2007 drilling and geophysical results all show increased potential for Schaft Creek deposit, Copper Fox says
Thu Jun 26, 9:02 AMCALGARY, June 26 /CNW/ - Copper Fox Metals Inc. (TSX-V: CUU.V) said today that drilling results indicate the Mineral Resource at the Schaft Creek (Cu/Mo/Au), BC property is comparable in copper equivalent grade to the nearby Cu/Au Galore Creek deposit. A NI 43-101 compliant resource report prepared by Associated Geosciences Ltd. released in June of 2007 estimated Schaft Creek to contain measured and indicated 1.393 billion tonnes of resource with 0.25% Cu, 0.019% Mo, 0.18 g/t Au and 1.55 g/t Ag.
The company also announced that the Preliminary Economic Assessment report (PEA) prepared by Samuel Engineering Ltd. on December 7, 2007 confirmed that due to favorable differences of access, topography and climate between the Schaft Creek and Galore Creek projects, the Schaft Creek project should, on a comparative per tonne basis, have significantly less expensive access and reduced capital and operating expenses. The Samuel PEA Case2 price assumptions also predicted that Schaft Creek could mine a 0.61% CuEq grade producing 4,409,000 million tonnes of over a 31 year mine life. The metallurgical testing to date has indicated excellent recovery rates to concentrate for both copper and molybdenum.
These findings are contained in Copper Fox's release of detailed information on the completion of its 2007 drilling, geophysical, engineering and economic studies.
Guillermo Salazar, Copper Fox President, said "Together with geophysical and engineering studies completed late last year, these findings augment our confidence that Copper Fox is shaping up as a viable, major mining project of the near future."
Diamond drilling data indicates that the Liard Main Zone at the Schaft Creek property in northwestern BC is larger than previously thought. During 2007 Copper Fox drilled 42 holes for a total of 6,274 metres. Five of these holes tested the deposit's depth extension to the northeast; results from these holes supported the indications from geophysical data of increased mineral potential to the east and northeast of the existing outline of the Main/Liard Zone. Of particular note were the results from DDH 07CF313, drilled onto an area between the Paramount and Liard Main Zones west of Mount LaCasse.
DDH 07CF313 returned:
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From To Interval Copper Molybdenum Gold Silver
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62.80 m 110 m 47.2 m 0.506% 0.016% 0.241 g/t 0.3 g/t
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Detailed drilling and metallurgical results have been posted on Copper Fox's website www.copperfoxmetals.com.
Copper Fox is scheduled to complete a pre-feasibility study of the Schaft Creek property in early Q3 2008. The study will review a 100,000 tpd mill; a bankable feasibility study for the same production rate will be completed in Q1 2009.
Copper Fox also announced that geophysical testing of one of the proposed mill sites, a 250-300 metre wide area not previously covered by geophysical surveys or drilling, found a strong anomaly immediately east of the Liard Zone with coincident chargeability and resistivity responses with signatures similar to that of the Main/Liard Zone. This area will be subjected to further geophysical surveys in the 2008 program prior to drilling to determine the cause of the anomaly.
About Copper Fox:
Copper Fox (CUU, CPFXF) is a Canadian-based mining company listed on the TSX-Venture Exchange. The Company has concentrated its project activities exclusively to the Schaft Creek mineral deposit, one of the larger undeveloped copper, gold, molybdenum and silver deposits in the world. Based on the PEA (see News Release of January 14, 2008), the preliminary mining plan is designed to extract the core 713.3 million tonnes of a Measured and Indicated, 43-101 compliant, Mineral Resource grading 0.304% copper, 0.218 g/t gold, 1.77 g/t silver, and 0.020% molybdenum, for a copper equivalent (based on the study's Case 2 metal pricing) of 0.61% and a waste to ore ratio of 1.66 over 31 years. This sits within the current NI 43-101 Mineral Resource of 1.4 billion tonnes, using a 0.20% CuEq cut off. Currently the company is working on a pre-feasibility study, which will be based on a 100,000 tpd throughput scenario, and which is expected to be released this quarter.
Copper Fox holds the property pursuant to an option agreement with Teck Cominco Limited and has earned a direct 70% interest in the Schaft Creek Mineral Deposit. The Company may acquire up to a 93.4% direct and indirect interest in the property, subject to certain back-in rights to Teck Cominco Limited.
The TSX-Venture Exchange has not reviewed the contents of this news
release and accepts no responsibility for the adequacy or accuracy
thereof.
