Copper Fox Advances Feasibility Study and Reports 2011 Second Quarter Financial Results

Press Release Source: Copper Fox Metals Inc. On Wednesday June 29, 2011, 5:17 pm

VANCOUVER, June 29, 2011 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSXV:CUU.V) is pleased to provide an overview of the work completed during the quarter on the feasibility study of the Schaft Creek deposit and its 2011 second quarter financial results. During the quarter the Company spent an additional $1,798,235 towards completion of the feasibility study. The loss for the second quarter is ($2,378,649). Technical information contained in this news release was previously disseminated by way of news releases and posted on SEDAR at www.sedar.com and on the Company's website at www.copperfoxmetals.com.

Elmer Stewart, President & CEO, stated, "The 2011 field program is underway with two drills working on the Paramount zone testing the large chargeability anomaly under Mount LaCasse. The first hole successfully extended the copper mineralization associated with this chargeability anomaly an additional 125 metres ("m") to the east and the zone remains open. The airborne magnetic survey has not only better defined the targets contained within the Schaft Creek mineral trend, it also suggests that the Schaft Creek deposit could extend a considerable distance to the south. Work on the outstanding sections of the feasibility study is expected to increase substantially over the next few months with an expected delivery date in the fourth quarter 2011.

Quarterly Highlights
During the quarter, Copper Fox's activities focused on completion of the resources estimation, the airborne magnetic survey and finalizing various aspects of the 2011 field program. Due to the delay in completing the resource estimation a number of major components of the feasibility study are behind schedule. Highlights for activities of the Company to date are:

* Copper Fox has received from AMEC Americas Limited the tables setting out at various copper cutoff grades the tonnes and average metal grades in each resource category for the Updated Resource Estimate and Block Model. Copper Fox is currently reviewing the data with a view of releasing the results of the Updated Resource Estimate as soon as possible.

* The airborne magnetic survey has identified an area of "exploration interest" located within the Schaft Creek property that measures 20 kms long by 4 kms wide that includes the Schaft Creek deposit and the ES and GK zones of copper mineralization each of which exhibits a distinct positive magnetic signature.

* The airborne magnetic signature over the Schaft Creek deposit correlates well with the Quantec Titan-24 DCIP and MT survey results (see news release dated November 16, 2010) and suggests that the Schaft Creek deposit could extend for an additional 1,000 m to the south.

* Diamond drill DDHCF407-2011 located in the Paramount zone has extended the zone of copper mineralization an additional 125 m to the east. This hole intersected visible copper mineralization (chalcopyrite and bornite) from the start of bedrock at 5.3 m to a depth of 653 m. Visible molybdenite mineralization occurs sporadically throughout the core length in quartz veinlets, along shear planes and in some instances with the bornite-chalcopyrite mineralization.

The reader is cautioned that visible copper and molybdenite mineralization does not necessarily equate to significant concentrations of either copper or molybdenum and there is no assurance that the assay results of the samples from this drill hole will yield significant copper or molybdenum grades.

Operating Activities:
To the end of April 2011, Copper Fox incurred approximately $59.7 million (excluding $2.88 million in new property acquisitions) that qualify as applicable expenditures pursuant to the Option Agreement with Teck Resources Limited on the Schaft Creek property. An overview of the components of the feasibility study completed during the quarter is set out below.

A small amount of work was completed by Wardrop, a Tetra Tech Company, the main contractor for the feasibility study, Knight Piésold Ltd. and Stantec Consulting Ltd. on the feasibility study during the quarter. On receipt of the resource estimate from AMEC Americas Limited, all three contractors are scheduled to significantly increase their work on the feasibility study with an expected time of completion during the fourth quarter 2011.

During the quarter, Copper Fox raised an additional $6,567,349 in cash by way of a private placement and exercise of outstanding warrants and options.

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