May 16 2014
Copper Fox Metals Inc. ("Copper Fox" or the "Company") 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.
Highlights:
- 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"),
- 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,
- A second diamond drill has been added to the program and is expected to commence drilling this week, and
- 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.
*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:
- Maximum injection rates were 450 gallon per minute ("gpm") (at 95% of design capacity) and 275 gpm on a continuous basis,
- 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,
- Leach curves developed predicted a mine life recovery average of 3 gpl for the entire deposit,
- 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,
- Demonstrated hydraulic connection for a distance of up to 249 feet (76m),
- The fluid flow followed the principal stress axis and fracture pattern of the rock,
- Recovered leachate is clean of impurities and acid consumption per pound of copper was less than predicted,
- Porosity and permeability of the formation is suitable for full scale production,
- No apparent reason why full scale production cannot be accomplished, and
- 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