This news release includes "forward-looking information" within the meaning of the Canadian securities laws. Statements, other than statements of historical fact, may constitute forward-looking information and include, without limitation: anticipated timing and content of upcoming work programs, geological interpretations, receipt of property titles, and potential mineral recovery processes; anticipated dates for receipt of permits, approvals and other milestones; anticipated results of drilling programs, feasibility studies and other analyses; anticipated availability and terms of future financing; future production, operating and capital costs; and operating or financial performance. 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. For any forward-looking information given, management has assumed that the assay results it has received are reliable, and has applied geological interpretation methodologies which are consistent with industry standards. Forward-looking information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from management's expectations include: fluctuations in 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, production estimates and estimated economic return; the need for co-operation of government agencies in the exploration and development of properties and the issuance of required permits; 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; and other risks and uncertainties disclosed in the Company's other filings with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release is based on management's current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law.
DETAILED INFORMATION
The 2007 Season's results are summarized as follows:
Metallurgical Testing Update - Flotation
Based on the metallurgical results to date, our consulting metallurgical
engineers suggest that the Marketing Section of the pre-feasibility study use
the following Copper and Molybdenum Concentrate values:
%Cu %Mo g/tAu G/t A ppm Re
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Copper Concentrate 30.6 0.18 147.4 16.1 N/A
Moly Concentrate 1.6 50.0 N/A N/A 368
The Copper Concentrate grade can reach up to 30.6% Cu after molybdenum has been removed into a separate concentrate. It is possible that the ongoing G&T locked cycle test data will produce higher copper concentrate grades, but a balance between concentrate grade and metal recovery needs to be optimized. Hyppaa Engineering had previously predicted a 30% grade at a 90% recovery for use in the Scoping Study. "This type of high grade copper concentrate is usually rewarded with premium payments," says Mr. Salazar.
The rhenium assay from G&T test No.KM2050-33 was 227 ppm in a Molybdenum Concentrate that assays 46.4% Mo. This equates to a rhenium assay of 245 ppm into a Molybdenum Concentrate that assays 50% Mo. The PRA Laboratory assay of rhenium for test F75 was 181 ppm into a Molybdenum Concentrate that assayed 18.44% Mo. This equates into a rhenium assay of 491 ppm into a Molybdenum Concentrate that assays 50% Mo. A previous Hecla Mining report indicated that a 33% Molybdenum Concentrate assayed 325 ppm rhenium. This translates into a 490 ppm rhenium assay for a 50% Mo concentrate. Hyppaa suggests averaging the two recent values and use a value of 368 ppm as a conservative estimate of rhenium content in the Molybdenum Concentrate.
Rhenium is a metal used as an alloy in the catalytic converters that make possible the use of unleaded gas and as an aluminum alloy for propellers in jet engines. It sells for $5,000 an ounce at the present time. "We continue to work with the consultants to gain confidence in the early rhenium results to determine the pay ability of its rhenium content and expect to eventually see this metal reflected in the revenue of the project," says Mr. Salazar.
Pit Optimization and Resources Update
In late 2007, Samuel Engineering completed the PEA. The PEA has a designed capacity of 65,000 tpd of mill throughput. The PEA includes the Resource Calculations completed by Associated Geosciences Ltd. in July of 2007. At PEA Case 2 metal prices copper represents 44% of the potential net smelter revenue while molybdenum is 45% and gold is 10%. Silver and rhenium represent between 1% and 2% of potential net smelter revenue. Copper Fox is scheduled to publish its Pre Feasibility Study in early Q3 2008 which will be based on a 100,000 tpd mill throughput. The Company expects to complete the Feasibility Study based on a production rate of 100,000 tpd in Q1 2009.
The PEA stresses the differences of access, topography and climate between the Galore Creek and Schaft Creek projects which highlight the significantly less expensive access, CAPEX and OPEX for Schaft Creek when compared to Galore Creek. The PEA's open pit mine design envisions mining a 0.61% copper equivalent grade and 4,409,000 tonnes of equivalent copper over the 31 year mine life.
