Copper Fox Announces Updated Mineral Resource Estimate for the Van Dyke Project
Calgary, Alberta--(Newsfile Corp. - March 25, 2020) - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSXV: CUU) (OTC Pink: CPFXF) and its wholly owned subsidiary Desert Fox Copper Inc. ("Desert Fox") are pleased to provide its shareholders with the results of a resource estimate completed in accordance with National Instrument 43-101 ("NI 43-101") for the Van Dyke copper project located in the Globe-Miami Mining District, Arizona. The resource estimate was prepared by Moose Mountain Technical Services ("MMTS"). The NI 43-101 technical report disclosing the resource estimate will be filed on SEDAR within 45 days. This news release reports Total Recovered Soluble Copper ("RecCu") using a 90% recovery for Acid Soluble Copper ("ASCu") and variable recovery for Cyanide Soluble Copper ("CNCu").
1) Indicated Resource: 97.6 million tonnes, grading 0.33% total copper and 0.24% RecCu containing 717 million pounds of total copper and 517 million pounds of recoverable soluble copper;
2) Inferred Resource: 168.0 million tonnes, grading 0.27% total copper and 0.19% RecCu containing 1.0 billion pounds of total copper and 699 million pounds of recoverable soluble copper;
3) The 2019 re-assay program and updated geologic interpretation resulted in a significant increase in contained soluble copper within the Van Dyke copper deposit compared to the 2015 resource estimate; and
4) The mineralized envelope of the Van Dyke copper deposit is open to the south and southwest.
Elmer B. Stewart, President and CEO of Copper Fox stated, "The 2019 work program has increased the confidence level in the project resources and significantly increased the recoverable soluble copper content of the Van Dyke deposit. The 2019 review of historical exploration data combined with the current resource estimation, indicates the deposit could be open to the south and southwest with a possible strike extension of between 1 and 2 kms. Additional drilling will be required to realize this potential and to define the un-explored portions of the Van Dyke deposit."
The effective date of the updated mineral resource estimate is January 9, 2020. Mineral resources are estimated within both a 0.025% RecCu grade shell and a "reasonable prospects for eventual economic extraction" shape. The mineral resources are estimated using criteria consistent with the CIM Definition Standards (2014) and the "CIM Estimation of Mineral Resources and Reserves Best Practice Guidelines" (2019).
The Indicated and Inferred mineral resources at the Base Case cutoff (0.025% RecCu) for the Van Dyke deposit are reported in Table 1 which includes internal dilution or all "must take" material within the confining shape. Table 1 also summarizes the 2015 Van Dyke resource estimate reported in the Preliminary Economic Assessment ("PEA") completed in 2015 for comparison. This table shows an Indicated resource an increase in overall tonnage, an increase in the RecCu grade and an increase in RecCu metal for the current resource. These changes are due to the 2019 re-assay program, updated geology, and updated metallurgical review and analyses. The resource Qualified Person ("QP") is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource estimate for the Van Dyke deposit.
Table 1: Base Case Current Resource Estimate and Comparison to 2015 Resource
|Class||KTonnes||TCu (%)||ASCu (%)||CNCu (%)||RecCu (%)||Recovery (%)||Soluble Cu||Total Cu|
(%)= percent, TCu=total copper, Soluble Cu=estimated pounds of recoverable copper, Mlbs=million pounds
- Sue Bird, P.Eng., an employee of Moose Mountain Technical Services, is the Qualified Person for the Mineral Resource estimate.
- The Effective Date of the above estimate is Jan. 9, 2020.
- The "reasonable prospects for eventual economic extraction" shape has been created based on a copper price of US$2.80/lb, employment of in-situ leach extraction methods, processing costs of US$0.60/lb copper, and all in operating and sustaining costs of $US1.25/tonne, a recovery of 90% for total soluble copper and an average Specific Gravity of 2.6t/m3.
- Approximate drill-hole spacings is 80m for Indicated Mineral Resources
- The average dip of the deposit within the Indicated and Inferred Mineral Resource outlines is 20 degrees. Vertical thickness of the mineralized envelope ranges from 40m to over 200m.
- Rounding as required by Best Practices established by the CIM reporting guidelines may result in slight apparent differences between tonnes, grade and contained metal content.
Acid soluble copper ("ASCu") and Cyanide soluble copper ("CNCu") grades were used in estimating the total soluble copper ("TSCu") contained within the resource estimate. The cyanide soluble portion represents a small fraction of the copper mineralization and the metallurgical testwork completed in 2015, shows that a percentage of the CNCu (mainly chalcocite) reports to an acid leach.
Cautionary Note to Investors
While the terms "measured (mineral) resource", "indicated (mineral) resource" and "inferred (mineral) resource" are recognized and required by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, investors are cautioned that except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic viability. Investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded into mineral reserves. Additionally, investors are cautioned that inferred mineral resources have a high degree of uncertainty as to their existence, as to whether they can be economically or legally mined, or will ever be upgraded to a higher category.
United States investors are advised that current Mineral Resources are not current Mineral Reserves and do not have demonstrated economic viability.
Resource Estimate Methodology
Drill Hole Database
The resource estimate was completed using data from 38 historic drill holes, historic channel sampling from underground workings on three levels, re-assays of historical drill core and drill core pulps, analytical results from the 2015 metallurgical testwork and data from 6 drill holes completed in 2014. The total length of core sampled is 13,781.3m from drilling and 1,424m from historic underground channel sampling.
