Frequently Asked Questions

There is a significant gap between the recently established net assest value (NAV) of Copper Fox and its current market price. In todays market, for junior companies like Copper Fox, the share price would be expected to trade in the order of 0.3 times NAV, currently Copper Fox is trading at 0.1 times NAV. Copper Fox's NAV is based on the 2020 and 2021 Preliminary Economic Assessments for the Van Dyke and Schaft Creek projects and does not include the recently added Eaglehead resource update announced in August 2023. Several market factors can contribute to the gap between the market price and valuations, especially in junior resource companies, such as micro and macro economic events, market awareness, commodity prices, market sentiment and investor perception to name a few.

For its two advanced stage projects, Copper Fox focusses on the discounted after-tax project valuations stated in US$. The metal prices and foreign exchange rates ('FOREX') used in the financial analysis of advanced stage projects are based on long-term industry consensus forecasts as at the Effective Date of the Technical Reports. These parameters, as well as capital, and operating and sustaining costs, change over time which in turn can materially impact either positively or negatively the conclusions and project valuations. For example, the FOREX used in the 2013 Schaft Creek Feasibility Study was US$1.00:C$0.97 whereas the long-term FOREX in the 2021 PEA's for the Schaft Creek and Van Dyke projects was US$1.00:C$0.77; a significant positive difference in Canadian dollar terms. The metal pricing used in the 2021 PEA for Schaft Creek was US$3.25/lb Cu, US$10/lb Mo, US$1,500/oz Au and US$20/lb Ag. A copper pricing of US$3.15/lb was used in the 2021 PEA for the Van Dyke project. Since the Effective Dates of the Schaft Creek and Van Dyke PEA's, long-term consensus pricing for metal has changed significantly. The current long-term concensus metal pricing used by Copper Fox in US$ is $3.75/lb Cu, $20/lb Mo, $1,750/oz Au, $20/oz Ag. To illustrate the net change in the discounted after-tax Net Present Value (NPV) for the Schaft Creek project, a US$0.25/lb increase in copper increases the NPV by approximately US$250 million, for every US$1.00/lb increase in molybdenum the NPV increases by US$58 million, and every US$100 increase in gold the NPV increases by US$89 million. As these examples demonstrate, changes in the FOREX and long-term metal price can have a significant impact on project valuation.

The insiders own approximately 58% of the shares of Copper Fox. The Company's efforts have resulted in successive increases in discounted after-tax valuations for both the Schaft Creek and Van Dyke projects and a significant increase in Copper Fox's ownership of copper-gold-molybdenum-silver in all resource categories. Our recent success at Eaglehead is a strong indication that our project acquisition strategy works, and that management has the experience and ability to identify potential opportunities to increase value. Copper Fox employs the same strategy at Mineral Mountain and Sombrero Butte completing the exploration activities required to advance these projects to the drill testing stage. Encouraged by the fact that copper is designated as a critical metal and bullish supply/demand fundamentals in conjunction with identified project enhancements, the corporate strategy is to continue to add value in the near term by advancing the Schaft Creek and Van Dyke projects to a stage that demonstrates fair value at which time a monetization decision could be taken.

Yes, with the cash on hand the work programs on Copper Fox's operated projects would be fully funded to the end of fiscal 2023 and into 2024. The process to prepare a budget and program for 2024 could only start when all data from the 2023 activities have been received and interpreted. At that time, a determination would be made on what activities are required to advance each project to the next level. When the budget and programs are established they are presented to the Board of Directors for review and approval. The Schaft Creek Joint Venture agreement requires Teck Resources Limited to provide all the funding for approved programs on the Schaft Creek project.

Both areas are recognized as "proven copper provinces" in North America with significant potential to discover large "world class" polymetallic porphyry copper deposits. Both areas are Tier 1 geopolitically stable pro-mining jurisdictions with excellent infrastructure and rigorous environmental and permitting processes which are well defined, manageable and achievable.

In BC, the Schaft Creek and Eaglehead projects are located in Tahltan territory, Copper Fox has worked with the Tahltan Nation since 2005 when it commenced exploration work on the Schaft Creek project. Copper Fox has developed a strong relationship with the Tahltan Nation through open and transparent discussions on issues that are important to the Nation, such as respect for cultural and traditional values, wildlife management, environmental assessments, employment opportunities and participation in community and social affairs. In Arizona, compliance with state and federal laws along with engaging with people and communities within the vicinity of our projects is a core principle of the Corporations ESG policy and the basis of our community relationship and outreach policies.

The Schaft Creek, Van Dyke and Eaglehead projects each have established resources exceeding billions of pounds of copper, more if looked at on a copper equivalent basis. The deposits on these projects are open in several directions indicating significant potential to expand the resource base.

The Mineral Mountain and Sombrero Butte exploration stage projects are considered to have significant potential to result in a new copper discovery. These projects exhibit large porphyry 'footprints', intrusive rocks of the right age, and multiple exploration targets all displaying the mineralization alterations and geophysical signatures associated with porphyry copper systems.

Copper Fox holds a 25% carried interest in the Schaft Creek Joint Venture. This means Teck Resources Limited, as the 75% partner and operator, funds all approved work programs on the Schaft Creek project. Copper Fox participates in all decisions related to the project through the Joint Venture Management Committee without having to contribute capital for exploration and development activities.