2007 Diamond Drilling Program
A total of 42 drill holes were drilled in 2007 for a total depth of
6,275 meters. Drilling was allocated as follows:
Table 1: 2007 Diamond Drilling Campaign
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Purpose Number of Total Meters
Drill Holes
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Extensions to Mineralization - NE Pit Slope
and Snipe Lake 11 2,357.8
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Proposed Tailings Ponds & Mill Site 14 1,405.2
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Proposed Waste Disposal Areas 17 2,412.0
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TOTALS 42 6,275.0
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Extensions to Mineralization: NE Pit Slope - Snipe Lake
Drilling into the north eastern portions (The Mt. LaCasse Ridge area) of
the deposit has been difficult at best. Low core recoveries and high winds are
the main difficulties encountered. Mineralization, however, was found by
previous operators and was confirmed in 2007. Of special note are the results
from DDH 07CF313, drilled into an area, between the Paramount and the Liard
zones, that is heavily weathered, leached and shattered. This hole returned:
Table 2: Schaft Creek Project - DDH 07CF313 Results
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Weigh- Weigh- Weigh- Weigh-
Total ted ted ted ted
Depth Inter- Avg Avg Avg Avg Eqv Cu
Hole No (m) From To val Cu_% Mo_% Au_g/t Ag_g/t %
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07CF313 421.8 47.5 110 62.5 0.439 0.015 0.208 9.6319 0.765
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07CF313 421.8 114.6 129.8 15.2 0.394 0.015 0.345 0.0001 0.725
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07CF313 421.8 382.8 407.2 24.4 0.359 0.039 0.32 2.9898 1.053
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This mineralization extends the Main or Liard zone north eastwards under the La Casse Ridge and correlates to two mineralized intervals found in drill hole T81CH198, one with 0.582% Cu, 0.01% Mo and 0.62g/t gold over 36.6 meters and another of 6.1 meters grading 1.17% Cu, 0.03% Mo and 0.62 g/t Au. These higher grade sections of mineralization extend north easterly away from the Main or Liard zone and under the La Casse Ridge, into an area of the property not previously. The ridge rises steeply to the north and east from the drilled area. Attempts at testing possible extensions to this zone with holes 07CF316A/B (636.1 meters deep) and 07CF317A/B (122.0 meters deep) failed due to the very difficult drilling conditions encountered.
DDH's 07CF301, 07CF303, 07CF308 and 07CF309 were drilled onto the north and west edges of a swamp located immediately south of the Main or Liard Zone. The best mineral intersection here was found in DDH 07CF303 which returned 3.1 meters, assaying 1.28% Cu, 0.001% Mo and 0.020 g/t Au with no silver values, from 94.2 to 97.2 meters of hole depth. Gold values of 0.60 and 0.68 g/t over 3.1 and 23.5 meters, respectively, were intersected in holes 07CF308 and 07CF309. DDH 07CF301 returned a 12.2 meter long intersection that assayed 0.40% Cu, 0.002% Mo, 0.020 g/t Au and 0.5g/t Ag.
Table 3: Liard South and NE Pit Slope - Snipe Lake Area
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Weigh- Weigh- Weigh- Weigh-
Total ted ted ted ted
Depth Inter- Avg Avg Avg Avg Eqv Cu
Hole No (m) From To val Cu_% Mo_% Au_g/t Ag_g/t %
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Liard South - Extension
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07CF301 192.7 9.7 30.2 20.5 0.221 0.014 0.057 0.0001 0.448
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07CF301 48.5 54.6 6.1 0.236 0 0.02 0.0001 0.242
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07CF301 109.4 121.6 12.2 0.401 0.002 0.02 0.5337 0.439
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07CF301 143.0 146 3.1 0.169 0 0.03 0.0001 0.178
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07CF303 138 8.8 18 9.1 0.324 0.001 0.02 0.0001 0.345
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07CF303 48.5 60.7 12.2 0.454 0.001 0.055 0.0001 0.486
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07CF303 75.9 85 9.1 0.201 0.001 0.007 0.0001 0.218
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07CF303 94.2 97 3.1 1.279 0.001 0.02 0.0001 1.300
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07CF303 136.3 138 1.7 0.197 0 0.03 0.0001 0.206
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07CF308 104.9 25.6 31.7 6.1 0.236 0.001 0.021 0.8263 0.261
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07CF308 43.9 47 3.1 0.192 0.001 0.02 0.0001 0.213
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07CF308 77.4 80.5 3.1 0.367 0.003 0.06 0.0001 0.430
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07CF309 111.3 9.5 32.9 23.5 0.232 0.014 0.068 0.0001 0.463
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NE Pit Slope - Snipe Lake Area
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07CF312 156.7 48.2 57.3 9.1 0.19 0.002 0.326 0.0001 0.320
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07CF312 66.4 69.5 3.1 0.165 0.001 0.03 0.0001 0.189
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07CF312 72.5 81.7 9.1 0.175 0.001 0.057 0.7318 0.210
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07CF312 124.4 133.5 9.2 0.278 0.003 0.053 0.0001 0.339
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07CF313 421.8 11.0 14 3.1 0.475 0.002 0.02 0.0001 0.511
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07CF313 47.5 110 62.5 0.439 0.015 0.208 9.6319 0.765
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07CF313 114.6 129.8 15.2 0.394 0.015 0.345 0.0001 0.725
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07CF313 148.1 184.7 36.6 0.242 0.039 0.165 0.0001 0.877
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07CF313 190.8 215.2 24.4 0.236 0.014 0.193 0.0001 0.505
