Copper Fox Reports 2012 Annual Financial Results

VANCOUVER, Feb. 14, 2013 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the 
"Company") (TSX-V: CUU) is pleased to announce its operating results for the 
2012 year-end. During the year, the Company completed an updated resource 
estimate, an exploration program and continued the environmental assessment 
application process on the Schaft Creek deposit. Discussions were undertaken 
with BC Hydro in an effort to secure a source of electrical power for the 
Schaft Creek project and the Company made several property acquisitions in 
British Columbia and Arizona. Subsequent to year end, the Company announced 
the results of a positive feasibility study and the filing thereof on 
www.sedar.com. 
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 
Resource Estimate
In May 2012, Tetra Tech Wardrop ('Tetra Tech') completed the Updated Resource 
Estimate for the Schaft Creek deposit including 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. 
Feasibility Study
Subsequent to the year ended October 31, 2012, the Company announced the 
results of a positive Feasibility Study on the Schaft Creek project in 
December 2012, and subsequently filed on www.sedar.com in February 2013. 
The first step in determining mineral reserves is to use only the Measured and 
Indicated resources in combination with certain input parameters and the 
Whittle Mine Optimization software program to generate a considerable number 
(in the order of 40-50 runs) of proposed pit shells. From the 40-50 runs, 
mining engineers select the pit shell with the most attractive economics and 
then commence to develop the actual proposed mine plan to be used in the 
Feasibility Study. Invariably, the process of establishing reserves normally 
leaves a considerable portion of the Measured and Indicated mineral resources 
outside the pit shell. This process in general explains the significant 
difference between the mineral resources and the mineral reserves estimated 
for the Schaft Creek project. If at a later date, the remaining resources in 
the Schaft Creek deposit not initially classified as reserves at the time of 
the feasibility study, can be deemed economically viable they would be 
included into the reserve category, thus extending mine life. 
The feasibility study was based on an open pit mine with a nominal 130,000 
tonne per day ('tpd') milling capacity over a 21 year mine life representing a 
30% increase from that proposed in the Preliminary Feasibility Study prepared 
in September 2008, with only a 20% increase in the estimated Capex. 
Highlights of the Feasibility Study (all amounts are stated in Canadian 
dollars): 


    --  Nominal 130,000 tpd open pit mine feeding a concentrator with
        two Semi Autogenous Grinding ('SAG') mills;
    --  Initial Capital Cost ('Capex') totals $3.256 billion, which
        includes contingencies of $374 million;
    --  Sustaining Capex totals $1.240 billion over the proposed mine
        life, including $200 million for BC Hydro tariff;
    --  Life-of-Mine ('LOM') metal production contained in concentrates
        totals 4.88 billion pounds ('lbs') of copper, 4.21 million
        ounces ('oz.') of gold, 214.92 million lbs of molybdenum and
        25.10 million oz. of silver;
    --  5 years pre-production period followed with a productive mine
        life of 21 years;
    --  Proven and Probable Mineral Reserves total 940.8 million tonnes
        containing 5.6 billion lbs of copper; 5.7 million oz. of gold
        363.5 million lbs of molybdenum and 51.7 million oz. of silver
        on the basis of drill data up to May 23, 2012;
    --  Within the pit shell there is a total of 171.16 million tonnes
        of inferred resource grading 0.25% copper, 0.018% molybdenum,
        0.164 grams per tonne ('gpt') gold and 1.58 gpt silver which
        for purposes of this study must be treated as waste rock;
    --  LOM average mill feed grades 0.271% copper, 0.191 gpt gold,
        1.716 gpt silver, 0.018% molybdenum and a copper equivalent
        ('CuEq') of 0.441%.  The CuEq is back calculated based on how
        much in situ copper is required to provide the same after
        recovery value to equal the combined metals value after
        recovery.  The formula is:  CuEq = NSR / (CURec*NSPcu*22.046)
        NSR=RecCU*Cu grade*NSPcu*22.046+RecMO*Mo
        grade*NSPmo*22.046+RecAU* Au grade*NSPau+RecAG*AG grade*NSPag ,
        where "Rec" is the recovery based on the recovery formula and
        grade is in situ with no loss or dilution applied.

