is a Canadian based resource company with a Tier 1 listing on the TSX-Venture Exchange (TSX-V: CUU). The Company is focused on the exploration and development of large, low-cost porphyry copper-gold projects in Canada and the United States. Copper Fox's wholly owned subsidiaries are Desert Fox Copper Inc. ("Desert Fox") and Northern Fox Copper Inc. ("Northern Fox"). Desert Fox holds all the assets of Copper Fox located in the United States and Northern Fox owns 60.4% of the common shares of Carmax Mining Corp. ("Carmax").
Copper Fox's assets are:
- 25% carried interest in the Schaft Creek Joint Venture ("SCJV") with Teck Resources Limited ("Teck") on the Schaft Creek copper-gold-molybdenum-silver project - British Columbia,
- 100% ownership of the Van Dyke oxide copper deposit - Miami, Arizona,
- 100% ownership of the Sombrero Butte copper project - Mammoth, Arizona,
- 100% ownership of the Mineral Mountain copper project - Florence, Arizona, and
- 60.4% of the common shares of Carmax who in turn own 100% of the Eaglehead copper-molybdenum-gold project - British Columbia.
In Judy 2013, Copper Fox and Teck created the Schaft Creek Joint Venture ("SCJV") to further explore and develop the Schaft Creek project. Under the SCJV agreement, Teck is required to make three cash milestone payments to Copper Fox: (i) $20 million on entering into the agreement (received), (ii) $20 million upon a Production Decision approving mine construction, and (iii) $20 million upon completion of construction of mine facilities.
The SCJV agreement provides that Teck and Copper Fox are each responsible for their pro-rata share of project costs, except that Teck is solely responsible for the first $60 million in pre-production costs. If pre-production costs exceed $60 million, Copper Fox's pro-rata share of such costs will be set off against the two remaining cash milestone payments (totaling $40 million) payable by Teck to Copper Fox. If pre-production costs exhaust the two cash milestone payments, Teck will further assist Copper Fox by providing loans, accruing interest at Prime Rate plus 2%, as necessary, without dilution to Copper Fox's 25% joint venture interest.
Once a production decision has been made, Teck will make an irrevocable offer to Copper Fox:
- to use all reasonable commercial efforts to arrange project equity and debt financing for at least 60% of project capital costs or such portion as Teck determines is commercially available on reasonable terms at the relevent time; and
- to fund by way of loans to Copper Fox, Copper Fox's pro-rata share of project capital costs not covered by project debt financing, if requested by Copper Fox, without dilution to the Company's 25% joint venture interest.
Copper Fox must notify Teck within 60 days after Teck's offer as to whether it accepts Teck's offer or whether it will arrange its own financing.
The SCJV holds two main assets:
- the Schaft Creek copper-gold-molybdenum-silver project, and
- 85.5% of the shares of Liard Copper Mines Ltd. ("Liard"). Liard holds a 30% Net Proceeds Interest (subject to certain terms and conditions) in the Schaft Creek deposit.
Copper Fox owns 1.55% of the shares of Liard that are not subject to the terms of the SCJV.
The Technical Report "Feasibility Study on the Schaft Creek Project, BC, Canada", with an Effective Date of January 23, 2013 was prepared for Copper Fox Metals Inc. by Tetra Tech, A. Farah, P.Eng.; et al as Qualified Persons; used a 0.15% CuEq cutt-off. Reserves reported at $6.60/tonne net smelter return ("NSR") cut-off.
The 2013 Technical Report considered the feasibility of a 130,000 tonne per day flotation/open pit mine with a Proven and Probable Reserve of 940.8 million tonnes grading 0.27% copper, 0.19 g/t gold, 0.018% molybdenum and 1.72 g/t silver; containing 5,611.7 million pounds of copper, 5.8 million ounces of gold, 363.5 million pounds of molybdenum and 51.7 million ounces of silver. The Feasibility Study contemplated yearly production of 105,000 tonnes of copper, 201,000 ounces gold, 10.2 million pounds of molybdenum and 1.2 million ounces silver over a 21-year mine life.
The 2013 Technical Report indicates that the Schaft Creek deposit hosts a combined Measured and Indicated Resource of 1,228.6 million tonnes grading 0.26% copper, 0.19 g/t gold, 0.017% molybdenum and 1.69 g/t silver. The deposit also contains an Inferred Resource of 597.2 million tonnes grading 0.22% copper, 0.17 g/t gold, 0.016% molybdenum and 1.65 g/t silver. The above stated Proven and Probable Reserves for the Schaft Creek project are included within the stated Measured and Indicated Resources for this project.
