News Releases


July 11, 2011
Measured and Indicated Resource Estimate Exceeds 1 Billion Tonnes at Schaft Creek Deposit


VANCOUVER, July 11, 2011 /CNW/ - ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to provide its shareholders the results of the recently completed National Instrument 43-101 compliant resource estimate for the Schaft Creek copper-gold-molybdenum-silver deposit located in northwest British Columbia, Canada.  The resource estimate was prepared by AMEC Americas Limited ("AMEC") and the National Instrument 43-101 compliant report related to the resource estimation will be filed on SEDAR within 45 days.  Highlights of the resource estimate using a 0.20% copper equivalent cut-off (Base Case) are as follows:


  1. The Measured mineral resource for the Schaft Creek deposit (at a 0.20% copper equivalent cut-off) is estimated to be 40.3 million tonnes grading 0.36% copper, 0.023% molybdenum and 0.25g/t gold (copper equivalent of 0.61%) containing 319.6 million pounds copper, 20.5 million pounds molybdenum and 0.32 million ounces gold,
  2. The Indicated mineral resource for the Schaft Creek deposit (at a 0.20% copper equivalent cut-off) totals 971.2 million tonnes grading 0.27% copper, 0.017% molybdenum and 0.18g/t gold (copper equivalent 0.45%) containing 5.8 billion pounds copper, 363 million pounds molybdenum and 5.5 million ounces gold,
  3. The Measured and Indicated mineral resource for the Schaft Creek deposit (at a 0.20% copper equivalent cut-off) totals 1.01 billion tonnes grading 0.27% copper, 0.017% molybdenum and 0.18g/t gold (copper equivalent 0.46%) containing 6.1 billion pounds copper, 383 million pounds molybdenum and 5.8 million ounces gold,
  4. The Inferred mineral resource for the Schaft Creek deposit (at a 0.20% copper equivalent cut-off) totals a further 283.6 million tonnes grading 0.24% copper, 0.011% molybdenum and 0.15 g/t gold (copper equivalent 0.39%) containing 1.5 billion pounds copper, 69 million pounds molybdenum and 1.3 million ounces gold,
  5. The silver grade of the Schaft Creek deposit is estimated to range between 1 and 2 g/t. The silver content of the deposit has not been included in the resource estimate due to legacy data issues, and
  6. This resource estimate reports significantly higher average copper grade in the Measured mineral resource (0.36%) category, the Indicated mineral category (0.27%) and the Inferred mineral resource (0.24%) category compared to the Measured mineral resource category (0.30%), the Indicated mineral category (0.23%) and Inferred mineral resource category (0.14%) set out in the preliminary feasibility study on the Schaft Creek deposit dated September 2008.

Elmer B. Stewart President and CEO of Copper Fox stated, "The completion of the resource estimate is a great milestone for Copper Fox. Our primary objective now is to complete the feasibility study for the Schaft Creek project as soon as possible. The strategy for the resource estimate was to eliminate areas of very low grade mineralization and therefore reduce grade smoothing. The updated resource estimate shows that the average metal grades for the deposit remain relatively constant up to a 0.25% copper equivalent cut-off, above which the tonnes decrease significantly with a corresponding increase in the average metal grades. The 2011 drilling program is focusing on the higher-grade mineralization intersected in the Paramount zone in 2010 with the objective of defining a higher-grade "starter pit" and increasing the tonnage and average grade of the metals in this zone. Copper Fox expects to complete a resource estimate update for this zone after completion of the 2011 drilling program."

Base Case:
Copper Fox has selected the 0.20% copper equivalent ("Cu Eq.") cut-off for its base case resource estimate.  A 0.12% Cu Eq. cut-off was the minimum grade of copper equivalent estimated by AMEC required (using the estimated copper recovery rate, the milling and sales cost) to break-even on an operating cost per tonne basis.  In adopting a more conservative approach to optimize the economics, Copper Fox has selected a higher cut-off grade to increase the average copper grade per tonne while reducing tonnage.

