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").
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,
- 100% ownership of the Sombrero Butte copper project - Mammoth, Arizona,
- 100% ownership of the Mineral Mountain copper project - Florence, Arizona, and
- 65.4% of the common shares of Carmax who in turn own 100% of the Eaglehead copper-molybdenum-gold project - northwestern British Columbia. The Reader is cautioned that until the decision of the court is received,
ownership of the mineral title is in doubt.
In July 2013, Copper Fox and Teck created the Schaft Creek Joint Venture ("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 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. 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") is an independent assessment of the historical and current results to the Effective Date of the Technical Report for the Van Dyke project and recommended that further engineering and geological work be completed leading to completion of a pre-feasibility study estimated to cost $US16.6 million. By way of a historical 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 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. 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 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. Mineralized breccia pipes are a typical feature at the Copper Creek deposit adn are commonly associated with porphyry copper deposits in Arizona.
Since 2013, Copper Fox has identified and developed two exploration targets on the Sombrero Butte property. The first target 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, the drill collars for two historical diamond drill holes were located within the first 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.
The second exploration target consists of a number of mineralized breccia pipes and a deep seated chargeability/resistivity anomaly. In 2015, Copper Fox completed a study of the geochemical data from the previous drilling (completed by Bell Copper 2006-2008) on the mineralized breccia pipes located within the second exploration target. The study shows a strong correlation between the mineralized breccia pipes and the deep seated chargeability/resistivity anomaly. The study demonstated that the mineralized breccia pipes are possibly related to an evolving porphyry system due to the 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. The 2015 and 2016 bedrock sampling programs outlined an area measuring approximately 1,100m by 900m of porphyry style copper-molybdenum-gold mineralization hosted in a potassic altered Laramide age Quartz Monzonite and Granodiorite. A significant number of samples from within the sampled area contained between 1% and up to 6.6% copper due to the presence of chalcocite and covellite. The sample results suggest that themineralized area is open in two directions.
The copper-molybdenite-gold mineralization occurs in steeply dipping classical "A" veins with potassic +/- chlorite +/- hematite envelopes and exhibits a rhenium-tellurium-bismuth geochemical association, features typical of a porphyry copper system. The main copper minerals are chalcocite and chrysocolla along with rare chalcopyrite and covellite. Gangue minerals observed are goethite after pyrite (forming box work texture) and jarosite.
The 2015 and 2016 work also outlined a 2.5km by 1.1km northeast trending zone of porphyry style copper-molybdenum-gold mineralization hosted within a larger 3.0km by 2.0km area of potassic and phyllic altered Laramide age Quartz Monzonite and Granodiorite. The alteration pattern associated with the mineralization is consistent with a porphyry copper system. A chargeablity anomaly identified in the early 1980's (a common geophysical signature of porphyry copper mineralization) exhibits a good correlation with the potassic alteration. This anomaly has not been verified using modern geophysical exploration methods.
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. The ownership of the mineral title to the Eaglehead project is in dispute. Until the decision of the court is received Carmax's ownership to the Eaglehead project is in doubt.
In 2012, Roscoe Postle Associates Inc. prepared a NI 43-101 Technical Report on the Eaglehead property entitled "TECHNICAL REPORT ON THE EAGLEHEAD CU-MO-AU PROJECT, BRITISH COLUMBIA" with an Effective Date of June 29, 2012; Barry McDonough, P.Geo. and David W. Rennie, P.Eng as Qualified Persons.
Copper Fox made its initial investment in Carmax in early 2014 and additional investments in 2015 and 2016. These funds were used by Carmax to advance the exploration of the Eaglehead project and to work toward eliminating "legacy data" issues related to historical exploration programs in the project database.
The work completed by Carmax between 2014 and 2016 included airborne and ground geophysical (Titan-24 DCIP) surveys, preliminary rock characterization "metallurgical" teswork and limited diamond drilling programs to test the interpreted correlation between the Titan-24 chargeability signature and copper mineralisation. The results of these programs suggest the presence of a 9,000m long porphyry copper environment.
In 2016, Carmax completed 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. Carmax has reported positive results from the rock characterization testwork completed in 2016.