Copper Fox Metals plans PEA update for Van Dyke

Executive Summary

• Copper Fox Metals Inc. announced its strategy to advance the 100%-owned Van Dyke in situ copper recovery (ISCR) project in Arizona to the Prefeasibility Study (PFS) stage.
• The company plans to update its 2020 Preliminary Economic Assessment (PEA) by incorporating technical studies completed since 2021, including updated capital/operating costs and economic models based on consensus long-term copper pricing.
• The update aims to optimize the timeline, activities, and estimated costs for the execution plan, with the company currently exploring non-dilutive funding options prior to initiating PFS-level activities.

Key Details

• Project Location & Ownership: Van Dyke ISCR project, Globe-Miami mining district, Gila County, Arizona; 100% owned by Copper Fox Metals Inc.
• Strategic Goal: Advance project from 2020 PEA stage to PFS stage to optimize execution plan.
• PEA Update Scope:
  • Incorporate results of technical studies completed since 2021.
  • Update capital, operating, and sustaining costs.
  • Update pretax and posttax economic models using consensus long-term copper pricing.
  • Conduct project economic sensitivity analysis to copper price.
• 2020 PEA Highlights (Baseline Data):
  • Production: 85 million pounds of Grade A, 99.99% pure copper cathode per year over a 17-year mine life.
  • Total Production: 1.1 billion pounds life-of-mine (LOM).
  • Economics (at $3.15/lb Cu):
    • Base-case post-tax NPV (7.5% discount): $644.7 million.
    • Internal Rate of Return (IRR): 43.4%.
    • Payback Period: 2.1 years.
    • LOM Net Free Cash Flow: $1.76 billion (pretax) / $1.44 billion (posttax).
  • Costs:
    • Initial Capital Expenditure: $290.5 million (includes 30% contingency).
    • LOM Direct Operating Cost: 71 U.S. cents per pound.
    • Sustaining Costs: 7 U.S. cents per pound.
    • C1 Cost: 98 U.S. cents per pound.
    • AISC: $1.14 per pound.
• Recent Technical Studies (Post-2021):
  • Established four hydrogeological monitoring stations and initiated water quality sampling.
  • Updated conceptual hydrogeological, geometallurgical, geological, structural, and mineralogical models.
  • Preliminary characterization of copper mineralogy in oxide and transition domains.
  • Preliminary characterization of copper mineralization, gangue, and host rock to mitigate leaching issues.
  • Geotechnical study of Gila conglomerate rock strength.
  • Infrastructure reviews to minimize environmental/social disturbance.
  • Execution plan outlining activities, costs, timeline, and permitting for PFS.
• Current Activities:
  • Initiating permitting process with Town of Miami for future diamond drilling.
  • Completing preliminary groundwater flow model to optimize hydrogeological recommendations and potentially locate additional monitoring stations.
  • Continuing community outreach, quarterly water sampling, and hydrogeological data collection.
• Regulatory Context: Copper recently designated as a critical mineral by the U.S. Geological Survey, highlighting demand for sustainable domestic copper projects.
• Qualified Person: Elmer B. Stewart, MSc, PGeol, President and CEO.

Notable Quotes

• "Copper Fox is focused on restarting copper production from the historic Van Dyke mine in Arizona employing responsible mining technologies, practices and utilizing ISCR methodology... The results of the PEA could optimize the timeline, activities and estimated cost of the execution plan prepared to advance the project to the prefeasibility study (PFS) stage. We look forward to delivering on this next milestone and are exploring available options for non-dilutive funding prior to initiating the PFS-level activities." — Elmer B. Stewart, President and CEO