VANCOUVER, June 14, 2012 /CNW/ - Copper Fox Metals Inc. ("Copper
Fox" or the "Company") is pleased to announce its second quarter
ended April 30, 2012 operating and financial results. The
Company is working toward completing an Environmental Assessment
Application and a Feasibility Study of the Schaft Creek Mineral
Deposit. Copper Fox incurred a net loss for the second quarter
of $514,292 ($0.00 loss per share) and incurred $1,768,879 in
expenditures toward furthering the development of the Schaft Creek
project. Copies of the financial statements, 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: Resource
Estimate Subsequent to the end of the quarter, in May 2012, Tetra
Tech Wardrop ("Tetra Tech") completed the updated Resource Estimate
for the Paramount and Liard zones. For a more detailed review
of the updated Resource Estimate, please see Copper Fox's news
release dated May 31, 2012. Highlights for the updated
Resource Estimate are shown in table 1: Copper Fox selected the
0.15% copper equivalent ("Cu Eq.") cut-off for its base case
resource estimate (see Table-1) for the Schaft Creek deposit which
equates to the minimum grade of copper equivalent estimated by
Tetra Tech required to break-even on an operating cost per tonne
basis. Table-1: Mineral Resource Estimate - Schaft Creek
Deposit Robert Morrison - Ph.D., MAusIMM (CP), P.Geo.,
Effective Date: May 23(rd), 2012 Resource Cut-off Copper Molybdenum
Gold Silver Contained Metal Category CuEq Tonnes (%) (%) (g/t)
(g/t) Cu (Lbs) Mo (Lbs) Au (ozs) Ag ( ozs) (%) Measured 0.15
146,615,300 0.31 0.017 0.24 1.78 1,001,824,600 55,624,000 1,149,100
8,402,700 Indicated 0.15 1,081,939,500 0.26 0.017 0.18 1.68
6,104,400,000 399,718,500 6,218,000 58,335,500 Measured 0.15
1,228,554,800 0.26 0.017 0.19 1.69 7,106,224,600 455,342,500
7,368,000 66,738,200 & Indicated Inferred 0.15 597,191,300 0.22
0.016 0.17 1.65 2,872,034,300 206,252,100 3,359,600 31,601,400
The mineral resources were estimated using criteria
consistent with the CIM Definition Standards (2010) and in
conformity with CIM "Estimation of Mineral Resources and Mineral
Reserves Best Practice" (2003) guidelines. The Base Case
numbers in the above table has been rounded to reflect "Best
Practice Principles" as established by the CIM. The increase in
resources and contained metal reported in the updated Resource
Estimate is due in part to the positive drilling results from the
2011 exploration program and the variation in methodology used
between the 2011 and 2012 resource estimates and. The updated
resource estimate prepared by Tetra Tech reports an Insitu estimate
of the mineral resource categories for the Schaft Creek deposit
whereas the resource estimate prepared in 2011 was completed using
an optimized pit shell which was prepared using various economic
parameters (see News Release dated July 11, 2011). Cautionary Note
to Investors While the terms "measured (mineral) resource",
"indicated (mineral) resource" and "inferred (mineral) resource"
are recognized and required by National Instrument 43-101 -
Standards of Disclosure for Mineral Projects, investors are
cautioned that except for that portion of mineral resources
classified as mineral reserves, mineral resources do not have
demonstrated economic viability. Investors are cautioned not
to assume that all or any part of measured or indicated mineral
resources will ever be upgraded into mineral reserves.
Additionally, investors are cautioned that inferred mineral
resources have a high degree of uncertainty as to their existence,
as to whether they can be economically or legally mined, or will
ever be upgraded to a higher category. Feasibility Study During the
quarter, Tetra Tech advised that, due to manpower shortages and
scheduling difficulties of staff, the March 31(st) timeline for
completion of the Feasibility Study would not be achieved.
