Copper Fox Metals' Pit Optimization Study Demonstrates 65,000-Tonne Per-Day Operation


مشرف وإستشاري هندسة المناجم
12 مارس 2007
مجموع الإعجابات
[FONT=arial,helvetica]very detaled example about open pit optimization [/FONT]
CALGARY, AB, Oct 19, 2007 (MARKET WIRE via COMTEX News Network) -- Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce the results from a pit optimization study on the Schaft Creek Deposit located in northwest British Columbia. Moose Mountain Technical Services Ltd. completed a Pit Optimization Study for Schaft Creek to form part of the Preliminary Assessment Technical Report due in late October 2007. The Technical Report will be filed on by lead consultant Samuel Engineering Inc. and the company's website within 45 days.
Highlights of the study include:
* Base case parameters envision an open pit mineable resource of 719.1 million tonnes at a 1.66 to 1 strip ratio.
* The strip ratio over first five years of mine life is 1.9 to 1.
* The initial pit will assay an average of 0.55% CuEq with the bottom bench averaging 0.799% CuEq.
* Estimated recoveries based on testing to date are 90% copper, 81% gold, 72% silver and 80% molybdenum.
* At 65,000 tonnes-per-day the base case has a mine life in excess of 31 years. This provides an opportunity to consider increasing the production rate.
"We are encouraged by results from the pit optimization study in that it forms a solid base case for the economic scoping study due later this month. Revisions to this plan will attempt to include mining of the higher grade material at the bottom bench," says Guillermo Salazar, President and CEO of Copper Fox Metals. "We are equally enthused with the recent announcement by the government of British Columbia of a 287 KV hydro electricity line from Terrace to Bob Quinn Junction which may justify economically doubling the mine and mill throughput."
Using the Lerchs-Grossman optimization (LG) routine, an incremental pit optimizer, the base case LG is based on a copper price of C$1.50/lb, gold price of C$550/oz, silver C$10.00/oz and molybdenum C$10.00/pound. A detailed pit with ramps has been designed based on the chosen LG pit limit. Resources within the detailed pit are estimated at 719.1 million tonnes grading 0.304% copper, 0.217 g/t gold, 1.77 g/t silver and 0.20% molybdenum. The strip ratio is 1.66 to 1 and 97% of the resources within the pit shell are Measured and Indicated. Please refer to Table "1": below.

Table One
Measured & Indicated Pit Resource
(kTonnes) $/t % g/t g/t % %
Measured 379,950 14.34 0.317 0.238 1.72 0.019 0.479
Indicated 337,878 13.26 0.289 0.195 1.83 0.020 0.442
Total 717,828 13.83 0.304 0.218 1.77 0.020 0.462
Inferred 1,263 11.51 0.265 0.101 2.047 0.018 0.371
Waste 1,192,417 S/R = 1.66 t/t

"Mineral resources that are not mineral reserves do not have demonstrated economic viability"
* Cutoff Grade $4.25/t * 5% Contact Dilution * 10% Mining Losses
Background & Discussion
Copper Fox Metals commissioned Moose Mountain Technical Services Ltd. to design a pit optimization plan based on the results, parameters and geological model designed by Associated Geoscientists Ltd. ("AGL") in their Resource Estimate Report dated June 22, 2007, (refer to the news release July 3, 2007 The ultimate economic pit limit was determined by running the Lerchs-Grossman (LG) routine which incrementally expands the pit shell until the revenue from run-of-mine mill feed material (ROM) breaks even with the operating costs. A Net Smelter Price (NSP) was calculated for each metal after applying smelter schedule terms and offsite concentrate transportation costs to determine the net price for each metal at the mine gate. The revenue generated in the LG run, using the NSP, therefore determines the cash available for mining, milling, and overheads for the operation.
The NSP is based on the market prices and smelter terms used in the base case LG run, however, the sensitivity of the mining resource is tested by creating different pit shells larger and smaller than the base case. The sensitivity of the resulting open pit mineable resource can then be evaluated. This measures the geometry of the project where the economic returns vary as the strip ratio increases and the grades decrease as the pit gets deeper.
At this stage of the project (Scoping), typical pit slopes and mining costs are used. Metallurgical recoveries are based on initial metallurgical test work. Since this is a poly-metallic project, the dollar value contribution of each metal is calculated and summed to a Net Smelter Return (NSR) on a $/tonne basis for each block in the resource model. The NSR is calculated using the NSP times the recovery for each metal and then combined to a single block value. The NSR is then used as a cut-off grade (CoG).
The inputs to the LG runs are as follows:

Market Prices Net Price for Mine, Plant & O/H
Copper Gold Silver Molybdenum Copper Gold Silver Molybdenum
$US/lb $US/oz $US/oz $/lb $C/lb $C/g $C/g $C/lb
$1.50 $550.00 $10.00 $10.00 $1.30 $16.48 $0.269 $7.57