The 2013 Technical Report indicated a Base Case pre-tax Net Present Value ("NPV") using long-term metal prices and exchange rates and an 8% discount rate of $CDN513 million (Copper Fox share is $CDN128 million) and an Internal Rate of Return ('IRR') of 10.13% with a payback period of 6.5 years. The post-tax NPV using the same parameters was estimated to be $CDN67 million (Copper Fox share $CDN17 million). The study indicated that the NPV and IRR for the Schaft Creek project were most sensitive to fluctuations in the foreign exchange ("FOREX
") between the Canadian and United States dollar and the price of copper. The study used a FOREX of $1.00 US = $0.97 CAD.
Since the Effective Date of the 2013 Technical Report, the information, assumptions and projections utilized in the 2013 Technical Report have changed, some significantly. The impact of these changes on the economic analysis and conclusion of the Schaft Creek project contained in the Technical Report cannot be assessed at this time. Readers are cautioned that the Schaft Creek Joint Venture is currently undertaking a remodel of the resources on the Schaft Creek deposit. The results of the remodeling work on the Schaft Creek project may differ materially from the 2013 Technical Report. There is no assurance that the economic results, the reserves and resources and recommendations and conclusions set out in the 2013 Technical Report will be realized.
holds a 100% working interest in the Van Dyke, Sombrero Butte and Mineral Mountain projects all of which are located within the Laramide age porphyry copper belt in Arizona.
The Van Dyke
oxide copper project is located in the Globe-Miami Mining District in Arizona. Between 1968 and 1990 Occidental Minerals Corporation completed two successful (permitted) in-situ leach ("ISL") tests and Kocide Chemicals produced copper from the from the Van Dyke deposit using the ISL recovery method.
In November 2015, Copper Fox announced the results of a NI 43-101 Technical Report entitled Preliminary Economic Assessment Technical Report for the Van Dyke Copper Project. The Effective Date of the Technical Report is December 18, 2015 as amended May 19, 2017 was prepared for Copper Fox by Moose Mountain Technical Services, Mr. J. Gray, P.En.; et al as Qualified Persons.
The Preliminary Economic Assessment ("PEA") recommended that further engineering and geological work be completed leading to completion of a pre-feasibility study estimated to cost $US16.6 million.
The PEA suggests that Van Dyke is a technically sound ISL copper project, utilizing underground access and conventional solvent extraction and electrowinning ("SX-EW") recovery methods with low cash costs and strong cash flow. The pre-tax Net Present Value ("NPV") at an 8% discount rate was estimated to be $US213 million with and Internal Rate of Return ("IRR") of 35.5% and an after-tax NPV(8%) of $US149.5 million and an IRR of 27.9%.
The PEA is based on a long-term copper price of $US3.00/lb and includes an Inferred Mineral Resource of 183 million tonnes containing 1.33 billion pounds of copper at an average total copper ("TCu") grade of 0.332%. Mine life is estimated to be 11 years with annual copper production of 60 million pounds in years 1-6, declining thereafter. A soluble copper recovery of 68% and acid consumption of 1.5 lb acid/lb copper produced was used in the study. Direct operating costs were estimated to average $US0.60 per pound over the life of mine. The PEA forecasts a Gross Revenue of $US1.37 billion over the mine life, cumulative net free cash flow of $US453.1 million (before tax) and $US342.2 million (after tax). The Initial Capital Cost (on a new basis, including pre-production costs and $US42.4 million in contingencies) of $US204.4 million is expected to be recovered within 2.3 years on an after-tax basis. The project economics are most sensitive to copper recovery and copper price.
The results of the PEA are preliminary in nature as they include an Inferred Mineral Resource which is considered too speculative geologically to have the economic considerations that would enable them to be categorized as mineral reserves. There is no certainty that the PEA forecasts will be realized or that any of the resources will ever be upgraded to reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The main components of the pre-feasibility study include approximately 10,000m of additional diamond drilling to upgrade the current resource category and test the west and south extensions of the deposit (to expand the resource) as well as an eight hole ISL pilot test program to investigate among other things; soluble copper recoveries, hydraulic connectivity, hydrology and other geotechnical parameters related to in-situ leaching.
is a Laramide age porphyry copper project located approximately 2 miles south of the Copper Creek copper deposit.
