VANCOUVER, Feb. 28, 2012 /CNW/ - Copper Fox Metals Inc. ("Copper
Fox" or the "Company") is pleased to announce its operating results
for the 2011 fourth quarter and year-end results. During the
year, Copper Fox acquired additional mineral tenures around the
Schaft Creek project, completed a large Titan-24 DCIP& MT
survey, purchased shares in Liard Copper Mines, completed
metallurgical test work on the mineralization from the Paramount
zone and completed a 22 hole diamond drilling program of various
purposes totaling 9,662.3m at Schaft Creek. During the quarter,
Copper Fox also made considerable progress toward completing the
feasibility study. Copper Fox incurred a net loss for the
fourth quarter of $692,576 ($0.00 loss per share) and a loss of
$3,882,381 ($0.01 loss per share) for the year ended October 31,
2011. Copies of the financial statements and notes and
related management discussion and analysis may be obtained on SEDAR
at www.sedar.com, the Company web site at www.copperfoxmetals.com
or by contacting the Company directly. All amounts are in
Canadian dollars unless otherwise stated. Highlights Schaft Creek -
An Emerging Porphyry Copper District The 2011 program demonstrated
that the Schaft Creek property has the potential to host a number
of porphyry style copper +/- gold-silver-molybdenum deposits.
The intersection of significant copper-gold-silver-molybdenum
mineralization located 1,200m north of the Paramount zone
associated with a large Titan-24 chargeability anomaly and the
intersection of copper-gold-silver-molybdenum mineralization in a
geotechnical hole located 300m east of the Paramount in an
interpreted "leakage" zone supports the mineral potential of the
Schaft Creek property. These mineralized intervals in
conjunction with the technical aspects of the Schaft Creek Mineral
Trend strongly indicate considerable potential to host additional
deposits at Schaft Creek. Feasibility Study: Tetra Tech WEI Inc.
(formerly Wardrop) the main contractor on the Schaft Creek
feasibility study, is working to complete this study by the end of
March of 2012. Feasibility studies are complex and require a
substantial amount of detailed engineering work with very narrow
estimation limits. Copper Fox holds a 100% working interest
in the Schaft Creek property subject to a 30% Net Proceeds Interest
held by Liard Copper Mines Limited. The Option Agreement
between Copper Fox and Teck requires Copper Fox to deliver Teck
Resources Limited ("Teck") a feasibility study to earn the 78%
interest in Liard Copper Mines held by Teck and start the 120 day
period for Teck to make its election regarding participation in the
Schaft Creek project. Tetra Tech WEI Inc. is currently
working on a detailed mine plan including the first five years of
mining operations. The mine plan includes, for example,
detailed estimates of material movement, haulage distances and
waste dumping locations. Mine planning is a fundamental part
of the feasibility study and has a significant impact on the
economics of the Schaft Creek deposit. Until this work is
completed, completion of the feasibility study is not
possible. Work related to all other aspects of the
feasibility study, except the economic sensitivity analysis, have
essentially been completed. Quantec Titan-24 DCIP and MT Survey:
During the quarter, a total of 38.8 kilometres of a Titan-24
DCIP& MT survey was completed over an area extending from the
north end of the Paramount zone to the ES zone (a distance of 3.0
kilometres) and an 800m long portion of the GK zone. This
survey located large chargeability anomalies on the Mike, ES and GK
zones and has extended the chargeability signature of the Paramount
zone to the north along the mineralized corridor referred to as the
Schaft Creek Mineral Trend. 2011 Diamond Drilling Program: During
the fourth fiscal quarter, four diamond drills worked on the Schaft
Creek property collecting geotechnical data for the feasibility
study and delineating the zone of higher grade mineralization in
the Paramount zone. At the end of the 2011 drilling program,
two significant aspects of the Schaft Creek project are notable, i)
the size of the zone of high grade mineralization in the Paramount
zone has not yet been defined and, ii) a new zone of copper
mineralization that correlates with a chargeability anomaly
approximately 1,200m north of the Paramount zone has been
located. To provide an example of the potential size of the
Paramount zone, DDH CF415-2011, located 280m north of the previous
drilling on the Paramount zone, intersected a 582m interval of
mineralization including a 67m interval that averaged 1.10% copper
