Copper Fox updates status of feasibility study and reports 2010 first quarter financial results

31 Mar 2010 14:42 ET

CALGARY, March 31 /CNW/ - Copper Fox Metals Inc.
("Copper Fox" or the 
"Company") (TSX-V: CUU) is pleased to announce an update on the feasibility 
study on the Schaft Creek deposit and its 2010 first quarter results. During 
the quarter the Company has spent a further $1,153,498 towards completion of 
the feasibility study on the Schaft Creek deposit and reported a loss for the 
first quarter of $446,822. 
    Elmer Stewart, President & CEO, stated, "The Company has made significant 
progress in the past year improving its financial stability and working toward 
completion of the feasibility study on the Schaft Creek project. The recent 
announcement by the government of the province of British Columbia and the 
federal government of Canada on construction of the northwest high voltage 
transmission line has removed one of the major obstacles to project 
development like Schaft Creek and others in northern British Columbia. The 
Company believes that the construction of the power line combined with 
completion of the feasibility study will demonstrate that the Schaft Creek 
deposit contains a significant resource with substantial economic value." 
 
    Quarterly Highlights 
 
    Teck Resources Limited ("Teck") has transferred the 100% ownership of the 
Schaft Creek project, which is subject to 30% net proceeds interest held by 
Liard Copper Mines Limited (78% owned by Teck) and an earn-back option held by 
Teck, to Copper Fox pursuant to an Option Agreement between the parties dated 
January 1, 2002. 
    To the end of December 2009, Copper Fox has incurred a total of 
$43,299,162 of expenditures that have been accepted by Teck as applicable 
expenditures pursuant to the Option Agreement on the Schaft Creek project. 
    Compilation of all geological and analytical information collected prior 
to 2006 and during the 2007 and 2008 field seasons is being incorporated into 
an updated geological model. The updated geological model is expected to be 
completed by the end of April 2010. 
    Additional metallurgical test work was completed to optimize recovery of 
the copper-gold-molybdenum-silver at Schaft Creek. The results of this test 
work when received will be incorporated into the feasibility study. 
 
    Future Activities: 
 
    Copper Fox is required to ensure that a mineral inventory does not exist 
in areas where infrastructure related to the Schaft Creek project is proposed 
to be located. During the second quarter, Copper Fox plans to complete a deep 
penetrating TITAN-24 Direct Current Induced Potential (DCIP) and 
Magnetotelluric (MT) survey over the area where the processing plant (the 
mill) and the tailings storage facility are currently proposed to be located. 
The purpose of the TITAN-24 survey is to verify and more precisely define the 
limits of two large Induced Potential anomalies that were identified in 2008. 
Induced Potential is a common geophysical survey used in the exploration of 
porphyry copper molybdenum deposits. Contingent on the results of the TITAN-24 
DCIP and MT survey, a diamond drilling program to test these IP anomalies for 
copper mineralization may be required. 
 
    << 
    Selected Financial Information 
    ------------------------------------------------------------------------- 
                            Net Loss           Net (loss)/income per share - 
                                               basic and diluted 
    ------------------------------------------------------------------------- 
 
    2010 
    ---- 
    First Quarter     $            (446,822)   $                          - 
 
    2009 
    ---- 
    Fourth Quarter    $           1,533,575    $                       0.01 
    Third Quarter     $            (491,057)   $                          - 
    Second Quarter    $            (431,763)   $                          - 
    First Quarter     $         (29,135,359)   $                      (0.26) 
 
    2008 
    ---- 
    Fourth Quarter    $           1,890,230    $                       0.02 
    Third Quarter     $          (1,307,512)   $                      (0.01) 
    Second Quarter    $            (720,878)   $                      (0.01) 
    ------------------------------------------------------------------------- 
    >> 
 
 
    Liquidity and Capital Resources: 
 
    The Company's working capital was $1,303,090 at January 31, 2010. The 
Company has sufficient funds available to meet its current obligations. As of 
the date of this MD&A (March 31, 2010) 15,645,113 of the $0.075 warrants and 
316,665 of the $0.115 warrants have been exercised. A total $1,209,781 was 
received by Copper Fox and resulted in the issuance of 15,961,778 common 
shares of the Company. It is expected that the exercise of these warrants 
should continue into the second quarter. 
    The cash requirements in the coming months will be significant as the 
Company works toward completing the feasibility study. At the end of this 
quarter the Company has spent approximately $43 million toward this study. The 
Company will require additional capital to complete this study and to provide 
for the administration of its Calgary and Vancouver 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 
and warrants or through the public market if required. 
    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) involved in the exploration and development of porphyry 
copper-molybdenum-gold mineral properties. The Company's activities are 
focused exclusively on the Schaft Creek deposit, one of the largest 
undeveloped porphyry copper, gold, molybdenum and silver deposits in Canada. 
Copper Fox holds mineral title to the 21,025 hectares comprising the Schaft 
Creek Mineral Deposit subject to 30% net proceeds interest held by Liard 
Copper Mines Limited (78% owned by Teck) and an earn-back option held by Teck. 
    The Schaft Creek Project is situated in northwest British Columbia. The 
Company has recently awarded a contract to Wardrop to complete the feasibility 
study on the Schaft Creek deposit. The results of a preliminary feasibility 
study ("PFS") on the Schaft Creek deposit dated September 15, 2008 have 
outlined a proven and probable mineral reserve of 821 million tonnes and a 
processing rate of 100,000 tonne of ore per day utilizing open pit mining and 
standard flotation to recover the copper, gold, molybdenum and silver. The PFS 
indicated Schaft Creek could produce approximately 4.8 billion pounds of 
Copper, 255.1 million pounds of molybdenum, and 4.5 million ounces of gold and 
32.5 million ounces of silver over a 22.6 year mine life. 
 
    << 
    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 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 proposed mineral 
recovery processes; anticipated dates for receipt of permits, approvals, 
anticipated results of drilling programs, technical studies and other economic 
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 an estimation of 
the quality of metals that could be encountered if a mineral deposit were 
developed and mined. For any forward looking information given, management 
has, in part, relied on its independent technical consultants and assumes that 
the conclusions and recommendation of the independent consultants related to 
and including assay results, proposed recovery procedures, mining methods, 
operating and capital costs it has received are reliable and that its 
consultants has applied geological and engineering 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 metal prices, currency exchange rates; uncertainties relating 
to interpretation of drill results, 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 receipt of permits; the need to obtain additional financing 
to fund activities and uncertainty as to the availability and terms of future 
financing; the possibility of delay in exploration or development programs or 
in project construction; uncertainty as to timely receipt of permits and other 
governmental, regulatory and other approvals; and other risks and 
uncertainties disclosed in the company's filings with Canadian securities 
regulatory authorities at www.sedar.com. 
    The forward-looking information in this MD&A 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. Additional information, about the risks and uncertainties of the 
Company's business is provided in its disclosure materials, including its most 
recent annual and quarterly filings, filed with the securities regulatory 
authorities in Canada available at www.sedar.com.