Copper Fox to Fund Exploration on Eaglehead
Copper-Molybdenum-Gold-Silver Property in Northern British Columbia
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 10, 2014) -
THIS NEWS
RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED
STATES NEWSWIRES.
Copper Fox Metals Inc. ("Copper Fox" or the "Company")
(TSX-VENTURE:CUU) is pleased to announce that it has, through its
wholly owned subsidiary Desert Fox Copper Inc. ("Desert Fox"),
entered into a Subscription Agreement with Carmax Mining Corp.
("Carmax") (TSX-VENTURE:CMX), whereby Desert Fox will subscribe,
via a non-brokered private placement, for 20,000,000 units of
Carmax for an aggregate subscription price of $1,000,000. Units
(each a "Unit") will be subscribed for at a price of $0.05 per Unit
and will consist of one previously unissued common share ("Share")
of Carmax and one common share purchase warrant ("Warrant"). The
private placement is subject to the approval of the TSX Venture
Exchange and Carmax Shareholders. The private placement will close
as soon as practicable after such approvals are obtained, provided
that they are obtained on or before May 29, 2014.
In connection with the private placement, Carmax will grant
Desert Fox certain rights, including, but not limited to:
- The right to nominate two members to the Board of Carmax at
each annual meeting of Carmax's shareholders;
- The pre-emptive right to participate in any equity financing of
Carmax, so as to maintain its pro rata percentage
shareholding in Carmax; and
- The right to make top-up investments in Carmax, by way of
future private placements, so as to maintain its pro rata
percentage shareholding in Carmax.
The aforementioned rights are, however, subject to Desert Fox,
Copper Fox and their affiliates maintaining ownership of 20% of
Carmax's issued and outstanding common shares.
Each Warrant will be exercisable for a period of 24 months from
the closing date of the applicable private placement and will
entitle the holder, on exercise, to purchase one additional common
share of Carmax at a price of $0.075 per share.
Under the subscription agreement with Desert Fox, Carmax has
agreed to use the proceeds of the private placement to carry out a
field program on the Eaglehead property this upcoming summer.
On June 29 2012, Carmax filed a National Instrument 43-101 -
Standards for Disclosure for Mineral Projects ("NI
43-101") technical report on SEDAR at www.sedar.com entitled
"Technical Report on the Eaglehead Cu-Mo-Au Project, British
Columbia, Canada", which was prepared by Roscoe Postle Associates
Inc. ("RPA") and dated June 29, 2012 (the "Eaglehead Technical
Report"). The Qualified Persons (as defined under NI 43-101) who
prepared the Eaglehead Technical Report were Barry McDonough,
P.Geo., and David W. Rennie P.Eng. The results of the Eaglehead
Technical Report were reported by Carmax in a news release dated
July 4, 2012 and entitled "Carmax files Technical Report for the
Eaglehead Pophyry Copper-Molybdenum Project on SEDAR" (the "News
Release"), a copy of which is available on SEDAR at www.sedar.com.
Highlights of the Eaglehead property and rationale for the
investment in Carmax are as follows:
Highlights:
- The Eaglehead property has a current Inferred Mineral Resource
of 102.5 million tonnes at an average grade of 0.29% copper, 0.010%
molybdenum and 0.08g/t gold (containing 663 million pounds copper,
22.07 million pounds molybdenum and 265,600 ounces gold within
conceptual open pit limits);
- The mineralization on the Eaglehead property contains silver;
the content of which was not included in the resource estimate due
to the assay methodology;
- The Inferred Mineral Resource is contained in two of the six
zones of mineralization identified to date on the Eaglehead
property, all zones of mineralization are open along strike and at
depth;
- The mineralization is characterized by strong, pervasive
alteration, quartz veining and consists of disseminated and veinlet
chalcopyrite-bornite-molybdenite and pyrite;
- Alteration associated with the mineralization consists of
pervasive potassic, chlorite-sericite, sericite, propylitic
alteration and carbonate assemblages;
- A number of the diamond drill holes intersected intervals of
high-grade copper mineralization with associated
molybdenum-gold-silver mineralization over significant intervals
(see Table-3 below); and
- The Eaglehead Technical Report, a copy of which is available on
SEDAR at www.sedar.com, provides detailed information about the
Eaglehead property.
