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June 29, 2011
Copper Fox Advances Feasibility Study and Reports 2011 Second Quarter Financial Results


Vancouver, British Columbia -- June 29, 2011 Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to provide an overview of the work completed during the quarter on the feasibility study of the Schaft Creek deposit and its 2011 second quarter financial results. During the quarter the Company spent an additional $1,798,235 towards completion of the feasibility study. The loss for the second quarter is ($2,378,649). Technical information contained in this news release was previously disseminated by way of news releases and posted on SEDAR at www.sedar.com and on the Company's website at www.copperfoxmetals.com.

Elmer Stewart, President & CEO, stated, "The 2011 field program is underway with two drills working on the Paramount zone testing the large chargeability anomaly under Mount LaCasse. The first hole successfully extended the copper mineralization associated with this chargeability anomaly an additional 125 metres ("m") to the east and the zone remains open. The airborne magnetic survey has not only better defined the targets contained within the Schaft Creek mineral trend, it also suggests that the Schaft Creek deposit could extend a considerable distance to the south. Work on the outstanding sections of the feasibility study is expected to increase substantially over the next few months with an expected delivery date in the fourth quarter 2011.

Quarterly Highlights

During the quarter, Copper Fox's activities focused on completion of the resources estimation, the airborne magnetic survey and finalizing various aspects of the 2011 field program. Due to the delay in completing the resource estimation a number of major components of the feasibility study are behind schedule. Highlights for activities of the Company to date are:
  • Copper Fox has received from AMEC Americas Limited the tables setting out at various copper cutoff grades the tonnes and average metal grades in each resource category for the Updated Resource Estimate and Block Model. Copper Fox is currently reviewing the data with a view of releasing the results of the Updated Resource Estimate as soon as possible.


  • The airborne magnetic survey has identified an area of "exploration interest" located within the Schaft Creek property that measures 20 kms long by 4 kms wide that includes the Schaft Creek deposit and the ES and GK zones of copper mineralization each of which exhibits a distinct positive magnetic signature.


  • The airborne magnetic signature over the Schaft Creek deposit correlates well with the Quantec Titan-24 DCIP and MT survey results (see news release dated November 16, 2010) and suggests that the Schaft Creek deposit could extend for an additional 1,000 m to the south.


  • Diamond drill DDHCF407-2011 located in the Paramount zone has extended the zone of copper mineralization an additional 125 m to the east. This hole intersected visible copper mineralization (chalcopyrite and bornite) from the start of bedrock at 5.3 m to a depth of 653 m. Visible molybdenite mineralization occurs sporadically throughout the core length in quartz veinlets, along shear planes and in some instances with the bornite-chalcopyrite mineralization.
The reader is cautioned that visible copper and molybdenite mineralization does not necessarily equate to significant concentrations of either copper or molybdenum and there is no assurance that the assay results of the samples from this drill hole will yield significant copper or molybdenum grades.

Operating Activities:

To the end of April 2011, Copper Fox incurred approximately $59.7 million (excluding $2.88 million in new property acquisitions) that qualify as applicable expenditures pursuant to the Option Agreement with Teck Resources Limited on the Schaft Creek property. An overview of the components of the feasibility study completed during the quarter is set out below.

A small amount of work was completed by Wardrop, a Tetra Tech Company, the main contractor for the feasibility study, Knight Piésold Ltd. and Stantec Consulting Ltd. on the feasibility study during the quarter. On receipt of the resource estimate from AMEC Americas Limited, all three contractors are scheduled to significantly increase their work on the feasibility study with an expected time of completion during the fourth quarter 2011.

During the quarter, Copper Fox raised an additional $6,567,349 in cash by way of a private placement and exercise of outstanding warrants and options.

Selected Financial Information

  Net Loss Net (loss)/income per share -
basic and diluted
2011
Second Quarter $ (2,378,649) $ (0.01)
First Quarter $ (358,211) $ 0.00
2010
Fourth Quarter $ (421,346) $ 0.00
Third Quarter $ (436,792) $ 0.00
Second Quarter $ (309,067) $ 0.00
First Quarter $ (446,822) $ 0.00
2009
Fourth Quarter $ 1,533,575 $ 0.01
Third Quarter $ (491,057) $ 0.00

Liquidity and Capital Resources:

The Company's working capital, defined as current assets less current liabilities, was $3,355,887 at April 30, 2011. The Company has sufficient funds available to meet its current obligations.