Resource Estimate:
The effective date of the mineral resource estimate is May 1, 2011. Mineral resources were estimated for the Liard (also referred to as the Main) Zone and the Paramount (also referred to as the Paramount-Breccia) Zone separately.  The mineral resources were estimated using criteria consistent with the CIM Definition Standards (2010) and in conformity with CIM "Estimation of Mineral Resources and Mineral Reserves Best Practice" (2003) guidelines. The estimated mineral resources (Table-1) using a 0.20% Cu Eq. cut-off grade were categorized and tabulated within an economic resource pit shell based on operating costs and metal prices shown in Table-3 and Table-4.

Table-1: Mineral Resource Estimate - Schaft Creek Deposit (David Thomas P. Geo., Effective Date: May 1, 2011

Resource Tonnage Copper Molybdenum Gold Cu Eq. Contained Metal
Category (Million Tonnes) (%) (%) g/t (%) Cu (Mlbs) Mo (Mlbs) Au (Moz)
Measured 40.30 0.36 0.023 0.25 0.61 319.60 20.5 0.32
Indicated 971.20 0.27 0.017 0.18 0.45 5,795.70 363.2 5.50
Measured and Indicated 1,011.50 0.27 0.017 0.18 0.46 6,113.70 383.6 5.81
Inferred 283.60 0.24 0.011 0.15 0.39 1,517.20 68.8 1.34
Mlbs = pounds expressed in millions              
Moz = ounces expressed in million              
Cu Eq. = copper equivalent grade              

 *The copper equivalent ("Cu Eq.") cut-off calculation is based on metal prices of 1,200 US$/oz gold, 2.90 US$/lb of copper and 15.95 US$/lb of molybdenum, a mining cost of $1.35 US$/t mined and a processing cost of 5.12 US$/t milled. The Mineral Resource is reported at a cut-off grade of 0.20 % Cu Eq. contained within a Lerchs-Grossman resource pit shell optimized on copper, gold and molybdenum grades. The contained metal figures shown are in situ. All figures have been rounded to reflect accuracy and to comply with securities regulatory requirements following "best practice principles".  AMEC undertook quality assurance and quality control studies on the mineral resource data and concludes that the collar, survey, assay and lithology data are adequate to support resource estimation.

Resource Estimation Methodology:
A total of 387 drill holes (approximately 88,685 metres) were used by AMEC in estimating the mineral resources for the Schaft Creek deposit.

The impact of the high-grade samples on the resource estimate for the Schaft Creek deposit was completed using uncapped and capped grade models. The capping grade thresholds and the estimated percentage of metal removed from the resource estimate are shown below in Table-2.

Table-2: Cap Grade Thresholds and Estimated Metal Removed

Main Zone Cap Grade Number Capped Metal Removed Mean No Cap Mean Capped
Copper 1.30% 23 0.20% 0.26065 0.26025
Gold 2.0 g/t 13 0.80% 0.18185 0.18045
Moly > 0.01% 0.30% 9 0.70% 0.02259 0.02244
Moly < 0.01% 0.05% 41 4.70% 0.00575 0.00548
Breccia Zone Cap Grade Number Capped Metal Removed Mean No Cap Mean Capped
Copper 2.00% 10 0.40% 0.27754 0.27653
Gold 2.0 g/t 13 3.40% 0.16103 0.15552
Moly > 0.01% 0.31% 4 0.50% 0.02526 0.02513
Moly < 0.01% 0.05% 13 5.90% 0.00696 0.00655


The procedures used for the purposes of the resource estimate (at a 0.12% Cu Eq. cut-off) are:

