GEOPHYSICAL SURVEY INDICATES DEEP POTENTIAL AT SCHAFT CREEK, DRILLING PROGRAM CONTINUES, COMPLETION OF RESOURCE ESTIMATE EXTENDE
November 16 2010 - 8:00AM
PR Newswire (Canada)
VANCOUVER, Nov. 16 /CNW/ -- VANCOUVER, Nov. 16 /CNW/ - Copper Fox
Metals Inc. (TSX-Venture: CUU; "Copper Fox", "the Corporation") is
very pleased to announce the results for the recently completed
Quantec Titan-24 DCIP and MT survey at Schaft Creek. To view
the 3D geophysical model of the Schaft Creek deposit, go to the
Copper Fox website at www.copperfoxmetals.com. Copper Fox also
advises that it has extended the expected completion date for the
updated resource estimate to allow inclusion of the assay results
for the 2010 diamond drilling and the re-sampling of selected
historical diamond drill holes that is currently underway.
Highlights are as follows: Highlights: -- the chargeability anomaly
that reflects the Schaft Creek deposit has been extended an
additional 800 metres (m) to the north and 800 m to the south. This
anomaly now has a strike length of 3,200 m and significantly
increases the potential size of the deposit, -- at a depth of 700 m
below surface, the chargeability anomaly located in the center of
the Schaft Creek deposit measures 1,000 m long by 500 m wide and is
open to depth, -- the diamond drilling program is continuing to
prove up a higher grade starter pit, test the depth extent of the
chargeability anomaly, and test the higher grade copper-gold
mineralization intersected at the bottom of DDH CF398, -- the
chargeability anomaly suggests that the majority of the historical
drilling was completed on a possible flank of the deposit (Liard
Zone) and was too shallow to test the deeper part of the
chargeability anomaly, and -- the resource estimate scheduled to be
completed in December 2010 has been extended to Quarter 1, 2011 and
will include the analytical results of the 2010 diamond drilling
program and the re-sampling of historical drill holes. Mr. Elmer
Stewart, President of Copper Fox stated, "The recent geophysical
and diamond drilling results suggest that this deposit has
potential to host substantial additional quantities of
copper-gold-molybdenum mineralization at depth and along strike.
The geophysical data suggests that the majority of the drilling,
which was completed on the south flank of the deposit, was too
shallow to test the deeper part of the new chargeability anomaly
coincident with the higher copper and gold grades intersected at
the bottom of DDH 398. The positive drill results could have a
significant effect on several key areas of the feasibility study
and cannot be excluded if the real value of the Schaft Creek
deposit is to be established." Diamond Drilling Update: The diamond
drilling program at Schaft Creek has been extended to complete at
least three more diamond drill holes to test and delineate a
potential higher grade "starter pit" and test the deeper part of
the chargeability anomaly that extends to a depth of greater than
700 m under this portion of the Schaft Creek deposit. A list of
holes completed to date is shown in Table-1 below: Table-1: 2010
Diamond drill status at 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 379347 6360502 -80 90 212.5 Completed CF404 380024
6358546 -80 270 255.1 Completed CF405 379418 6360908 -60 90 na In
progress Core logging, sawing and sampling of the completed diamond
drill holes is in progress and analytical results will be reported
on receipt thereof. DDH CF402 and DDH CF405 are currently being
drilled to test the strike and depth extension of the
copper-gold-molybdenum-silver mineralization intersected in DDH
CF398 and DDH CF399. Quantec Titan-24 DCIP and MT Survey: Quantec
Geosciences Limited (Quantec) completed an additional 22.4
kilometers (five lines) of DCIP and MT survey over the Schaft Creek
deposit in late September and October 2010. The results of
both Quantec surveys completed in 2010 have been combined into a
three dimensional (3D) geophysical model of the Schaft Creek
deposit. To view the 3D geophysical model of the Schaft Creek
deposit, go to the Copper Fox website at www.copperfoxmetals.com.
