Ewversiondddradrfdraftdtd Copper Fox Provides Update ON the Preliminary Economic Assessment FOR Van Dyke
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COPPER FOX PROVIDES UPDATE ON THE
PRELIMINARY ECONOMIC ASSESSMENT FOR VAN DYKE
Calgary, Alberta – October 7, 2020 Copper Fox Metals Inc. (“Copper Fox” or the “Company”) (TSX -V:
CUU) and its wholly ow ned subsidiary Desert Fox Copper Inc . (“ Desert Fox ”) are pleased to provide a
progress report on the preparation of the Preliminary Economic Assessment (“PEA”) on its 100% owned Van
Dyke oxide copper project. Moose Mountain Technical Services (“MMTS”) is managing preparation of the
PEA to assess and review the following components.
- Quantify the impact on project economics based on the increased soluble copper content and copper
recovery factor established in the 2020 Resource Estimate
- Mine plan updates
- Well field re-design and layout
- Metallurgical recovery/process flowsheet design
- Operating, capital and sustaining costs and the conceptual plan on timeline, development, and
operations
- Preparation of a pre-tax and post tax cash flow analysis
Elmer B. Stewart, President and CEO of C opper Fox, stated, “Our focus during preparation of the PEA will be
to work with the engineering companies to identify, assess and eliminate potential bottlenecks to enhance value.
The impact on the potential to increase mine life and life of m ine copper production based on the positive
results outlined in the 2020 Resource Estimate need to be quantified. With the underground access plan having
been completed, work has commenced on the well field layout and expected copper production. Once the PEA
has been completed, a path forward for the project can be determined.”
The PEA is conceptual in nature and is being completed at an order of magnitude (plus or minus 35 per cent)
comparable with a preliminary economic assessment level of study.
Background to the Updated PEA
In 2015, Copper Fox completed a PEA for Van Dyke that returned a post -tax NPV8 of C$209 million and an
Internal Rate of return of 27.9% (see News Release dated N ovember 25, 2015) based on an Inferred Resource
of 183.1 million tonnes grading 0.20% soluble copper (containing 797 million pounds of soluble copper) and a
US$3.00/lb copper price.
In 2020, Copper Fox filed on SEDAR a National Instrument 43 -101 (“NI 43-101”) T echnical Report titled
“Technical Re port and Updated Resource Estimate for the V an Dyke Copper Project” dated May 4, 2020
prepared by MMTS with an effective date of January 9, 2020. H ighlights of the 2020 Resource Estimate are
(see News Release dated March 25, 2020):
1) Indicated Resource: 97.6 million tonnes, grading 0.24% RecCu containing 517 million pounds of
soluble copper.
2) Inferred Resource: 168.0 million tonnes, grading 0.19% RecCu containing 699 million pounds of
soluble copper.
3) The deposit is amenable to recovery using In-Situ Copper Recovery (“ISCR”) with an estimated
metallurgical recovery of 90%.
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2020 PEA
Mine Plan:
The 2020 mine plan has been completed using smaller dimensions for the main access ramp and declines and a staged
development to reduce and defer capital costs. Stage 1 envisions a main access ramp to the top of the deposit and a
decline following the Gila/Pinal Schist contact to allow early acce ss to the higher-grade portions of the deposit .
This approach is expected to reduce the to tal volume of underground development and results in shorter
injection/recovery wells. Stage 2 is expected to commence toward the end of Stage 1 to access the lower grade
portion of the deposit for well field installation and production.
Block Modelling:
To support mine planning, a Net Smelter Return (“NSR”) Isopach map was generated using the resource blocks set
out in the 2020 resource update to identify higher grade areas of the deposit from which to commence operations. The
NSR for the blocks was calculated using the following equation:
NSR = (RECCU X 3.15 X 22.0462) X ECON%/100/0.77 – (RECCU X 3.15 X 22.0462) X QT%/100/0.77 X 0.625
Copper price $US3.15/lb.; FOREX $CDN:$US 0.77:1.00; RECCU = total recoverable copper; ECON% = Percent of the block within the
“reasonable prospects of eventual economic extraction” resource; QT% = Percent of the block within the Quiet Title area
To generate the Isopach, the NSR values are summed vertically and multiplied by the total tonnes per block for
a column of blocks within the deposit. The higher-grade areas of the deposit occur around the historical Van Dyke
shaft and in the north central portion of the deposit. The Stage 1 mine plan accesses these zones to increase copper
production in the early stage of the project to accelerate capital recovery.