Elmer B. Stewart, President and CEO of Copper Fox stated,
"The investment in Carmax provides Desert Fox exposure to a
large, advanced copper-molybdenum-gold-silver property in northern
British Columbia. The number of zones of mineralization located to
date along with the copper-gold-molybdenum-silver assemblage, host
rock and alteration (including carbonate alteration) suggests many
similarities to the Schaft Creek copper-gold-molybdenum-silver
project also located in northern British Columbia. The objectives
of the 2014 exploration program consisting of geophysical
exploration and diamond drilling is to further define the
extensions of the known mineralized zones and to assess the
potential of the un-explored portions of the Eaglehead property. It
is noteworthy that the characteristics of the mineralization
located to date are interpreted to represent the upper portion of a
porphyry system."
Rationale for Investment in Carmax:
1. Resource Estimate
The current mineral resource was estimated for two of the six
zones of mineralization located to date on the property using
criteria consistent with the CIM Definitions Standards for Mineral
Resources and Mineral Reserves (2010) and in conformity with CIM
"Estimation of Mineral Resources and Mineral Reserves Best
Practice" (2003) guidelines. The numbers presented in the following
table have been rounded to reflect "Best Practice Principals" as
established by the CIM. The estimated current mineral resource used
a 0.16% Cu Eq. cut-off grade and are categorized and tabulated in
Table-1.
Table-1: Mineral Resource Estimate - Eaglehead Project
Effective Date: May 14th, 2012
|
|
|
|
|
|
Contained Metal |
Zone Name |
Resource Category |
Tonnes |
Copper (%) |
Molybdenum (%) |
Gold (g/t) |
Cu (Lbs) |
Molybdenum (Lbs) |
Gold (ozs) |
East |
Inferred |
61,600,000 |
0.28 |
0.011 |
0.06 |
376,000,000 |
14,900,000 |
126,000 |
Bornite |
Inferred |
40,900,000 |
0.32 |
0.008 |
0.11 |
287,000,000 |
7,170,000 |
139,600 |
Total |
Inferred |
102,500,000 |
0.29 |
0.010 |
0.08 |
663,000,000 |
22,070,000 |
265,600 |
The current mineral resources are contained within two
conceptual open pits, the East and Bornite zones, and constitute
approximately 69% of total mineralization above the 0.16% CuEq
grade cut-off.
Cautionary Note to Investors
While the term "inferred mineral resource" is recognized and
required by NI 43-101, investors are cautioned that except for that
portion of mineral resources classified as mineral reserves,
mineral resources do not have demonstrated economic viability.
Additionally, investors are cautioned that inferred mineral
resources have a high degree of uncertainty as to their existence,
as to whether they can be economically or legally mined, or will
ever be upgraded to a higher category. United States investors are
advised that current Mineral Resources are not current Mineral
Reserves and do not have demonstrated economic viability. Moreover,
all mineral resource estimates and other information about the
Eaglehead property contained in this news release have been derived
from, and are qualified in their entirety by, the Eaglehead
Technical Report and the News Release, a copies of which are
available on SEDAR at www.sedar.com.
The mineral resource estimate was carried out using a block
model constrained by 3D wireframe models of the principal
mineralized domains. Grades for copper, molybdenum, and gold were
interpolated into the blocks using Inverse Distance to the Third
Power (ID3) weighting. The estimate was further constrained by a
Whittle pit shell, generated to demonstrate that the mineralized
bodies have a reasonable probability of economic extraction, as
stipulated in NI 43-101 and the CIM Definitions Standards for
Mineral Resources and Mineral Reserves (2010). The effective date
of the estimate is May 14, 2012.
The 0.16% Cu Eq. cut-off was the minimum grade of copper
equivalent estimated by RPA to complete the Whittle pit shells for
the mineralized zones using the parameters set out in Table-2
below:
The following Table-2 sets out the parameters that were used by
RPA to develop the Whittle Pit shells for the two mineralized
zones:
Table-2: Parameters used for Whittle Pit Shell Determination and
Copper Equivalent Grade
Metal Prices: Copper US$4.00 /lb; Molybdenum US$17.00 /lb;
Gold US$1,500.00 /oz; |
Costs: Mining US$2.00 /tonne; Processing/G&A US$10.00
/tonne |
Pit Slopes: 45 degrees in bedrock; 30 degrees in
Overburden |
Metal Recoveries: Copper 80%; Molybdenum 80%; Gold
67%; |
Some of the selected drill hole assays from the Eaglehead
property are set out in Table-3, below:
Table-3: Selected mineralized intervals from the Eaglehead
Property:
DDH ID |
Azimuth |
Dip |
From (m) |
To (m) |
Interval (m) |
Copper (%) |
Molybdenum (%) |
Gold (g/t) |
Silver (g/t) |
DDH0099A |
358.2 |
-63.9 |
167.0 |
243.0 |
76.0 |
0.34 |
0.004 |
0.024 |
