CALGARY, ALBERTA -- (Marketwired) -- 03/12/14 -- Copper Fox Metals Inc. ('Copper Fox' or the 'Company') (TSX VENTURE: CUU) is pleased to announce its first quarter operating and financial results. Copper Fox had a net loss for the quarter of $182,095 ($0.00 income per share). The Company also incurred $769,718 in expenditures toward furthering the development of its Van Dyke copper project in Arizona. Copies of the financial statements, notes and related management discussion and analysis may be obtained on SEDAR at www.sedar.com, the Company web site at www.copperfoxmetals.com or by contacting the Company directly. All amounts are in Canadian dollars unless otherwise stated.
Highlights:
Schaft Creek Project
During the quarter, the results for the 2013 program were released. Although the 2013 field program completed fewer metres than planned, the objectives of the 2013 program were essentially achieved. The objectives of this program were to determine if the mineralization in the Paramount zone continues to the east under Mount LaCasse and to collect additional data for pit slope stability studies. The diamond drilling program demonstrated that the mineralization in the Paramount zone extends at least 300m east of the 2012 resource block model and also marginally to the west. Results of the pit slope studies were also positive.
The 2014 plans for the Schaft Creek project are currently under review and should be finalized by the end of March 2014, well in advance of the time to complete a field program. Preliminary indications are that the Operator of the Schaft Creek Joint Venture plan to recommend a program of optimization studies as well as a field program to update the geological model and better define certain parameters of the Schaft Creek deposit.
Van Dyke Copper Project
During the quarter, the Company initiated a program to verify the historical results from the Van Dyke oxide copper deposit that consists of a 5,000m (approximately nine holes) diamond drilling program to twin seven historical drill holes, as well as submitting pulps from original drill core samples and splitting the mineralized core interval for certain historical drill holes. Results of the analytical work is expected shortly.
The proposed verification drilling program covers an 800m wide by 500m long section through the deposit. Applications for the various permits required to conduct a diamond drilling program has commenced and selection of a diamond drill contractor is complete. The drilling is expected to start in March 2014.
Sombrero Butte Copper Project
Desert Fox's objective on the Sombrero Butte project is to assess its potential to host a large porphyry copper-molybdenum deposit. The results of the 2013 program were positive and identified the alteration pattern and veinlet and disseminated copper-molybdenum mineralization characteristic of a porphyry copper system. Currently, Desert Fox is collecting all the data from the historical exploration conducted over this area since the mid 1960's. Contingent on completion and review of this work, Desert Fox plans to complete a deep penetrating geophysical survey (Induced Polarization) to identify chargeability/resistivity anomalies indicative of porphyry copper systems. The Company has received the permit from the State of Arizona to conduct the Titan-24 Survey.
Selected Financial Results
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Net (loss)/income per
Net Loss share - basic and diluted
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2014
First Quarter $ (182,095) $ 0.00
2013
Fourth Quarter $ (636,715) $ 0.00
Third Quarter $ 3,117,445 $ 0.01
Second Quarter $ (697,664) $ 0.00
First Quarter $ (525,595) $ 0.00
2012
Fourth Quarter $ (812,324) $ 0.00
Third Quarter $ (1,328,328) $ 0.00
Second Quarter $ (514,292) $ 0.00
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Liquidity and Capital Resources
At January 31, 2014, the Company had working capital of $12,149,874, a deficit of $16,017,886 and had a net loss of $182,095 for the three months ended January 31, 2014.
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 through its wholly owned subsidiary Desert Fox, an office in Miami, Arizona.
Copper Fox holds a 25% interest in the Schaft Creek Joint Venture with Teck Resources Limited ('Teck') on the Schaft Creek project in northwestern British Columbia. On January 23, 2013, a National Instrument 43-101 technical report (feasibility study) was completed on the Schaft Creek copper-gold-molybdenum-silver project that recommended a 130,000 tonne per day open pit mine with proven and probable reserves of 940.8 million tonnes grading 0.27% copper, 0.19 g/t gold, 0.018% molybdenum and 1.72 g/t silver with a 21 year mine life. The proven and probable reserves are estimated to contain 5.6 billion pounds of copper, 5.8 million ounces of gold, 363.5 million pounds of molybdenum and 51.7 million ounces of silver.
