🕐02.08.12 - 18:54 Uhr
COPPER FOX DRILLING EXTENDS MINERALIZATION IN DISCOVERY ZONE AND ACQUIRED ADDITI
ONAL LAND AT SCHAFT CREEK
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Re: News Release - Thursday, August 02, 2012
Copper Fox Drilling Extends Mineralization In Discovery Zone And
Acquired Additional Land At Schaft Creek
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Vancouver, British Columbia -- August 2, 2012 --Copper Fox Metals Inc.
("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to provide its
shareholders with an update of exploration activities on the Schaft
Creek copper-gold-molybdenum-silver project located in northwestern
British Columbia, Canada.
Diamond drill hole ("DDH") 2012CF426 and DDH
2012CF427 tested the 1800m long by 900m wide chargeability anomaly
referred to as the Discovery zone.
Two diamond drills continue to work
on the Discovery zone.
Highlights are as follows:
Highlights:
- Diamond drill hole (DDH) 2012CF426 with a core length of 788.1m
intersected visible chalcopyrite mineralization over approximately 90% of
its core length along with three intervals of molybdenite mineralization.
The drill hole bottomed in weak chalcopyrite-molybdenite mineralization,
- DDH 2012CF427 located 400m north of DDH 2012CF426 with a core
length of 769.3m intersected visible copper +/- molybdenite mineralization
from a core interval of 250.0m to the end of the drill hole at 769.9m.
The chalcopyrite+/-molybdenite mineralization is open at depth,
- The ASTER Imagery study has identified two zones of clay alteration
in the area between the GK zone and the ES zone and an area located
approximately 4 kms southwest of the Schaft Creek deposit, and
- The work on the feasibility study and preparation of the
Environmental Assessment Application for the Schaft Creek project is
progressing well with an expected delivery time of late summer for the
feasibility study.
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 these drill holes will yield
significant copper or molybdenum grades.
Mr.
Stewart, President of Copper Fox stated that, "I am very pleased
with the results of the first two holes completed in the Discovery
Zone.
The mineralization in the drill core combined with the results
of the ASTER study and field mapping support the existence of
additional zones of copper-molybdenite mineralization to the north
along the previously identified Schaft Creek mineral trend.
The area
should be looked as a district which could host a number of deposits
and not a single deposit".
Diamond Drilling Update:
The objectives of the 2012 diamond drilling program are:
a) to follow up the copper-gold-molybdenum-silver mineralization
intersected in DDH 2011CF422 to the east toward the center of the
approximately 1800m long by 900m wide chargeability anomaly that is
designated as the Discovery zone,
b) test the chargeability anomalies that represent the Discovery
and Mike zones, and
c) continue to assess the mineral potential of that part of the
Schaft Creek mineral trend located between the ES and GK zones by
ASTER Imagery studies, field mapping and prospecting in conjunction
with the Titan-24 anomalies identified in 2011 in these areas.
Discovery Zone Drilling:
Diamond drill hole (DDH) 2012CF426 an inclined (-60 degrees, azimuth
090) HQ diameter hole located approximately 300m east of DDH 2011CF422
was completed to test the chargeability anomaly referred to as the
Discovery zone.
This hole intersected variable concentrations of
visible chalcopyrite mineralization over approximately 90% of the core
length of the hole.
In addition to the chalcopyrite mineralization;
visible molybdenite mineralization occurs sporadically throughout the
core in quartz veinlets and in some instances also with chalcopyrite
mineralization.
The chalcopyrite-molybdenite mineralization occurs as
disseminations, veins and veinlets in variably altered andesite.
DDH 2012CF427 an inclined (-60 degrees, azimuth 090) HQ diameter hole
located approximately 400m northwest of DDH 2012CF426 was completed to
test the strike extension of the chargeability anomaly referred to as
the Discovery zone that was located in 2011.
This hole intersected
variable concentrations of visible chalcopyrite and sporadic
molybdenite mineralization from a core interval of 250.0m to the end of
the drill hole at 769.9m.
The chalcopyrite+/-molybdenite
mineralization occurs as disseminations, veins and veinlets in a
granodiorite intrusive which exhibit a number of thin basic dikes.
This hole contains large intervals of silicification.
Assay results for these drill holes will be released on receipt
thereof.
Mike Zone Drilling:
DDH 2012CF429 and DDH 2012CF429B were attempted to test the 1,000m long
by 500m wide strong chargeability anomaly that defines the Mike zone.
Both drill holes reached depths of approximately 140m when extremely
difficult ground conditions caused termination of both drill holes.
These holes did not reach the chargeability anomaly.
ASTER Imagery Study:
ASTER (Advanced Spaceborne Thermal Emission Reflection) Imagery is
commonly used to map specific types of alteration in bedrock that
indicated the possible presence of mineralization.
The ASTER study
completed at Schaft Creek identified two zones of clay alteration.
