A Canadian Based Resource Company Focused on Copper Projects in Canada and the USA

Transcription

1 A Canadian Based Resource Company Focused on Copper Projects in Canada and the USA June 2016

2 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 securities laws (collectively, forward-looking information ). This forward-looking information includes statements relating to management s expectations with respect to our projects based on the beliefs, estimates and opinions of the Company s management or its independent professional consultants on the date the statements are made. Forward-looking information in this presentation includes statements about the potential growth and exploration of Copper Fox s investments; potential economic enhancements to the Schaft Creek project; the investment of Anglo American into a deposit nearby to the Sombrero Butte project; expected supply and demand for copper in the years to come; the copper refined balance forecast; the future activities of the Schaft Creek Joint Venture; direct cash payments to Copper Fox upon a Production Decision and upon the completion date of a mine; and the interpretation of data from the Van Dyke, Eaglehead, Sombrero Butte and Mineral Mountain projects. Information concerning exploration results and mineral reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. With respect to the forward-looking statements contained in this presentation, Copper Fox has made numerous assumptions regarding, among other things: metal price assumptions used in mineral resource and mineral reserve estimates; the continued availability of project financing; 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; the availability of necessary permits; and the stability of environmental, economic, and market conditions. While Copper Fox considers these assumptions to be reasonable, these assumptions are inherently subject to significant business, economic, competitive, market and social 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, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfill projections/expectations and realize the perceived potential of Copper Fox s projects; the Schaft Creek Joint Venture may not result in a Production Decision being made, or the construction of a mine; financing commitments may not be sufficient to advance the Schaft Creek project as expected, or at all; uncertainties involved in the interpretation of drilling results and other tests and the estimation of mineral reserves and resources; the possibility that there may be no economically viable mineral resources or reserves may be discovered on any of Copper Fox s projects; risk of accidents, labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at Copper Fox s projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government; ongoing relations with our partners and joint ventures; performance by contractors of their contractual obligations; unanticipated developments in the supply, demand, and prices for metals; changes in interest or currency exchange rates; legal disputes; and changes in general economic conditions or conditions in the financial markets. 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 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 except as may be required under applicable securities laws. All figures are in Canadian Dollars unless otherwise indicated. Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Company s nominated Qualified Person pursuant to Section 3.1 of National Instrument , Standards for Disclosure for Mineral Projects, and has reviewed and approved the technical information disclosed in this presentation. 2

3 3 Copper Fox Highlights Focused on Low C1 Cost copper projects in Canada and the USA Schaft Creek Project 1 Copper Fox share before tax NPV (8%) of $C128 million Van Dyke Project 2 before tax NPV (8%) of $US213 million Large holdings of copper and gold reserves and resources Exploring within proven copper districts 1. 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; at 0.15% CuEq cutoff. Reserves reported at $6.60/tonne net smelter return cutoff. $C:$US FOREX Technical Report Preliminary Economic Assessment Technical Report for the Van Dyke Copper Project", dated December 18, 2015 prepared by Moose Mountain Technical Services, J, Gray P.Eng, et al as Qualified Persons.

4 Our Investment Advantage Assets Management COPPER FOX METAL OWNERSHIP Cu (Mlb) Mo (Mlb) Au (Moz) Ag (Moz) Reserves 1 & 2 (P+P) 1, Resources 2 (M+I) 1, Resources 2 (Inf) 2, Stable Exploration Potential Reserves CuEq 3 (Mlb) AuEq 3 (Moz) Proven Probable 2, Reserve Total 2, Resources CuEq (Mlb) AuEq (Moz) Measured & Indicated 3, Inferred 3, Resource Total 6, Proven + Probable Reserves are included in the Measured + Indicated portion of Resources 2. See slide #6 for categories, tonnes and grades 3. CuEq based on copper content and 100% credit for other metals. AuEq based on Gold content plus 100% credit for other metals. Metal prices $US2.50/lb Cu, $US1,250.00/oz Au, $US9.00/lb Mo and $US16.00/oz Ag