The chargeability anomaly that represents the Schaft Creek deposit
(see About Copper Fox below) has been tested with over 400 diamond
drill holes. A brief discussion of the extensions to the
chargeability anomaly outlined by the recent survey is presented
below: Section 6361400N and Section 6361800N: The survey has
extended the previously defined chargeability anomaly an additional
800 m to the north, past the limit of the diamond drilling.
The anomaly measures 1,400 m wide and extends to a minimum depth of
500 m. The western 400 m wide portion of the chargeability anomaly
corresponds to the Paramount/West Breccia Zone (see About Copper
Fox for resource estimation) of the Schaft Creek deposit. The
eastern portion of the chargeability anomaly dips to the east under
Mount LaCasse is open at depth and along strike. Section 6359000N
and Section 6358600N: The survey has extended the chargeability
anomaly an additional 800 m to the south. The anomaly is
approximately 800 m wide and extends to a depth of at least 500 m
below surface. The historical diamond drilling did not test
this recently identified extension to the chargeability
anomaly. The chargeability anomaly is open to the south along
strike. Section 379650E: This line was completed in a
north-south direction along the strike length of the Schaft Creek
deposit to demonstrate continuity of the chargeability anomaly
between the nine east-west oriented sections surveyed. This section
confirms the extension of the anomaly indicated in Sections
6359000N and 6358600N and shows a 900 m long (and open to the
south) chargeability anomaly at a depth of approximately 150 m
below surface. The historical drilling in this area is considered
too shallow to intersect this anomaly. In the area of the
Schaft Creek deposit previously referred to as the Paramount Zone
(see About Copper Fox below), the chargeability anomaly plunges to
the north to a depth of at least 500 m and is open along strike and
at depth. The chargeability anomaly was defined on Sections
6361400N and 6361800N and confirms the extension of the
chargeability anomaly to the north. Quantec Titan-24 Survey
Parameters: The Quantec Titan-24 DCIP and MT system is a State of
the Art geophysical tool used to explore for copper sulphide
mineralization. The survey was completed on five lines
surveyed using differential GPS instrumentation. Survey
sections were completed at 400 m line spacing. The Titan-24
survey typically images DC resistivity to depths of 500-750 m and
the IP typically images to 500-750 m, in sub-vertical tabular
geologic settings and up to 50% more for sub-horizontal
settings. The 3D inversion of the DC and IP data was
completed using the UBC3D inversion code. The 14 mRad contour
on the UBC smoothed, Null Referenced pseudo-section was used to
determine anomalous chargeability. Resource Estimation: The higher
grade assay results in DDH CF398, the visible
bornite-chalcopyrite-molybdenite mineralization observed in DDH
CF399 and CF401 and the results of the re-sampling program need to
be included in the current resource estimate to arrive at an
accurate estimate of the tonnes and average grade of the metals in
the Schaft Creek deposit. Therefore the Corporation is extending
the completion date of the resource estimate which is now expected
to be completed in the first quarter 2011. 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 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. The PFS 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 which included; 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. The PFS projected a recovery of 4.8 billion pounds of
copper, 255 million pounds of molybdenum, 4.5 million ounces of
gold and 32.5 million ounces of 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 and
an earn back option. Teck Resources Limited ("Teck") has an
option to acquire up to 75% of the Schaft Creek project which is
triggered upon completion of the Feasibility Study. Should
Teck elect to exercise their option for the full amount (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 principles". 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 the historical diamond drill holes and the current
diamond drill holes, the anticipated timing and results of the
proposed Quantec Titan-24 DCIP and MT survey being able to locate
additional anomalies, anticipated results of the proposed updated
resource estimate, of feasibility studies, ; 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 analytical results of the current drilling
program, the ability of the proposed Quantec Titan-24 DCIP and MT
survey to extend the geophysical anomalies. 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 extend the Induced Polarization/Resistivity anomalies
outlined in 2010; 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 minerlaization; 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. pInvestor line 1.866.913.1910 or J.
Michael Smith, EVP, at 1 604 689 5080/p
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