Based on recommendations in the Feasibility Study the Company is currently 
considering programs to enhance the economics of Schaft Creek including:

i)a diamond drilling program at Schaft Creek to upgrade the 171.16 
million tonnes of Inferred resource, that lie within the pit shell, to a 
Measured or Indicated Resource; and
ii)additional metallurgical testwork to increase metal recoveries 
and reduce processing costs.

2012 Exploration Program
The 2012 exploration program was designed specifically to avoid any work 
(diamond drilling, metallurgical test work, etc.) on the Schaft Creek deposit 
which if successful would have dictated a suspension to update that portion of 
the Feasibility Study. The objective of the 2012 exploration program was to 
test the mineral potential of the Schaft Creek Mineral Trend to host 
additional copper deposits. This trend is located on the west side of Mount 
LaCasse and extends for a distance of approximately 7 kilometres north of the 
Schaft Creek deposit. The drilling on the Discovery zone intersected broad 
intervals of significant copper-gold-silver mineralization that shows a strong 
correlation to the chargeability signature, a similar relationship to that 
seen at the Schaft Creek deposit. A considerable amount of diamond drilling 
would be required on the Discovery zone to establish the significance of this 
discovery in terms or dimensions and average grade. Mapping and sampling 
over a 6 kilometer long area from the south end of the ES zone to the north 
end of the GK zone located a significant number of outcrops and boulders that 
contain copper oxide and copper sulphide minerals.

Bell Copper
During the year, the Company announced that it had entered into a binding 
offer to purchase from Bell Copper Corporation ('Bell') 100% of Bell's 
interests in the Van Dyke copper deposit and the adjacent Van Dyke BLM lode 
claims located in Miami, Arizona and the Sombrero Butte property located near 
Mammoth, Arizona by paying to Bell CDN $2,000,000 in cash and assumption of 
Bell's continuing obligations in respect of the properties.

The Company completed the acquisition of the Sombrero Butte property and the 
Van Dyke BLM Claims for the purchase price of CDN $1.0 million.

The acquisition of Bell's additional interests in the Van Dyke copper deposit 
is pending subject to Bell completing the acquisition pursuant to the terms of 
the purchase and sale and royalty agreement. For more details please refer 
to Copper Fox's news release of July 9, 2012.

Land Acquisitions
During and subsequent to the year ended October 31, 2012; the Company acquired 
89 mineral tenures (21,504.47 hectares) located around and contiguous to the 
Schaft Creek project.

Subsequent to year end, Copper Fox located (staked) an additional 22 mineral 
lode claims contiguous to the Sombrero Butte project to protect the extension 
of the mineralized breccia pipes previously explored by Bell. The Sombrero 
Butte project now consists of 60 lode claims and covers 3,342 acres.

Selected Financial Information
                                                                                      
                         Net Loss                   Net (loss)/income per share -     
                                                          basic and diluted

2012                                                                                  

Fourth  $                                   $                                         
Quarter                       (812,324)                                         0.00

Third   $                                   $                                         
Quarter                     (1,328,328)                                         0.00

