VANCOUVER, April 12, 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 the acquisition of 100% of the interests of
Bell Resources (Nevada)
Corporation, a related entity of Bell Copper Corporation ("Bell
Copper") in the Van Dyke copper deposit (the "Van Dyke Deposit")
located in Miami, Arizona (see
News Release dated July 9,
2012). Under the terms of the acquisition, Copper Fox
acquired the Van Dyke Deposit by paying to Bell Copper CDN$500,000 in cash, paying to the vendors of the
Van Dyke Deposit US$1.5 million and
assuming the continuing obligations in respect of the Van Dyke
Deposit, subject to certain amended terms and conditions.
Highlights:
a) |
A number of historical studies have been completed on the Van
Dyke Deposit between 1973 and 1981 by Occidental Minerals
Corporation ("Occidental"), AMAX and Utah, all large copper
producing companies at that time, |
b) |
A historical estimate* of 119.2 million tons of oxide copper
mineralization with an average grade of 0.52% copper (estimated to
contain 1.2 billion pounds of copper) prepared by Occidental in
1976 is reported for the Van Dyke Deposit, |
c) |
Diamond drilling on the Van Dyke deposit indicates several
extensions including the reported existence of primary sulphide
copper mineralization below and to the east of the oxide
mineralization, and |
d) |
Preliminary in-situ leaching metallurgical testwork indicated
copper recoveries up to 80% using hydrofracturing to improve fluid
circulation. |
*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.
Mr. Stewart, President and CEO of Copper Fox
stated, "The acquisition of the Van Dyke Deposit adds another
significant under explored copper asset to the Company. The
historical work completed on this deposit including resource
estimation, preliminary in-situ leaching testwork and an economic
evaluation, all completed on or before 1981 yielded positive
results. The historical information also suggests possible
extensions of the copper mineralization at depth and along
strike. This acquisition complements our large Schaft Creek
copper-gold-molybdenum-silver deposit and provides the Company an
under explored advanced project with excellent logistics located in
a major copper producing district in Arizona."
Van Dyke Deposit:
The Van Dyke oxide copper deposit is located in the Globe-Miami
Mining district of Arizona; 90
miles east of Phoenix, Arizona
which host several large producing copper mines. The Van Dyke
property was developed in the early 1900's 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 %
copper. Between 1968 and 1980, Occidental held the
property. During that time a total of 70 exploration holes
(sixty-two of which encountered measureable copper mineralization)
were completed on the Van Dyke property from which 46 were used to
estimate a historical resource. Between 1973 and 1976, four
historical estimates were completed on the Van Dyke oxide copper
deposit by major copper producing companies such as Occidental,
Amax, and Utah International. The historical estimates range
from 103,000,000 tons grading 0.53% copper (Occidental) to
140,858,000 tons grading 0.40% copper using a 0.20% copper cutoff.
A polygonal method was used to complete two of the historical
resource estimates and cross-sections were used for the balance of
the historical estimates.
In 1976, Clyde R.
Caviness authored a report dated March 1, 1976 and entitled "Van Dyke Ore Reserve
Report (the "Caviness Report") on behalf of Occidental, prior to
the implementation of NI 43-101. 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. At a 0.20%
copper cutoff, Caviness estimated that the oxide portion of the Van
Dyke Deposit contained 119,202,000 tons grading 0.52% total copper.
Caviness also identified several possible extensions to the deposit
based on drill results. Copper Fox has not completed the work
necessary to verify the historical estimate contained in the
Caviness Report. Accordingly, Copper Fox is not treating the
historical estimates contained in the Caviness Report as NI 43-101
compliant categories of mineral resources or mineral reserves based
on information prepared by or under the supervision of a QP.
In 1981, the Van Dyke Copper Company retained
Thomas Clary (geologist),
James Fletcher (mining engineer) and
Floyd Ingram (geologist) to complete
a report entitled "Economic Evaluation of the Van Dyke Oxide Copper
Deposit, Miami, Arizona" dated
October 15, 1981 (the "Van Dyke
Report"). The Van Dyke Report is historical in nature and
yielded the following results:
Parameter |
Units |
Amounts |
Probable Reserve |
tons |
100,000,000 |
Oxide Copper Grade |
percent |
0.53 |
Recovery Method |
na |
In Situ Leaching (SX-EX) |
Estimated Copper recovery |
percent |
70.0 |
Total Recoverable Copper |
pounds |
742,000,000 |
Pre-Production period |
years |
2 |
Mine Life |
years |
14 |
Annual Copper Production |
pounds |
51,840,000 |
Operating Cost/pound copper
produced |
dollars |
$0.44 |
Capital Costs |
dollars |
$19,670,000 |
Copper Price/pound |
dollars |
$0.85 |
Annual Revenue |
dollars |
$44,010,000 |
Annual Cash Flow |
dollars |
$21,900,000 |
*The Van Dyke Report is historical in nature.
