Copper Fox increases resource but falls on market

Copper Fox (CUU-V) increased its copper and gold resources at Schaft Creek in B.C., but watched as its shares fell on news that its molybdenum and silver resources fell.

In Toronto on May 9 the Calgary-based companys shares fell over 12% or 18 to $1.36 on just over 1 million shares traded.

The company announced an 8% increase in copper resource, a 30% increase in gold, but a 7% decrease in molybdenum and a 7% decrease in silver.

With a 0.2% copper equivalent cut-off, the measured and indicated resource estimate now stands at roughly 1 billion tonnes averaging 0.31% copper, 0.23 grams gold, 0.02% molybdenum and 1.63 grams silver for an average of 0.34% copper equivalent.

That gives the company roughly 6.6 billion lbs. of copper, 455 million lbs. of molybdenum, 7.8 million oz. of gold and 55.3 million oz. of silver.

Copper equivalent calculations use prices of US$1.50/lb. copper, US$550/oz gold, US$10/lb. molybdenum and US$10/oz silver.

Copper Fox is planning to start its summer drill program in late May, and will drill another 15,000 metres, as well as conduct geotechnical work for mine site planning.

The company wants to develop an open pit mine with a minimum capacity of 65,000 tonnes per day processing rate over a minimum life of 15 years.

Copper Fox can earn a 70% interest in the property by spending $15 million by 2011 as per its agreement it with Teck Cominco (TCK.A-T, TCK.B-T, TCK-N) it already spent $5 million by the end of last year. It can acquire a further 23.4% from Teck by delivering a bankable feasibility study on the project. That would take Copper Fox to a 93.4% interest in the property. Teck does have back in options, which if not exercised, entitles it to a 1% net smelter return or Copper Fox shares worth $1 million.

A total of 12,000 meters were drilled in 2005 and 2006 to confirm the historical data base and development of a new geological model for the mineral deposit.

Guillermo Salazar, president and chief executive of Copper Fox, says in a statement, that the geological model shows the mineral deposit to be open both to the north and east and at depth.

Inferred resources were also updated, and with a 0% cut-off, now total 1.2 billion tonnes averaging 0.08% copper, 0.006% molybdenum, 0.07 grams gold and 1.48 grams silver..