Copper Fox Metals: Expanded Chargeability Seen at the Eaglehead Copper Project

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Copper Fox Metals (CUU) announced on Friday, August 22 that it had completed the 3D pole-dipole distributed DCIP survey at its wholly-owned Eaglehead Copper Porphyry project, located in British Columbia. The data received from this latest geophysical program will be invaluable as it pertains to gaining a better understanding of the characteristics and size of the Eaglehead porphyry mineralization. The strong correlation between chargeability and porphyry mineralization combined with the expanded chargeability target has significant implications for the potential size of the mineralized envelopes associated with the open-ended mineralized zones, as outlined in the 2023 Mineral Resource Estimate (MRE). Given the most recent close (August 22), shares of Copper Fox currently trade at a 0.11x P/NAV valuation, or at C$0.02 per booked CuEq lbs. We maintain our C$0.60 per share price objective.

FURTHER DEFINING OF THE PORPHYRY STYLE MINERALIZATION

Following the conclusion of the 3D pole-dipole distributed DCIP survey at Eaglehead, a 2,800m long zone of anomalous chargeability was found to occur at surface in the same northwest trending valley that hosts the four zones of porphyry style mineralization. The anomaly dips to the north under propylitic altered quartz eye porphyry of the Eaglehead intrusive. The chargeability anomaly was found to occur over a horizontal distance of 2,800m and extends down dip approximately 2,400m to the north. The geophysical survey totaled 19.7-line KMs and was completed in 14 days (11 days for data acquisition, and 3 days for equipment layout). The Ground/Wire Length (infinity line) for the survey was 21.2km. DIAS 32 is a distributed array system, comprising single-channel receivers, equipped with battery, time series data recording, cable-free mesh networking and GPS.

ADDING TO THE 2014 GEOPHYSICAL SURVEY FINDINGS

The surface expression of the anomalous chargeability was found to exhibit a strong correlation to the anomalous chargeability identified in a previous, 2014 geophysical survey.  Additionally, it was found that several pipe-like bodies of anomalous chargeability correspond to leached, mineralized hydrothermal breccia and secondary copper showings mapped on surface. The strong correlation between chargeability and porphyry mineralization combined with the expanded chargeability target has significant implications for the potential size of the mineralized envelopes associated with the open-ended mineralized zones, as outlined in the 2023 Mineral Resource Estimate (MRE).The anomalous chargeability in the Bornite zone is seen below:

BUILDING ON THE 2023 MINERAL RESOURCE ESTIMATE

The preliminary interpretation of the 2025 survey results used the 8mv/s (~17mrds) chargeability signature to define anomalous chargeability. Distances indicated in this news release are approximate. Recall that in 2023, a mineral resource estimate (MRE) demonstrated mineralization in the East, Bornite, Pass and Camp zones is open-ended in three directions. The correlation between mineralization and chargeability, the geometry of the anomalous chargeability signature outlined in 2025, and the depth of drilling in the Bornite zone (average 210m vertical distance) supports the current interpretation that the mineralization outlined by drilling represents the upper portion of the porphyry system.

Recall that there are four open-ended zones of porphyry style mineralization included in the current MRE are located along the apex of a partially defined continuous 6km long chargeability anomaly. As mentioned by management, the locations of the mineralized zones are a function of the historical drilling completed prior to the more current deep penetrating geophysical surveys that resulted in large portions of the updated chargeability anomaly being untested. The strong spatial correlation between the mineralization and the chargeability anomaly provides an opportunity to better define the size of the mineralized envelope and a crude indication as to the porphyry potential of the Eaglehead Project.  

THE EAGLEHEAD PROJECT

Located close to Schaft Creek, the Eaglehead project is an advanced exploration stage polymetallic porphyry copper project comprised of eleven contiguous mineral claims that cover 15,712.9 hectares (15km2) of land in the Liard Mining Division, approximately 50 km east of Dease Lake in British Columbia, within Tahltan and Kaska territory. A 100% working interest in the property was acquired by Copper Fox in 2021 in exchange for $1.0M in various installments. The mineralized area at Eaglehead covers an area measuring 8km x 3km and contains four open-ended porphyry copper deposits, two areas of widespread mineralization and 173 additional copper showings. Using 120 of the 126 drillholes completed on the project, in October 2023 a NI43-101 compliant technical Report was filed (with an effective date of August 21, 2023).  

CONCLUSION & VALUATION

We’re glad to see that work is advancing simultaneously on all projects as management has previously emphasized a systematic approach for all projects (highlighted by Van Dyke and Schaft Creek), all in an effort to advance and de-risk, while also in an effort to allocate capital efficiently. Specifically pertaining to Eaglehead, the data received from this latest geophysical program will be invaluable as it pertains to gaining a better understanding of the characteristics and size of the Eaglehead porphyry mineralization. The strong correlation between chargeability and porphyry mineralization combined with the expanded chargeability target has significant implications for the potential size of the mineralized envelopes associated with the open-ended mineralized zones, as outlined in the 2023 MRE. Given the most recent close, shares of Copper Fox currently trade at a 0.11x P/NAV valuation, or at C$0.02 per booked CuEq lbs. We maintain our C$0.60 per share price objective.