  1. Sample assays were composited to fifteen metre intervals for grade interpolation.
  2. Grade shell solids using 0.1% copper and 0.01% molybdenum cut-off grades were chosen based on the estimated economic cut-off of 0.12% Cu Eq. Polygons were digitised on 50 and 100 m spaced east-west sections linked together from section to section to form solids and then reconciled on a second set of orthogonal sections.
  3. Grade shells developed for the Schaft Creek deposit defined two broad domains, namely the Main (Liard) zone and the Breccia (Paramount) zone. The Main zone has a bowl shaped geometry, whereas the Breccia zone has a tabular elongate sub-vertical geometry.
  4. Where gold assays were missing from the database, gold values were assigned to these intervals using a linear regression analysis against copper grades.
  5. No significant statistical differences exist in copper, gold and molybdenum grades between lithological rock types within the Main zone. Significant differences exist between the metal grades of the rock types present in the Breccia zone. Validation of the grade estimates shows no global or local bias. Some over smoothing in the kriged model is observed.
  6. The legacy data corrections and regressions do not have a significant impact on the estimation of copper, molybdenum and gold grades.
  7. The drill hole spacings for blocks in the Measured and Indicated categories were based on confidence limits of copper, gold and molybdenum grades determined by kriging for the Liard (Main) zone and the Paramount (Breccia) zone separately. Blocks included in the Measured category required three drill holes within a 70 metre radius and Indicated blocks required at least two drill holes within a 135 metre radius. Blocks in the Measured category required that more than two thirds of the ordinary kriging weight used in grade interpolation came from the higher confidence Copper Fox drill holes. Extrapolation of Inferred resource blocks is restricted to the limits of the copper grade shells.
  8. A total of 2,784 specific gravity determinations were used to assign a constant specific gravity value of 2.69 g/cm3 to all lithological rock types. A constant value of 1.8 g/cm3 was assigned to all overburden material.
  9. The estimated copper, gold and molybdenum grades were determined using ordinary kriging using multiple estimation passes with incrementally increasing search distances. In the Main zone, five separate subdomains were used to split the bowl shape into volumes with an approximately consistent orientation.

Resource Statement:
For constraining the blocks to be reported as mineral resources, an economic resource pit shell was developed using a Lerchs-Grossman resource pit shell optimized on copper, gold and molybdenum grades based on the parameters listed in Table-3.  Metal prices used to determine the pit shell were copper (US$2.90/lb), gold (US$1,200/oz) and molybdenum (US$15.95/lb).

AMEC's marginal cut-off value of 0.12% Cu Eq. was determined based on the parameters set out in Table-4.

The copper equivalent formula is derived below:

Cu Eq (%) = Cu (%) + Mo (%) x Mo factor + Au (g/t) x Au factor where:

Mo factor (%Cu per %Mo)       4.0568       Recovered $ from 1 % in-situ Mo converted to % in-situ Cu
Au factor (%Cu per g/t Au)       0.6243       Recovered $ from 1 g/t in-situ Au converted to % in-situ Cu

Table-3: Optimization Parameters for Resource Pit Shell - Source: AMEC, 2011

Mining Costs       Unit       Value (US$)
Waste Mining Reference Cost       $/t mined       1.35
Total Reference Mining Costs       $/t mined       1.35
Process +Tailings + G&A Cost       $/t milled       5.12
Mill Sustaining Capex Allowance       $/t milled       0
Closure Costs Allocation       $/t milled       0.0
Total Ore Based Costs       $/t milled       5.12
Cu Price       US$/lb       2.90
Au Price       US$/oz       1,200.00
Mo Price       US$/lb       15.95
Selling Cost       US$/lb Cu       0.53
        US$/oz Au       6.00
        US$/lb Mo       2.74
Cu Recovery       %       86.5%
Au Recovery       %       73.3%
Mo Recovery       %       60.9%
Pit Slope(s)       Degrees       East 40�, West 44�

Table 4: Copper Equivalent Cut-off Calculation Parameters

Parameters                   Value
Processing (US$/t) Cost                   5.12
Recovery (%)                   86.5%
Price (US$/lb)                   2.90
Mining Cost                   0
Selling Cost (US$/lb)                   0.53
Cut-off Cu equivalent (%)                   0.12

The sensitivity of the mineral resource in the Schaft Creek deposit (includes the Liard and Paramount zones) to either a reduction or increase in copper equivalent cut-off is shown in Table-5. The base case mineral resource above a 0.20% Cu Eq. cut-off is reported separately within the Paramount zone (in Table-6) and within the Liard zone (in Table-7).

Table-5: Sensitivity of Mineral Resource to Cut-Off Grade (David Thomas P. Geo., Effective Date: May 1, 2011)

