DRILLING INTERSECTS SIGNIFICANTLY HIGHER GRADE MINERALIZATION AT SCHAFT CREEK AND CONFIRMS MINERALIZED NATURE OF GEOPHYSICAL ANO
November 04 2010 - 3:31PM
PR Newswire (Canada)
VANCOUVER, Nov. 4 /CNW/ -- VANCOUVER, Nov. 4 /CNW/ - Copper Fox
Metals Inc. (TSX-Venture: CUU) is very pleased to announce the
assay results for the recently completed diamond drill hole CF398.
Two diamond drills are currently working at Schaft Creek to test
the extensions of the mineralization intersected in DDH CF398 and
to test the deposit at depth for higher grade copper-gold
mineralization. Highlights of activities are as follows:
Highlights: -- Diamond drill hole (DDH) CF398 has intersected 0.70%
copper, 0.42 g/t gold, 2.80 g/t silver and 0.04% molybdenum (1.13%
copper equivalent) over an interval of 54.3 metres (m) of copper
mineralization starting at 7.1 m below surface confirming the
potential to outline a higher-grade "starter pit", -- DDH CF398
intersected a higher grade of mineralization that assayed 0.47%
copper, 0.37g/t gold, 3.00 g/t silver and 0.02% molybdenum (0.78%
copper equivalent) over a 213.7 m interval from 325 m to the bottom
of the hole at a depth of 538.7 m. The
copper-gold-molybdenum-silver mineralization is open at depth and
the assay results confirm the mineralized nature of the
chargeability anomaly identified in July 2010, -- The analytical
results show that the copper grades and notably the gold grades
increase significantly toward the bottom of DDH CF398, -- The
re-sampling of approximately 40 historical diamond drill holes that
contain higher grade copper mineralization is progressing well, --
Held public open house sessions on the draft Application
Information Requirements (AIR) in Tahltan communities, Terrace and
Stewart B.C. The public comment period on the draft AIR will close
on November 5, 2010, and -- The Quantec Titan-24 deep penetrating
DCIP and MT survey over the interpreted north and south extensions
of the Schaft Creek deposit has been completed. Mr. Stewart,
President of Copper Fox stated that "The decision to add another
diamond drill at Schaft Creek was based on the visible
mineralization encountered in DDH CF398 and DDH CF399. DDH CF398
has confirmed two very significant aspects of the Schaft Creek
deposit being a zone of high grade copper mineralization at
surface; potentially a "starter pit" and a substantial increase in
the copper and gold grades towards the bottom of the hole.
Drilling is now underway to test the down dip extension of the
mineralization at the bottom of DDH CF398. Diamond Drilling
Update: The weighted average grades for the mineralized intervals
in DDH CF398 are set out below in Table-1. From To Interval Copper
Gold Molybdenum Silver Cu DDH ID Dip Azimuth (m) (m) (m) (%) (g/t)
(%) (g/t) Eqv (%) 2010CF398 -55 90 7.1 539.2 532.1 0.42 0.27 0.02
2.00 0.67 including 7.1 61.4 54.3 0.70 0.42 0.04 2.80 1.13
including 325.5 539.2 213.7 0.47 0.37 0.02 3.00 0.78 Note: The core
intervals listed in Table-1 above do not represent true widths. DDH
CF398 is located in an area that is approximately 500 metres long
by 200 metres wide that is being tested as a potential higher grade
"starter pit" for the feasibility study that is currently underway.
