VANCOUVER, Feb. 7, 2013 /CNW/ - Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc.("Copper Fox" or the "Company") (TSX-V: CUU) announced the acquisition of two groups of mineral tenures. One group is located inside the Schaft Creek copper-gold-molybdenum-silver project located in northern British Columbia. The second group is contiguous to and increases the size of the Sombrero Butte copper project located in Pinal County, Arizona.Â Mr. Stewart stated "the purpose for the acquisition of these mineral claims at Schaft Creek is to provide additional coverage of the interpreted extension of the Schaft Creek mineral trend and infrastructure purposes.Â The additional mineral claims for the Sombrero Butte project expand the Company's acreage around the mineralized diamond drill holes completed in 2008 and mineralized breccia systems located within the property located in this historical mining district which is currently experiencing a substantial increase in the level of exploration activity".
a) Schaft Creek claims - 487.99 hectares (4 mineral tenures) located within the Schaft Creek project. These mineral tenures cover the western side of the projected Schaft Creek Mineral Trend.Â These mineral tenures are subject to the Option Agreement with Teck Resources Limited ("Teck"),Â and;
b) Sombrero Butte Claims - 183.94 hectares (22 mineral tenures) along the western side of the Sombrero Butte project to cover the projected extension of previously known copper mineralized breccia pipes located within the project.
Rationale for the Mineral Tenure Acquisitions:
To view the location of the interpreted Schaft Creek Mineral Trend, visit the Copper Fox website at www.copperfoxmetals.com.
The mineral tenures located within the Schaft Creek project are located along the western side of the projected Schaft Creek Mineral Trend where exploration in 2012 has confirmed the mineralized nature of the large chargeability signature referred to as the Discovery Zone.Â These mineral tenures may also be important in the location of infrastructure required to develop the Schaft Creek project as contemplated in the recently completed Feasibility Study.
Redhawk Resources Copper Creek project ties onto Copper Fox's Sombrero Butte project to the north.Â The recent announcements by Redhawk Resources related to land acquisitions, current mineral resources and diamond drilling results suggest that the area encompassing these projects could host large copper-molybdenum deposits similar to the previously mined the San Miguel - Kalamazoo copper deposit which is reported to have produced approximately 14.2 billion pounds of copper as well as substantial quantities of molybdenum-gold-silver.
Schaft Creek Acquisition:
The two mineral tenures (consisting of 2 mineral tenures totaling 487.99 hectares) are located within the Company's Schaft Creek project. Consideration paid by Copper Fox was $12,000 cash and a 2% net smelter return (NSR) royalty on the mineral claims subject to a "Partial NSR Buyout Option". The Partial NSR Buyout Option allows Copper Fox at any time to purchase half of the NSR for a cash payment of $1.0 million such that the NSR is reduced from 2% to 1%.
Sombrero Butte Acquisition:
The 22 Bureau of Land Management ("BLM") lode mineral claims were located by Copper Fox to cover the southern and western extension of mineralized breccia pipes located within this historical mining district. A limited field program is underway to complete a preliminary assessment of these lode claims consisting of mapping and sampling utilizing a NITON instrument to measure metal concentrations in outcrop.
Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Corporation's nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, has reviewed the technical information disclosed in this news release.
Copper Fox is pleased to announce that the Board of Directors of the Company has approved an incentive stock option grant to directors, officers and a consultant of the Company for the purchase of 585,000 shares of Copper Fox at an exercise price of $0.94 per share, and expiring on January 23, 2014.Â Vesting of the options granted to directors and officers are in equal tranches at three, six and nine months from the date of grant.Â In accordance with TSX Venture Exchange policies, vesting of the options granted to the Company's consultant are in four equal tranches over 12 months.