The delay in completing the Mine Plan, a critical component in the
Feasibility Study, has delayed the completion of the Feasibility
Study until mid-late summer, 2012. The detailed mine plan is
required to complete the economic analysis and sensitivity of the
Schaft Creek project for the Feasibility Study. The results of the
updated Resource Estimate will be incorporated into the Feasibility
Study. The other portions of the work required to complete
the Feasibility Study have either been completed or are nearing
completion. Elmer B. Stewart, MSc. P. Geol., President of Copper
Fox, the Company's nominated Qualified Person pursuant to National
Instrument 43-101, Standards for Disclosure for Mineral Projects,
has reviewed the technical information disclosed in the preceding
paragraphs. Subsequent Event Subsequent to the quarter ended April
30, 2012, the Company acquired two groups of mineral tenures
totalling 13,092.6 hectares (45 mineral tenures). In
addition, a company controlled by a Director loaned the Company
$2,000,000. The loan bears no interest and has no fixed terms
of repayment. These transactions were recorded at the
exchange amount agreed to by the related parties. Financial During
the quarter ended April 30, 2012 the Company received $304,127 in
proceeds from the exercise of warrants and options and incurred an
additional $1,768,679 of capital expenditures related to the Schaft
Creek project. Selected Financial Results
______________________________________________________________________________
| | Net Loss | Net (loss)/income per share - | | | | basic and
diluted |
|_______|______________________________|_______________________________________|
|2012 | | | |Second |$ |$ | |Quarter|(514,292) |0.00 | |First |$ |$
| |Quarter|(554,254) |0.00 | |2011 | | | |Fourth |$ |$ |
|Quarter|(1,018,883) |(0.01) | |Third |$ |$ | |Quarter|(504,862)
|0.00 | |Second |$ |$ | |Quarter|(2,380,574) |(0.01) | |First |$ |$
| |Quarter|(726,833) |0.00 |
|_______|______________________________|_______________________________________|
|2010 | | | |Fiscal |$ |$ | |Year |(1,614,027) |0.00 | |Fourth |$
|$ | |Quarter|(421,346) |0.00 | |Third |$ |$ | |Quarter|(436,792)
|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 its Schaft Creek property as well as
corporate overheads generally occur far in advance of the project
being put into production and generating cash flow. The
financial requirements of Copper Fox related to development of the
Schaft Creek project are mitigated to some extent by the
obligations of Teck should they exercise their earn back right on
the Schaft Creek property (see "Description of Business" above).
The Company's working capital, defined as current assets less
current liabilities, was $44,631 at April 30, 2012. During the six
months ended April 30, 2012, the Company raised a total of
$6,542,127 from the completion of private placements totaling
$6,200,000, 725,000 options exercised for total proceeds of
$248,002 and 126,833 warrants for total proceeds of $95,125.
In addition, the Company issued 1,272,727 common shares for
repayment of the balance of this loan of $1,400,000. While these
funds may be sufficient to complete the current planned activities,
the Company may need additional equity in order to develop the
property (Refer to Teck Earn Back Option). About Copper Fox Copper
Fox is a Canadian-based resource development company listed on the
TSX Venture Exchange 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 mid-late summer,
2012. Copper Fox holds title and a 100% working interest in the
Schaft Creek project consisting of 52,843.34 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 Teck's
78% interest in Liard. Teck's earn back option to acquire either,
20%, 40% or 75%, of Copper Fox's 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 ($76.6 million to April 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 Company's website www.copperfoxmetals.com. The remainder of
Copper Fox's registered interests in mineral tenures in British
Columbia total 44,509 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.
*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 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 the recently completed
resource estimate for the Schaft Creek deposit; the receipt and
filing of a National Instrument 43-101 compliant report related to
the updated resource estimate; the quantum and quality of porphyry
style copper-gold-silver-molybdenum deposits at the Schaft Creek
property; the scope and completion of the 2012 exploration program;
conditions in the financial markets; the completion of a detailed
mine plan by Tetra Tech, including the preparation of a new
optimized pit shell design based on the economic parameters
incorporating the updated resource estimate; the timing and
completion of a the Feasibility Study; the scope and timing of work
on the outstanding sections of the Feasibility Study; completion of
an Environmental Assessment Application; the regional mineral
potential of the mineral claims acquired by Copper Fox in 2012; 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;
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 measured
mineral resources, indicated mineral resources and inferred mineral
resources 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 potential mineralization in the Schaft
Creek deposit; 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 may not be obtained in a timely manner, 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; conditions in the financial markets and overall
economy may continue to deteriorate; Copper Fox may never complete
the option to purchase the continuous group of five mineral tenures
located south and west of the Schaft Creek project; 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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