Copper Fox Announces Updated Mineral Resource Estimate FOR the Van Dyke Project
COPPER FOX ANNOUNCES UPDATED MINERAL RESOURCE ESTIMATE
FOR THE VAN DYKE PROJECT
Calgary, Alberta– March 25, 2020. Copper Fox Metals Inc. (“Copper Fox” or the “Company”) (TSX-V: CUU
– OTC: CPFXF) and its wholly owned subsidiary Desert Fox Copper Inc. (“Desert Fox”) are pleased to provide
its shareholders with the results of a resource estimate completed in accordance with National Instrument 43-101
(“NI 43-101”) for the Van Dyke copper project located in the Globe-Miami Mining District, Arizona. The resource
estimate was prepared by Moose Mountain Technical Services (“MMTS”). The NI 43-101 technical report
disclosing the resource estimate will be filed on SEDAR within 45 days. This news release reports Total Recovered
Soluble Copper (“RecCu”) using a 90% recovery for Acid Soluble Copper (“ASCu”) and variable recovery for
Cyanide Soluble Copper (“CNCu”).
Highlights:
1) Indicated Resource: 97.6 million tonnes , grading 0.33% total copper and 0.24% RecCu containing 717
million pounds of total copper and 517 million pounds of recoverable soluble copper;
2) Inferred Resource: 168.0 million tonnes, grading 0.27% total copper and 0.19% RecCu containing 1.0 billion
pounds of total copper and 699 million pounds of recoverable soluble copper;
3) The 2019 re-assay program and updated geologic interpretation resulted in a significant increase in contained
soluble copper within the Van Dyke copper deposit compared to the 2015 resource estimate; and
4) The mineralized envelope of the Van Dyke copper deposit is open to the south and southwest.
Elmer B. Stewart, President and CEO of Copper Fox stated, “The 2019 work program has increased the confidence
level in the project resources and significantly increased the recoverable soluble copper content of the Van Dyke
deposit. The 2019 review of historical exploration data combined with the current resource estimation, indicates
the deposit could be open to the south and southwest with a possible strike extension of between 1 and 2 kms .
Additional drilling will be required to realize this potential and to define the un-explored portions of the Van Dyke
deposit.”
Resource Estimate
The effective date of the updated mineral resource estimate is January 9, 2020. Mineral resources are estimated
within both a 0.025% RecCu grade shell and a “reasonable prospects for eventual economic extraction” shape. The
mineral resources are estimated using criteria consistent with the CIM Definition Standards (201 4) and the “CIM
Estimation of Mineral Resources and Reserves Best Practice Guidelines” (2019).
The Indicated and Inferred mineral resources at the Base Case cutoff (0.025% RecCu) for the Van Dyke
deposit are reported in Table 1 which includes internal dilution or all “must take” material within the
confining shape . Table 1 also summarizes the 2015 Van Dyke resource estimate reported in the
Preliminary Economic Assessment (“PEA”) completed in 2015 for comparison. This table shows an
Indicated resource an increase in overall tonnage, an increase in the RecCu grade and an increase in RecCu
metal for the current resource. These changes are due to the 2019 re-assay program, updated geology,
and updated metallurgical review and analyses. The resource Qualified Person (“QP”) is not aware of any
environmental, permitting, legal, title, taxation, socio -economic, marketing, political, or other relevant
factors that could materially affect the Mineral Resource estimate for the Van Dyke deposit.
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Table 1: Base Case Current Resource Estimate and Comparison to 2015 Resource
Metal (Mlbs)
Class Tonnes TCu
(%)
ASCu
(%)
CNCu
(%) RecCu (%) Recovery
(%)
Soluble
Cu Total Cu
Indicated 97,637 0.33 0.23 0.04 0.24 90 517 717
Inferred 168,026 0.27 0.17 0.04 0.19 90 699 1,007
2015 PEA:
Indicated 0 0 0 0 0 0 0 0
Inferred 190,669 0.32 0.19 na 0.19 60 802 1,333
(%)= percent, TCu=total copper, Soluble Cu=estimated pounds of recoverable copper, Mlbs=million pounds
1. Sue Bird, P.Eng., an employee of Moose Mountain Technical Services, is the Qualified Person for the Mineral Resource estimate.
2. The Effective Date of the above estimate is Jan. 9, 2020.
3. The “reasonable prospects for eventual economic extraction” shape has been created based on a copper price of US$2.80/lb,
employment of in-situ leach extraction methods, processing costs of US$0.60/lb copper, and all in operating and sustaining costs of
$US1.25/tonne, a recovery of 90% for total soluble copper and an average Specific Gravity of 2.6t/m3.
4. Approximate drill-hole spacings is 80m for Indicated Mineral Resources
5. The average dip of the deposit within the Indicated and Inferred Mineral Resource outlines is 20 degrees. Vertical thickness of the
mineralized envelope ranges from 40m to over 200m.