The
first zone occurs in an area that extends from the north end of the GK
zone to the ES zone.
Mapping and prospecting within this zone of clay
alteration has located chalcopyrite mineralization in outcrop and
chalcopyrite-bornite mineralization in boulders and stream beds
draining the zone.
The second zone is located approximately 4 kms
southwest of the Schaft Creek deposit, is roughly circular in shape and
covers an area that measures 3.0kms by 1.5kms.
Land Acquisitions:
In addition to a previous land acquisition made earlier this year, 9
mineral tenures totaling 2,936.2 hectares were purchased from Randy
Marko and Paul Mott ("Marko/Mott") and are contiguous to the Companys
Schaft Creek project.
Consideration paid by Copper Fox was $10,000
cash and a 2% net smelter return (NSR) royalty on the mineral claims
subject to a "Partial NSR Buyout Option".
The Partial NSR Buyout
Option allows Copper Fox at any time to purchase half of the NSR for a
cash payment of $1.0 million such that the NSR is reduced from 2% to
1%.
Elmer B.
Stewart, MSc.
P.
Geol., President of Copper Fox, is the
Companys 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 development company listed on
the TSX Venture Exchange (TSX-V:CUU) with a corporate office in Calgary
and an operations office in Vancouver and is involved in the
exploration and development of the Schaft Creek
copper-gold-molybdenum-silver deposit located in northwest British
Columbia, Canada.
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 Wardrop on a minimum 120,000 tpd open pit
mine and is expected to be completed by late summer, 2012.
Copper Fox holds title and a 100% working interest in the Schaft Creek
project consisting of 52,843.36 hectares (130,579 acres).
Included in
this total are the "Schedule A" mineral tenures originally conveyed to
Copper Fox pursuant to the option agreement dated January 1, 2002
between Teck Resources Limited ("Teck") and Copper Fox (the "Teck
Option Agreement"), which consist of 8,334.34 hectares (20,594 acres).
The "Schedule A" mineral tenures are subject to a 3.5% Net Profits
Interest held by Royal Gold, Inc., a 30% carried Net Proceeds Interest
held by Liard Copper Mines Limited ("Liard") and, together with the
additional mineral tenures obtained by Copper Fox within the "Area of
Interest" provided for in the Teck Option Agreement, an earn back
option held by Teck.
On completion of the feasibility study, Copper
Fox will earn Tecks 78% interest in Liard.
Tecks earn back option to
acquire either, 20%, 40% or 75%, of Copper Foxs interest in the Schaft
Creek property is triggered upon delivery of a positive feasibility
study to Teck.
Should Teck elect to exercise its option for 75%, Teck
is required to fund subsequent property expenditures up to a total of
400% of those incurred by Copper Fox ($80.8 million to June 30, 2012)
and arrange for project financing, including the Copper Fox portion.
For full details of the Teck earn back option please refer to the
Companys website www.copperfoxmetals.com.
The remainder of Copper Foxs registered interests in mineral tenures
in British Columbia total 44,509.02 hectares (109,984 acres).
These
interests have been acquired by Copper Fox through mineral tenure
acquisitions and mineral tenure purchase agreements subsequent to
Copper Fox entering into the Teck Option Agreement.
Certain portions
of these registered mineral tenures are subject to inclusion within the
Schaft Creek project pursuant to the terms of the "Area of Interest"
provisions of the Teck Option Agreement.
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 and 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: DDH
2012CF426 and DDH 2012CF427; the possibility of additional zones of
copper-molybdenite mineralization to the north along the previously
identified Schaft Creek mineral trend, and the possibility that this
targeted area is a porphyry district rather than a single porphyry
deposit; , the completion and timing of delivery of the feasibility
study and Environmental Assessment Application for the Schaft Creek
project; assay result and potential mineralization for DDH 2012CF426
and DDH 2012CF427; estimated timing and amounts of future expenditures
and "earn-back" options; geological interpretations and potential
mineral recovery processes.
There can be no assurance that the
purchase of the Van Dyke and Sombrero Butte properties will be
completed.
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: that the closing of the purchase will occur, that
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 Foxs 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; DDH 2012CF426 and DDH 2012CF427 may not be indicative of any
significant mineralization; there may be no additional zones of
copper-molybdenite mineralization to the north along the previously
identified Schaft Creek mineral trend; the targeted area to the north
of Schaft Creek may not be a porphyry district; mineralization observed
in the drill core may not yield significant concentrations of copper or
molybdenite, that additional drilling may not intersect addition
copper-molybdenite mineralization; that the ASTER anomaly may not be
indicative of copper-molybdenite mineralization;; that the feasibility
study and/or the Environmental Assessment Application on the Schaft
Creek project may not be completed within the contemplated time frame,
or at all; 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 Foxs 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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Copyright (c) 2012 COPPER FOX METALS INC.
(CUU) All rights reserved.
For more information visit our website at
http://www.copperfoxmetals.com/ or send
mailto:
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