In addition to its interest in the Schaft Creek Joint Venture, Copper Fox holds, through Desert Fox Copper Inc. ('Desert Fox') and its wholly-owned subsidiaries, the Sombrero Butte copper project located in the Bunker Hill District, Pinal County, Arizona and the Van Dyke copper project located in the Globe-Miami District, Gila County, Arizona immediately adjacent to the mining operations of BHP Billiton and Freeport McMoRan copper mining operations. The Van Dyke oxide copper deposit is reported to host a Historical Estimate of 112 million tonnes grading 0.52% copper (approximately 1.2 billion pounds of copper at a 0.2% copper cut-off). The historical data strongly suggests that the Van Dyke oxide copper deposit could be exploited using in-situ leaching, a production method widely used in the mining industry and currently being advanced and used on other copper projects in Arizona. The Sombrero Butte copper project is located 9 miles east of the San Manuel Mine (14 billion pounds of copper), and 2 miles south of Redhawk Resources' Copper Creek project (7 billion pounds of copper).
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 statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable 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 MD&A includes statements about
Desert Fox's future exploration/development activities as well as any equity or working interest acquired in other significant copper projects in North America; the utilization of unallocated cash to advance Arizona copper assets (with the majority of effort on the Van Dyke oxide copper deposit); historical data on the Van Dyke deposit; the efficacy of in-situ leaching method (with respect to the environment, lower capital costs and low operating costs); Desert Fox's objective (including timing) to complete the work required to prepare a Preliminary Economic Assessment technical report on the Van Dyke project to estimate a preliminary valuation; timing of the finalization of the 2014 plans for the Schaft Creek project; the recommendation of a program of optimization studies as well as a field program to update the geological model and better define certain parameters of the Schaft Creek project; the program to verify the historical results from the Van Dyke oxide copper deposit and the completion of a NI 43-101 compliant resource estimation for the Van Dyke copper deposit; collection of hydro geological and geotechnical data required for a Preliminary Economic Assessment on the Van Dyke project; a follow-up 25 hole drilling program for the Van Dyke deposit; timing of the expected drilling program on the Van Dyke project; the upgrade of the Van Dyke historical estimate as a current mineral resource; objective on the Sombrero Butte project to assess its potential to host a large porphyry copper-molybdenum deposit; plans for a deep penetrating geophysical survey (Induced Polarization) to identify chargeability/resistivity anomalies indicative of porphyry copper systems at the Sombrero Butte project; expected capital requirements to continue planned activities; expected capital requirements to continue planned activities; expected sources and the adequacy of required capital resources; 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 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; and the continued financing of Copper Fox and Desert Fox's operations. 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: the Schaft Creek Joint Venture may not result in a Production Decision being made, or the construction of a mine; further exploration and development of the Schaft Creek property may not occur as expected; cash payments to Copper Fox may not be paid by Teck in the quantum or timing expected, or at all; financing commitments may not be sufficient to advance the Schaft Creek project as expected, or at all; proven and probable reserves at Schaft Creek may not be in the quantum as currently expected, or result in economic mining thereof; the possibility that future obligations with respect to the Sombrero Butte property may not be met on a timely basis, or at all; planned activities for the Van Dyke and Sombrero Butte properties many not commence as currently planned, or at all; a current (43-101 compliant) resource estimate, and a Preliminary Economic Assessment may never be obtained by the Company for the Van Dyke property; fluctuations in metal 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 and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs; and uncertainty of meeting anticipated program milestones.
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.
Contacts:
Copper Fox Metals Inc.
Investor line
1-866-913-1910
www.copperfoxmetals.com
