Copper Fox Metals Inc. · TSXV:CUU
Copper Fox Metals — Shareholder Meeting (September 2022)
46 slides from Copper Fox Metals's shareholder meeting presentation, Sep 22, 2022
Slide 1: 2022 Annual General Meeting of Shareholders
2022 Annual AACanadian Canadian General Exploration Exploration and Meeting Development Development Company of Shareholders CompanyFocused Focused on on Copper Copper in in North America America September 2018 22, 2022 March AGM 2017
Slide 2: Forward Looking Statements
Forward Looking Statements This Power Point presentation contains certain forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and forward-looking information within the meaning of the Canadian securiti
Slide 3: Copper Fox ESG Policy
Copper Fox ESG Policy ➢ Recognition of environmental, social and governance (“ESG”) best practices as key components to being a responsible mineral exploration and development company. ➢ Exploration programs are conducted to meet or exceed environmental regulations, while respecting the communities
Slide 4: Copper is Essential
Copper is Essential ➢ Antimicrobial – copper-infused surfaces and equipment are being installed in healthcare facilities as they eliminate up to 99.9% of harmful bacteria and viruses. ➢ Climate Change – copper is required for the generation, transmission, storage and consumption of green energy: sol
Slide 5: Copper Forecast – The Next Few Years
Copper Forecast – The Next Few Years ➢ The demand outlook for copper (and base metals generally) remains compelling in the midst of a rapidly evolving green-energy (electrification) revolution…which stands to increase global copper demand +15% by ~2030. ➢ Investment required to reach global net-zero
Slide 6: Projected Copper Supply
Projected Copper Supply Mine Production Set To Increase 2.6Mt By 2027" = Includes Global Copper Mine Production? (kt contained) B Othe: China art Mine kmt Oyu Tolga Cobre Panama Kamoa — Kakula 475 8 Quebrada Blanca @Kamoa-Kakula mNew Mines Quellaveco 360 Quebrada Bianca 2 300 24.000 Oyu Tolgot 350 C
Slide 7: Copper Electrification Demand
Copper Electrification Demand 7
Slide 8: Projected Copper Supply/Demand
Projected Copper Supply/Demand Source: Woodmac/Cormark Securities 8
Slide 9: Incentive Pricing
Incentive Pricing Source: Woodmac/Cormark Securities 9
Slide 10: Copper Near Term Issues – Not Much Changed
Copper Near Term Issues – Not Much Changed ➢ Declining ore grades ➢ A serious issue for existing copper mines such as the USA and Chile. ➢ Disruptions/strikes/politics ➢ Cause significant supply delays, COVID-19 is a current example of disruptions in mining. ➢ Water ➢ A critical issue in arid mining
Slide 11: Project Pipeline – It’s All About Managing Risk!
Project Pipeline – It’s All About Managing Risk! 11
Slide 12: Project Pipeline
Project Pipeline Focused on copper in North America – advancing projects from exploration to development stage, a sustainable business model. Development Stage Projects • Schaft Creek a 25% fully carried joint venture interest with Teck Resources Limited (75%), in the Golden Triangle in British Colu
Slide 13: 2021 Significant Achievements
2021 Significant Achievements ➢ 2020 PEA4 increased Van Dyke project after-tax valuation from US$149.5 million to $US644.7 million based on US$3.15/lb copper. ➢ 2021 PEA3 increased Schaft Creek project after-tax valuation (100% basis) from US$64 million to US$842 million based on US$3.25/lb copper.
Slide 14: 2022 Activities
2022 Activities ➢ SCJV - C$6.6 million metallurgical drilling program at Schaft Creek to improve metallurgical predictions for the Liard, Paramount and West Breccia zones, includes other investigations – why? to increase project valuation. ➢ Decision to advance the Van Dyke project to the Preliminar
Slide 15: Projects in Tier-1 Low Risk Jurisdictions
Projects in Tier-1 Low Risk Jurisdictions 1) Reported on a 100% basis. Mineral Resource Estimate Update for the Schaft Creek Property, British Columbia, Canada, prepared by Tetra Tech Canada Inc. with an effective date of 15 January 2021. CuEq calculation based on US$3/lb Cu, US$1,200/oz Au, US$10/l
Slide 16: Schaft Creek Joint Venture (SCJV)
Schaft Creek Joint Venture (SCJV) ➢ Teck (75% and Operator) Copper Fox (25% carried to production) ➢ Teck to arrange project financing ➢ Experienced operator, reduced execution risk, milestone cash payments ➢ One of the largest undeveloped copper-gold-molybdenum porphyry deposits in North America ➢
Slide 17: Schaft Creek 2021 PEA
