Airborne Magnetic Survey On The Sombrero Butte Project

CALGARY - Copper Fox Metals Inc. and its wholly owned subsidiary, Desert Fox Copper Inc., reported an update of compilation work and exploration plans for its 100% owned Sombrero Butte porphyry copper project located approximately 70 kilometers (kms) northeast of Tucson, Arizona.

The Sombrero Butte property is located approximately 3 kms south of the Copper Creek porphyry copper deposit. This deposit is hosted in the Copper Creek granodiorite and is characterized by an abundance of mineralized breccia pipes exposed in outcrop overlying the porphyry deposit. These breccia pipes are a significant geological feature of this and other porphyry copper deposits and mines throughout Arizona.

The Sombrero Butte project covers the southern portion of the Copper Creek granodiorite intrusive. Historical surface exploration and diamond drilling (2006 to 2008) combined with the chargeability/resistivity survey completed by Copper Fox in 2015 has identified two, large Laramide age porphyry copper exploration targets based on the Copper Creek deposit exploration model.

Target #1 covers the area of historical mining activities and is characterized by a swarm of mineralized breccia pipes in potassic and phyllic altered Copper Creek granodiorite overlying a 500 by 500 meter ('m') chargeability body at a depth of 400m below surface. Historical deep drilling in this area focussed on the mineralized breccia pipes.

The deepest zone of porphyry style mineralization within Target #1 was encountered in DDH SB-03 collared approximately 200m south of the identified chargeability body. This drill hole intersected a mineralized breccia pipe from 466 to 492m that returned a weighted average grade of 1.19% copper, 0.013% molybdenum, 0.08g/t gold and 4.83g/t silver.

The Copper Creek granodiorite below the mineralized breccia pipe from 500 to 610m contains stockwork style veins of quartz + K-feldspar + chalcopyrite and from 610 to 645m, the quartz + K-feldspar veins continue as thin, hairline veinlets containing minor chalcopyrite. The mineralized veins and veinlets in the Copper Creek granodiorite are associated with pervasive K-feldspar flooding and locally, with selvages of advanced argillic and phyllic alteration. The data suggests that DDH SB-03 intersected the outer edge of a mineralized porphyry system.

Target #2 is a near surface 2,000m long chargeability body characterized by copper-molybdenum mineralization in steep and shallow dipping veins and veinlets, mineralized breccia pipes and extensive goethite veining (after pyrite) in Copper Creek granodiorite and Glory Hole Volcanics displaying potassic, phyllic and advanced argillic alteration. The distribution of the mineralization, alteration and geometry of the chargeability body suggest a significant structural component present in Target #2.

The geometry and distribution of the chargeability component of the chargeability/resistivity signature suggests the "potassic core" (low chargeability <10 mrad/high resistivity) of a porphyry system transitioning outward to a broad zone of moderate chargeability (10-30mrad) "phyllic alteration zone" and then to a wide zone of high chargeability (>30mrad) interpreted to be a "pyritic shell" commonly observed in porphyry copper systems. The compositional variations of the late stage intrusive dikes within this target is interpreted to represent the cupola of the porphyry system.

The drone/magnetic system consists of a GEM Systems GSMP-35UC UAV Potassium magnetometer onboard a battery operated DJI Matrice 600 Pro Hexacopter. GPS positions and total field intensity data are recorded continuously at 10 Hz which provides a sampling interval of approximately 0.5-meter data points along flight lines. Flight altitude will be set at 85m above ground level. A second magnetometer will record continuously at a fixed ground location to allow for diurnal corrections