Copper Fox wishes to clarify that an independent Qualified Person
has not done sufficient work to classify the historical estimate
Van Dyke Report as current mineral resources or mineral reserves,
and accordingly, Copper Fox is not treating the Van Dyke Report as
current mineral resources or mineral reserves. The reported
historical information, metallurgical recoveries and cost
assumptions used in the Van Dyke Report have not been verified and
this historical data has not been adequately reviewed by
independent Qualified Persons. To upgrade the information
contained in the Van Dyke Report, additional diamond drilling,
metallurgical testwork, updated cost assumption and metal pricing
would be required to complete a current Feasibility Study.
The Van Dyke Report also stated "The mine life
is expected to continue due to possible ore reserves and potential
ore reserves" (see above cautionary note regarding resources and
reserves).
The Van Dyke Report was prepared for the Van
Dyke Copper Company (property owners) on October 15, 1981 prior to the implementation of
NI 43-101. The Van Dyke Report was prepared using a copper
price of $0.85 per pound (the
relevant price at the time of the estimate), estimated metal
recovery based on preliminary testwork, the application of a
proposed mining method and labor rates applicable at that
time. However, the Company has not completed the work
necessary to verify the historical estimate contained in the Van
Dyke Report. Accordingly, the Company is not treating the
historical estimate contained in the Van Dyke Report as NI 43-101
compliant categories of mineral resources or mineral reserves based
on information prepared by or under the supervision of a QP.
In 1979, the New Mexico Tech Research Foundation
located at Socorro, New Mexico
completed preliminary metallurgical testwork to determine if the
oxide copper mineralization in the Van Dyke Deposit was amendable
to in-situ leaching on behalf of Occidental. This work was
completed under the direction of Dr. Roshan
B. Bhappu. Occidental subsequently completed a pilot
program of two 1,000 foot deep holes, 75 feet apart, the results of
which indicated copper recoveries up to 80% should be realized
using in-situ leaching and hydrofracturing to improve fluid
circulation.
Elmer Stewart,
P.Geol, has reviewed the available data, including drill sections,
surface maps, and additional supporting information sources, and
believes that the historic estimate was conducted in a professional
and competent manner and is relevant for the purposes of the
Company's decision to acquire Bell Copper's interest in this
property. In the study, the historic estimate was sub-categorized
as a geological ore reserve as no mining method had been applied
during the preparation of this historical estimate.
Copper Fox has not completed the work necessary
to verify the above mentioned historical estimates. Accordingly,
Copper Fox is not treating the above mentioned historical estimates
as NI 43-101 compliant categories of mineral resources or mineral
reserves based on information prepared by or under the supervision
of a QP. The Company believes that the historical estimate
categories outlined above for the Van Dyke Deposit cannot be
compared to the CIM definitions for resource categories.
The vendors of the Van Dyke Deposit retain a
2.5% Net Smelter Return ("NSR") production royalty from the Van
Dyke Deposit. Copper Fox, in its' sole and absolute discretion, has
the right to purchase up to 2% of the 2.5% NSR for a period of two
years by the payment of US$1.5
million for each 1% NSR purchased.
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 (TSX-V: CUU) with a corporate office in
Calgary, AB and an operations
office in Vancouver, BC. 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 56,197.75
hectares (138,868 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 47,863.41 hectares (118,273 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 historical resource estimates of the Van
Dyke Deposit; work required to upgrade the historical resource
estimates of the Van Dyke Deposit; continuing obligations in
respect of the Van Dyke Deposit; the delivery of the Positive
Bankable Feasibility Study to Teck; the commencement of the 120 day
period for which Teck may exercise its Back-in Right under the Teck
Option Agreement; and the aggregate incurred Expenditures.
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 resource estimates of the Van Dyke Deposit, the advanced
stage of the Van Dyke Deposit, the logistical location of the Van
Dyke Deposit and the expected mine life of 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 actual
mineralization in the Van Dyke Deposit may not be as favourable as
suggested by the historical estimates; the historical estimates may
not be reliable or indicative of any commercial benefit to Copper
Fox; Copper Fox may not be able to comply with its ongoing
obligations regarding the Van Dyke Deposit; 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; fluctuations in copper prices and demand;
commodity 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 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.
SOURCE Copper Fox Metals Inc.