Copper Fox Metals Inc. · TSXV:CUU
Copper Fox Metals — Investor Presentation (May 2017)
27 slides from Copper Fox Metals's investor presentation, May 2017
Slide 1: Canadian Exploration and Development Company Focused on Copper in North America
AACanadian Canadian Exploration Development Exploration and Development Company CompanyFocused Focusedonon Copper Copper in in North America America MayMarch 2017 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 Highlights
Copper Fox Highlights • Focused on large, low cost copper – gold projects in Canada and the USA. • Net Asset Value1&2 of approximately C$423 million. • Large holdings of copper-gold-molybdenum-silver in reserve and resource categories. • Balanced project portfolio. • Exploring in the Golden Triangle
Slide 4: Our Investment Advantage
Our Investment Advantage Copper Fox Share Metal Ownership Assets Cu (Mlb) Mo (Mlb) Au (Moz) Ag (Moz) Reserves1 & 2 (P+P) 1,407.28 93.31 1.51 12.98 Resources2 (M+I) 1,776.57 115.08 1.85 16.68 Management Resources2 (Inf) 2,159.05 50.73 0.84 7.90 Reserves CuEq3 (Mlb) AuEq3 (Moz) Stable Proven 415.68 0.
Slide 5: Reserves & Resources
Reserves & Resources Mineral Reserves Reserve Estimate Data Copper Fox Share Metal Holdings Project Reserve Category Tonnes (Mt) Cu (%) Mo (%) Au (g/t) Ag (g/t) Cu (Mlb) Mo (Mlb) Au (Moz) Ag (Moz) Schaft Creek (1) Proven 135.40 0.31 0.018 0.25 1.81 231.28 13.43 0.27 1.97 Probable 805.41 0.27 0.018 0
Slide 6: Asset Growth
Asset Growth Metal Prices: Cu US$2.50/lb, Mo US$9.00/lb, Au US$1,250.00/oz, Ag US$16.00/oz Assumes 100% Metal Recovery 1. & 2. Technical Report "Feasibility Study on the Schaft Creek Project, BC, Canada", dated January 23, 2013, prepared by Tetra Tech, A. Farah, P. Eng.; et al as Qualified Persons;
Slide 7: Anticipated C1 Costs
Anticipated C1 Costs Survey of Global C1 Cash Cost Curve - Major Copper Mines $3.50 2nd Quartile: $1.27 3rd Quartile: $1.59 C1 Cash Costs Net of By-Product Credits - US$/lb Cu 1 1st Quartile: $1.07 1st Decile: $0.65 $3.00 $2.50 Chuquicamata Oyu Tolgoy Andina (Codelco) (TRQ) (Codelco) $2.00 Bingham C
Slide 8: World Copper Forecast
World Copper Forecast Supply Demand 4 Mt shortfall forecast by 2025 Assumes no significant supply disruptions Source: Wood MacKenzie 8
Slide 9: Our Projects (balanced portfolio)
Our Projects (balanced portfolio) Core Assets: 1) 25% Joint Venture Interest with Teck Resources Limited on the Schaft Creek copper-gold-molybdenum-silver project in British Columbia. 2) 100% ownership of the Van Dyke In-Situ Leach (ISL) oxide copper project in Arizona. Exploration Projects: 3) 100%
Slide 10: Schaft Creek Joint Venture
Schaft Creek Joint Venture • Teck Resources Limited (75% & operator) Copper Fox 25% • Mining friendly jurisdiction • Long life/expansion potential • Financing by operator and $40 million in milestone payments ($20 million-Production Decision and $20 million-completion construction of facilities) • P
Slide 11: Schaft Creek 2013 Feasibility Study
Schaft Creek 2013 Feasibility Study • 21 Year Mine Life at 130,000 tpd, producing 2.2 million tonnes copper and 4.2 million ounces gold LOM. • Low C1 cost per pound of copper (US$1.02). • At Mine Revenue and Net Free Cash Flow significantly impacted by FOREX and copper price. • Potential economic en
Slide 12: Schaft Creek Economic Enhancements
Schaft Creek Economic Enhancements • Industry average Capital and Operating Expenditures are significantly lower and FOREX significantly higher than in 2013. • Upgrade Inferred Resource located within pit shell, 171.2 million tonnes grading: 0.25% copper, 0.16 g/t gold, 0.018% molybdenum and 1.58 g/
Slide 13: Schaft Creek FOREX Sensitivity
Schaft Creek FOREX Sensitivity 21 year mine life @ 130,000 tpd open pit/flotation mill (CDN$) (100% Project Numbers) Foreign Exchange: $CDN/$US (Base Case) 0.97 NPV (8% discount rate)/post-tax $513/$67 M NPV (5% discount rate)/post-tax $1,694/$956 M IRR (%)/post-tax 10.1/8.3 C1* cost per lb copper (
Slide 14: Schaft Creek Estimated NSR/t Section 6359600N