Schaft Creek 2021 PEA Total Annual Category Unit LOM Average ➢ High-quality project, located in a leading mining Mining jurisdiction, competitive capital intensity, and first Total Material Moved Mt 2,073.6 98.7 quartile costs Processing Total Material Processed Mt 1,030.2 49.1 ➢ 21-year mine life a
Slide 18: Large North American Copper Projects
Large North American Copper Projects ➢ Based on copper production only. ➢ By-product metals credit not included in this projection. ➢ When by-product metal credits applied the Schaft Creek capital intensity reduces to $13,200/t. Source: Hudbay Minerals 18
Slide 19: Highlights of 2021 Schaft Creek PEA
Highlights of 2021 Schaft Creek PEA ➢ PEA based on Copper US$3.25/lb, gold US$1500/oz, Molybdenum US$10.00/lb, silver US$20.00/oz. ➢ Average annual EBITDA(6) of US$695.3 million and Free Cash Flow (before recovery of Initial Capital Costs) of US$636.2 million based on first 5 years(5) (Years 2-6) at
Slide 20: 2021 PEA vs 2013 Feasibility Study
2021 PEA vs 2013 Feasibility Study ➢ Life of Mine (“LOM”) Strip Ratio reduced from 2.16 to 1.0. ➢ Initial Capital Costs reduced from US$3.26 B to US$2.65 B. ➢ LOM Operating Cost reduced from US$13.25/t to US$8.66/t processed. ➢ Sustaining Capital reduced from US$1.20 B to US$849 M (includes Closure)
Slide 21: Schaft Creek 2021 Project Enhancements
Schaft Creek 2021 Project Enhancements ➢ Review currently envisaged construction timeline and offsite infrastructure costs to reduce initial development cost, reduce the payback period and improve the overall investment case. ➢ Collection of additional metallurgical samples to confirm throughput ass
Slide 22: Schaft Creek 2021 & 2022 DDH
Schaft Creek 2021 & 2022 DDH ➢ 2021 Resource Block Model at 800m level (plan view). ➢ Drilling to collect metallurgical samples from Paramount different geometallurgical domains to better Zone inform projected metal recoveries. ➢ Focussed on first five-year pit outlined in 2021 Schaft Creek PEA. ➢ T
Slide 23: Schaft Creek 2022 program
Schaft Creek 2022 program ➢ C$6.6 million budget ➢ 5,000m metallurgical drilling program progressing as planned ➢ Metallurgical test work to determine variability and metal recoveries in Liard, Paramount and West Breccia zones ➢ Collection of additional geotechnical data to better inform ultimate pi
Slide 24: Arizona Projects Location Map
Arizona Projects Location Map In-Situ Copper Recovery Projects ➢ Taseko – Florence: 3.2 Blbs TCu ➢ Excelsior – Gunnison: 2.8 Blbs TCu ➢ Copper Fox – Van Dyke: 1.7 Blbs TCu Porphyry Projects ➢ Rio/BHP – Resolution: 52.6 Blbs Cu ➢ Asarco – Ray: 20.6 Blbs Cu ➢ Casa Grande – 14.7 Blbs Cu ➢ Freeport – Mi
Slide 25: Van Dyke ISCR Project
Van Dyke ISCR Project ➢ 100% ownership located in the Globe- Miami Mining District, AZ. ➢ Robust economics1 - Post tax NPV7.5 US$644.7 M and IRR of 43.4% at $US3.15/lb Cu. ➢ PEA recommended advancing the project to pre-feasibility stage including US$15.5 M drilling, permitting and Pilot Test Program
Slide 26: Van Dyke 2015 vs 2020 PEA
Van Dyke 2015 vs 2020 PEA Base Case 2015 PEA 2020 PEA Base Case 2015 PEA 2020 PEA Life of Mine (LOM) 11 years 17 years Discount Rate 8.00% 7.50% Copper Cathode Sold 456.9M lbs 1,101.0M lbs Pre-tax Net Free Cash Flow - EBITDA $453.1M $1,757.3M Copper Price $3.00/lb $3.15/lb Pre-tax NPV $213.1M $798.6
Slide 27: Van Dyke Proposed Two-Phase Mine Plan
Van Dyke Proposed Two-Phase Mine Plan ➢ Deposit starts at approximately 300m below surface, accessed by underground ramp and headings. ➢ Main headings in Gila Conglomerate above the Leached Cap. ➢ Phase I development targets higher grade “starter zone”. ➢ Injection and recovery well stations establi
Slide 28: Van Dyke TSCu Block Model
Van Dyke TSCu Block Model ➢ Resource cut-off grade at 0.025% TSCu. ➢ Deposit offset by post-mineralization Van Dyke fault. ➢ TSCU grade variable across deposit. ➢ Deposit open to southwest – potential Open to increase resource base. ➢ 1.6 km long zone to southwest of deposit highly prospective groun
Slide 29: Van Dyke Deposit Zonation
Van Dyke Deposit Zonation ➢ Deposit formed by successive weathering-oxidization-supergene enrichment processes over millions of years. ➢ Leach Cap – Oxide - Chalcocite - Sulphide mineral zonation. ➢ Malachite, azurite, chrysocolla (all 100% soluble) main copper minerals in Oxide zone. ➢ Copper grade
Slide 30: Van Dyke 2022 Program