6. Rounding as required by Best Practices established by the CIM reporting guidelines may result in slight apparent differences between
tonnes, grade and contained metal content.
Acid soluble copper (“ASCu”) and Cyanide soluble copper (“CNCu”) grades were used in estimating the total
soluble copper (“TSCu”) contained within the resource estimate. The cyanide soluble portion represents a small
fraction of the copper mineralization and the metallurgical testwork completed in 2015, shows that a percentage of
the CNCu (mainly chalcocite) reports to an acid leach.
Cautionary Note to Investors
While the terms “measured (mineral) resource”, “indicated (mineral) resource” and “inferred (mineral) resource”
are recognized and required by National Instrument 43 -101 – Standards of Disclosure for Mineral Projects ,
investors are cautioned that except fo r that portion of mineral resources classified as mineral reserves, mineral
resources do not have demonstrated economic viability. Investors are cautioned not to assume that all or any part
of measured or indicated mineral resources will ever be upgraded into mineral reserves. Additionally, investors are
cautioned that inferred mineral resources have a high degree of uncertainty as to their existence, as to whether they
can be economically or legally mined, or will ever be upgraded to a higher category.
United States investors are advised that current Mineral Resources are not current Mineral Reserves and do
not have demonstrated economic viability.
Resource Estimate Methodology
Drill Hole Database
The resource estimate was completed using data from 38 historic drill holes, historic channel sampling from
underground workings on three levels, re-assays of historical drill core and drill core pulps, analytical results from
the 2015 metallurgical testwork and data from 6 drill holes completed in 2014. The total length of core sampled is
13,781.3m from drilling and 1,424m from historic underground channel sampling.
Geologic Model
The Van Dyke copper deposit is an oxidized portion of a porphyry copper deposit that has been subjected to several
weathering/oxidization/enrichment cycles. The copper mineralization at Van Dyke is hosted in altered and
weathered Precambrian age Pinal Schist and Laramide age dikes related to the Schultz granodiorite. A “leach cap”
overlies the main mineralogical zones mapped within the deposit which are, in descending order, Oxide (malachite,
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chrysocolla, azurite), Supergene (chalcocite), and Hypogene (chalcopyrite). The geology of the deposit has been
interpreted on 23 north-south sections and on 15 east-west sections. Grade m odelling and definition of the
mineralized shapes is in three dimension using data from 20 east-west sections. The Van Dyke fault has been
modelled to constrain the mineralization to the north. The mineralization remains open to the south and southwest
consistent with the 2014 and 2015 interpretations.
Solids of recoverable copper mineralization were created and used to code the assays, composites and the three -
dimensional block model. Surfaces of the faults have been used to create domain boundaries and used to code the
assay, composite and block model. The block model has been created to encompass all of the drill holes and channel
samples available, within 30mx30mx10m (vertical) blocks.
Wireframes used to model the deposit to demonstrate a reasonable prospect of eventual economic extraction were
prepared for the total soluble copper (ASCu + CNCu) mineralization based on a 0.0 25% TSCu grade shell. The
shapes created by Lersch-Grossman optimization software used the following parameters:
• Total recoverable copper = (soluble copper) X Total recovery, where soluble copper =ASCu + CNCu
• Copper price =$US2.80/lb.
• Processing costs =$US0.60/lb. within the leach shape
• Operating costs = $US1.25/tonne operating and sustaining capital estimate
• Specific Gravity = 2.60.
Sensitivity to Mining Cost was run for costs up to $2.80 /tonne with little difference in the confining shape.
Density measurements for the mineralized intervals ranged from 2.29 to 3.55 and averaged 2.60t/M3.
Grade Capping and Compositing
Statistical analyses of the drill hole assay data indicated that capping was required to manage the outliers in the
sample population. Grades that exceeded the cap values given in Table 2 below have been assigned the cap value.
The drill holes were composited to 5m fixed length composites that honored the domain boundaries. Separate
domains have been created for the deposit and the underground mine zone within the 0.025% RecCu grade shell.
The table below; summarizing the capping of assays completed prior to compositing and is based on cumulative
probability plots.
Table 2: Capping Value for Assays
Cap Value
Domain Item DHS UG
TCu (%) 10 1
1 ASCu (%) na na
CNCu (%) 1.2 na
TCu (%) 2 12
2 ASCu (%) 3 na
CNCu (%) 3 na
DHS=drill holes, UG=Underground
Interpolation
Interpolation has been completed using Ordinary Kriging (“OK”) within the interpreted 0.025% RecCu grade shell.
Interpolation of the RecCu grade into blocks has been restricted to match the Domain of the blocks with the
composite codes.
Table 3 below is a summary of the variogram parameters used for OK with the ranges used to assist in search
ellipses during interpolation. Interpolation was completed in 5 passes with the search parameters relaxed for each
pass.
