m strike length and is open at depth
The geological model suggests that the mineralization could be open to the north and to the south.
Future Activities:
During the next quarter, it is expected that the level of work related to the feasibility study should increase substantially. A few of the aspects of the feasibility study that will be looked during the next quarter are outlined below.
Feasibility Study:
Copper Fox plans to complete a series of trade off studies related to the feasibility study with the objective of:
a) reducing the capital and operating costs related to the development of the Schaft Creek deposit,
b) shortening the period of time required to recover the initial capital costs referred to as the "payback" period,
c) identify a zone of higher grade mineralization to mine during the first several years of mining and milling operations, and
d) increasing the daily milling rate.
Geophysical Survey:
During the next Quarter, the results of the TITAN-24 DCIP and MT geophysical survey completed by Quantec Geosciences Limited are expected to be received. This survey was completed to locate and more precisely define two large geophysical anomalies outlined in a geophysical survey completed in 2008. This type of geophysical survey is commonly used worldwide in the exploration for porphyry copper deposits such as Schaft Creek. The results of the geophysical survey are expected to be received and announced before the end of June 2010.
Resource Estimation:
AMEC Americas Limited has commenced working on the preparation of an updated resource estimation for the Schaft Creek deposit. The initial work to be completed includes identifying the lithologic domains and creating copper and molybdenum grade shell to delineate the areas of mineralization that will be used in the updated resource estimation. It is expected that the updated resource estimation will be completed during the next quarter and include all drilling and analytical work completed at Schaft Creek to the end of December 2008.
Engineering work related to the access road, construction of bridges, additional environmental studies and preliminary mine planning will continue during the quarter.
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, and has reviewed the technical information disclosed in the preceding paragraphs.
Selected Financial Information
Net Loss Net (loss)/income per share - basic and diluted 2010 Second Quarter $ ($309,067) $ 0.00 First Quarter $ ($446,822) $ 0.00 2009 Fourth Quarter $ ($1,533,575) $ 0.01 Third Quarter $ ($491,057) $ - Second Quarter $ ($431,763) $ - First Quarter $ ($29,135,359) $ (0.28) 2008 Fourth Quarter $ ($1,890,230) $ 0.02 Third Quarter $ ($1,307,512) $ (0.01)
Liquidity and Capital Resources:
At the end of this quarter the Company has spent approximately $46 million toward completing the feasibility study on the Schaft Creek deposit. The Company's working capital was $1,156,391 at April 30, 2010. The Company has sufficient funds available to meet its current obligations.
Copper Fox has been funding the work related to completion of the feasibility study through the exercise of warrants issued to shareholders and insiders pursuant to private placements of share capital completed in 2009. As of the date of this MD&A (June 10, 2010) 40,801,690 of the warrants exercisable at $0.075 and 1,986,511 of the warrants exercisable at $0.115 have been exercised. A total $3,288,576 has been received by Copper Fox and resulted in the issuance of 42,788,201 common shares of the Company.
The cash requirements in the coming months will be significant as the Company works toward completing the feasibility study. At the end of this quarter the Company has spent approximately $46 million toward this 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 and warrants or through the public market if required.
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). Copper Fox is focused exclusively on completing the feasibility study on Schaft Creek, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox has earned a 100% working interest in the Schaft Creek project subject to a 30% net proceeds interest held by Liard Copper Mines Limited (Liard) a private company 78% owned by Teck Resources Limited ("Teck") and a 3.5% net profits interest held by International Royalty Corporation. Teck's 78% equity interest in Liard represents 23.4% of Liard's 30% net proceeds interest in the Schaft Creek project (referred to as the "indirect interest"). Copper Fox can also earn Teck's 23.4% "indirect interest" by completing a "positive" Feasibility Study, under the terms of the 2002 Option Agreement with Teck.
Teck may at any time elect to exercise one of its "earn back options" pursuant to the terms and conditions of the 2002 Option Agreement. On receipt of a Positive Bankable Feasibility Study, as defined, Teck has 120 days in which to elect to either: i) exercise one of its earn-back options, or ii) retain a 1% net smelter return royalty, or iii) receive shares of Copper Fox to a value of $1,000,000.