Metal recoveries are based on expected milling recoveries for an operation at 65,000 tonnes per day as per the locked cycle tests done to date. The expected recoveries are: Copper: 90%, Gold: 81%, Silver: 72% and Molybdenum: 80%.
Mining (ROM and Waste): $C1.606/tonne of material Process & O/H: $C4.250/tonne ROM
Pit Slopes:
Western ultimate pit wall 42 degrees All other walls: 50 degrees

NSR is based on market prices less smelter charges and the process recovery for each metal. The market price less smelter charges gives the Net Smelter Price for each commodity. Pit resources are calculated with a NSR cut-off of $4.25 (Milling and O/H cost) and grade bins at $4.8, $6.19 & $6.51 corresponding to an anticipated cut-off grade strategy.
Resource Model
The resource model was converted to MineSight from the AGL's Surpac 3D Block model used to produce the Resource Statement in the Technical Report dated June 22, 2007. The Surpac model has two mineralized zones and uses sub-blocking to increase the ore resolution. The two zones allowed for the separate modeling of the higher-grade and deeper lower-grade zones in the deposit. It is noted by AGL that material in the lower grade zone grading below 0.2% Cu should be considered waste. The MineSight 3D block model converts the Sub-blocked model to full blocks (25m X 25m X 15m) and retains the ore resolution by storing an ORE% for each full block based on the sub-block splits. The conversion from AGL's Surpac model to the MineSight model was reconciled as accurate.
About Copper Fox
Copper Fox is a Canadian-based mining company listed on the TSX-Venture (CUU). The Company has concentrated its project activities exclusively to the Schaft Creek mineral property -- one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Based on a NI 43-101 compliant resource estimate prepared June 22, 2007 by Associated Geosciences Ltd, the Measured and Indicated resource at Schaft Creek is 1.393 billion tonnes averaging 0.25% copper (7.7 billion pounds), 0.18 gpt gold (8.1 million ounces), 0.019% molybdenum (584 million pounds) and 1.55 gpt silver (69.4 million ounces) at a 0.20% copper equivalent ("CuEq") cutoff. The company is evaluating the feasibility of developing an open pit mine with a minimum capacity of 65,000 tonnes per day with a mine life of 35 years. Should the availability of power for this area increase, a + 100,000-tonne-per-day open pit mining operation will be considered. Copper Fox holds the property pursuant to an option agreement with Teck Cominco Limited whereby Copper Fox may acquire up to a 93.4% direct and indirect interest in the property. Title to the property is in good standing before the BC Government until 2015. Copper Fox has delivered notice to Teck Cominco that it has surpassed the $15,000,000 threshold of qualifying expenditures to earn a direct 70% interest in Schaft Creek.
Schaft Creek is located in northwestern British Columbia, Canada, which is considered to have a stable socio-political environment. This area is often referred to as the "Gold/Copper Belt" and includes deposits such as Galore Creek, and Red Chris. Copper Fox is in the environmental assessment process required by the British Columbia and Canadian Governments for project
permitting and is consulting with the Tahltan Nation on the project development. To date, the Company has completed approximately 6,000 meters of its 2007 season drilling program designed in part to provide geotechnical data to prepare the mine plan and also to explore additional areas of interest.
Guillermo Salazar S. P.Geol. is the internal qualified person for Copper Fox and has reviewed this News Release.
On behalf of the Board of Directors
Guillermo Salazar S, President & CEO
The pit optimization survey has been prepared under the guidance of Guillermo Salazar, president and CEO of Copper Fox Metals, who is designated as a Qualified Person with the ability and authority to verify the authenticity of and validity of this data. The pit optimization survey was produced by Jim Gray of Moose Mountain Technical Services Inc. Calgary, Alberta. The TSX Venture Exchange has not reviewed the *******s of this news release and accepts no responsibility for the adequacy or the accuracy thereof.
This news release includes "forward-looking information" within the meaning of the Canadian securities laws. Statements, other than statements of historical fact, may constitute forward-looking information and include, without limitation: anticipated timing and ******* of upcoming work programs, geological interpretations, and potential mineral recovery processes; anticipated dates for receipt of permits, approvals and other milestones; anticipated results of drilling programs, scoping and feasibility studies and other analyses; future production, operating and capital costs; and operating or financial performance. Information concerning mineral reserve and resource estimates also may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined. For any forward-looking information given, management has assumed that the assay results it has received are reliable, and has applied geological interpretation methodologies which are consistent with industry standards. Forward-looking information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from management's expectations include: fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for co-operation of government agencies in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the Company's other filings with Canadian securities regulatory authorities at The forward-looking information in this news release is based on management's current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law.

مواضيع مماثلة