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Table 3: Variogram Parameters
Rotation Total Range 1 Range 2 Range 3
Domain
GSLIB-
MS Axis
Range
(ft) Nugget Sill 1 Sill 2 Sill 3 (m) (m) (m)
Rot/115 Major 210 30 180 210
TCu DipN/-20 Minor 170 0.1 0.4 0.3 0.2 25 60 170
DipE/-10 Vertical 70 20 50 70
Rot/115 Major 190 100 190
ASCu DipN/-5 Minor 150 0.1 0.3 0.6 50 150
DipE/-10 Vertical 60 8 60
Rot/0 Major 210 30 140 210
CNCu Rot/0 Minor 210 0.1 0.3 0.1 0.4 30 140 210
Rot/0 Vertical 80 20 25 80
Block Model Validation
The model was validated through comparisons of grades, grade distribution and tonnage -grade curves of the OK
grades with the de -clustered composites (Nearest Neighbour interpolation). The Nearest Neighbour estimate has
been corrected for the Volume-Variance effected by the Indirect Lognormal method. Comparisons of the different
estimation techniques (Ordinary Kriging and Nearest Neighbor) show similar statistics and spatial distribution.
Qualified Person
Ms. Sue Bird – P. Eng., (resource estimate) of MMTS is the Qualified Person (“QP”) who prepared the mineral
resource estimate, T. Meintjes – P.Eng., of MMTS is the QP who completed the metallurgical review and analyses
and R. Lane – P. Geo., of MMTS is the QP who compiled and reviewed the QA/QC for the resource estimate
disclosed in this news release. Ms. Bird, as the Qualified Person, has approved the scientific and technical content
of this news release. Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Company’s nominated
Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, has
reviewed the scientific and technical information disclosed in this news release. Mr. Stewart is not independent of
Copper Fox.
About Copper Fox
Copper Fox is a Tier 1 Canadian resource company listed on the TSX Venture Exchange (TSX -V: CUU) focused
on copper exploration and development in Canada and the United States. The principal assets of Copper Fox and
its wholly owned Canadian and United States subsidiaries, being Northern Fox Copper Inc. and Desert Fox Copper
Inc., are the 25% interest in the Schaft Creek Joint Venture with Teck Resources Limited on the Schaft Creek
copper-gold-molybdenum-silver project located in northwestern British Columb ia and a 100% ownership of the
Van Dyke oxide copper project located in Miami, Arizona. For more information on Copper Fox’s other mineral
properties and investments visit the Company’s website at http://www.copperfoxmetals.com.
For additional information contact: Investor line 1-844-464-2820 or Lynn Ball, at 1-403-264-2820.
On behalf of the Board of Directors
Elmer B. Stewart
President and Chief Executive Officer
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Neither TSX Venture Exchange nor its Regulation Services Provi der (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward -looking information” within the meaning of the Canadian securities laws. Forward -
looking information is generally identifiable by use of the words “believes,” “may,” “plans,” “will,” “anticipates,” “intends ,”
“budgets”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such
expressions. Forward-looking information in this news release include statements about the mineral resource estimate for the
Van Dyke project; the completion and filing of a National Instrument 43-101 technical report related to the Van Dyke mineral
resource estimate; potential existence and size of mineralization within the Van Dyke project; additional drilling at the Van
Dyke project; and geological interpretations and potential mineral recovery processes. Information concerning mineral
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.
In connection with the forward-looking information contained in this news release, Copper Fox and its subsidiaries have made
numerous assumptions , regarding, among other things: th e geological, metallurgical, engineering, financial and economic
advice that Copp er Fox has received is reliable and is based upon practices and methodologies which are consistent with
industry standards. While Copper Fox considers these assumptions to be reasonable, these assumptions are inhe rently subject
to significant uncertainties and contingencies.
Additionally, there are known and unknown risk factors which could cause Copper Fox’s actual results, performance or
achievements to be materially different from any future results, performance or achievements expressed or implied by the
forward-looking information contained herein. Known risk factors include, among others: the actual mineralization in the Van
Dyke deposit may not be as favorable as suggested by the resource estimate; the NI 43 -101 technical report that includes the
resource estimate may not be filed within the anticipated timeframe, or at all; fluctuations in copper and other commodity prices
and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of
mineral deposits; unc ertainty of estimates of capital and operating costs, recovery rates, and estimated economic return; the
need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financin g;
the possibility of dela y 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
A more complete discussion of the risks and uncertainties facing Copper Fox is disclosed in Copper Fox's continuous disclosure
filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified
in its en tirety by this cautionary statement, and Copper Fox disclaims any obligation to revise or update any such forward -
looking information or to publicly announce the result of any revisions to any of the forward -looking information contained
herein to reflect future results, events or developments, except as required by law.