Copper Fox's main asset is 100% working interest of Schaft Creek, one of the largest undeveloped copper-molybdenum-gold-silver porphyry deposits in Canada located in northwest British Columbia.
The company’s shares rose 3.39 percent to $1.22 on the back of the news, as Copper Fox confirmed it had aquired additional mineral tenures adjacent to the Schaft Creek project, and the completion of an option to acquire the Jay/Scotch mineral tenures near Schaft Creek.
"Since discovery of the Schaft Creek deposit in 1957, approximately less than 10 percent of the project area has been explored,” said president and CEO Elmer Stewart.
"The work Copper Fox completed in 2010 and 2011 suggests a potential to locate additional porphyry style deposits along strike of the Schaft Creek deposit."
Stewart said the 2012 exploration program will focus on the regional evaluation and exploration of the project outside the limits of the Schaft Creek deposit and is expected to cost approximately $10.0 million.
Highlights of the year-ahead exploration program include a total field airborne magnetic survey of roughly 2,500 line kilometres, to extend the limits of the 2011 survey to the north and south, and a spectral imagery survey.
The company said it also plans to initiate Titan-24 DCIP & MT surveys of the area between the ES zone and the GK zone at the Schaft Creek deposit, to follow-up on the positive results obtained in 2011.
Copper Fox said it will begin diamond drilling of three untested Titan-24 chargeability anomalies, and follow-up drilling of the copper-gold-molybdenum-silver mineralization intersected in 2011 at hole 2011CF422 (the discovery zone) located approximately 1,200 metres north of the Schaft Creek deposit.
Drilling will be conducted in two phases: phase one consists of 5,000 metres of drilling to test the targets at the discovery zone, and phase two will consist of at least 5,000 metres to follow-up zones of mineralization intersected during phase one drilling, said the company.
Copper Fox said its newly acquired land consists of 16 mineral tenures totaling 4,514.78 hectares, adjacent to the company’s Schaft Creek project and were purchased from Randy Marko and Paul Mott (Marko/Mott).
Consideration paid by Copper Fox was $25,000 cash and a two percent net smelter return (NSR) royalty on the mineral claims subject to a “partial NSR buyout option”, which allows the company to repurchase half of the NSR at any time for a cash payment of $1.0 million.
Copper Fox also said it has acquired an option to purchase two separate mineral tenures and a contiguous group of five mineral tenures located south and west of the Schaft Creek project.
The group of five mineral tenures is referred to as the Jay/Scotch group and has had a "considerable amount" of historical exploration (prospecting, sampling, trenching and chip sampling) completed, said the company.
Copper grades reported from the sampling of trenches, outcrop, veinlets, veins and amphibolite at Jay/Scotch range from less than 0.01 to 10 percent, while gold values range from less than 0.01 grams per tonne (g/t) to 2.7 g/t and silver values range from less than 0.5 to 24.1 g/t.
The company said that recent sampling of the Scotch claims shows molybdenum values that range from 0.017 percent to 0.038 percent, and that historical samples were not assayed for molybdenum.
The alteration and copper-gold-silver metal signature at Jay/Scotch show many similarities to the southern portion of the Paramount zone in the Schaft Creek deposit, Copper Fox reported.
The company said a cash payment of $25,000 was made to the vendor to hold the mineral tenures until such time as a property visit can be completed to assess and confirm the historical analytical results.
Copper Fox is working on completing a feasibility study on its Schaft Creek project, one of the largest undeveloped copper, gold, molybdenum and silver deposits in North America. The study is expected by mid-summer 2012.