Van Dyke 2022 Program ➢ Technical support team - Ausenco Engineering Canada Inc./Ausenco Engineering USA South Inc. ➢ A two-phase program with the objective of establishing network of hydrogeological monitoring and testing locations, expand resource base, improve resource categories. ➢ Phase I activ
Slide 31: Van Dyke Mineralization
Van Dyke Mineralization Van Dyke headframe BHP Miami # 5 headframe Van Dyke headframe (past producer) Fracture controlled soluble copper Soluble copper remaining to be Soluble copper mineralization VD14-06 (889 – 894 ft) recovered from pressure leach test 31
Slide 32: Leverage to Copper Price
Leverage to Copper Price Schaft Creek Van Dyke Metal Price (US$/lb) 2.75 3.00 3.25 3.50 3.75 Metal Price (US$/lb) 2.65 2.90 3.15 3.40 3.65 EBITDA (US$B) 8.88 9.85 10.81 11.78 12.75 EBITDA (US$B) 1.77 2.04 2.31 2.58 2.85 Net Cash Flow (pre-tax US$B) 5.45 6.41 7.37 8.34 9.31 Net Cash Flow (pre-tax US$
Slide 33: Sombrero Butte Project
Sombrero Butte Project ➢ At projected intersection of a major northwest belt of copper deposits (Ray, Resolution) and a major east- northeast belt of copper deposits (San Manuel/Kalamazoo, Safford, Morenci). ➢ Project underlain by Laramide age Copper Creek intrusive and Glory Hole Volcanics. ➢ Small
Slide 34: Sombrero Butte Exploration Targets
Sombrero Butte Exploration Targets Copper Creek Open Pit and UG Resources Resource Tonnes Chargeability anomaly N Category (Mt) Cu (%) Mo (%) Ag (g/t) at 450m below surface M+I 355.1 0.50 0.008 1.3 Inf 75.0 0.38 0.007 0.8 Source: Faraday Copper Corp news release July 6, 2022 Chargeability anomaly at
Slide 35: Sombrero Butte Mineral Setting
Sombrero Butte Mineral Setting ➢ Property hosts southeast extension of Copper Creek Intrusive; host of the Copper Creek porphyry copper deposit located approximately 2 miles to the north. ➢ Cu-Mo mineralization and chargeability anomaly associated with Laramide age intrusive and Glory Hole volcanics
Slide 36: Sombrero Butte Mineralization
Sombrero Butte Mineralization Copper mineralization in Magma breccia Magma mine (historical producer) Copper mineralization in Audacious breccia Dickite (advanced argillic alteration) bearing breccia pipe overlying chargeability anomaly 36
Slide 37: Mineral Mountain Project Location
Mineral Mountain Project Location 37
Slide 38: Mineral Mountain Project
Mineral Mountain Project ➢ Laramide age multi-phase intrusive. ➢ Copper “footprint” (copper and molybdenum) approximately 4,500m long by 2,000m wide. ➢ Copper footprint exhibits potassic and phyllic alteration with late stage propylitic overprint. ➢ Five late stage cylindrical intrusives underlain b
Slide 39: Mineral Mountain 3D Magnetic Model
Mineral Mountain 3D Magnetic Model 39
Slide 40: Mineral Mountain Copper Mineralization
Mineral Mountain Copper Mineralization Disseminated copper-molybdenum mineralization in Disseminated copper mineralization in potassic altered Quartz Monzonite potassic altered Quartz Monzonite Fracture controlled copper mineralization in potassic altered Quartz Monzonite Quartz vein style copper mi
Slide 41: Eaglehead Project
Eaglehead Project ➢ Located 50km east of Dease Lake, BC, Covers 16,492.6 ha. ➢ 8km long porphyry copper-gold- molybdenum-silver footprint. ➢ Preliminary metallurgical testwork indicated 89% Cu, 78% Au, 78% Ag and 72% Mo recovery. ➢ 36,606m of drilling – 120 of 126 holes are mineralized. ➢ Five zones
Slide 42: Eaglehead Mineralized Section
Eaglehead Mineralized Section Mineralization open to the south 300m of untested chargeability signature Recoverable Cu grade increases at depth 42
Slide 43: Eaglehead Mineralization 3D model
Eaglehead Mineralization 3D model Area of Proposed 2022 drilling 43
Slide 44: Eaglehead Magnetic Vector Targets
Eaglehead Magnetic Vector Targets Cu-Mo mineralization appears restricted to 8km by 3km block 44
Slide 45: Notes to Accompany Presentation
Notes to Accompany Presentation ABBREVIATIONS NPV=Net Present Value, IRR=Internal Rate of Return, EBITDA=earnings before interest, taxes, depreciation and amortization, LOM=life of mine, AISC=all in sustaining costs, C1=direct costs, FOREX=foreign exchange, M=million, B=billion, lb=pound, oz=ounce,
Slide 46: Corporate Information
Corporate Information Corporate Office Investor Relations Suite 650, 340 – 12 Ave SW 1-844-464-2820 Calgary, AB T2R 1L5 | 1-403-264-2820 investor@copperfoxmetals.com Desert Fox Office 3445 E Highway 60, Miami, AZ 85539-1353 Executive & Management Elmer B. Stewart, M.Sc., P.Geol. Chairman, President
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