If Teck exercises its earn back option, then Teck can elect to acquire either a 20%, a 40% or a 75% of Copper Fox's interest in the Schaft Creek Project from Copper Fox by solely funding subsequent expenditures equal to either 100%, 300% or 400% of Copper Fox's prior expenditures (of which approximately $44 million expenditures have been incurred to date). If Teck elects to earn-back a 75% working interest, Teck will be responsible for arranging Copper Fox's share of project financing and will recover the project financing funds from Copper Fox's share of metal sales until payout is reached.
The Schaft Creek Project is a contiguous land package of claims that comprises 21,025 hectares and a further contiguous group of 3,947 hectares that is not subject to Teck's earn-back, situated in northwest BC Canada. On September15, 2008, Copper Fox announced the results of a Preliminary Feasibility Study on the Schaft Creek deposit that contemplated processing 100,000 tonne per day 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.
For additional information contact: J Michael Smith telephone 604 689 5080 or Investorline 1 866 913 1910
On behalf of the Board of Directors
Elmer B. Stewart P. Geol. MSc.
President and CEO
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 timing and results of feasibility studies, geophysical surveys and drilling programs; the environmental implications of the estimated percentage of net acid generating waste rock mined; the economic impact of a higher grade "starter pit" in the West Breccia zone; the impact of the Section 11 Order on the application by Copper Fox for an Environmental Assessment Certificate; the continued financing of the Feasibility Study and the continued exercise of outstanding warrants held by insiders of Copper Fox; estimated timing and amounts of future expenditures and "payback" periods; and anticipated availability and terms of future financings; estimated timing and amounts of future expenditures; Copper Fox's future production, operating and capital costs; operating or financial performance; 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. With 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 positive environmental impact that the existence of low net acid generating potential from waste rock mined will have; the significant impact on the project economics as a result of the potential higher grade "starter pit" in the West Breccia zone; the positive impact that the receipt of the Section 11 Order will have on obtaining an Environmental Assessment Certificate; and the continued financing of the Feasibility Study, including the continued exercise of outstanding warrants held by insiders. 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 and Geophysical Survey may not be completed within the contemplated timeframe, or at all; the possibility of higher than estimated percentages of net acid generating waste rock; the possibility that an Environmental Assessment Certificate may not be obtained 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, production estimates and estimated economic return; the need for co-operation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; 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 on Track to Complete the Feasibility Study at Schaft Creek by End of 2010
Highlights:
- an estimate that 3.6% to 5.1% of the total waste rock mined could potentially be net acid generating, a very low percentage compared to other porphyry copper deposits,
- a higher-grade zone of copper-gold-molybdenum-silver mineralization previously referred to as the West Breccia has been extended over a distance of 2,500 metres ("m") and is open to the north, south and at depth,
- a Section 11 Order has been received regarding the public consultation process for the Environmental Assessment process,
- results of the TITAN-24 DCIP and MT geophysical Survey of the Schaft Creek project are expected to be received and disseminated in early June
Feasibility Study:
Financing: Copper Fox has been funding the completion of the Feasibility Study through the exercise of warrants issued to insiders and shareholders totaling to date net proceeds of $3.0 million. There remains outstanding, a total of $6.5 million in warrants, of which $5.9 million are held by insiders of Copper Fox. Of these, a total of $5.1 million warrants expire on July 13, 2010 and the balance, $0.82 million, on October 21, 2010. The insiders plan to continue the exercise of their warrants to fund the completion of the Feasibility Study scheduled for the end of 2010. All of the above warrants are "in the money".
Capital Costs: As a part of the Feasibility Study, Copper Fox plans to complete a series of trade off studies with the view to reducing the initial capital cost related to the development of the Schaft Creek deposit. Copper Fox believes that it may be able to reduce the initial capital cost, projected in the September 2008 Preliminary Feasibility Study, through a number of initiatives including, but not limited to, reviewing the contingency and the use of contract mining services versus purchasing mining equipment.
Payback Period: In addition, Copper Fox is currently reviewing ways in which to shorten the "payback" period for the Schaft Creek deposit. The delineation of a higher-grade "starter pit" and the possibility of increasing the daily milling rate are two aspects of the Feasibility Study currently being reviewed.
Geological Model Update:
Cambria Geoscience Inc. has made significant progress on an updated Geological Model for the Schaft Creek deposit. The model is based on a compilation and verification of all diamond drill information, re-logging of some of the diamond drill core, construction of geological cross sections at 50 m intervals and incorporates the mineralization, alteration, fault structures, intrusions and hydrothermal breccias into a unified geological model.