1.57 |
Including |
|
|
182.0 |
203.0 |
21.0 |
0.99 |
0.010 |
0.063 |
4.85 |
DDH0100 |
3.5 |
-49.9 |
21.0 |
519.0 |
498.0 |
0.21 |
0.006 |
0.031 |
16.65 |
Including |
|
|
232.0 |
315.0 |
83.0 |
0.37 |
0.007 |
0.038 |
1.92 |
Including |
|
|
269.0 |
304.0 |
35.0 |
0.57 |
0.015 |
0.078 |
2.72 |
DDH0111 |
359.4 |
-46.9 |
26.0 |
137.0 |
111.0 |
0.53 |
0.003 |
0.088 |
2.97 |
Including |
|
|
63.0 |
98.0 |
35.0 |
1.27 |
0.003 |
0.161 |
6.62 |
DDH0112 |
2.2 |
-64.4 |
70.0 |
171.0 |
101.0 |
0.40 |
0.007 |
0.210 |
3.82 |
Including |
|
|
71.0 |
92.0 |
21.0 |
0.72 |
0.009 |
0.602 |
6.45 |
Including |
|
|
126.0 |
140.0 |
14.0 |
1.02 |
0.017 |
0.297 |
12.65 |
DDH0114 |
5.2 |
-61.8 |
130.0 |
295.0 |
165.0 |
0.53 |
0.028 |
0.278 |
2.28 |
Including |
|
|
195.0 |
248.0 |
53.0 |
0.83 |
0.037 |
0.394 |
2.05 |
DDH0116 |
4.5 |
-54 |
135.0 |
318.4 |
183.4 |
0.32 |
0.013 |
0.231 |
1.12 |
Including |
|
|
140.0 |
251.0 |
111.0 |
0.47 |
0.020 |
0.355 |
1.54 |
Including |
|
|
188.0 |
215.0 |
27.0 |
0.61 |
0.018 |
1.194 |
2.73 |
Note: The above core intervals do not represent true widths to
the mineralization
2. Logistics and Access
The Eaglehead property is located approximately 50 km east of
Dease Lake, British Columbia. The property is connected to Dease
Lake by road access and comprises 31 mineral claims covering a
total area of approximately 11,410 hectares (ha) in the Liard
Mining Division of British Columbia.
3. Style of Mineralization
The mineralization on the Eaglehead property is typical of
porphyry Cu-Mo systems within intermediate volcanic and
granodioritic and monzonitic rocks. Mineralization is contained in
altered rocks, which are localized by geological structures that
exhibit quartz stockworks, hydrothermal brecciation and
disseminated and veinlet chalcopyrite-bornite and other sulphide
minerals.
Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the
Company's nominated Qualified Person pursuant to NI 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 Mining District, Arizona
and the Van Dyke oxide copper project in the Globe-Miami Mining
District, Arizona. Desert Fox has opened an operations office in
Miami, Arizona to advance the work required on the Van Dyke copper
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
All mineral resource estimates and other information about
the Eaglehead property contained in this news release have been
derived from, and are qualified in their entirety by, the Eaglehead
Technical Report and the News Release, copies of which are
available on SEDAR at www.sedar.com.
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.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of the securities in the
United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
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, but is
not limited to, the investment to be made by Desert Fox in Carmax
by way of a non-brokered private placement of Units; the size of
the investment to be made in Carmax by Desert Fox; the proposed
issuance and terms of the Units, Warrants and Shares to be issued
by Carmax to Desert Fox by way of a non-brokered private placement;
the grant to Desert Fox of certain nomination and anti-dilution
rights in connection with its investment in Carmax and the
conditionality of such rights; the use of the proceeds of the
private placement to fund exploration on the Eaglehead property;
statements about the resource estimate for the Eaglehead property
deposit; potential existence and size of mineralization within the
Eaglehead property; estimated timing and amounts of future
expenditures and geological interpretations and potential mineral
recovery processes. Information concerning mineral resource
estimates 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 geological, metallurgical, and
engineering, information 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 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: approval of the
TSX Venture Exchange and/or Carmax shareholders may not be obtained
for the private placement to Desert Fox; investments in Carmax may
not be paid in the quantum or at the times expected, or at all; the
actual mineralization in the Eaglehead property deposit may not be
as favorable as suggested by the resource estimate; the possibility
that future drilling and geophysical exploration on the Eaglehead
property may not occur on a timely basis, or at all; fluctuations
in copper and other commodity prices and currency exchange rates;
uncertainties relating to interpretation of drill results and the
geology, continuity and grade of the mineral deposit; uncertainty
of 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; and 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.Investor line1-866-913-1910Copper Fox
Metals Inc.Lynn Ball1-604-689-5080www.copperfoxmetals.com
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