Resource Cut-Off Tonnage Copper Molybdenum Gold Cu Eq. Contained Metal
Category Cu eq. (Million Tonnes) (%) (%) g/t (%) Cu (Mlbs) Mo (Mlbs) Au (Moz)
Measured 0.10% 40.4 0.36 0.023 0.24 0.61 319.9 20.5 0.32
  0.12% 40.4 0.36 0.023 0.24 0.61 319.9 20.5 0.32
  0.15% 40.4 0.36 0.023 0.24 0.61 319.9 20.5 0.32
  0.20% 40.3 0.36 0.023 0.25 0.61 319.6 20.5 0.32
  0.25% 40.2 0.36 0.023 0.25 0.61 319.1 20.5 0.32
  0.30% 39.4 0.36 0.023 0.25 0.61 316.0 20.3 0.32
Indicated 0.10% 995.3 0.27 0.017 0.17 0.44 5855.1 365.7 5.55
  0.12% 994.9 0.27 0.017 0.17 0.44 5,854.5 365.7 5.55
  0.15% 992.5 0.27 0.017 0.17 0.44 5850.1 365.5 5.54
  0.20% 971.2 0.27 0.017 0.18 0.45 5795.7 363.2 5.50
  0.25% 898.6 0.28 0.018 0.18 0.47 5558.3 353.0 5.29
  0.30% 785.8 0.29 0.019 0.20 0.50 5105.9 333.7 4.93
Measured  0.10% 1035.7 0.27 0.017 0.18 0.45 6175.0 386.2 5.87
& Indicated 0.12% 1035.3 0.27 0.017 0.18 0.45 6174.4 386.2 5.87
  0.15% 1032.9 0.27 0.017 0.18 0.45 6169.8 386.0 5.86
  0.20% 1011.5 0.27 0.017 0.18 0.46 6113.7 383.6 5.81
  0.25% 938.8 0.28 0.018 0.19 0.47 5871.1 373.0 5.60
  0.30% 825.3 0.30 0.019 0.20 0.50 5411.0 353.4 5.23
Inferred 0.10% 301.5 0.24 0.011 0.14 0.37 1562.4 70.3 1.38
  0.12% 301.3 0.24 0.011 0.14 0.37 1562.1 70.3 1.38
  0.15% 299.5 0.24 0.011 0.14 0.38 1558.5 70.2 1.38
  0.20% 283.6 0.24 0.011 0.15 0.39 1517.2 68.8 1.34
  0.25% 244.1 0.26 0.012 0.16 0.41 1385.4 64.2 1.24
  0.30% 186.8 0.28 0.014 0.17 0.46 1150.6 56.6 1.05


Table-6: Mineral Resource Reported within the Paramount Zone (at 0.20% Cu Eq. cut-off)

Resource Tonnage Copper Molybdenum Gold Cu eq.   Contained Metal  
Category (million Tonnes) % % (g/t) % Cu (Mlbs) Mo (Mlbs) Au (Moz)
Measured 16.1 0.32 0.024 0.21 0.55 114.1 8.5 0.11
Indicated 382.2 0.28 0.020 0.16 0.47 2,397.7 167.2 1.99
Measured & Indicated 398.4 0.29 0.020 0.16 0.47 2,511.7 175.7 2.10
Inferred 141.2 0.26 0.013 0.14 0.40 797.9 38.9 0.64


Table-7: Mineral Resource Reported within the Main Zone (Liard) at 0.20% Cu Eq. cut-off

Resource Tonnage Copper Molybdenum Gold Cu eq.   Contained Metal  
Category (million Tonnes) % % (g/t) % Cu (Mlbs) Mo (Mlbs) Au (Moz)
Measured 24.2 0.39 0.022 0.27 0.65 205.5 12.0 0.21
Indicated 588.9 0.26 0.015 0.19 0.44 3,398.0 196.0 3.50
Measured & Indicated 613.1 0.27 0.015 0.19 0.45 3,604.1 208.0 3.71
Inferred 142.4 0.23 0.010 0.15 0.38 719.3 29.9 0.70


AMEC determined that the silver should not be reported as a part of the mineral resource estimate due to data quality issues which preclude the classification of Measured and Indicated resources including silver. The silver grades within the Schaft Creek deposit range between 1 g/t and 2 g/t.

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, and molybdenum 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 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

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

David Thomas P. Geo., of AMEC is the Qualified Person who prepared the mineral resource estimate disclosed in this news release. 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".

On behalf of the Board of Directors

Elmer B. Stewart
President & 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 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 recently completed resource estimate for the Schaft Creek deposit; the receipt and filing of a National Instrument 43-101 compliant report related to the updated resource estimate 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 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 actual mineralization in the Schaft Creek deposit may not be as favourable as suggested by the updated resource estimate; 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  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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