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Copper Fox Announces Significant Increased Valuation on the Van Dyke Copper Deposit
Pre-tax NPV $US798.6M and IRR of 48.4%; Post-tax NPV $US644.7M and IRR of 43.4% Calgary, Albe...
About this update from Copper Fox Metals Inc.
[{"type":"text","content":"Copper Fox Announces Significant Increased Valuation on the Van Dyke Copper DepositPre-tax NPV $US798.6M and IRR of 48.4%; Post-tax NPV $US644.7M and IRR of 43.4%Calgary, Alberta--(Newsfile Corp. - January 13, 2021) - Copper Fox Metals Inc. (TSXV: CUU) (OTC Pink: CPFXF) ('Copper Fox' or the 'Company'), through its wholly owned subsidiary Desert Fox Copper Inc., (\"Desert Fox\") is pleased to announce robust results from an external, independent Preliminary Economic Assessment (\"PEA\") prepared in accordance with National Instrument 43-101 (\"NI 43-101\") for its 100% owned Van Dyke In-Situ Copper Recovery (\"ISCR\") project located in Miami, Arizona. The PEA was prepared under the direction of Moose Mountain Technical Services with an effective date of December 30, 2020. All dollar amounts are expressed in US dollars, unless otherwise noted.PEA Highlights: (Based on $US3.15/lb copper)Base case pre-tax Net Present Value7.5% (\"NPV\") of $US798.6 million (\"M\"), Internal Rate of Return (\"IRR\") of 48.4%, and payback period of 2.0 years.Base case post-tax NPV7.5% of $US644.7M, an IRR of 43.4%, and payback period of 2.1 years.Life of mine (\"LOM\") copper production of 1.1 billion pounds (\"lbs\") with peak production of 85Mlbs annually in years 2-12 inclusive, declining thereafter.Initial capital expenditure of $US290.5M, including a 30% contingency.LOM direct operating cost of $US0.71/lb and sustaining costs of $US0.07/lb.Cumulative net free cash flow of $US1.757 billion pre-tax and $US1.436 billion post-tax.Mine life 17 years.C1 cost per pound copper is $US0.98, AISC per pound copper is $US1.14.* C1 and AISC are Non-GAAP and IFRS measures, see Note 1 in Life of Mine Comparison tableThe results of the PEA are preliminary in nature. The PEA includes a combination of indicated and inferred mineral resources which are considered too speculative geologically to have the economic considerations applied 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.Mr. Elmer Stewart, President and CEO, said, \"The significant increase in valuation over that obtained in the 2015 PEA is a function of the 2020 resource esti...