5 Resource Growth Metal Prices Cu $US2.50/lb, Mo $US9.00/lb, Au $US1,250.00/oz, Ag $US16.00/oz Assumes 100% Metal Recovery 8.0 EXPLORATION ACQUISITIONS 6.0 CuEq (Blb) & 2 1 & 2 3 & 4 4 Resource Categories (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; at 0.15% CuEq cutoff. Reserves reported at $6.60/tonne net smelter return (NSR) cutoff. (3) "Technical Report and Resource Estimation for the Van Dyke Copper Project", dated January 30, 2015 prepared by Moose Mountain Technical Services, S. Bird, P.Eng and R. Lane, P. Geo as Qualified Persons; at 0.05% TCu cutoff. (4) "Technical Report on the Eaglehead Cu-Mo-Au Project, British Columbia, Canada", dated June 29, 2012, prepared by Roscoe Postle Associates Inc., B. Donough, P.Geo and D. Rennie, P.Eng as Qualified Persons; at 0.16% CuEq cutoff. M+I INF

6 Company NI 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 Probable , Proven & Probable , Mineral Resources Resource Estimate Data Copper Fox Share Metal Holdings Project Resource Category Tonnes (Mt) Cu (%) Mo (%) Au (g/t) Ag (g/t) Cu (Mlb) Mo (Mlb) Au (Moz) Ag (Moz) Schaft Creek (2) Measured Indicated 1, , Measured & Indicated 1, , Schaft Creek (2) Inferred Van Dyke (3) Inferred , Eaglehead (4) Inferred Total Inferred , Copper and molybdenum in millions of pounds, gold and silver in millions of ounces Numbers rounded to reflect best practise principles Copper Fox owns 25% of Schaft Creek project, 100% of Van Dyke project and 65.4% of Eaglehead project (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; at 0.15% CuEq cutoff. Reserves reported at $6.60/tonne net smelter return (NSR) cutoff. (3) "Technical Report and Resource Estimation for the Van Dyke Copper Project", dated January 30, 2015 prepared by Moose Mountain Technical Services, S. Bird, P.Eng and R. Lane, P. Geo as Qualified Persons; at 0.05% TCu cutoff. (4) "Technical Report on the Eaglehead Cu-Mo-Au Project, British Columbia, Canada", dated June 29, 2012, prepared by Roscoe Postle Associates Inc., B. Donough, P.Geo and D. Rennie, P.Eng as Qualified Persons; at 0.16% CuEq cutoff. Note: Above stated proven and probable reserves are included in the Measured and Indicated mineral resources reported for the Schaft Creek Project. Mineral resources that are not mineral reserves do not have demonstrated economic viability. 6

7 Our Projects (balanced portfolio) 7 1) 25% interest in the Schaft Creek Joint Venture 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. 3) 65.4% of the shares of Carmax Mining Corp. who in turn own 100% of the Eaglehead coppermolybdenum-gold project in British Columbia. 4) 100% ownership of the Sombrero Butte copper project in Arizona. 5) 100% ownership of the Mineral Mountain copper project in Arizona.

8 Property Portfolio PRODUCTION None DEVELOPMENT Schaft Creek Van Dyke EXPLORATION Schaft Creek Eaglehead Van Dyke Sombrero Butte Mineral Mountain 8

9 Capital Market Summary TSX-V: CUU OTC Pink: CPFXF 52 week share price range: $ $0.24 Current share price (Jun ): $0.12 Market Capitalization, basic: $50.05 million Common shares Options Warrants Total million 0.55 million 0.00 million million Shares held by insiders 1 : 56% basic; 56% diluted All currency shown in Canadian dollars 1. Insider information as per SEDI Reports 9

10 Schaft Creek Highlights Teck Resources Limited (75% & operator), Copper Fox 25% ownership Mining friendly jurisdiction Long life/expansion potential Financing provided by operator Port facilities & electrical power available Low Environmental Impact (estimated 8% of rock is PAG) Partnership with Tahltan First Nation 10

11 Schaft Creek Feasibility Study 21 Year Mine Life at 130,000 tpd Low C1 cost per pound of copper ($US1.02) At Mine Revenue and Net Free Cash Flow significantly impacted by FOREX and copper price Potential economic enhancements identified The NI Technical Report confirmed: 11 this project has positive NPV and IRR significant upside potential 8% & 5% discount rates ranged from $C128 to $C424 million (i.e. $C0.31 to $C1.02/share) 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., et al as Qualified Persons tpd = tonnes per day; FOREX = Foreign Exchange; NPV = Net Present Value; IRR = Internal Rate of Return

