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 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 65.4% of the common shares of Carmax Mining Corp. ("Carmax"). A brief overview of each of our projects is set out below to provide the reader with results achieved to date and potential to increase resources through continued exploration.
Copper Fox's primary assets are:
- 25% interest in the Schaft Creek Joint Venture ("SCJV") with Teck Resources Limited ("Teck") on the Schaft Creek copper-gold-molybdenum-silver project - northwestern British Columbia,
- 100% ownership of the Van Dyke oxide copper deposit - Miami, Arizona,
- 65.4% of the common shares of Carmax who in turn own 100% of the Eaglehead copper-molybdenum-gold project - northwestern British Columbia,
- 100% ownership of the Sombrero Butte copper project - Mammoth, Arizona, and
- 100% ownership of the Mineral Mountain copper project - Florence, Arizona.
In July 2013, Copper Fox and Teck created the SCJV to further explore and develop the Schaft Creek project.
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 2013 NI 43-101 Technical Report (Feasibility Study on the Schaft Creek Project, BC, Canada) 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 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 Feasibility Study 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 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 Feasibility Study used a FOREX of $1.00 US = $0.97 CAD.
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. 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 Preliminary Economic Assessment ("PEA") is an independent assessment of the historical and current results from the Van Dyke project and provided recommendations for further work. By way of a background, between 1968 and 1980 Occidental Minerals Corporation completed a significant amount of exploration and two successful (permitted) in-situ leach ("ISL") tests within a portion of the Van Dyke copper deposit. Kocide Chemicals produced copper from the Van Dyke deposit using the ISL recovery method between 1988 and 1990.
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, strong cash flow, an after-tax NPV(8%) of $US149.5 million and an IRR of 27.9%.
The PEA is based on $US3.00/lb copper and includes an Inferred Mineral Resource of 183 million tonnes containing 1.33 billion pounds of copper at an average total copper grade of 0.33%. Mine life is estimated to be 11 years with annual copper production of 60 million pounds in years 1-6, declining thereafter. The soluble copper recovery is estimated at 68% and acid consumption of 1.5 lb acid/lb copper produced. 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 with 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) totals $US204.4 million, are 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 PEA recommended that a pre-feasibility study estimated to cost $US16.6 million be completed. 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 a five 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 10 miles east of the former San Manuel/Kalamazoo copper mine (reported production 14 billion pounds copper) and 2 miles south of the Copper Creek copper deposit (reported resources of 7 billion pounds copper). A significant number of mineralized breccia pipes are associated with the Copper Creek deposit. Mineralized breccia pipes are a typical feature associated with porphyry copper deposits in Arizona.
Since 2013, Copper Fox has identified and developed an exploration target that consists of a 4,000m long chargeability/resistivity anomaly, a zone of alteration with copper-molybdenite vein style mineralization and a significant number of mineralized breccia pipes. In 2015, two diamond drill holes collars were located within the exploration target. These drill holes are believed to have been completed in the late 1960's. Sampling of the drill cutting from around these drill hole collars yielded 2,079 ppm copper and 1,683 ppm. Although these holes intersected copper mineralization; the depth to the mineralization and the thickness and average grade of the mineralization cannot be estimated. The presence of copper in the drill cutting is considered encouraging and supports the interpretation of a buried porphyry copper system. This target has not been drill tested by Copper Fox. .
Copper Fox has completed a study of the geochemical data from the previous drilling completed on the mineralized breccia pipes located at the north end of the property. The study shows a strong correlation between the breccia pipes and the chargeability/resistivity anomaly within the exploration target. The study also demonstrated that the mineralized breccia pipes are related to an evolving porphyry system due to different metal assemblages including molybdenum-gold-silver and gangue minerals (i.e. tourmaline).
is a Laramide age copper project located 15 miles east of Florence, Arizona. This project occurs in the Jemez 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.
The project is underlain by Precambrian age Pinal Schist, diabase and granite intruded by Laramide age quartz monzonite, granodiorite and hornblende dacite dikes. In 2015, Copper Fox located three separate, stacked copper-molybdenum-gold-silver-tungsten bedrock geochemical anomalies along with twenty one copper occurrences that coincide with zones of sericite alteration within the property. The copper mineralogy, quartz veining, alteration and the vein assemblages in outcrop support the interpretation of a buried porphyry copper system.
Historical exploration work completed between the late 1960's and early 1980's covered a significant portion of the property and identified both copper and precious metal targets within the project. The copper target is a 3,000ft by 2,000ft zone of copper-molybdenum mineralization located within a 6,000ft by 2,500ft chargeability anomaly hosted in a Laramide age Quartz Monzonite. The presence of abundant chalcocite within the zone of copper mineralization indicates that surface leaching of the copper mineralization has occurred and the possible presence of a "chalcocite blanket" at depth. Chalcocite blankets are a characteristic of some porphyry copper deposits in Arizona.
The precious metal targets include four sub-parallel silicified fissure vein systems with strike lengths from 10,000ft to 15,000ft. These precious metal targets were previously exploited on a limited basis for higher grade zones of gold-silver-base metal mineralization.
owns 65.4% 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.
In 2012, Roscoe Postle Associates Inc. prepared a NI 43-101 Technical Report on the Eaglehead property which included a current Mineral Resource estimate on the East and Bornite zones located within the property. The Inferred Mineral Resource estimate totals 102.5 million tonnes at an average grade of 0.29% copper, 0.01% molybdenum, and 0.08 g/t gold. The resources were estimated at a cut-off grade of 0.16% copper equivalent and contain approximately 662 million pounds copper, 22 million pounds molybdenum, and 265,000 ounces gold. The silver content of the mineralization was not estimated in the Technical Report.
Copper Fox made its initial investment in Carmax in early 2014 and additional investments in 2015. These funds were used by Carmax to advance the exploration of the Eaglehead project and to work toward eliminating "legacy data" issues in the project database. In addition, airborne and ground geophysical (Titan-24 DCIP) surveys, preliminary metallurgical testwork and limited diamond drilling programs were completed. The drilling was completed to test the interpreted correlation between the Titan 24 chargeability signature and copper mineralization.
The work completed to in 2014 and 2015 suggests the presence of a 9,000m long porphyry copper environment. The copper mineralization occurs as chalcopyrite +/- bornite hosted in fractures, veinlets and as disseminations in moderate to strong potassic and phyllic altered biotite granodiorite, hornblende quartz diorite and Quartz Feldspar porphyry dikes. The trace element geochemistry compiled over the past two years suggest that some of the intrusive rocks at Eaglehead shows a strong "Adakite" affinity, a signature characteristic of large porphyry copper deposit.
The preliminary metallurgical testwork yielded positive results with recoveries to the third cleaner concentrate ranging from 77.1% to 92.7% for copper, 65 to 87% for gold, 71 to 80% for silver and 17 to 55% for molybdenum. Concentrate grades ranged between 21.1% and 37.9% copper. The third copper cleaner concentrate was determined to contained 11.8 g/t gold, 96 g/t silver and 0.816% molybdenum with low concentrations of arsenic, selenium, rhenium and tin.
The 2016, a $1.5 million exploration program consisting of re-logging, sampling and re-sampling of 40 historical drill holes from the Camp-Pass-Bornite-East zones, re-analysis of approximately 15,000 pulp and core samples from historical drill core and additional preliminary metallurgical testwork was completed. Results are pending.