Schaft Creek Estimated NSR/t Section 6359600N Total Mine Site Cost $13.60/t. NSR greater than $20.00/t provides 47%/t margin. Based on Technical Report prepared by Tetra Tech titled “Feasibility Study on the Schaft Creek Project, BC, Canada” with Effective Date January 23, 2013, A. Farah, P. Eng., e
Slide 15: Schaft Creek Net Cash Distribution (before tax)
Schaft Creek Net Cash Distribution (before tax) Before Payout After Payout Capital & Sustaining Average NCF/year $4.3 B (year 1-7) $415 M Net Cash Flow (NCF) $4.6 B Year 1-7 Teck 75% CUU 25% $311 M/year $104 M/year Net Cash Flow Capital Recovery 10% $0.3 B 90% $4.3 B 2 Separate Concentrates Cu 28% +
Slide 16: Van Dyke Project (In-Situ Leach)
Van Dyke Project (In-Situ Leach) • Pre-tax NPV @ 8% & 5% ranged from C$297 to C$395 million (i.e. C$0.69 to C$0.92/share) IRR @ 35.5% • Post-tax NPV @ 8% & 5% ranged from C$209 to C$286 million (i.e. C$0.49 to C$0.67/share) IRR @ 27.9% • 11 year LOM • 60 Mlb Cu production Y1-Y6 • Direct Cash Cost of
Slide 17: Van Dyke Project Sensitivity
Van Dyke Project Sensitivity • Main Copper Minerals Chryscolla, Soluble Copper Malachite and Recovery Target Azurite 100% soluble • Mineralization hosted in Pinal Schist • soluble copper recovery used in PEA Base Case was 68% Based on “Preliminary Economic Assessment Technical Report for the Van Dyk
Slide 18: Arizona ISL Peer Comparables
Arizona ISL Peer Comparables IN-SITU RECOVERY COMPARABLES TOTAL TOTAL ANNUAL INITIAL PRE-TAX TOTAL COST RECOVERY MINE LIFE PAYBACK COPPER COPPER PRODUCTION CAPITAL NPV* COPPER DEPOSIT (BILLION LBS) GRADE (%) ESTIMATED (%) (MILLION LBS) YEARS ($US MILLION) YEARS ($US MILLION) $US/LB FLORENCE (1) 2.84
Slide 19: Sombrero Butte Project
Sombrero Butte Project • Laramide Age Porphyry Copper Project, Arizona. • Multiple large (4,000m by 600m) chargeability anomalies hosted by Copper Creek Granodiorite. • Titan 24 survey shows mineralized breccia pipes to be surface expression of large chargeability anomaly at depth. • Multiple minera
Slide 20: Sombrero Butte Exploration Target
Sombrero Butte Exploration Target IP TARGET 2 kilometers IP TARGET LITHOLOGY Granodiorite Volcanics Granodiorite Volcanics Granodiorite Surface Exploration Target PDH # 1 PDH # 2 SB - 14 2079 ppm Cu 1683 ppm Cu 1.16% Cu in drill cutting in drill cutting (from 0.0 - 86.0 m) SB-23 SB-11 SB-5 BR GRRD B
Slide 21: Mineral Mountain Project
Mineral Mountain Project Information on tonnes and grade in the above table from public sources. Copper Fox has not independently verified this information. 21
Slide 22: Mineral Mountain Exploration Target
Mineral Mountain Exploration Target • Porphyry copper environment within Laramide age intrusive (65.3 Ma based on K-Ar dating) • 1,800m by 900m chargeability CUPOLA anomaly coincides with current mineralized area (historical data) GRABEN • 1,100m by 900m area of mineralization that averages 1.2% LEG
Slide 23: Carmax Investment (Eaglehead Project)
Carmax Investment (Eaglehead Project) • Owned and operated by Carmax Mining Corp. Copper Fox owns 65.4% of Carmax • 9 km long porphyry copper-gold- molybdenum-silver system • Additional testwork indicated 89% Cu, 78% Au, 78% Ag and 72% Mo recovery • Clean Copper concentrate (28- 36% Cu) with gold-si
Slide 24: Eaglehead Exploration Target
Eaglehead Exploration Target • Mineralized 5km long chargeability target • Mineralization in Bornite & East zones open on strike • Five mineralized zones on property • Large portion of chargeability target not tested OPEN Chargeability Isosurfaces, in mrads 15 20 30 35 MINERALIZED DDH NON MINER
Slide 25: Eaglehead Project Untested Potential
Eaglehead Project Untested Potential • Excellent correlation between Cu mineralization & chargeability • Large portion of IP target has not been tested CROS CROSS SECTION 495200 mE Untested Chargeability Target Width 400 m Mineralized Interval 200 metres 25
Slide 26: 2016 Achievements
2016 Achievements • Schaft Creek: Geological Modelling, updating resource model. • Van Dyke: Updated estimated cost of Pre-Feasibility Study – significant cost reduction. • Increased equity ownership in Carmax Mining Corp. to 65.4%. • Eaglehead: 15,000 samples analyzed, 40 diamond drill holes re-log
Slide 27: 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, P.Geo, MSc. Chairman, President &