12 Schaft Creek FOREX Sensitivity 21 year mine 130,000 tpd open pit/flotation mill (CDN$) (100% Project Numbers) Foreign Exchange: $CDN/$US (Base Case) 0.97 NPV (8% discount rate) $513 M NPV (5% discount rate) $1,694 M IRR 10.1% C1* cost per lb copper ($USD) $1.02 Metal Prices: US$3.25 lb Cu, US$1, oz Au, US$27.74 oz Ag, US$14.64 lb Mo *C1 cost per lb Copper = the sum of operating cost and TSRT charges less value of payable gold, silver & molybdenum divided by the total lbs of payable copper. Feasibility Study **FOREX Sensitivity (LOM) Years 1-7 Years At Mine Revenue $9.05 B $14.15 B $23.2 B $25.0 B $28.1 B Mine Operating Costs $4.41 B $8.10 B $12.5 B $12.5 B $12.5 B Capital Recovery & Sustaining Costs $4.31 B $0.31 B $4.6 B $4.6 B $4.6 B Net Cash Flow $0.30 B $5.77 B $6.1 B $7.9 B $11.0 B C1* cost per lb Copper ($CDN) $0.84 $1.22 $1.05 $0.93 $0.71 Payable Copper (lbs) M M 4.7 B 4.7 B 4.7 B Payable Gold (oz) T T 4.1 M 4.1 M 4.1 M Payable Silver (oz) 1.2 M 1.0 M 22.5 M 22.5 M 22.5 M Payable Molybdenum (lbs) 9.8 M 10.2 M M M M *C1 cost per lb Copper = the sum of operating cost and TSRT charges less value of payable gold, silver & molybdenum divided by the total lbs of payable copper. ** 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., et al as Qualified Persons 12

13 Schaft Creek - Economic Enhancements Upgrade Inferred Mineral Resource located within pit shell 1 The pit shell contains million tonnes of inferred resource grading: 0.25% copper, 0.16 g/t gold, 0.018% molybdenum and 1.58 g/t silver (NSR of $US24.88/t) which for purposes of the feasibility study were treated as waste rock (@ zero value) Project NPV most sensitive to FOREX; a 1 point change increases project NPV (8%) by $75 million over the LOM 1. Resource Re-modelling by Joint Venture in 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., et al as Qualified Persons LOM = Life of Mine 13

14 Schaft Creek Net Cash Distribution (before tax) Before Payout Capital & Sustaining $4.3 B (year 1-7) After Payout Average NCF/year $415 M Net Cash Flow (NCF) $4.6 B Year 1-7 Net Cash Flow 10% $0.3 B Teck 75% $225 M CUU 25% $75 M Capital Recovery 90% $4.3 B All currency is in Canadian dollars Numbers are rounded to reflect best practise principles Based on Feasibility Study dated January 23, 2013 Teck 75% $311 M/year CUU 25% $104 M/year 2 Separate Concentrates Cu 28% + Au-Ag Mo 50% No penalty elements Recoveries Cu 86.5% Au to Cu Concentrate 73% Ag to Cu Concentrate 42% Mo 59% 14

15 Schaft Creek Estimated NSR/t Section N 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., et al as Qualified Persons 15

16 Schaft Creek Grade Comparison C1 2 Schaft Creek LOM (941 Mt) (130,000 tpd) 1.02 Schaft Creek Y1-Y7 (313 Mt) Current Operating BC Cu Mines 1 Copper Mountain - (217 Mt) Highland Valley - (663 Mt) Gibraltar - (749 Mt) Mt. Milligan - (542 Mt) (36,000 tpd) (130,000 tpd) (82,000 tpd) (50,000 tpd) Imperial Metals - (128 Mt) Combined Huckleberry & Polley Mines *CuEq% (37,000 tpd) Copper Molybdenum Gold Silver 2014 World Average C1 Cost = Data based on reserves. Peer data from corporate websites and technical reports. CuEq Calculation: $US2.00 lb Copper, $US11.25 lb Molybdenum, $US oz Gold, $US11.25 oz Silver. Assumes 100% metal recoveries, based on published company information. 2 С1 Cash cost per pound of Copper Production (Net of other metal credits). 3 GFMS Copper Survey 2015; Thomson Reuters. 16