The mineralization in DDH CF398 is hosted potassic altered upper
intrusive breccia, in andesite, granodiorite and an intrusive
breccia at the bottom of the hole. The potassic alteration is
overprinted by abundant vein controlled prophylitic alteration. The
copper-gold-molybdenum-silver mineralization located below the
325.5 metres in DDH CF398 corresponds to a moderate Induced
Potential response that is open at depth. The Quantec survey
shows that this anomaly extends for at least an additional 600
metres to the east of DDH CF398. The 600 m wide eastern
portion of the Induced Polarization anomaly has not yet been tested
by diamond drilling. Table-2: 2010 Diamond drill status Schaft
Creek: DDH ID Easting Northing Dip Azimuth Total Depth (m) Status
CF399 379413 6360654 -55 90 517.3 Completed CF400 379962 6360823
-90 na 239.9 Completed CF401 379415 6360800 -55 90 495.9 Completed
CF402 379313 6361056 -55 90 na In progress CF403 379353 6360512 -80
270 na In progress DDH CF399 located approximately 250 metres south
of DDH CF398 intersected variable concentrations of visible
bornite-chalcopyrite and chalcopyrite mineralization along with
sporadic molybdenite over the length of the hole. The hole stopped
in visible copper mineralization. DDH CF400 is located
approximately 650 metres east of DDH CF398 to test a strong induced
polarization anomaly identified earlier in 2010. The hole was
lost due to drilling difficulties before reaching the upper edge of
the anomaly. DDH CF401 is located 104 m south of DDH CF398 has
intersected variable concentrations of visible bornite-chalcopyrite
and chalcopyrite mineralization along with sporadic molybdenite
over the length of the hole. Core logging, sawing and
sampling of the completed DDH CF399 and DDH CF401 is in progress
and analytical results will be reported on receipt thereof. DDH
CF402 and DDH CF403 are currently being drilled to test the strike
extension of the copper-gold-molybdenum-silver mineralization
intersected in DDH CF398 and DDH CF399. 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,
gold or molybdenum grades. Re-sampling Historical Diamond Drill
Holes; Copper Fox has commenced the re-sampling of 40 historical
diamond drill holes (completed between 1960 and 1985) to check the
previously reported copper-gold-molybdenum-silver content.
The samples from these holes were not systematically assayed for
gold possibly due to the low value of gold at that time. The
historical analytical results for these holes contain high grade
copper mineralization which shows a positive correlation with gold
content. Quantec Titan-24 DCIP and MT survey: The recently
announced Titan-24 DCIP and MT survey to test the possible
extension of the Schaft Creek deposit to the north and south has
been completed. The survey covered an additional 800 metres to the
north and 800 metres south of the Schaft Creek deposit.
Results for the survey are expected to be received by mid November.
Resource Estimation: AMEC Americas Limited is working toward
completion of a National Instrument 43-101 compliant resource
estimation for the Schaft Creek deposit which is expected to be
received in December 2010. The Corporation is currently
considering extending the time to complete the updated resource
estimate to include the analytical results from the current diamond
drilling and re-sampling programs. Environmental Assessment Update:
Copper Fox is pleased to announce that the 30 day public comment
period for the draft Application Information Requirements (AIR)
will end on November 5, 2010. In support of the draft AIR,
Copper Fox held public open house sessions in Telegraph Creek,
Dease Lake, Iskut, Terrace and Stewart. Copper Fox will
incorporate comments from the public and the Tahltan Nation into
the draft AIR and seek to finalize the document in November
2010. The final AIR will be used to prepare the Environmental
Assessment application. Diamond Drilling and Sampling
Procedures: The diamond drilling was completed using an HQ core
barrel. 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 0.58 to 2.49 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 an 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 are copper $US2.50/pound, gold $US1,075.00/ounce,
molybdenum $US17.00/pound and silver $US16.10/ounce. 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).
Copper Fox is focused exclusively on completing the Feasibility
Study on Schaft Creek located in Northwest British Columbia, 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 Royal Gold, Inc. (previously held by
International Royalties Inc.). 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 "Teck's indirect interest". Copper Fox
can earn Teck's "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 $55 million has 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 (51,932 acres) and a further contiguous group of
3,947 hectares (9,749 acres) 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". 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 assay results from DDH
CF 398 confirming high grade copper mineralization, the potential
to outline a higher "starter pit" and the mineralized nature of the
previously identified chargeability anomaly; copper and gold grade
increases towards the bottom of DDH CF 398; higher grade copper
mineralization from re-sampling of approximately 40 historical
diamond drill holes; the Environmental Assessment application for
the Schaft Creek deposit; the Quantec Titan-24 deep penetrating
DCIP and MT survey; the completion of a NI 43-101 compliant
resource estimation for the Schaft Creek deposit; 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; assay results for DDH CF 398 are indicative of the
mineralization at the Schaft Creek deposit; 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 risk that copper and gold
mineralization will not equate to concentrations of either copper
or gold nor yield significant copper or gold grades; the
possibility of negative environmental impact of continued
activities; 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
Quantec Titan-24 DCIP and MT survey do not extend the Induced
Polarization/Resistivity anomalies outlined in 2010; the
Feasibility Study may not be completed within the contemplated
timeframe or at all; the need for co-operation of government
agencies and affected First Nations 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.
pInvestor line 1.866.913.1910/p
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