equivalent. Selected Financial Information Net Loss Net
(loss)/income per share - basic and diluted 2011 Fiscal $ $ Year
(3,882,381) (0.01) Fourth $ $ Quarter (642,576) 0.00 Third $ $
Quarter (502,944) 0.00 Second $ $ Quarter (2,378,650) (0.01) First
$ $ Quarter (358,211) 0.00 2010 Fiscal $ $ Year (1,614,027) 0.00
Fourth $ $ Quarter (421,346) 0.00 Third $ $ Quarter (436,792) 0.00
Second $ $ Quarter (309,067) 0.00 First $ $ Quarter (446,822) 0.00
Liquidity and Capital Resources Copper Fox operates in a capital
intensive industry in which the demands for capital to finance
exploration and development of mineral properties as well as its
corporate overheads generally occur far in advance of projects
being put in production and generating cash flow. The Company's
working capital deficit, defined as current assets less current
liabilities, was $1,811,392 at October 31, 2011. During the year,
the Company raised a total of $18,685,671 from the completion of
private placements totaling $15,038,046, 2,235,000 options
exercised for total proceeds of $1,053,750 and 1,828,500 warrants
exercised for total proceeds of $2,593,875. In addition, a
Director loaned $3,900,000 to the Company. The loan is
unsecured, bears no interest and there are no fixed terms of
repayment. In October 2011 the Company issued 1,851,852
shares for repayment of $2,500,000 of this debt. Subsequent
to year end, in January 2012, the Company issued 1,272,727 for
repayment of the balance of this loan of $1,400,000. At December
31, 2011, the Company had spent $74.2 million of qualifying
expenditures towards the feasibility 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 through the continued exercise of its outstanding options
and warrants or through the public market. Although
management has been successful in raising capital in the past,
there is no assurance that these initiatives will be successful in
the future. Circumstances that could affect liquidity include
early positive or negative results from the feasibility study, the
general state of the equity markets for junior exploration
companies and the overall state of the economy. 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 development company listed on the TSX-Venture Exchange
(CUU-TSX-V) with a corporate office in Calgary and operations
office in Vancouver. 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 WEI Inc. on a minimum 120,000 tpd open pit mine and is
expected to be completed during the first quarter of 2012. Copper
Fox holds title and a 100% working interest in a contiguous
21,024.96 hectare (51,954 acre) property which includes the Schaft
Creek deposit subject to a 3.5% Net Profits Interest held by Royal
Gold, Inc., a 30% carried Net Proceed Interest held by Liard and an
earn back option held by Teck Resources Limited ("Teck"). On
delivery of a positive feasibility study on the Schaft Creek
property, Copper Fox will earn a 78% interest in Liard from
Teck. On receipt of a positive feasibility study Teck, has
120 days in which to elect to exercise its earn back option to
acquire 20%, 40% or 75% of the Copper Fox interest in the Schaft
Creek project. Should Teck elect to exercise its option for
75% they are required to fund subsequent property expenditures up
to a total of 400% of those incurred by Copper Fox ($74.2 as of
December 1, 2011) and arrange for project financing, including the
Copper Fox portion. For full details of the option please
refer to the Company's website www.copperfoxmetals.com. In March
2011, the Company acquired mineral claims located adjacent to the
Schaft Creek property totaling 2,978.32 hectares (7,360 acres) (the
"March 2011 Mineral Claims") which are subject to a 2% Net Smelter
Return ("NSR"). Copper Fox has the option to repurchase, at
any time, one-half of the NSR on the March 2011 Mineral Claims for
a total purchase price of $3 million. In September 2011, the
Company acquired mineral claims located adjacent to the Schaft
Creek property totaling 6,115.11 hectares (15,111 acres) (the
"September 2011 Mineral Claims") which are subject to a 2%
NSR. Copper Fox has the option to repurchase, at any time,
one-half of the NSR on the September 2011 Mineral Claims for a
purchase price of $1 million. The March 2011 Mineral Claims
and the September 2011 Mineral Claims are subject to inclusion with
the Schaft Creek project under the terms of the Area of Interest
provisions of the Teck Option Agreement. Additionally Copper Fox
holds mineral claims totaling 3,947.06 hectares (9,753 acres) in
the Liard Mining District of BC not subject to the Teck earn-back.