During the six months ended April 30, 2011, the Company completed private placements for total proceeds of $7,755,000, 1,435,000 options were exercised for total proceeds of $675,750, 1,548,665 warrants were exercised for total proceeds of $2,286,499 and a Director loaned $1,500,000 to the Company. The loan bears no interest and there are no fixed terms of repayment.

The Company has in place a budgeting process to help determine the funds required for the completion of the feasibility study. To April 30, 2011, the Company has spent $59.7 million (excluding $2.88 million in new property acquisitions) of qualifying expenditures toward this study. The Company will require additional capital to complete this study and to provide for the administration of its Vancouver and Calgary offices. The Company believes that it will be able to raise the capital required to complete the feasibility study through the continued exercise of its outstanding options or through the public market as required. Circumstances that could affect liquidity are early positive or negative results from the feasibility study, the general state of the equity markets for junior exploration companies and the overall state of the economy.

Copies of the financial statements and notes and related management discussion and analysis may be obtained on SEDAR at www.sedar.com, our Company web site at www.copperfoxmetals.com or by contacting the Company directly. All amounts are in Canadian dollars unless otherwise stated.

About Copper Fox

Copper Fox is a Canadian based resource company listed on the TSX-Venture Exchange (CUU-TSX-V). Copper Fox was recently recognized by TSX Venture Exchange Inc. as a member of the distinguished TSX Venture 50(r) group where it had the distinction of being ranked first overall for 2010.

The Company is working on completing a feasibility study on the Schaft Creek deposit, one of the largest undeveloped copper, gold, molybdenum and silver deposits in North America. Categorized as a "giant porphyry deposit" this project is at the advanced development stage with a Preliminary Feasibility Study ("PFS") prepared by Samuel Engineering, Inc. of Denver, Colorado, in September 2008.

The feasibility study is being led by Wardrop, A Tetra Tech Company on a minimum 120,000 tpd open pit mine and is expected to be completed during the fourth quarter 2011.

Copper Fox holds title and a 100% working interest in a contiguous 24,003.5 hectare (59,311 acre) property which includes the Schaft Creek deposit subject to certain royalty agreements, a 30% carried net proceeds interest held by Liard Copper and an earn back option held by Teck Resources Limited ("Teck"). Copper Fox is currently earning a 78% interest in Liard Copper from Teck. Teck's earn back option to acquire 20%, 40% or 75% of the Copper Fox interest in the Schaft Creek project is triggered upon completion of a positive feasibility study. Should Teck elect to exercise its option for 75% they are required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox and arrange for project financing, including the Copper Fox portion. For full details of the option please refer to the Company's website www.copperfoxmetals.com.

Additionally Copper Fox holds mineral claims totaling 3,947 hectares (9,752 acres) in the Liard Mining District of British Columbia not subject to the Teck earn-back.

Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Company'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.

*United States investors are advised that current Mineral Resources are not current Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate and in keeping with "best practice principles".

For additional information contact: Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080

On behalf of the Board of Directors

Elmer B. Stewart P. Geol. MSc.
President and CEO

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 include statements about the timing and completion of a feasibility study; the chargeability anomalies at the Shcft Creek project; the scope and timing of work on the outstanding sections of the feasibility study; the release of the updated resource estimate; expected capital requirements to continue planned activities; expected sources and the adequacy of required capital resources; the results and interpretation of the high resolution airborne magnetic survey over the Schaft Creek project; the timing and scope of expected diamond drilling; the completion of the Feasibility Study and Environmental Assessment application for the development of the Schaft Creek project; 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. Information concerning mineral reserve and 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 interpretation of the results of the high resolution airborne magnetic survey over the Schaft Creek project; 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 the Feasibility Study; and the anticipated analytical results of the current drilling program. 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 feasibility study may not be completed within the expected timeframe, or at all; the updated resource estimate may not be completed and released within the expected timeframe, or at all; the actual mineralization in the Schaft Creek deposit may not be as favourable as suggested by the interpretation of the results of the high resolution airborne magnetic survey; another deposit may never be discovered on Copper Fox's property, or contain anticipated mineralization, or mineralization of any significance at all; the Feasibility Study or the Environmental Assessment may not be completed within the contemplated time frame, or at all; the possibility that the analytical results from the core sampling does not return significant grades of copper mineralization; the possibility that future drilling on the Schaft Creek project 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 mineral deposits; 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; 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.



  





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