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“Since 2009, when I became President, we had been working on the Schaft Creek project in north-western British Columbia, slowly grooming it to the point where a major producer could step in as the operator of the project. That moment came last year when, in July, we concluded a joint venture agreement with Teck Resources Limited,” explains Chairman, President and CEO of Copper Fox Metals, Elmer B. Stewart.
Teck was indeed the most logical choice to take on this role by virtue of the option agreement that had been in place between the two parties since 2002. The completion of the joint venture agreement also resulted in Copper Fox Metals receiving cash payments from Teck in the order of $24 million.
“The terms of the joint venture call for a total of $60 million in cash payments, the first of which being $20 million plus an additional $4 million for expenses incurred at Schaft Creek in relation to the port and storage facility, and the acquisition of other mineral lands,” Stewart continues. “The next $20 million is to be received on the date a production decision is made, while the remaining $20 million is to be received on completion of the construction of all facilities at Schaft Creek. The funds from the first $20 million have allowed us to provide a small dividend to our shareholders and given us sufficient capital for two to three years of exploration work on our Arizona projects and cover G&A expenses.”
The Arizona projects he refers to are the Van Dyke copper oxide deposit and the Sombrero Butte project, which were acquired by the company in 2012 and early 2013 respectively. Located in the Globe-Miami Mining District of Arizona, the Van Dyke property was first developed in the early 1900s, when a shaft was sunk to a depth of 1,692 feet, and is reported to have produced 11.8 million pounds of copper between 1929 and 1945 from copper oxide mineralization with a reported grade of 5.0 percent copper.
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 17, 2014) - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX VENTURE:CUU) and its wholly owned subsidiary Desert Fox Copper Inc. ("Desert Fox") are pleased to provide an update on activities at the Van Dyke oxide copper deposit located in the Globe-Miami District, Gila Co., Arizona.
Highlights:
- Diamond drilling has commenced on the first hole of the verification drilling program into the Van Dyke oxide copper deposit,
- Two additional drill holes have been pre-collared into bedrock. Pre-collaring of drill holes is a preventative measure employed to protect the environment,
- A second diamond drill is expected to join the drilling program when all surface access agreements are in place,
- SGS Metcon/KD Engineering has been selected to provide metallurgical design inputs and consulting for the proposed Preliminary Economic Assessment, and
- Southwest Exploration Services, LLC will complete down hole geotechnical and geophysical surveys.
Mr. Stewart, President of Copper Fox stated, "The verification drilling program to confirm the historical estimate for the oxide copper mineralization is underway. The work completed by Occidental Minerals at Van Dyke concentrated on the oxide copper mineralization. The current drill program is designed to verify the historical data from Occidental as well as test the potential for sulphide copper-molybdenum mineralization below the oxide zone. With the addition of SGS Metcon/KD Engineering and Southwest Exploration Services, the main consulting groups required to complete the Preliminary Economic Assessment on the Van Dyke oxide copper deposit are in place."
Van Dyke Project:
The Globe-Miami District hosts the Pinto Valley, Carlota, Miami-East, and Miami-Inspiration projects, all currently in operation and the mined out Copper Cities and Old Dominion copper deposits. The Van Dyke oxide copper deposit is located immediately adjacent to the Miami-East operations.
The historical production (in-situ leaching ("ISL") method in the late 1980's) and general characteristics of the Van Dyke oxide copper deposit are comparable to the Florence and Gunnison oxide copper deposits located in the southwest Arizona copper belt.
In the early 1970's Occidental Minerals Corporation ("Occidental") completed an historical estimate for the Van Dyke oxide copper deposit. The historical estimate* is quoted as 119.2 million tons that averaged 0.52% copper using a 0.20% copper cutoff (estimated to contain 1.2 billion pounds of total copper - see news release dated April 12, 2013). Occidental estimated that approximately 62% of the deposit was oxidized. Occidental did not explore for sulphide copper mineralization below the oxide zone.
In the late 1970's Occidental conducted ISL testing on the Van Dyke oxide copper deposit consisting of drilling injection and recovery wells into the deposit and circulating solution to recover copper. This test work suggested that up to 80% of the oxide copper should be recovered using enhanced stimulation of the deposit. In the late 1980's Kocide Chemicals reported the production of 4 million pounds of copper from the Van Dyke oxide copper deposit also utilizing ISL.
*The historical estimate reported for the Van Dyke Deposit is historical in nature, Copper Fox wishes to clarify that an independent Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and accordingly, Copper Fox is not treating the above historical estimate as current mineral resources or mineral reserves. In order to verify the historical estimate additional diamond drilling, metallurgical testwork, updated cost assumption and metal pricing would be required.
Van Dyke Preliminary Economic Assessment ("PEA"):
SGS Metcon/KD Engineering located in Tucson, Arizona has been selected to provide certain metallurgical design inputs and consulting on the metallurgical aspects of the PEA. The consulting work includes but is not limited to suggestions on mineralogical analysis, metallurgical test work on cores from the 2014 verification drilling program.
Southwest Exploration Services, LLC located in Chandler, Arizona has been contracted to complete downhole geophysical surveys (includes Caliper, Gyro, E-logs, Magnetic susceptibility, Flowmeter and Televiewer) to better define the geotechnical characteristics of the rocks and hydrogeology around the deposit.
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 resource development company listed on the TSX-Venture Exchange (TSX VENTURE:CUU) with offices in Calgary, Alberta and Miami, Arizona. In addition to Copper Fox's 25% interest in the Schaft Creek Joint Venture, Copper Fox holds, through Desert Fox and its wholly-owned subsidiaries, the Sombrero Butte copper project in the Bunker Hill District, Arizona and the Van Dyke oxide copper project in the Globe-Miami District, Arizona. Desert Fox has opened an operations office in Miami, Arizona to advance the work required on the Van Dyke project to a Preliminary Economic Assessment. For further information on these projects, please refer to the Company's website 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 work towards completion of a Preliminary Economic Assessment; the work to be conducted by SGS Metcon/KD Engineering and Southwest Exploration Services, LLC; the expected commencement of drilling on the Van Dyke oxide copper deposit; the objectives of the drilling program at the Van Dyke copper deposit; proposed diamond drilling; and statements about Copper Fox's strategy, future operations, prospects and the plans of management.
In connection with the forward-looking information contained in this news release, Copper Fox has made numerous assumptions. 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 proposed diamond drilling on the Van Dyke Deposit may not contain any mineralization or mineralization as favorable as suggested by the historical estimate; the proposed metallurgical test work may not be able to recover copper; Copper Fox may not be able to comply with its ongoing obligations regarding the Van Dyke Deposit; a Preliminary Economic Assessment may not be prepared for the Van Dyke Deposit as currently contemplated, or at all; fluctuations in copper prices and demand; currency exchange rates; conditions in the financial markets and the overall economy may continue to deteriorate; uncertainties relating to interpretation of the previous drill results and the geology, continuity and grade of Van Dyke Deposit; the previous metallurgical test work and metal recovery rates; the need to obtain additional financing 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 atwww.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
Copper Fox Metals Inc.
Lynn Ball
1-403-264-2820
www.copperfoxmetals.com
Copper Business Unit
Dale Andres Senior Vice President, Copper
http://www.teck.com/res/tc/documents/_ces_portal_meta/downloads/investors/ir%20presentations/investor%20day%20nov%202013/06%20-%20da%20copper%20final.pdf
Wednesday, October 16th, 2013
10:00am
Calgary Marriott Downtown Hotel