Copper Fox extends Schaft Creek mineralization to the east, acquires four adjacent claim blocks

Mineral explorer Copper Fox Metals (CVE:CUU) Friday reported that it has extended high grade mineralization at its Schaft Creek project east of the previous open pit and purchased four additional mineral block claims next to the property.
The Schaft Creek project rests 45 kilometres west of the Stewart-Cassiar highway and about 80 kilometres south of Telegraph Creek, in northwestern British Columbia.
It comprises of a large undeveloped porphyry copper-gold-molybdenum-silver deposit, and lies within a contiguous group of mineral claims covering 21,025 hectares.
Seven diamond drill holes have been completed in the Paramount zone so far this year, with three diamond drills currently working on the area to test the chargeability anomaly outlined last year to the east.
Diamond drill hole CF410B-2011, which rests 104 metres east of drill hole CF407-2011, intersected 0.30% copper, 0.10 grams per tonne (g/t) gold, 0.02% molybdenum and 1.23 g/t silver, or 0.52% copper equivalent over 250.75 metres, starting at a down hole depth of 262.08 metres.
The mineralized interval in CF410B-2011, which remains open to the east, confirms the mineralized nature of the changeability anomaly identified at the Paramount zone in 2010, the company said.
Drill hole CF410B-2011 also returned a second interval of mineralization that averaged 0.51% copper, 0.18 g/t gold, 0.026% molybdenum and 1.42 g/t silver, or 0.78% copper equivalent, over 24.68 metres from a down hole depth of 544.6 metres to a depth of 569.28 metres.
"The second interval of mineralization is higher grade and is interpreted to represent a second phase of mineralization at Schaft Creek,” the company said in Friday’s statement.
Copper Fox also said the results from a Titan-24 geophysical survey performed over the Mike, ES and GK zones on the property are expected early in October.
Separately, the company announced that it has purchased four mineral claim blocks – consisting of 41 mineral tenures for a total of roughly 6,115 hectares – resting to the north, south and west side of the Schaft Creek project.
These mineral claims are located along strike of the interpreted Schaft Creek Mineral Trend, and are immediately north of one of the strong aeromagnetic anomalies identified by an airborne magnetic survey earlier this year.
"The acquired mineral claims provide additional coverage of the interpreted extension of the Schaft Creek mineral trend and the presence of low grade copper mineralization on these new claims increases the potential to find additional mineralization to the north and south of the Schaft Creek deposit," said president and CEO, Elmer Stewart.
As consideration for the claims, Copper paid $20,000 in cash and 25,200 in shares to two individuals, with the properties remaining subject to a 2% net smelter return royalty.
The royalty has a partial buyout option that allows Copper Fox, at any time, to buy half, or 1%, of the net smelter royalty for $1 million cash.
Historical data on the claims, though limited, shows elevated concentrations of copper, both in soil and rock samples, Copper Fox said.
Copper Fox holds a 100% working interest in a 24,000 hectare property that includes the Schaft Creek deposit, which is subject to certain royalty agreements, a 30% carried interest held by Liard Copper and an earn back option held by Teck Resources to acquire up to 75% of the project. A feasibility study on Schaft Creek is expected in the fourth quarter.
Shares of Copper Fox closed Thursday at $1.42 per share on the Toronto Stock Exchange.