Copper Fox Files Positive Feasibility Study on Schaft Creek Project
Copper Fox Files Positive Feasibility Study on Schaft Creek Project
Feasibility Study Filed on SEDAR
VANCOUVER, Feb. 4, 2013 /CNW/ - Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce that Copper Fox has filed a National Instrument 43-101 technical report on SEDAR (www.sedar.com), pertaining to the previously announced positive Feasibility Study on the Schaft Creek Deposit. The technical report is also available on Copper Fox's website (www.copperfoxmetals.com).
For the highlights of the Feasibility Study, please see release of December 21, 2012. Copper Fox Metals Inc. - News Releases - Copper Fox Announces a Positive Feasibility Study on the Schaft Creek Deposit - Fri Feb 1, 2013
The Company has delivered a copy of the completed positive Feasibility Study to Teck Resources Limited ("Teck"). Teck is reviewing the Feasibility Study and is discussing with the Company its earn back options available under the "Teck Option Agreement" dated January 1, 2002. There can be no assurance that these discussions will lead to Teck exercising any of its earn back options nor that the Company and Teck will enter into a definitive joint venture agreement as contemplated under the Teck Option Agreement.
Mr. Stewart stated "The filing of the positive Feasibility Study and commencement of our discussions with Teck related to its earn back rights are significant milestones for the Schaft Creek project. We look forward to these discussions regarding Teck's possible future involvement in the Schaft Creek project. In the meantime, the Company will continue its work on the Schaft Creek project toward completion of the Environmental Assessment Application and establishing the work programs to assess the economic benefit to the Schaft Creek project of additional drilling to upgrade the inferred resources located within the pit shell and additional metallurgical testwork to increase metal recoveries".
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 development company listed on the TSX-Venture Exchange (CUU-TSX-V) with a corporate office in Calgary and an operations office in Vancouver.
The Company announced the results of a Feasibility Study on the Schaft Creek Mineral Deposit, on December 21, 2012. Schaft Creek is one of the largest undeveloped copper, gold, molybdenum and silver deposits in North America. The Feasibility Study was completed by Tetra Tech Wardrop at a nominal 130,000 tpd open pit mine.
Copper Fox holds title and a 100% working interest in the Schaft Creek project consisting of 56,267.54 hectares (139,040 acres). Included in this total are the "Schedule A" mineral tenures originally conveyed to Copper Fox pursuant to 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 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 a "Positive Bankable Feasibility Study" (as defined), Copper Fox earns 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 Project is triggered upon delivery of a "Positive Bankable Feasibility Study" (as defined) to Teck after which they have 120 days to make a decision. Should Teck elect to exercise its option for 75%, Teck is required to fund subsequent property "Expenditures" (as defined) up to a total of 400% of those incurred by Copper Fox ($85.3 million to December 31, 2012) and use its best efforts to 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 47,933.19 hectares (118,445 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.
Additionally the Company holds, through its wholly-owned subsidiaries, mineral tenures located in Pinal County, Arizona (the 'Sombrero Butte Copper Project') and in Miami, Arizona (the 'Van Dyke BLM Claims'). The Sombrero Butte copper project consists of 2,887 acres located in the Bunker Hill Mining District, 44 miles northeast of Tucson and the 35 Van Dyke BLM Claims located to the west of the Van Dyke copper deposit in Miami.
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 includes statements about the delivery of the Positive Bankable Feasibility Study and Feasibility Notice to Teck; the commencement of the 120 day period for which Teck may exercise its Back-in Right under the Teck Option Agreement; the aggregate incurred Expenditures; the Option to acquire the Indirect Holdings in Liard Copper Mines; the activity related to the Schaft Creek project during the 120 day period; the completion of the Environmental Assessment Application; establishment of work programs; additional drilling; upgrade of inferred resources; and additional metallurgical testwork to increase metal recoveries.
In connection with the forward-looking information contained in this news release, Copper Fox has made numerous assumptions, regarding, among other things, assumptions related to: the due delivery of the positive Feasibility Study to Teck pursuant to the Teck Option Agreement; the acceptance by Teck of the positive Feasibility Study as a "Positive Bankable Feasibility Study" as defined in the Teck Option Agreement; the commencement of the 120 day period for Teck to exercise its earn back rights; that Expenditures have been incurred in accordance with the Teck Option Agreement and in Company's expected quantum. 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, Teck may not accept that the delivery of the positive Feasibility Study constitutes delivery of a "Positive Bankable Feasibility Study" as defined pursuant to the terms of the Teck Option Agreement; the 120 day period that Teck has to exercise its earn back rights may not have commenced; the "Expenditures" may not constitute Expenditures as defined in the Teck Option Agreement in the quantum anticipated by Copper Fox, or at all. Copper Fox may not proceed or continue with activity on the Schaft Creek project as currently planned; the Environmental Assessment Application may never be completed, or completed to the satisfaction of Copper Fox; no additional drilling may occur at the Schaft Creek project; current inferred resources may never be upgraded to a higher category of resources; additional metallurgical testwork may not be completed, nor result in increased metal recoveries; the actual mineralization in the Schaft Creek deposit may not be as favorable as suggested; another deposit may never be discovered on Copper Fox's properties, or contain anticipated mineralization, or mineralization of any significance at all; fluctuations in copper, commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; 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 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.
Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080
SOURCE: Copper Fox Metals Inc.
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CO: Copper Fox Metals Inc. ST: British Columbia NI: MNG
-0- Feb/04/2013 13:00 GMT