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07CF313 248.7 257.9 9.2 0.279 0.006 0.123 0.0001 0.407
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07CF313 303.6 328 24.4 0.181 0.011 0.195 2.0004 0.413
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07CF313 382.8 407.2 24.4 0.359 0.039 0.32 2.9898 1.053
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07CF314 256.7 No significant
mineralization found
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07CF315 149.9 No significant
mineralization found
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07CF316 636.1 499.1 505.2 6.1 0.155 0.021 0.06 0.0001 0.488
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07CF316 529.0 532.0 3.1 0.159 0.005 0.06 0.0001 0.252
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07CF316 557.0 560.1 3.1 0.352 0.002 0.11 0.0001 0.416
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07CF316 569.2 572.3 3.1 0.24 0.007 0.05 0.0001 0.360
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07CF316 599.5 602.6 3.1 0.371 0.009 0.03 0.0001 0.515
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07CF317 122 No significant
mineralization found
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07CF319 167.7 102.7 108.8 6.1 0.187 0.002 0.055 0.0001 0.234
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07CF319 145.4 154.3 8.9 0.531 0.003 0.044 0.0001 0.589
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07CF320A 36.3 NO ASSAYS
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07CF321 0 NO ASSAYS
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Table 4: Drill Testing of Waste Disposal Areas
A total of 31 drill holes for 3,817.2 meters were dedicated to testing
potential Waste Disposal Areas near the deposit. The following Table
summarizes the results from this testing.
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Weigh- Weigh- Weigh- Weigh-
Total ted ted ted ted
Depth Inter- Avg Avg Avg Avg Eqv Cu
Hole No (m) From To val Cu_% Mo_% Au_g/t Ag_g/t %
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Waste Disposal Area
-------------------
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07CF291 122.5 No significant
mineralization found
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07CF292 136.9 No significant
mineralization found
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07CF293 125 No significant
mineralization found
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07CF294 151.4 No significant
mineralization found
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07CF295 120 36.1 39.2 3.05 0.242 0.013 0.05 0.0001 0.452
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07CF295 75.55 78.6 3.05 0.165 0.001 0.06 0.0001 0.198
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07CF296 185.4 52.3 58.3 6 0.226 0.005 0.115 0.0001 0.336
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07CF296 76.6 82.7 6.1 0.225 0.002 0.085 0.0001 0.281
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07CF296 104.05 107.1 3.05 0.209 0.005 0.02 0.0001 0.290
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07CF296 128.45 131.5 3.05 0.159 0.006 0.02 0.0001 0.255
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07CF296 140.65 146.8 6.1 0.274 0.003 0.04 0.0001 0.331
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07CF297 154 No significant
mineralization found
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07CF298 153.3 No significant
mineralization found
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07CF299 110.3 No significant
mineralization found
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07CF300 119.2 No significant
mineralization found
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07CF302 149.1 No significant
mineralization found
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07CF304 139.9 4.6 139.9 135.3 0.296 0.011 0.107 1.5534 0.500
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07CF305 129.5 No significant
mineralization found
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07CF306 128 No significant
mineralization found
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07CF307 136.6 No significant
mineralization found
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07CF310 150.3 100 103 3.1 0.248 0.002 0.03 0.0001 0.287
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Paramount - Waste
-----------------
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07CF311 200.6 No significant
mineralization found
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DDH 07CF304 intersected 139.9 meters (from bottom of casing to bottom of hole) assaying 0.296% Cu, 0.011% Mo, 0.107 g/t Au and 1.55 g/t Ag, with a CuEq of 0.500%, and extends the West Breccia zone a further 400 metres to the south, towards the swamp further south which was drill tested by holes 07CF301 and 07CF303. In addition, DDH's 07CF295 and 07CF296 returned up to 6.1 metres of up to 0.274% Cu and assays of 0.115, 0.085 and 0.107 g/t Au. Although narrow, these intersections prove the mineralization extends into these areas as well.
Geophysical Results - 2007 Results
Condemnation testing of one of the proposed mill sites produced an induced polarization - chargeability/resistivity anomaly immediately east of the Liard Zone. It is 250-300 meters wide and is located in an area not previously drill tested or covered by geophysical surveys. The coincident chargeability and resistivity anomalies have a similar signature to those of the Main/Liard Zone. This anomaly is directly south of the mineralization found under the LaCasse Ridge. This summer's plans are to test this area in detail with further geophysical surveys prior to drilling.
ContactsInvestor inquiries: Jason Shepherd
Phoenix Communications Group
Tel: 1-866-913-1910
E-mail: investor@copperfoxmetals.com
535.02 (5.57%)
