Copper Fox Metals: Mineralized Envelope Extended at the Van Dyke ISCR Project

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Earlier today, Copper Fox Metals (CUU) provided a further update from development work undertaken at the wholly-owned Van Dyke ISR Copper Project, located in Arizona. Analytical results were received from the previously reported historical diamond drill core sampling program. With data from 11 of the 29 drillholes received, results indicate the potential for total soluble copper (TSCu) mineralization growth at the Project.

Analytical results received from 8 of the 11 drillholes returned intervals exceeding the TSCu cutoff of 0.025% used in the mineral resource estimate (MRE) update completed in 2020. The analytical results serve to better define the boundary between the Transitional and Sulphide mineral domains in the Van Dyke deposit. Specifically:

• Drillhole DDH OXY-42, intersected a 100.59m core interval (336.19m-436.78m) that averaged 0.250% total copper (TCu) and 0.163% TSCu.

• Included was a 22.86m core interval (337.72m-360.58m) that averaged 0.481% TCu and 0.409% TSCu.

The analytical results of economic interest are acid soluble copper (ASCu) and cyanide soluble copper (CNCu). The received analytical results and locations of the sampled drill holes discussed in this news release are shown below:

Ultimately, the 2026 sampling completed in drillhole DDH OXY-42 extended the TSCu mineralization from 336.19m to 436.78m, representing an additional 100.59m down dip. The TSCu envelope in this drill hole now extends from a core interval of 249.33m to 436.78m.

UPDATED PEA & MRE WELL UNDERWAY FOR VAN DYKE

Last week, Copper Fox Metals provided an update on development work currently underway at the Van Dyke ISCR Project, located in Gila County, Arizona. On the updated MRE front, a total of 369 samples have been collected from 29 drillholes from the lower Oxide and Transitional mineral zones within the Van Dyke deposit. These samples will fill the gaps in previously sampled intervals and will close open-ended mineralized intervals. Recall that the Transition zone of the Van Dyke deposit is a mixture of acid soluble minerals (malachite, azurite, chrysocolla) and chalcocite, a secondary copper sulphide.

On the updated PEA front, locations for the underground access to the deposit, the SX-EW plant and related infrastructure have been selected. Moreover, a preliminary semi-regional 3-D groundwater flow model has been constructed, calibration of the model is currently in progress. There are two additional hydrogeological monitoring and groundwater sampling sites expected to come online next month. The groundwater flow modeling is critical to predicting how effectively the leaching fluid will contact and dissolve the soluble copper minerals from the deposit.

VAN DYKE: ON THE PATHWAY TO A PFS LEVEL COPPER PROJECT

Given the 2020 PEA, Copper Fox management last year elected to follow various recommendations laid out in the PFS Execution Plan for Van Dyke. In addition to today’s update, much technical progress has been achieved since the 2020 PEA, among others:

• The establishment of hydrogeological monitoring stations and initiated water quality sampling in accordance with Federal and State regulatory requirements.

• Updated conceptual hydrogeological, geometallurgical, geological, structural, and mineralogical models for the deposit.

• Preliminary characterization of the copper mineralogy in the oxide and transition mineralogical domains within the deposit.

• The preliminary characterization of the copper mineralization, gangue, and host rock to mitigate potential operating issues during the leaching process.

• A geotechnical study to determine rock strength and geotechnical characteristics of the Gila Conglomerate.

• Infrastructure reviews to minimize environmental and social disturbance.

• An Execution Plan outlining expected activities, estimated costs, timeline and permitting process to achieve a PFS level technical report.

As per our estimates for Van Dyke, we model a 16 year LOM operation at Van Dyke with a total of 1.05B lbs of copper being produced (average of 66M lbs Cu per year with peak production near 85M lbs per year). We continue to use a $5.50 per lb LT copper price and a $1.58 per lb C1 cash cost. Ultimately, estimating initial capex at $335M we calculate an after-tax NPV8% of $1,509.7M and an after-tax IRR of 38%.

CONCLUSION & VALUATION

We’re glad to see that work is advancing simultaneously on all portfolio projects but specifically on the flagship Van Dyke Project. The objective of the sampling program was to either fill data gaps identified in previous sampling programs or extend the limits of the TSCu envelope to better define the boundary between the Transitional and Sulphide copper domains within the Van Dyke deposit. Data from an additional 18 drillholes are pending. The recently announced LOIs for Van Dyke (announced this past December) signal that Van Dyke has broad support from both the community and from commercial partners. Just as importantly, we note that the PEA team retained by Copper Fox has considerable experience with ISCR projects in Arizona, highlighted by work conducted on the recently commissioned Florence ISCR copper mine (Taseko Mines, TGB), located approximately 90 miles west of the Van Dyke Project. 

Given the most recent close (April 29), shares of Copper Fox currently trade at a 0.16x P/NAV valuation, or at C$0.02 per booked CuEq lbs (all assets). Underpinned by our long term $5.50 per lb copper price objective, we maintain our 0.30x NAV-derived 12-month price objective of C$1.05 per share (rounded).

We maintain our price objective of C$1.05 per share (rounded) which equates to upside of +91% from the most recent close (April 29). For more specific information on all the company assets, refer to our June 18, 2025 initiation of coverage piece.