News Feed Item

Copper Fox to Fund Exploration on Eaglehead Copper-Molybdenum-Gold-Silver Property in Northern British Columbia

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/10/14 --


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

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:


a.  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

b.  The mineralization on the Eaglehead property contains silver; the
    content of which was not included in the resource estimate due to the
    assay methodology; 

c.  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; 

d.  The mineralization is characterized by strong, pervasive alteration,
    quartz veining and consists of disseminated and veinlet chalcopyrite-
    bornite-molybdenite and pyrite; 

e.  Alteration associated with the mineralization consists of pervasive
    potassic, chlorite-sericite, sericite, propylitic alteration and
    carbonate assemblages; 

f.  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 

g.  The Eaglehead Technical Report, a copy of which is available on SEDAR at
    www.sedar.com, provides detailed information about the Eaglehead

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

Zone                Resource                  Copper  Molybdenum        Gold
Name                Category      Tonnes         (%)         (%)       (g/t)
East                Inferred  61,600,000        0.28       0.011        0.06
Bornite             Inferred  40,900,000        0.32       0.008        0.11
Total               Inferred 102,500,000        0.29       0.010        0.08

                           Contained Metal          
Zone                          Molybdenum        Gold
Name                Cu (Lbs)       (Lbs)       (ozs)
East             376,000,000  14,900,000     126,000
Bornite          287,000,000   7,170,000     139,600
Total            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 
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:

                         From     To Interval Copper Molybdenum  Gold Silver
DDH ID   Azimuth   Dip    (m)    (m)      (m)    (%)        (%) (g/t)  (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 line

Copper Fox Metals Inc.
Lynn Ball

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, will contrast how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He will show the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He will also have live demos of building immutable pipe...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
So you think you are a DevOps warrior, huh? Put your money (not really, it’s free) where your metrics are and prove it by taking The Ultimate DevOps Geek Quiz Challenge, sponsored by DevOps Summit. Battle through the set of tough questions created by industry thought leaders to earn your bragging rights and win some cool prizes.
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
Governments around the world are adopting Safe Harbor privacy provisions to protect customer data from leaving sovereign territories. Increasingly, global companies are required to create new instances of their server clusters in multiple countries to keep abreast of these new Safe Harbor laws. Is it worth it? In his session at 19th Cloud Expo, Adam Rogers, Managing Director of Anexia, Inc., will discuss how to keep your data legal and still stay in business.