VANCOUVER, Feb. 7, 2013 /CNW/ - Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V:CUU.V - News) announced the acquisition of two groups of mineral tenures. One group is located inside the Schaft Creek copper-gold-molybdenum-silver project located in northern British Columbia. The second group is contiguous to and increases the size of the Sombrero Butte copper project located in Pinal County, Arizona. Mr. Stewart stated "the purpose for the acquisition of these mineral claims at Schaft Creek is to provide additional coverage of the interpreted extension of the Schaft Creek mineral trend and infrastructure purposes. The additional mineral claims for the Sombrero Butte project expand the Company's acreage around the mineralized diamond drill holes completed in 2008 and mineralized breccia systems located within the property located in this historical mining district which is currently experiencing a substantial increase in the level of exploration activity".
a) Schaft Creek claims - 487.99 hectares (4 mineral tenures) located within the Schaft Creek project. These mineral tenures cover the western side of the projected Schaft Creek Mineral Trend. These mineral tenures are subject to the Option Agreement with Teck Resources Limited ("Teck"), and;
b) Sombrero Butte Claims - 183.94 hectares (22 mineral tenures) along the western side of the Sombrero Butte project to cover the projected extension of previously known copper mineralized breccia pipes located within the project.
Rationale for the Mineral Tenure Acquisitions:
To view the location of the interpreted Schaft Creek Mineral Trend, visit the Copper Fox website at www.copperfoxmetals.com.
The mineral tenures located within the Schaft Creek project are located along the western side of the projected Schaft Creek Mineral Trend where exploration in 2012 has confirmed the mineralized nature of the large chargeability signature referred to as the Discovery Zone. These mineral tenures may also be important in the location of infrastructure required to develop the Schaft Creek project as contemplated in the recently completed Feasibility Study.
Redhawk Resources Copper Creek project ties onto Copper Fox's Sombrero Butte project to the north. The recent announcements by Redhawk Resources related to land acquisitions, current mineral resources and diamond drilling results suggest that the area encompassing these projects could host large copper-molybdenum deposits similar to the previously mined the San Miguel - Kalamazoo copper deposit which is reported to have produced approximately 14.2 billion pounds of copper as well as substantial quantities of molybdenum-gold-silver.
Schaft Creek Acquisition:
The two mineral tenures (consisting of 2 mineral tenures totaling 487.99 hectares) are located within the Company's Schaft Creek project. Consideration paid by Copper Fox was $12,000 cash and a 2% net smelter return (NSR) royalty on the mineral claims subject to a "Partial NSR Buyout Option". The Partial NSR Buyout Option allows Copper Fox at any time to purchase half of the NSR for a cash payment of $1.0 million such that the NSR is reduced from 2% to 1%.
Sombrero Butte Acquisition:
The 22 Bureau of Land Management ("BLM") lode mineral claims were located by Copper Fox to cover the southern and western extension of mineralized breccia pipes located within this historical mining district. A limited field program is underway to complete a preliminary assessment of these lode claims consisting of mapping and sampling utilizing a NITON instrument to measure metal concentrations in outcrop.
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.
Copper Fox is pleased to announce that the Board of Directors of the Company has approved an incentive stock option grant to directors, officers and a consultant of the Company for the purchase of 585,000 shares of Copper Fox at an exercise price of $0.94 per share, and expiring on January 23, 2014. Vesting of the options granted to directors and officers are in equal tranches at three, six and nine months from the date of grant. In accordance with TSX Venture Exchange policies, vesting of the options granted to the Company's consultant are in four equal tranches over 12 months.
About Copper Fox
Copper Fox is a Canadian-based resource development company listed on the TSX Venture Exchange (TSX-V:CUU.V - News) 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 55,779.56 hectares (137,834 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 47,445.22 hectares (117,240 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 statements about the vesting and expiration of options granted; 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.
In connection with the forward-looking information contained in this news release, Copper Fox has made numerous assumptions, regarding, among other things: the 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. 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 options may, in accordance with the terms of Copper Fox's option plan or applicable laws, not vest or expire as disclosed herein; 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; a detailed mine plan may not be completed in a timely manner, or at all; the possibility that future drilling on the Schaft Creek project may not occur on a timely basis, or at all; fluctuations in copper, the completed drill holes for which analytical results are not available may not return significant concentrations of either copper, gold, molybdenum or silver; 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.
For additional information contact: Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080.