The property is underlain by the same intrusive rocks that host the Copper Creek copper deposit. Two drill ready exploration targets have been established. The first target is a 4,000m long chargeability/resistivity anomaly with copper-molybdenite vein style mineralization and a significant number of mineralized breccia pipes in potassic altered granodiorite. Sampling of the drill cutting around the collars of two old drill holes believed to have been drilled in the late 1960's yielded 2,079 and 1,683 ppm copper. This target has not been drill tested.
The second target consists of a significant number of mineralized breccia pipes and a deep seated chargeability/resistivity anomaly. The 2015 Quantec geophysical survey mapped the downward extension of the mineralized breccia pipes to a large chargeability anomaly at depth. The mineralized breccia pipes are related to an evolving porphyry system based on metal associations and gangue minerals (i.e. tourmaline).
is a Laramide age copper project located within the same structural trend that hosts the Globe-Miami, Resolution, Florence and Casa Grande copper deposits. The property is located between the Florence copper deposit and the Resolution copper deposit in Arizona.
The project is underlain by Precambrian age Pinal Schist, diabase and granite intruded by Laramide age quartz monzonite, granodiorite and hornblende dacite dikes. A 1,100m by 900m (open in two directions) zone of porphyry style copper-molybdenum-gold mineralization hosted in a potassic altered Laramide age Quartz Monzonite and Granodiorite was located in 2016. A significant number of samples from within the mineralized area contained between 1% and up to 6.6% copper due to the presence of abundant chalcocite veins.
The copper-molybdenite-gold mineralization is hosted in potassic altered Laramide age Quartz Monzonite and Granodiorite. A series of high sulfidization copper-gold-silver veins and Miocene age precious metals veins occur in the Pinal Schist located north of the mineralized area.
A chargeability anomaly identified in the early 1980's exhibits a good correlation with the mineralized area. This anomaly has not been verified using modern geophysical exploration methods.
Widespread porphyry style copper-molybdenum-gold mineralization occurs over an area measuring 2.5km by 1.1km within a larger 3.0km by 2.0km area of phyllic altered Laramide intrusive rocks.
owns 60.4% of the common shares of Carmax, a public company listed on the TSX Venture Exchange. Carmax owns 100% of the Eaglehead project located in northwestern British Columbia, Canada. Copper Fox made a series of investments in Carmax between 2014 and 2016 to advance the exploration of the Eaglehead project.
In 2017, Copper Fox prepared a NI 43-101 Technical Report on the Eaglehead property entitled "NI 43-101 Technical Report on the Eaglehead Project" with an Effective Date of July 10, 2017; Robert A. (Bob) Lane, M.Sc., P.Geo. as Qualified Person. The conclusions and recommendations of the Technical Report are summarized below:
The Project is at the early to intermediate stage of exploration and hosts a calc-alkalic porphyry copper-molybdenum-gold-silver system of significance.
A multi-parameter exploration program estimated to cost $4.95 million is warranted to more fully evaluate the potential of the Project to host an economic calc-alkalic porphyry Cu-Mo-Au-Ag deposit.
The proposed recommended exploration program includes among other activities 11,000m of drilling, preliminary metallurgical testwork and geophysical surveys.
Six zones of copper-molybdenum-gold-silver mineralization occur within a prospective mineralized corridor (0.5 to 1.5km in width and in excess of 8km long) characterized by:
- a belt of moderate magnetic response with small, irregular-shaped moderate-to-high magnetic features that coincides with the western margin of the Eaglehead pluton;
- a 10km long, semi-continuous copper soil geochemical anomaly;
- a 6km long, open-ended chargeability-high anomaly, within which five zones of copper-molybdenum-gold-silver mineralization are located. This anomaly averages 900m wide and is open below a depth of 500m.
- a Far East zone, located approximately 3,000m from the end of the chargeability anomaly, exhibits several mineralized drill holes and a 1,000m by 1,000m copper and molybdenum soil geochemical anomaly;
- moderate-to-intense potasic (principally K-feldspar), pervasive phyllic (sericitic) and late propylitic alteration of the mineralized intrusive host rocks;
- multiple phases of mineralization, consisting primarily of chalcopyrite and bornite with minor molybdenite in quartz veins, quartz stockworks, and zones of fracturing and brecciation; and
- drilling has intersected good grades of copper-molybdenum-gold-silver over narrow-to-wide intervals (ranging from 1.5 to 521.2m) in 120 of 126 holds completed to-date.