Copper Fox completes acquisition of Sombrero Butte Copper Project and Van Dyke BLM Claims in Arizona
September 10 2012 - 8:00AM
PR Newswire (Canada)
Purchase of remaining Van Dyke Unpatented Mining Claims pertaining
to the Van Dyke Copper Deposit is pending subject to acquisition by
Bell Resources from Bennu Vendors VANCOUVER, Sept. 10, 2012 /CNW/ -
Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc.
("Copper Fox" or the "Company") announced the closing of the
acquisition from Bell Copper Corporation ("Bell Copper") of 100% of
Bell Copper's interests in the Sombrero Butte property located in
Pinal County, Arizona (the "Sombrero Butte Copper Project") and all
Bureau of Land Management (Arizona) lode claims (the "Van Dyke BLM
Claims") that Bell Copper acquired which are adjacent to Bell
Copper's interests in the Van Dyke copper deposit located in Miami,
Arizona. Copper Fox acquired the Sombrero Butte Copper Project and
Van Dyke BLM Claims by paying to Bell Copper the US-dollar
equivalent of CDN$1,000,000 in cash and assuming Bell Copper's
continuing obligations in respect of the Sombrero Butte Copper
Project and Van Dyke BLM Claims. The acquisition of Bell Copper's
interests in the Van Dyke copper deposit (the "Van Dyke Unpatented
Mining Claims") is pending subject to Bell Copper completing the
acquisition pursuant to the terms of the purchase and sale and
royalty agreement between Bell Resources (Nevada) Corporation, a
wholly-owned subsidiary of Bell Copper, and Bennu Properties, LLC,
Albert W. Fritz Jr. and Edith Spencer Fritz (the "Bennu Vendors"),
including payment by Bell Copper of US$500,000 in cash to the Bennu
Vendors on closing (refer Copper Fox's news release of July 9,
2012). Highlights: A description of the Van Dyke property and
Sombrero Butte property was provided in the news release issued by
Copper Fox on July 9, 2012. For easy reference the highlights
of the Sombrero Butte property and the Van Dyke BLM Claims include:
a) The area to the west of the Van Dyke deposit referred to as
Azurite Ridge is surrounded on three sides by the Van Dyke BLM
claims. b) At Azurite Ridge, copper oxide mineralization
(Azurite)hosted in Pinal schist is exposed in outcrop over a
horizontal distance for approximately 500 m, c) The Van Dyke BLM
claims have not been explored for copper mineralization using
current exploration techniques, d) Several clusters of copper
bearing breccia pipes have been tested by diamond drilling on the
Sombrero Butte property where 29 of 34 holes drilled to test 8
breccia pipes intersected significant copper mineralization over
core intervals ranging from 2m to 72m and average copper grades
ranging from 0.37% to 5.85%, and e) The first phase of exploration
of the Sombrero Butte property would include a deep penetrating
Induced Polarization geophysical survey as well as detailed
mapping. Sombrero Butte Property: The Sombrero Butte property
consists of 2,887 acres located in the Bunker Hill Mining District
44 miles northeast of Tucson, Arizona. The project is located 9
miles east of the San Manuel Mine (14 billion lbs Cu), and 2 miles
south of Redhawk Resources' Copper Creek project (3.4 billion lbs
Cu). Some of the mineralized interval from the 34 holes completed
on the Sombrero Butte property is: Breccia Drill From (m) To (m)
Interval Copper Pipe Hole ID (m) (%) Magma SB-02 286 334 48 1.06
Campstool SB-03 272 294 22 0.58 Sunset SB-05 18 40 22 4.74 Rattler
SB-09 96 110 14 0.83 Audacious SB-14 20 86 66 1.45 Victor's SB-29 4
70 66 0.61 The mineralized intervals listed in the above table do
not represent true widths. The Sombrero Butte property also hosts
12 breccia pipes that contain dickite in the altered breccia
matrix. Dickite is an indicator mineral which forms under high
temperature, acidic conditions, and occurs in multiple porphyry
copper deposits, including the nearby San Manuel mine. The Sombrero
Butte property is subject to an option agreement to earn a 100%
interest in the property by making cash payments of US$60,000 in
January 2013 and US$650,000 in January 2014. Elmer B. Stewart, MSc.
P. Geol., President of Copper Fox, is 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 this news release. 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 in September 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
held 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 ($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 Company's website www.copperfoxmetals.com. The remainder of
Copper Fox's registered interests in mineral tenures in British
Columbia total 44,509.02 hectares (109,484 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 Teck Option Agreement. 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: historical resource estimates and results of metallurgical
test work on the Van Dyke BLM Claims and exploration drilling
results on the Sombrero Butte property, the completion of the
feasibility study for the Schaft Creek project; 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 Unpatented Mining Claims 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 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 number
of contingencies that the purchase of the Van Dyke Unpatented
Mining Claims are subject to; that investigation and verification
may show that the historical estimate on the Van Dyke property may
not be accurate or exist at all; that the metallurgical testwork
completed on leaching the copper mineralization reported to occur
within the Van Dyke deposit may not be accurate; that the
exploration drilling results from the Sombrero Butte property may
not be related to an underlying porphyry system; that future
exploration on the Sombrero Butte property and the Van Dyke BLM
claims may not located any copper mineralization; that the
feasibility study on the Schaft Creek project may not be completed
within the contemplated time frame, 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 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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