Jul 23 2014
Copper Fox Metals Inc. and its wholly owned subsidiary Desert Fox Copper Inc. are pleased to announce that Desert Fox has completed 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:
- Six diamond drill holes (3,211.7m) were completed across the Van Dyke oxide copper deposit,
- Broad intervals of copper oxide and copper carbonate minerals were intersected in all holes, The copper mineralization is hosted in intrusive breccia, Pinal schist and granite porphyry,
- Two of the drill holes intersected weak quartz veinlet hosted chalcopyrite+/-molybdenite mineralization below the oxide copper mineralization,
- Copper Fox has requested that it be allowed to exercise its pre-emptive right and participate, through its wholly owned subsidiary Northern Fox Copper Inc., in a top-up of its investment in Carmax Mining Corp by subscribing for an additional 1,960,878 units of Carmax at a price of $0.05 per unit (each unit will consist of one common share and one common share purchase warrant), and
- Copper Fox has purchased and located a total of 2,130 ha of mineral tenures contiguous to the Eaglehead project held by Carmax. This land will be sold to Carmax at cost.
Mr. Stewart, President of Copper Fox stated, "The visual observations of the core from Van Dyke are encouraging. Receipt of the assays utilizing different copper analytical methodologies are required to determine if a resource estimation should be commenced. All holes have been sampled for metallurgical testwork purposes and these tests are underway. The acquisition of the additional land contiguous to the Eaglehead project was completed to cover favorable volcanic rock on the west side of the project and intrusive rocks east and north of the Pass and Camp mineralized zones."
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.
The drilling program was completed with the objective to verify the historical estimate for the Van Dyke oxide copper deposit stated in a report authored by Clyde R. Caviness dated March 1, 1976 and entitled "Van Dyke Ore Reserve Report" (the "Caviness Report") on behalf of Occidental Minerals Corporation. 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 the Company's 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 estimate, additional diamond drilling, metallurgical testwork, updated cost assumption and metal pricing would be required.
Rationale for the Mineral Tenure Acquisitions:
The 1,149 ha of mineral tenures located by Copper Fox are contiguous to the Eaglehead copper-molybdenum-gold-silver project located in northern British Columbia. The mineral tenures cover favorable volcanics located to the west and intrusive rocks to the east of the Pass and Camp mineralized zones. Details of the transactions are provided below and the Purchase Agreement will be filed on SEDAR.
Marko/Mott Acquisition:
The mineral claim blocks (consisting of three mineral tenures totaling 981 ha) purchased from Randy Marko and Paul Mott ("Marko/Mott") are contiguous to Carmax's Eaglehead project. Consideration paid by Copper Fox was $9,000 cash and a 2% net smelter return (NSR) royalty on the mineral claims subject to a "Partial NSR Buyout Option". The Partial NSR Buyout Option allows Copper Fox at any time to purchase half of the NSR for a cash payment of $1.0 million such that the NSR is reduced from 2% to 1%. The Purchase Agreement will be filed on SEDAR.
Source: http://www.copperfoxmetals.com