The Van Dyke copper deposit is an oxidized portion of a porphyry copper deposit that has been subjected to several weathering/oxidization/enrichment cycles. The copper mineralization at Van Dyke is hosted in altered and weathered Precambrian age Pinal Schist and Laramide age dikes related to the Schultz granodiorite. A "leach cap" overlies the main mineralogical zones mapped within the deposit which are, in descending order, Oxide (malachite, chrysocolla, azurite), Supergene (chalcocite), and Hypogene (chalcopyrite). The geology of the deposit has been interpreted on 23 north-south sections and on 15 east-west sections. Grade modelling and definition of the mineralized shapes is in three dimension using data from 20 east-west sections. The Van Dyke fault has been modelled to constrain the mineralization to the north. The mineralization remains open to the south and southwest consistent with the 2014 and 2015 interpretations.
Solids of recoverable copper mineralization were created and used to code the assays, composites and the three-dimensional block model. Surfaces of the faults have been used to create domain boundaries and used to code the assay, composite and block model. The block model has been created to encompass all of the drill holes and channel samples available, within 30mx30mx10m (vertical) blocks.
Wireframes used to model the deposit to demonstrate a reasonable prospect of eventual economic extraction were prepared for the total soluble copper (ASCu + CNCu) mineralization based on a 0.025% TSCu grade shell. The shapes created by Lersch-Grossman optimization software used the following parameters:
- Total recoverable copper = (soluble copper) X Total recovery, where soluble copper =ASCu + CNCu
- Copper price =$US2.80/lb.
- Processing costs =$US0.60/lb. within the leach shape
- Operating costs = $US1.25/tonne operating and sustaining capital estimate
- Specific Gravity = 2.60.
Sensitivity to Mining Cost was run for costs up to $2.80 /tonne with little difference in the confining shape.
Density measurements for the mineralized intervals ranged from 2.29 to 3.55 and averaged 2.60t/M3.
Grade Capping and Compositing
Statistical analyses of the drill hole assay data indicated that capping was required to manage the outliers in the sample population. Grades that exceeded the cap values given in Table 2 below have been assigned the cap value. The drill holes were composited to 5m fixed length composites that honored the domain boundaries. Separate domains have been created for the deposit and the underground mine zone within the 0.025% RecCu grade shell. The table below; summarizing the capping of assays completed prior to compositing and is based on cumulative probability plots.
Table 2: Capping Value for Assays
DHS=drill holes, UG=Underground
Interpolation has been completed using Ordinary Kriging ("OK") within the interpreted 0.025% RecCu grade shell. Interpolation of the RecCu grade into blocks has been restricted to match the Domain of the blocks with the composite codes.
Table 3 below is a summary of the variogram parameters used for OK with the ranges used to assist in search ellipses during interpolation. Interpolation was completed in 5 passes with the search parameters relaxed for each pass.
Table 3: Variogram Parameters
|Rotation||Total||Range 1||Range 2||Range 3|
|Domain||GSLIB-MS||Axis||Range (ft)||Nugget||Sill 1||Sill 2||Sill 3||(m)||(m)||(m)|
Block Model Validation
The model was validated through comparisons of grades, grade distribution and tonnage-grade curves of the OK grades with the de-clustered composites (Nearest Neighbour interpolation). The Nearest Neighbour estimate has been corrected for the Volume-Variance effected by the Indirect Lognormal method. Comparisons of the different estimation techniques (Ordinary Kriging and Nearest Neighbor) show similar statistics and spatial distribution.
Ms. Sue Bird - P. Eng., (resource estimate) of MMTS is the Qualified Person ("QP") who prepared the mineral resource estimate, T. Meintjes - P.Eng., of MMTS is the QP who completed the metallurgical review and analyses and R. Lane - P. Geo., of MMTS is the QP who compiled and reviewed the QA/QC for the resource estimate disclosed in this news release. Ms. Bird, as the Qualified Person, has approved the scientific and technical content of this news release. Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Company's nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, has reviewed the scientific and technical information disclosed in this news release. Mr. Stewart is not independent of Copper Fox.
About Copper Fox
Copper Fox is a Tier 1 Canadian resource company listed on the TSX Venture Exchange (TSX-V: CUU) focused on copper exploration and development in Canada and the United States. The principal assets of Copper Fox and its wholly owned Canadian and United States subsidiaries, being Northern Fox Copper Inc. and Desert Fox Copper Inc., are the 25% interest in the Schaft Creek Joint Venture with Teck Resources Limited on the Schaft Creek copper-gold-molybdenum-silver project located in northwestern British Columbia and a 100% ownership of the Van Dyke oxide copper project located in Miami, Arizona. For more information on Copper Fox's other mineral properties and investments visit the Company's website at http://www.copperfoxmetals.com.
For additional information contact: Investor line 1-844-464-2820 or Lynn Ball, at 1-403-264-2820.
On behalf of the Board of Directors
Elmer B. Stewart
President and Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of the Canadian securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "budgets", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the mineral resource estimate for the Van Dyke project; the completion and filing of a National Instrument 43-101 technical report related to the Van Dyke mineral resource estimate; potential existence and size of mineralization within the Van Dyke project; additional drilling at the Van Dyke project; and geological interpretations and potential mineral recovery processes. Information concerning mineral resource estimates also may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined.
In connection with the forward-looking information contained in this news release, Copper Fox and its subsidiaries have made numerous assumptions, regarding, among other things: the geological, metallurgical, engineering, financial and economic advice that Copper Fox has received is reliable and is based upon practices and methodologies which are consistent with industry standards. While Copper Fox considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies.
Additionally, there are known and unknown risk factors which could cause Copper Fox's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the actual mineralization in the Van Dyke deposit may not be as favorable as suggested by the resource estimate; the NI 43-101 technical report that includes the resource estimate may not be filed within the anticipated timeframe, or at all; fluctuations in copper and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, and estimated economic return; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals
A more complete discussion of the risks and uncertainties facing Copper Fox is disclosed in Copper Fox's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Copper Fox disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
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