Monday, 18 June 2012

Copper Fox issues Q2 earnings, updates Shaft Creek resource estimate

Copper Fox Metals (CVE:CUU) late Thursday issued fiscal second-quarter earnings and said it plans to raise $4.48 million in a private placement.

The company is involved in the exploration and development of the Schaft Creek copper-gold-molybdenum-silver deposit located in northwest British Columbia, Canada.

Schaft Creek consists of a large undeveloped porphyry copper-gold-molybdenum-silver deposit and is located within a contiguous group of mineral claims that cover 21,025 hectares. It is situated 45 kilometers west of the Stewart-Cassiar Highway and approximately 80 kilometres south of Telegraph Creek in north western British Columbia.

Copper Fox is working on completing a Feasibility Study on the Schaft Creek mineral deposit, one of the largest undeveloped copper, gold, molybdenum and silver deposits in North America.

The feasibility study is being led by Tetra Tech Wardrop on a minimum 120,000 tonne pe day open pit mine and is expected to be completed mid-late summer 2012.

The company's working capital was $44,631 at April 30, 2012.

For the period ended April 30 net loss narrowed to $514,292 from $2.4 million a year earlier. Since the company is in the exploration and development stage, it has no income-producing assets from which to record revenues.

After the end of the second quarter, Copper Fox unveiled an updated resource estimate for the Schaft Creek deposit including the Paramount and Liard zones in May.

The combined Measured and Indicated Resource was 1.23 billion tonnes grading 0.26% copper, 0.017% molybdenum, 0.19 grams per tonne (g/t) gold and 1.69 g/t silver containing 7.11 billion pounds copper, 455.3 million pounds
molybdenum, 7.37 million ounces gold and 66.74 million ounces silver.

The Inferred Resource was 597.2 million tonnes grading 0.22% copper, 0.016% molybdenum, 0.17 g/t gold and 1.65 g/t silver containing 2.87 billion pounds copper, 206.3 million pounds molybdenum, 3.36 million ounces gold and 31.60 million ounces silver.

During and after the second quarter, the company also acquired several groups of mineral tenures which comprise 18,534.7 hectares (71 mineral tenures) that are contiguous to the Schaft Creek project.

These acquisitions were completed to acquire land along strike of the Schaft Creek deposit.

Separately, the company said it intends to complete a non-brokered private placement to raise up to $4.48 million consisting of 4 million units at a purchase price of $1.12 per unit.

The proceeds will be used to fund costs associated with completing the feasibility study of the Schaft Creek Deposit and general operating expenses.

Each unit consists of one common share of Copper Fox and one common share purchase warrant of Copper Fox. Each warrant entitles the holder to acquire one common share of Copper Fox at an exercise price of $1.25 on the one year anniversary of the closing date of the offering.

Ernesto Echavarria, a director, has committed to participating in 100 percent of the offering.

The proceeds will be used to fund costs associated with completing the feasibility study of the Schaft Creek Deposit and general operating expenses.

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