Copper Fox Metals' (CVE:CUU)
president and CEO Elmer B. Stewart said in a conference call Tuesday
that the company believes it is sitting not just on a copper deposit,
but an entire district, and proving this will be "the emphasis of [its]
2012 program."
The conference call was held to discuss the updated
NI 43-101 resource estimate for its Schaft Creek
copper-gold-molybdenum-silver deposit in BC, released late last week.
Stewart said that proving Schaft Creek is a copper
district will validate the area as having the potential to produce a
long-term, multi-decade project that could add value to Copper Fox and
others that may want to come into the area.
The recent updated report highlighted over 1.2
billion tonnes of measured and indicated resource, including silver
content expected to have a “positive impact on the economics” of the
deposit.
Stewart said, on a call to shareholders and
analysts Tuesday, the results could potentially increase the overall
magnitude of the Schaft Creek deposit – already one of the largest
undeveloped copper, gold, molybdenum and silver deposits in North
America, located in northwest British Columbia.
The resource estimate for the Schaft Creek deposit,
using a base case 0.15% copper equivalent cut-off, includes 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 in the measured and indicated category.
Additionally, Stewart pointed out that the inferred
resource is comprised of 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.
The resource estimate includes the silver content of mineralization in both the Paramount and Liard zones of the deposit.
"I believe one of the major feats [for the company]
was having the silver brought back into the resource estimate," Stewart
said.
He added that the measured and inferred resource
categories, the total copper-molybdenum-gold-silver content, and the
fact that the deposit is still open in several directions along strike
"clearly indicates that the Schaft deposit is larger than we know
today."
"Additional drilling will have to be completed to
realize this potential and define the un-explored portions of the Schaft
Creek deposit."
The latest resource estimate showed substantial
increases in both tonnes and copper-molybdenum-gold-silver content at
both the 0.15% and 0.20% copper-equivalent (CuEq) levels of cut-off, he
continued.
"Given the very minimal decrease in average grade
for each metal, we have been able to select a 0.15% CuEq cut-off," said
Stewart.
"The base case results will be used to complete the
feasibility study for the Schaft Creek project, which is expected to be
completed by mid to late summer 2012."
The latest resource report, prepared by California-based Tetra Tech, used a total of 286 drill holes with 16,501 composited drill hole intervals at the Schaft Creek deposit.
The new resource compares to the one released last
summer, prepared by AMEC Americas, which indicated that at a 0.20%
copper equivalent cut-off, the deposit held 1.01 billion tonnes, grading
0.27% copper, 0.017% molybdenum and 0.18 grams per tonne (g/t) of gold,
for a total of 6.1 billion pounds of contained copper, 383 million
pounds of molybdenum, and 5.8 million ounces of gold.
Inferred resources, at the same cut-off, were
estimated in July 2011 at 283.6 million tonnes at a copper equivalent
grade of 0.39%, containing a further 1.5 billion pounds of copper, 69
million pounds of molybdenum, and 1.3 million ounces of gold.
The feasibility study for the project, also led by Tetra Tech,
will be based on a minimum 120,000 tonnes per day (tpd) open pit mine.
In 2008, the project was estimated to have a before tax net present
value of $2.8 billion over a 23-year mine life, at an 8% discount rate.
Copper Fox holds title and a 100 per cent working interest in the 44,265.52-hectare Schaft Creek project.
The company plans to start diamond drilling
sometime in early June on the discovery zone about 1,200 metres north of
Schaft Creek to test the width and strike extent of mineralization.
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