Copper Fox drills higher grades at Schaft Creek

Vancouver – As Copper Fox (CUU-V, CPFXF-O) moves its Schaft Creek project towards feasibility, it has released 16 drill results showing higher than usual grades of copper and gold for the property from a completed 53-hole infill, geotechnical and hydrogeological drill campaign.

A late-September scoping study of the project outlined a measured and indicated resource of 1.4 billion tonnes grading 0.25% copper, 0.02% molybdenum, 0.18 gram gold per tonne and 1.55 grams silver per tonne.

But the latest drilling bettered those grades. Of note were holes 21, 26, 27 and 29.

In the boundary between the Liard and Paramount zones hole 21 cut 12.2 metres grading 1.15% copper and 5.9 grams silver starting 281 metres downhole. In the Liard zone proper, hole 29 returned one of the longer intercepts, 95 metres grading 0.44% copper, 0.02% moly, 0.17 gram gold and 0.85 gram silver starting 12 metres downhole.

The other two highlights came from the West Breccia zone to the north-northwest of the Liard and Paramount zones. Hole 26 hit 15 metres grading 0.61% copper, 0.04% molybdenum, 0.68 gram gold and 5.9 grams silver starting 24 metres below surface. And hole 27 intercepted 31 metres grading 0.22% copper, 0.51 gram gold and 0.5 gram silver starting 14 metres downhole.

The typical minerals in the Schaft Creek porphyry are chalcophyrite, bornite, molybdenite and late-fracture molybdenite formed in the breccias, veins and stockworks of the three zones – each a distinct porphyry environment. The mineralization is hosted in north striking and easterly dipping volcanics, mostly made up of andesitic pyroclastics and augite-feldspar-phyric andesite.

Copper Fox president Guillermo Salazar said in a statement that the results were positive not only because they showed higher grades but because they were found outside the main mineralized zones.

The results will become part of the company’s ongoing feasibility study, due out in mid-2009.

Copper Fox optioned the Schaft Creek property, 300 km north of Prince Rupert B.C., in 2002 from Teck Cominco (now simply Teck(TCK.B-T, TCK-N)) and has since earned a 70% stake in the property. So long as it finishes its feasibility study it can secure a further 23.4%, although Teck has the right to buy back up to 75% of the project within 120 days of the feasibility’s completion.

Copper Fox pegs capital costs of the project at US$2.95 billion with a 100,000 tonnes per day mill, a 23-year mine life and an internal rate of return of 15.3% after tax.

On news of the drill results Copper Fox inched up half a cent to close at 13.5. It has about 112 million shares issued and a 52-week trading range between 10.5 and $1.08.