Copper Fox announces a positive Feasibility Study on the Schaft Creek deposit

Monday, Dec 24, 2012

VANCOUVER, Dec. 21, 2012 /CNW/ - Copper Fox Metals Inc. ('Copper Fox' or the 'Company') (TSX-V: CUU) is very pleased to announce the results of a positive Feasibility Study on the Schaft Creek Project located in northwestern British Columbia, Canada.  The Feasibility Study was prepared under the direction of Tetra Tech, an industry leading international engineering firm, with a high level review of capital cost completed by Merit Consultants International Inc. ('Merit'), and an internal review conducted by Matt Bender, MBA, P.E.  The Feasibility Study, with capital costs defined to within plus/minus 15%, builds
upon the previous Preliminary Economic Assessment and Preliminary Feasibility Study prepared by Samuel Engineering, Inc. in January and September of 2008 and metallurgical and geotechnical work completed in 2009, 2010, 2011 and 2012.

Mr. Elmer Stewart, President & CEO said "I am extremely proud of the work put into this Feasibility Study by the Copper Fox team and its capable consultants. Like all large scale projects located in alpine type terrain, this project did come with its own unique technical challenges. At an 8% discount rate as required in the Teck Option Agreement, the Feasibility Study confirms the technical and financial viability of a nominal 130,000 tonne-per-day ('tpd') copper mining and processing operation at Schaft Creek.  The Company will host a webcast conference call in mid-January, details will follow by way of a separate
news release."

The Feasibility Study recommends diamond drilling to determine the extent to which the 171.16 million tonnes of inferred resource that lie within the proposed open pit, now treated as waste, can be upgraded to either a Measured or Indicated Mineral Resource.  If successful, this would categorize this rock as a revenue generator.

The project has a nominal 130,000 tpd milling capacity over a 21 year mine life representing a 30% increase from that proposed in the Preliminary Feasibility Study prepared in September 2008, with only a 20% increase in the estimated Capex, no easy achievement.

The Feasibility Study provides for expansion of the project based on the current mineral resource and exploration potential of the Schaft Creek mineral trend.

The potential to significantly expand the tailings storage facility, the current concentrate storage and shipping agreement with Stewart Bulk Terminals and most importantly access to electrical power are positive features that support possible future expansion of the Schaft Creek Project.  Opportunity to lower operating and capital costs and increase operating revenue could be identified during the detailed engineering phase of project development.

Source: Copper Fox Metals Inc.