VANCOUVER, British Columbia, April 12, 2017 (GLOBE NEWSWIRE) — Copper Fox Metals Inc. (‘Copper Fox’ or the ‘Company’) (TSX-V:CUU) (OTC:CPFXF) through its wholly owned subsidiary Desert Fox Van Dyke Co. has retained NV5, Inc. of Phoenix, Arizona to commence preparation of the documentation to obtain the permits required to complete a five well pilot scale in-situ leach (“ISL”) test on its 100% owned Van Dyke oxide copper project located in Miami, Arizona.
The Preliminary Economic Assessment (“PEA”) for the Van Dyke project (see News Release dated November 25, 2015) recommended completion of a pre-feasibility study including a pilot scale five well in-situ leach test. The results of the PEA suggests that Van Dyke is a technically sound in-situ leach project with low cash costs and robust pre-tax and post-tax net present value (“NPV”) and internal rate of return (“IRR”). The PEA identified a number of parameters, including copper recoveries that with positive results could impact project economics.
Mr. Elmer Stewart, President and CEO, said “With the 2017 Schaft Creek Joint Venture program underway, Copper Fox has the possibility to create additional shareholder value by advancing its Van Dyke project. The potential of increasing copper recoveries, along with positive results from other parameters of the proposed ISL pilot test, should significantly advance the technical understanding and economic aspects of the project. For example, the main copper minerals at Van Dyke are 100% soluble which is significantly higher than the 68% soluble copper recovery used in the PEA, which was at the low end of soluble copper recoveries achieved in 2014.
The three previous in-situ leaching and production tests have made a significant amount of hydrogeological and water quality data available for the Van Dyke project, which if applicable could significantly reduce the estimated cost of obtaining the UIC and APP permits.”
The permitting for the pilot leach test is prescribed by Federal US Code (“USC”) laws, the US Code of Federal Regulations (“CFR”) and Arizona Revised Statutes (“ARS”). The environmental permitting process is managed by the United States Environmental Protection Agency (“USEPA”) and the Arizona Department of Environmental Quality (“ADEQ”). The main permits required for the pilot ISL test are:
- Aquifer Protection Permit (“APP”) for leaching operations and surface impoundments; ADEQ.
- Underground Injection Control Permit (“UIC”) for injection wells; USEPA.
Highlights:
- The estimated cost to acquire the APP and UIC permits is $US425,000.
- The estimated time period required to obtain the APP and UIC permits is one year.
- The historical information on file with ADEQ could be used to build the APP and UIC permit applications provided that the proposed in-situ leach test is located in that area of the project where previous in-situ testing and production operations were conducted.
- The historical information will assist in summarizing ground water quality and preparation of a hydrogeological model for the Van Dyke project as required by Arizona statutes.
Other federal and state agencies could become involved in the permitting process requiring additional environmental authorizations. An Environmental Management Plan will be developed to comply with environmental legislation during the permitting process.
The main objectives of the in-situ pilot test is to further investigate soluble copper recovery, refine well field design, determine the extent of rock stimulation required, if any, and further define operating procedures.
The results of the PEA are preliminary in nature as they include an inferred mineral resource which is considered too speculative geologically to have the economic considerations applied that would enable them to be categorized as mineral reserves. There is no certainty that the PEA forecasts will be realized or that any of the resources will ever be upgraded to reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Permitting History of Van Dyke project:
ADHS Groundwater Quality Protection Permit G-0003-04 (“predecessor to the APP”):
The Van Dyke project was permitted for pilot scale in-situ leach tests by Occidental Minerals between 1978 and 1980 and included a five injection and one recovery well test that was operated for approximately 22 months. Kocide Chemical Corporation obtained a five year Groundwater Quality Protection Permit for the Van Dyke project in November 1986 and conducted in-situ leaching operations between 1988 and 1990. The last APP permit application for the Van Dyke project was withdrawn by Arimetco in July 1999 due to technical deficiencies experienced by Arimetco at Van Dyke and their other operating sites in Arizona.
UIC Permit:
The EPA’s database entry on April 29, 1994 for the UIC permit for the Van Dyke project shows four active “5×25 Experimental Technology” wells (Class V UIC wells) and five additional wells were listed as “Under Construction”. The Last Data Update for the Van Dyke project on the EPA database was June 3, 2010.
Qualified Person:
Elmer B. Stewart, MSc. P.Geo., President of Copper Fox, is the Company’s non-independent, nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, and has reviewed and approves the scientific and technical information disclosed in this news release.
About Copper Fox:
Copper Fox is a Tier 1 Canadian resource company listed on the TSX Venture Exchange (TSX-V:CUU) focused on copper in Canada and the United States with offices in Calgary, Alberta and Miami, Arizona and currently hold interests in the following assets:
- 25% interest in the Schaft Creek Joint Venture with Teck Resources Limited on the Schaft Creek copper-gold-molybdenum-silver project located in northwestern British Columbia.
- 100% ownership of the Van Dyke oxide copper project located in Miami, Arizona.
- 65.4% of the shares of Carmax Mining Corp. who in turn own 100% of the Eaglehead copper-molybdenum-gold project located in northern British Columbia.
- 100% ownership of the Sombrero Butte copper project located east of Mammoth, Arizona.
- 100% ownership of the Mineral Mountain copper project located east of Florence, Arizona.
For additional information please contact: Lynn Ball at 1-844-464-2820 or 1-403-264-2820.
On behalf of the Board of Directors
Elmer B. Stewart
President and Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and forward-looking information within the meaning of the Canadian securities laws (collectively, “forward-looking information”). Forward-looking information in this news release includes statements about the results of the Preliminary Economic Assessment of the Van Dyke project; significantly advancing the technical and economic aspects of the project; an estimated cost to acquire the APP and UIC permits of $US425,000; obtaining the APP and UIC permits in approximately one year; using the historical hydrologic and water quality data for APP and UIC permit applications, for summarizing ground water quality and for preparation of a hydrogeological model for the Van Dyke project; the possibility of creating additional shareholder value; and developing an Environmental Management Plan.
In connection with the forward-looking information contained in this news release, Copper Fox has made numerous assumptions, regarding, among other things: the geological, metallurgical, engineering, and financial advice that Copper Fox has received is reliable, and is based upon practices and methodologies which are consistent with industry standards; the cost and expediency of permitting authorities; and the applicability of historical data. While Copper Fox considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies.
Additionally, there are known and unknown risk factors which could cause Copper Fox’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the results of the Preliminary Economic Assessment of the Van Dyke project may not be achieved as expected or at all; the uncertainty of the estimated cost to acquire the APP and UIC permits; the uncertainty of the time required to obtain the APP and UIC permits; the uncertainty that most of the historical information can be used in a new application with some additional new data specific to the proposed area of operations; the uncertainty that historical information on file at ADEQ can be used to build the APP and UIC permit applications for the proposed ISL test; the uncertainty that the historical information will assist in summarizing known past discharging activity; the creation of additional shareholder value may not be achieved as expected or at all; the need to obtain additional financing and uncertainty as to the availability and terms of future financing; uncertainty as to timely availability of permits and other governmental approvals.
A more complete discussion of the risks and uncertainties facing Copper Fox is disclosed in Copper Fox’s continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Copper Fox disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