On behalf of the Board of Directors Elmer B. Stewart President
& Chief Executive Officer Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. Cautionary Note Regarding
Forward-Looking Information This news release contains
"forward-looking information" within the meaning of the Canadian
securities laws. Forward-looking information is generally
identifiable by use of the words "believes," "may," "plans,"
"will," "anticipates," "intends," "budgets", "could", "estimates",
"expects", "forecasts", "projects" and similar expressions, and the
negative of such expressions. Forward-looking information in
this news release include statements about the quantum and quality
of porphyry style copper=/- gold-silver-molybdenum deposits at the
Schaft Creek property; results of recently competed metallurgical
testwork on the Paramount zone of the Schaft Creek deposit; the
size of the zone of high grade mineralization in the Paramount
zone; a new zone of copper mineralization north of the Paramount
zone; the completion of a detailed mine plan by Tetra Tech; a
Resource Estimate update by Tetra Tech; the commencement of
activities such as power and road access on the Schaft Creek
property; the timing and completion of a feasibility study; the
chargeability anomalies at the Schaft Creek project; the scope and
timing of work on the outstanding sections of the feasibility
study; completion of an Environmental Assessment Application /
Environmental Impact Statement; the potential to find additional
porphyry style copper deposits within the Schaft Creek property;
expected capital requirements to continue planned activities;
expected sources and the adequacy of required capital resources;
the results and interpretation of the high resolution airborne
magnetic survey over the Schaft Creek project; the timing and scope
of expected diamond drilling; the timing and completion of the
Feasibility Study and Environmental Assessment application for the
development of the Schaft Creek project; potential existence and
size of mineralization within the Schaft Creek project; estimated
timing and amounts of future expenditures and "earn-back" options;
geological interpretations and potential mineral recovery
processes. Information concerning mineral reserve and
resource estimates also may be deemed to be forward-looking
information in that it reflects a prediction of the mineralization
that would be encountered if a mineral deposit were developed and
mined. In connection with the forward-looking information contained
in this news release, Copper Fox has made numerous assumptions,
regarding, among other things: the 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 continued
financing of the Feasibility Study and Copper Fox' operations; the
anticipated analytical results of the current drilling and
metallurgical testing programs. While Copper Fox considers
these assumptions to be reasonable, these assumptions are
inherently subject to significant uncertainties and
contingencies. Additionally, there are known and unknown risk
factors which could cause Copper Fox's actual results, performance
or achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information contained herein. Known risk
factors include, among others: the actual mineralization in the
Schaft Creek deposit may not be as favourable as suggested; another
deposit may never be discovered on Copper Fox's property, or
contain anticipated mineralization, or mineralization of any
significance at all; a detailed mine plan may not be completed in a
timely manner, or at all; the Feasibility Study may not be
completed within the contemplated time frame, or at all; the
Environmental Assessment Application / Environmental Impact
Statement may not be obtained in a timely manner, or at all; an
updated Resource Estimate may not be obtained in a timely manner,
or at all; commencement of activities such as power and road access
on the Schaft Creek property may not occur on a timely basis, or at
all; the possibility that the metallurgical test work on the core
samples does not recover significant percentages of copper
mineralization; the possibility that future drilling on the Schaft
Creek project may not occur on a timely basis, or at all;
fluctuations in copper, the completed drill holes for which
analytical results are not available may not return significant
concentrations of either copper, gold, molybdenum or silver;
commodity prices and currency exchange rates; uncertainties
relating to interpretation of drill results and the geology,
continuity and grade of mineral deposits; uncertainty of the
metallurgical testwork, the uncertainty of the 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 Metals Inc. CONTACT: Investor line 1-866-913-1910 or J.
Michael Smith, EVP, at1-604-689-5080
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