TORONTO (miningweekly.com) – TSX-V-listed junior Copper Fox has created a new subsidiary Desert Fox Copper to be the main operating vehicle responsible for acquisitions, exploration and development activities on the Van Dyke copper deposit and the Sombrero Butte copper project, in Arizona.

This followed joint venture (JV) partner Teck Resources assuming operatorship of the Schaft Creek project, in British Columbia, reducing the company’s level of activity at the project.

Teck and Copper Fox in July announced that they had formed a JV to further explore and develop the Schaft Creek polymetallic project, in which Teck would hold a 75% interest and become the operator of the project, with Copper Fox owning the remaining 25%.

As a result of the JV agreement that would see Teck pay a total of $60-million in three payments, including $20-million upon signing the agreement, $20-million upon a production decision and $20-million upon the completion of the mine, Copper Fox had determined to return capital to shareholders at a rate of $0.0275 a share to shareholders of record on August 20.

In general terms, a return of capital is not included in income by shareholders but does reduce the cost of a share for income tax purposes.

Copper Fox said its management and personnel had now been assigned to Desert Fox to support Desert Fox's new role as the main operating vehicle for the company, realigning overhead and providing savings and cost efficiencies.

Desert Fox planned to immediately start work on its Van Dyke and Sombrero Butte copper projects. Activities would include compiling and reviewing more than 6 000 boxes of core and samples from 72 drill holes, diamond drilling, environmental and geotechnical studies on the Van Dyke copper deposit and a surface and geophysical exploration programme on the Sombrero Butte project.

Copper Fox also said its new subsidiary would acquire and invest in advanced polymetallic copper projects within North America to take advantage of “unprecedented current market value opportunities”.

“The formation of Desert Fox provides maximum flexibility to Copper Fox in determining its future dealings with its 25% interest in the Schaft Creek JV, and segregating internal operating activities and costs to Desert Fox. Through Desert Fox, we want to take advantage of the market opportunities now available, to actively pursue investment in and the acquisition of advanced polymetallic copper projects located in North America,” president Elmer Stewart said.

The 4.45 km² Van Dyke project is located in the Globe-Miami mining district, 1 448 km east of Phoenix, Arizona. In the early 1900s, a shaft was sunk to a depth of 515 m and the mine was reported to have produced 11.8-million pounds of copper between 1929 and 1945 from copper oxide mineralisation at a reported grade of 5% copper.

Between 1968 and 1973, Occidental Minerals and a number of other companies drilled 70 exploration holes, 62 of which encountered measureable copper mineralisation on the Van Dyke property, of which 46 holes were used to complete a noncompliant historical estimate of 112-million tons at a grade of 0.52% copper, estimated to contain 1.2-billion pounds of copper.