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


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 the potential 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. 
The Company's working capital was $5,139,258 at October 31, 2012 inclusive of 
an increase to prepaid expenses and deposits relating to an agreement on the 
Schaft Creek property and an increase in accounts receivable with respect to a 
tax credit claimed. 
During the year ended October 31, 2012, the Company raised a total of 
$17,548,125 from the completion of private placements totaling $17,205,000, 
725,000 options exercised for total proceeds of $248,000 and 126,833 warrants 
for total proceeds of $95,125. In addition, the Company issued 1,272,727 
common shares for repayment of a loan of $1,400,000. Additional funds will 
be required to complete the current planned activities and the Company may 
need to issue additional equity in connection with any development of the 
project (Refer to Teck Earn Back Option). 
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 (TSX-V: CUU) with a corporate office in Calgary, Alberta and 
an operations office in Vancouver, British Columbia. Its major asset is the 
Schaft Creek copper, gold, molybdenum and silver deposit located in 
northwestern British Columbia, Canada for which a positive Feasibility Study 
was recently completed and filed on www.sedar.com. 
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 the Feasibility Study, 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 up to a total of 400% of those incurred by Copper Fox 
($85.34 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" provision of the Teck Option Agreement. 
Additionally the Company holds, through wholly-owned subsidiaries, mineral 
tenures located in Pinal County, Arizona (the 'Sombrero Butte Copper Project') 
and in Miami, Arizona (the 'Van Dyke BLM Claims'). For further information on 
these mining projects please refer to the Company's web site at 
www.copperfoxmetals.com. 
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 includes 
statements about the results of a positive Feasibility Study for the Schaft 
Creek project; the technical and financial viability of a 130,000 
tonne-per-day copper mining and processing operation at Schaft Creek; economic 
potential of the Schaft Creek mineral deposit; the existence and size of the 
mineral deposit at Schaft Creek; recommended future diamond drilling programs; 
potential upgrade of inferred resource currently treated as waste to either 
measured or indicated mineral resources; the productive mine life of the 
Schaft Creek project; average annual copper production in concentrates; 
initial and sustaining capital costs; LOM site operating cash costs and copper 
production costs; potential expansion and development of the project; 
opportunities to lower operating and capital costs and increase capital 
revenue; the length and scope of work for the pre-production period; 
additional metallurgical testwork to pursue opportunities to increase metal 
recoveries and reduce processing costs; use of new floatation technology which 
could ultimately reduce construction and capital costs while at the same time 
reducing operating costs; timing and amount of estimated future production; a 
Province of British Columbia Environmental Assessment Application and a 
Federal Environmental Impact Statement; a British Columbia Environmental 
Assessment Certificate and Federal environmental approvals; the construction 
of the NTL and timing thereof; discussions with BC Hydro on the terms and 
conditions surrounding participation and purchasing of electrical power from 
the NTL; the development schedule for the project; additional exploration to 
the east and north of the Paramount zone and north of the Liard zone; the 
process and expectations for metal recovery; estimated metal production over 
the life of the mine; estimated LOM average metal content, impurity element 
levels and, as applicable, moisture content; design, construction and capacity 
of a tailings storage facility; estimated capital costs; life of mine copper 
production total and cash costs per produced pound; projected future metal 
prices; 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; establishment of work programs; the quantum and quality of 
porphyry style copper-gold-silver-molybdenum deposits at the Schaft Creek 
property; the potential to find additional porphyry style copper deposits 
within the Schaft Creek property; the acquisition of Bell Copper's Sombrero 
Butte property in Arizona and the pending acquisition of Bell Copper's Van 
Dyke property in Arizona; ongoing obligations of Copper Fox in connection with 
the Van Dyke and Sombrero Butte acquisitions; expected capital requirements to 
continue planned activities; expected sources and the adequacy of required 
capital resources; 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 economic models for the Schaft Creek project, including the NPV 
and ROV models; the calculation of estimate capital costs of the project; 
costs of production; success of mining operations; projected future metal 
prices; engineering, procurement and construction timing and costs; the timing 
and obtaining of permitting and approvals; 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 quantumthe 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; and 
the continued financing of Copper Fox's operations. 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 results of the positive Feasibility Study may not lead to 
the development of a mine at Schaft Creek or commercial mining operations; the 
project development plans and timing for Schaft Creek as outlined in the 
Feasibility Study may not occur as currently anticipated, or at all; 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; inferred resources, currently 
treated as waste, may never be upgraded to a high category of resource; 
uncertainty of estimates of capital and operating costs, recovery rates, 
production estimates and estimated economic return; uncertainties related to 
the estimated mine life and potential extension thereof; the possibility of 
delays and cost overruns in engineering, procurement and construction of the 
project and uncertainty of meeting anticipated project milestones; the 
Environmental Assessment Application and Federal Environmental Impact 
Statement may not be completed timely manner, or at all, or provincial or 
federal environmental approvals may not be obtained in a timely manner, or at 
all; the possibility that future obligations with respect to the Van Dyke and 
Sombrero Butte properties may not be met on a timely basis, or at all; 
Copper Fox may not proceed or continue with activity on the Schaft Creek 
project as currently planned; additional metallurgical testwork may not be 
completed, nor result in increased metal recoveries; further exploration at 
Schaft Creek may not occur as currently anticipated, or at all; 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; the possibility that future drilling on the Schaft Creek project may 
not occur on a timely basis, or at all; fluctuations in metal prices and 
currency exchange rates; conditions in the financial markets and overall 
economy may continue to deteriorate; 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 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. 
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 ERN  
-0- Feb/14/2013 18:16 GMT
 
 
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