This updated Geological Model for the Schaft Creek deposit shows that:
- the copper-molybdenum-gold-silver mineralization is constrained within a 1,200 m wide fault bounded north-northwest trending structure,
- the two major mineralized zones are the Main Zone (Liard Zone) a broad, gently north-northwest dipping zone which abuts the Paramount -- West Breccia Zone previously referred to as the West Breccia Zone (in the south) and the Paramount Zone (in the north),
- the Paramount -- West Breccia Zone is a north-south striking zone of higher-grade disseminated, fracture and breccia-hosted copper-molybdenum-gold-silver mineralization that dips vertical to steeply eastward and average about 100 to 150 m in width (widening at depth to 200 m locally),
- the intrusive and volcanic host rocks on the flanks of the breccias exhibit significantly higher copper grades than the deposit average, and
- the higher-grade core to the Paramount -- West Breccia Zone has a horizontal strike length of 2500 m and is open to depth.
Environmental Studies Update:
Copper Fox has been collecting environmental baseline information on the Schaft Creek area since mid 2005. As part of the ongoing environmental baseline studies, Copper Fox has completed 634 Acid/Base Accounting Samples and numerous Humidity Cell Tests whereby Copper Fox's consultant, Dr Kevin Morin, has concluded that approximately 3.6 to 5.1% of the total rock mined from the Schaft Creek deposit could potentially be net acid generating which is low compared to other porphyry copper deposits.
Environmental Assessment Certificate:
Copper Fox has received a Section 11 Order from the Government of British Columbia setting out the parameters of the public consultation process related to the application by Copper Fox for an Environmental Assessment Certificate. This is an important, major step forward and allows Copper Fox to commence the public consultation process as part of its ongoing environmental and the socio-economic impact studies related to development of the Schaft Creek deposit.
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). Copper Fox is focused exclusively on completing the Feasibility Study on Schaft Creek, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox has earned a 100% working interest in the Schaft Creek project subject to a 30% net proceeds interest held by Liard Copper Mines Limited ("Liard") a private company 78% owned by Teck Resources Limited ("Teck") and a 3.5% net profits interest held by International Royalty Corporation. Teck's 78% equity interest in Liard represents 23.4% of Liard's 30% net proceeds interest in the Schaft Creek project referred to as the "indirect interest". Copper Fox can earn the "indirect interest" by completing a "positive" Feasibility Study, under the terms of the 2002 Option Agreement with Teck.
Teck may at any time elect to exercise one of its "earn-back options" pursuant to the terms and conditions of 2002 Option Agreement. On receipt of a Positive Bankable Feasibility Study, as defined, Teck has 120 days in which to elect to either: i) exercise one of its earn-back options, or ii) retain a 1% net smelter return royalty, or iii) receive shares of Copper Fox to a value of $1,000,000.
If Teck exercises its earn-back option, then Teck can elect to acquire either 20%, 40% or 75% of Copper Fox's interest in the Schaft Creek Project from Copper Fox by solely funding subsequent expenditures equal to either 100%, 300% or 400% of Copper Fox's prior expenditures of which approximately $43 million have been incurred to date. If Teck elects to earn-back a 75% working interest, Teck will be responsible for arranging Copper Fox's share of project financing and will recover such project financing funds from Copper Fox's share of metal sales until payout is reached.
The Schaft Creek Project is a contiguous land package of claims that comprises 21,025 hectares and a further contiguous group of 3,947 hectares that is not subject to Teck's earn-back, situated in northwest British Columbia, Canada. On September15, 2008, Copper Fox announced the results of a Preliminary Feasibility Study ("PFS") on the Schaft Creek deposit that contemplated processing 100,000 tonne per day 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.
*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
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 includes "forward-looking information" within the meaning of the Canadian securities laws. All statements, other than statements of historical fact, included herein and including, without limitation; anticipated results of geophysical surveys or drilling programs, anticipated availability and terms of future financings; estimated timing and amounts of future expenditures; Copper Fox's future production, operating and capital costs; operating or financial performance; geological interpretations and potential mineral recovery processes, are forward-looking statements. 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. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies. For any forward looking information given, management has assumed that the geological, metallurgical, engineering, financial and economic advice it has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from Copper Fox's expectations include: 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, production estimates and estimated economic return; the need for co-operation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; 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; and other risks and uncertainties disclosed in Copper Fox's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release is based on Copper Fox's current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law.