17 Van Dyke Project (In-Situ Leach) Before tax 8% & 5% discount rates ranged from $US213 to $US283 million (i.e. $US0.51 to $US0.68/share) Positive IRR of 35.5% pre-tax and 27.9% post tax 11 year LOM (Could be longer) 60 Mlb Cu production Y1-Y6 Direct Cash Cost of $US0.60/lb and AISC of $US1.44/lb PFS recommended ($US16.4 million) Based on Preliminary Economic Assessment Technical Report for the Van Dyke Copper Project", dated Dec 18, 2015 prepared by Moose Mountain Technical Services, J, Gray P.Eng., et al as Qualified Persons. IRR = Internal Rate of Return; LOM = Life of Mine; AISC = All In Sustaining Cost; NPV = Net Present Value 17

18 Van Dyke Project Sensitivity Based on Preliminary Economic Assessment Technical Report for the Van Dyke Copper Project", dated December 18, 2015 prepared by Moose Mountain Technical Services, J, Gray P.Eng., et al as Qualified Persons;. NPV = Net Present Value 18

19 Eaglehead Project Owned and operated by Carmax Mining Corp. Copper Fox owns 65.4% equity in Carmax 9 km long porphyry system (looks like Schaft Creek) Preliminary test work indicated 80-88% Cu, 72% Au, 76% Ag and 55% Mo recovery Clean Copper concentrate (28-36% Cu) with gold-silver credits 2016 Exploration budget of $1.5 million 19

20 Eaglehead - Exploration Target Mineralized 5 km long continuous geophysical target Similar to Schaft Creek Large portion of target is not tested OPEN INFERRED MINERAL RESOURCE Zone Tonnes (Mt) Cu (%) Mo (%) Au (g/t) CuEq* (%) East Bornite Total MINERALIZED DDH? NON MINERALIZED DDH OPEN CuEq* assumes 100% of metal recovery, US$2.75 lb Cu, US$14.00 lb Mo, US$1, oz Au "Technical Report on the Eaglehead Cu-Mo-Au Project, British Columbia, Canada", dated June 29, 2012, prepared by Roscoe Postle Associates Inc., B. Donough, P.Geo and D. Rennie, P.Eng as Qualified Persons; at 0.16% CuEq cutoff. 20

21 Eaglehead Project Excellent correlation between mineralization & chargeability Large portion of project has not been tested CROSS SECTION me Untested Chargeability Target Width 400 m 200 metres Mineralized Interval 21

22 Sombrero Butte Chargeability Target LITHOLOGY Pinal Schist Volcanics Granodiorite Volcanics Surface Exploration Target PDH # ppm Cu in drill cutting PDH # ppm Cu in drill cutting DDH SB-29 22

23 2015 Achievements Schaft Creek Joint Venture ( SCJV ) continued optimization work at Schaft Creek SCJV increased equity ownership in Liard Copper Mines Ltd., from 78% to 85.4% Positive Preliminary Economic Assessment on the Van Dyke project. Increased equity ownership in Carmax Mining Corp. from 42.09% to 65.4% Advanced Sombrero Butte project to drill ready stage Generated Mineral Mountain porphyry copper project in Arizona 23

24 2016 Plans SCJV to remodel the resource for the Schaft Creek deposit, SCJV to spend $0.7 million in 2016, Locate partner to purchase interest and complete Preliminary Feasibility Study on Van Dyke project, Carmax Mining Corp. to complete $1.5 million exploration program, Locate partner to drill test the Sombrero Butte porphyry copper project, Locate partner to explore the Mineral Mountain porphyry copper project. 24

25 Corporate Contact Information Corporate Office Desert Fox Van Dyke Office Suite 650, th Avenue SW 3445 E Highway 60 Calgary, AB, Canada T2R 1L5 Miami, AZ, USA Contact: Investor Relations Telephone: +1 (403) Toll free: +1 (844) investor@copperfoxmetals.com