Copper Fox plans to advance Van Dyke Copper Project to PFS Stage, Arizona
Copper Fox Metals Inc. [TSXV: CUU; OTCQX: CPFXF; FSE: HPU], through its wholly owned subsidiary Desert Fox Van Dyke Co., provided an update on plans to advance its 100%-owned Van Dyke in-situ copper recovery (ISCR) project in the Globe-Miami Mining District, Gila County, Arizona.
Elmer B. Stewart, President and CEO of Copper Fox, stated, “Copper Fox is focused on restarting copper production from the historic Van Dyke mine in Arizona employing responsible mining technologies, practices and utilizing ISCR methodology, a mining method currently being implemented at Florence Copper.
“The 2020 Preliminary Economic Assessment (PEA) recognized Van Dyke as a near term, mid-size, environmentally friendly and sustainable copper project located in the prolific Miami-Inspiration mining district in Arizona. Copper Fox’s goal at Van Dyke is to update the 2020 PEA incorporating results of studies completed since 2021 to provide a critically important assessment of the Project’s status.
“Results of the PEA could optimize the timeline, activities and estimated cost of the Execution Plan prepared to advance the project to the prefeasibility study (PFS) stage. We look forward to delivering on this next milestone and are exploring available options for non-dilutive funding prior to initiating the PFS level activities.”
The PEA would incorporate among other items, the results of technical studies completed since 2021, update the capital, operating and sustaining costs, update pre-tax and post-tax economic models using consensus long term copper pricing and a project economic sensitivity analysis to copper price.
The project has the potential to be a near term, mid-size copper project located in a Tier-1 jurisdiction, playing a meaningful role in meeting the growing long-term domestic demand for copper in the United States.
Van Dyke Project: The 2020 PEA contemplated a mining operation with a production capacity of 85 million pounds of Grade A, 99.99% pure copper cathode per year utilizing ISCR methodologies over a 17-year mine life.
2020 PEA Highlights (Based on US$3.15/lb copper): Base case post-tax NPV7.5% of US$644.7M, an IRR of 43.4%, and payback period of 2.1 years.
Life-of-Mine (LOM) copper production of 1.1 billion lb with cumulative net free cash flow of US$1.76B pre-tax and US$1.44B post-tax over a 17-year mine life.
Initial capital expenditure of US$290.5M (includes a 30% contingency) with LOM direct operating cost of US$0.71/lb and sustaining costs of US$0.07/lb. C1 cost US$0.98, and AISC cost US$1.14/lb copper.
In addition to providing copper to meet US domestic copper requirements, the 2020 PEA projected the project could support directly and indirectly approximately 500 jobs in the Miami-Globe area; injecting approximately US$1.07B into the Miami-Globe and Arizona economies and contribute approximately US$355M in mineral, state and federal taxes over its 17-year mine life. The project also benefits from access to local infrastructure including a copper smelter, a copper rod plant, highways, rail lines, and power grid.
Studies completed by the Copper Fox team in combination with the contributions from the consultants that prepared the PFS Execution Plan has materially strengthened the foundation of the Van Dyke project and include establishing four hydrogeological monitoring stations and initiated water quality sampling in accordance with Federal and State regulatory requirements.
Updated conceptual hydrogeological, geometallurgical, geological, structural, and mineralogical models for the deposit. Preliminary characterization of the copper mineralogy in the oxide and transition mineralogical domains within the deposit.
Preliminary characterization of the copper mineralization, gangue, and host rock to mitigate potential operating issues during the leaching process. Geotechnical study to determine rock strength and geotechnical characteristics of the Gila Conglomerate.
Infrastructure reviews to minimize environmental and social disturbance. An Execution Plan outlining expected activities, estimated costs, timeline and permitting process to achieve a PFS level technical report.
Activities currently in progress in advance of completing the planned PEA include initiating the permitting process with the Town of Miami to conduct future diamond drilling activities and completion of a preliminary groundwater flow model for the Project. The groundwater flow model is expected to optimize the hydrogeological recommendations set out in the PFS Execution Plan and potentially locate additional hydrogeological monitoring and water sampling stations to support developing an updated hydrogeological model. The updated hydrogeological model would be used to better predict solution flows and potentially projected copper recoveries during the leaching process. Other activities include continuing the community outreach program, quarterly water sampling, and collection of hydrogeological data from existing hydrogeological monitoring sites within the project area.
Copper Fox and its subsidiaries own 100% of the Van Dyke ISCR project, a development stage, potential near term, mid-size copper mine in Arizona and a 25% interest in the Schaft Creek Joint Venture with Teck Resources Limited (75% interest and Operator) which hosts the Schaft Creek copper-gold-molybdenum-silver project, transitioning from the Scoping to the PFS stage in 2026, located in British Columbia’s Golden Triangle.
In addition, Copper Fox owns 100% of the resource stage Eaglehead polymetallic porphyry copper project in northwestern British Columbia and the Sombrero Butte and Mineral Mountain advanced exploration stage porphyry copper projects located in the Laramide-age copper province in Arizona.