Well Field Design/Copper Recovery Plan:
With completion of the mine plan and NSR Isopach map, preparation, and design of the injection/recovery well layout
and conceptual copper production schedule has commenced. The well field layout, while still preliminary in nature, is
scaled to match other ISCR projects in Arizona with a well spacing equivalent to 22m (70ft) for a well density
of 455m3/m of well length, within the mineralized zone.
Cost Estimation:
MMTS is in the process of obtaining costs estimates from suppliers for the various components of the mine and
surface facilities. The general strategy for cost estimation is to o btain costs updates from
contractors/consultants where possible. When an update is not available; industry standard inflation factors will
be applied where necessary to comparable projects.
The PEA is managed by MMTS with supporting services provided by Ausenco Engin eering Canada Inc .
(metallurgical test work/process design), Piteau Associates (well field development/installation), Knight Piésold
(rock mechanics/geotechnical), and Ray Huff and Associates (oversite on well field and copper recovery).
Elmer B. Stewart, M Sc. P. Geol., President of Copper Fox, is the Corporation’s nominated Qualifi ed Person
pursuant to National Instrument 43 -101, Standards for Disclo sure for Mineral Projects, has reviewed and
approved the technical information disclosed in this news release.
About Copper Fox
Copper Fox is a Tier 1 Canadian resource company listed o n the TSX Venture Exchange (TSX -V: CUU)
focused on copper exploration and devel opment i n 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 Columbia and a 100%
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ownership of the Van Dyke oxide copper proj ect located in Miami, Arizona. For more information on Copper
Fox’s other mineral properties and investments visit the Company’s website at www.copperfoxmetals.com.
On behalf of the Board of Directors
Elmer B. Stewart
President and Chief Executive Officer
For additional information contact Lynn Ball at:
[email protected] (844) 464-2820 or (403) 264-2820
Neither TSX Venture Exchange nor its Regulation Services Provider (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 “forw ard-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” , “foreca sts”, “projects ” a nd similar
expressions, and the negative of such expressions. Forward-looking information in this news release inc ludes,
but is not limited to; progress on the preparation of the 2020 PEA; the objective of the 2020 PEA; the results of
the 2020 Resource Estimate; and statements about Co pper Fox’s s trategy, future operations, prospects and the
plans of management.
In connectio n with the f orward-looking infor mation contained in this news release, Copper Fox and its
subsidiaries h ave made numerous assumptions . While Copper Fox considers t hese assumpt ions to be
reasonable, these assumptions are inherently subject to significant u ncertainties and contingencies.
Additionally, there are known and unknown ri sk factor s w hich could c ause Copper Fox’s actual results,
performance, or achievements to be materi ally different from any future results, performance or achievem ents
expressed or implied by the forward-looking information contained herein. Known risk fac tors include, among
others: the PEA may not be completed as pla nned or at all; t he results of the P EA may indicate that the Van
Dyke projec t may not have any economic value; uncertainties relating to the interpretation of previous drill
results, geology, continui ty, grade, metallurgical test work and metal recovery rates; t he need to obtain
additional financing and uncertainty of meeting ant icipated program milesto nes; and uncertainty as to time ly
availability of permits and other governmental approvals ; fluctuations in copper prices and demand; currency
exchange rates; cond itions in the financial m arkets and the overall eco nomy may continue to deteriorate . A
more complete disc ussion of the ris ks 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 entirety by this cautionary s tatement, and Copper Fox
disclaims any obligation to revise or update any such forward-looking information or to publicly announ ce the
result of any revisions to any of the forward -looking information con tained herein to reflect future results,
events or developments, except as required by law.