|By Marketwired .||
|May 15, 2014 06:00 AM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/15/14 -- Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX VENTURE: CUU) and its wholly owned subsidiary Desert Fox Copper Inc. ("Desert Fox") is pleased to provide an update on the progress of the verification drilling program at its Van Dyke copper project in Arizona and other corporate activities. The Van Dyke oxide copper deposit is located in the Globe-Miami District, Gila Co., Arizona.
a) The first diamond drill hole ("DDH") VD14-01 has been completed to a depth of 639.3 metres ("m") (2,097 feet) in the vicinity of the Van Dyke head frame and intersected a 167m thick zone with visible oxide copper minerals in the Pinal Schist, this interval corresponds to the original hole drilled by Occidental Minerals Corporation ("Occidental"),
b) DDH VD14-01 intersected (from 338.8m to end of hole at 639.3m) and ended in weakly mineralized (vein and fracture controlled chalcopyrite-molybdenite mineralization) Pinal Schist and granodiorite/quartz monzonite porphyry below the zone of oxide copper mineralization,
c) A second diamond drill has been added to the program and is expected to commence drilling this week, and
d) Carmax Mining Corp ("Carmax") has received conditional approval for the proposed private placement by Desert Fox from the TSX Venture Exchange subject to delivery of certain documentation and undertakings. Carmax has scheduled a meeting of its shareholders to approve the private placement for May 22, 2014.
Mr. Stewart, President of Copper Fox stated, "The second diamond drill allows acceleration of the verification drilling program by increasing our production rate per day and at the same time decreasing our overhead costs per metre drilled. The occurrence of weakly mineralized schist and intrusive porphyry at the bottom of the first drill hole is encouraging, however, until the analytical results from the sampling completed within this zone are received, it is difficult to place any significance on this mineralization. We are pleased with the progress Carmax is making toward completion of the proposed private placement and look forward to completing this transaction in late May 2014."
Van Dyke Project:
The Globe-Miami District hosts the Pinto Valley, Carlota, Miami-East and Miami-Inspiration copper projects (all currently in operation) and the mined out Copper Cities and Old Dominion copper deposits. The Van Dyke oxide copper deposit is located adjacent to the Miami-East and Miami-Inspiration operations.
Occidental completed an historical estimate for the Van Dyke oxide copper deposit in a report authored by Clyde R. Caviness dated March 1, 1976 and entitled "Van Dyke Ore Reserve Report" (the "Caviness Report"). 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 for further detail). The Caviness Report was completed using 34 diamond drill holes and cutoff grades that ranged from 0.10% to 0.40% copper, and was based on diamond drilling and information compiled by other companies who reviewed the data for the Van Dyke Deposit. Caviness estimated the volume of the mineralization on each cross-section within the deposit and estimated the volume of the mineralization between the cross-sections. The maximum distance of extrapolation used for the estimation was 400 feet between drill holes. Caviness used the extension of the mineralized trend, geology and grade of adjacent drill holes to extrapolate between the drill holes. The tonnage factor for the estimate was 12.5 cubic feet per ton. Copper assays over 2.5% were not used in the estimate. Caviness considered the estimate to be a geological ore reserve as no mining method was selected for the deposit. Caviness also identified several possible extensions to the deposit based on drill results.
(i)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 reserves a current Feasibility Study would be required which would include additional diamond drilling, metallurgical testwork, updated cost assumption and metal pricing.
From 1970 to 1979 Occidental conducted two in situ-leaching ("ISL") tests on the Van Dyke oxide copper deposit consisting of drilling injection and recovery wells into the deposit and circulating solution to recover copper. The first test consisted of two wells spaced 75 feet apart as well as hydrogeological and permeability test. The second test consisted of a five well pattern spaced at 100 feet apart. The second test was conducted for a period of approximately one year, the conclusions of which are summarized below:
a. Maximum injection rates were 450 gallon per minute ("gpm") (at 95% of design capacity) and 275 gpm on a continuous basis, b. Maximum loading of pregnant solution for a one month period was 3.4 gram per litre ("gpl") from a portion of the deposit that assayed less than 0.5% copper, c. Leach curves developed predicted a mine life recovery average of 3 gpl for the entire deposit, d. Total copper recovery should be 58.8% extraction from total available copper after 36 months leaching per gallery, clean up leaching should bring total to 75% extraction, e. Demonstrated hydraulic connection for a distance of up to 249 feet (76m), f. The fluid flow followed the principal stress axis and fracture pattern of the rock, g. Recovered leachate is clean of impurities and acid consumption per pound of copper was less than predicted, h. Porosity and permeability of the formation is suitable for full scale production, i. No apparent reason why full scale production cannot be accomplished, and j. Over 100,000 pounds of copper was produced during the test in pregnant solutions.
The information on the historical metallurgical test work on the Van Dyke deposit was taken from a report prepared for Occidental titled "Summary of In-Situ Leach Testing on the Van Dyke Copper Deposit Through 1981" by C.R. Caviness dated June 1986. As previously announced SGS Metcon/KD Engineering has been retained to design and manage the metallurgical test work required to for the Preliminary Economic Assessment on the Van Dyke oxide copper 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 Tier 1 Canadian resource company listed on the TSX-Venture Exchange (TSX VENTURE: CUU) focused on copper exploration and development in North America 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 Mining District, Arizona and the Van Dyke oxide copper project in the Globe-Miami Mining District, Arizona. 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 the drilling program at the Van Dyke project and the expected commencement of a second diamond drill thereon; the private placement by Desert Fox in Carmax and related Carmax shareholders meeting; the historical estimate at the Van Dyke project; the historical metallurgical test work on the Van Dyke project; 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, regarding, among other things, the reported historical estimate and historical metallurgical test work on the Van Dyke deposit. 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 drilling program, including the addition of a second drill, may not proceed as anticipated, or at all; the private placement by Desert Fox in Carmax and related Carmax shareholders meeting may not complete as currently anticipated, or at all; the actual mineralization on the Van Dyke Deposit may not contain any mineralization or mineralization as favorable as suggested by the historical estimate; 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 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.
Copper Fox Metals Inc.