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Copper Fox Announces Schaft Creek Preliminary Economic Assessment

September 20, 2021

After-Tax NPVUS$842.1 million (C$1.1billion); IRR 12.9%
Pre-Tax NPV8 US$1.4 billion (C$1.8 billion); IRR 15.2%
Projected After-Tax Payback 4.8 years
Metal Price Assumptions: Cu: US$3.25/lb, Au: US$1,500/oz, Mo: US$10.00/lb, Ag: US$20.00/oz

Calgary, Alberta–(Newsfile Corp. - September 20, 2021) - Copper Fox Metals Inc. (TSXV: CUU) (OTCQX: CPFXF) (“Copper Fox” or the “Company”) is pleased to announce the results of a Preliminary Economic Assessment (the “PEA”) for the Schaft Creek copper-molybdenum-gold-silver porphyry deposit (the “Schaft Creek Project”) located in Tahltan Territory in northwestern British Columbia. The Schaft Creek Project covers 55,779.56 ha of mineral concessions, located approximately 60 kilometers (“km”) south of Telegraph Creek near existing transportation and energy infrastructure. The effective date of the PEA is September 10, 2021, a technical report relating to the PEA will be filed on SEDAR within 45 days of this news release. The 2021 PEA will supersede all previous studies and incorporates the Updated Mineral Resource Estimate announced on March 22, 2021.

The Schaft Creek Project is managed through the Schaft Creek Joint Venture (“Schaft Creek JV”) formed in 2013 between Teck Resources Limited (“Teck”) (75%) and Copper Fox (25%) with Teck being the Operator. The PEA was prepared by Tetra Tech Canada Inc. (“Tetra Tech”) as the general contractor on behalf of Copper Fox in accordance with NI 43-101 standards (May 9, 2016), and CIM Definition Standards (May 19, 2014) with guidance from CIM Best Practice Guidelines (November 29, 2019). The results of the PEA are presented on a 100% project basis and in US$ unless stated otherwise.

PEA Highlights

  • Pre-Tax Net Present Value (“NPV8”) of US$1.4 billion and Internal Rate of Return (“IRR”) of 15.2%

  • After-Tax NPV8 of US$842.1 million and IRR of 12.9%

  • Average annual EBITDA(6) of US$695.4 million based on first 5 years(1) (Years 2-6) at full production, and US$10.8 billion Life of Mine (“LOM”)

  • Average annual Free Cash Flow (“FCF”) before recovery of capital costs of US$633.4 million based on first 5 years(1) (Years 2-6) at full production and US$9.96 billion LOM

  • Net Smelter Return (“NSR”) of US$20.63 per tonne (“t”)

  • 21-year Life of Mine (“LOM”) producing approximately 5.0 billion pounds (“lbs”) or 2.3 million tonnes (“Mt”) copper, 3.7 million ounces (“oz”) gold, 226.0 million lbs molybdenum and 16.4 million oz silver in concentrate

  • 133,000 tonne per day (“tpd”) LOM nominal milling rate at 92% capacity processing 1.030 billion tonnes (“Bt”) of mill feed LOM, representing approximately 60% of identified mineral resources

  • Estimated Initial Capital Costs of US$2.653 billion, not including Sustaining Capital Costs of US$848.7 million which is inclusive of US$154.0 million Closure Costs. Operating Costs are estimated to be US$8.66/t processed

  • C1 Cost(7) (net of by-product credits); for first 5 years(1) (Years 2-6) at full production of US$0.46 per pound of payable copper and US$1.00 per pound payable copper LOM

  • All in Sustaining Costs(7) for first 5 years(1) (Years 2-6) at full production of US$0.72 per pound payable copper and US$1.18 per pound payable copper LOM

The results of the PEA are preliminary in nature. The PEA includes a combination of indicated and inferred mineral resources which are considered too speculative geologically to have the economic considerations applied that would enable them to be categorized as mineral reserves. There is no certainty that the PEA forecasts will be realized or that any of the resources will ever be upgraded to reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Elmer B. Stewart, President and CEO of Copper Fox, stated: “We are very pleased with the results of the PEA and the recommended program work of C$23 million that could be considered by the Operator to advance the Schaft Creek Project to the Pre-Feasibility Study (“PFS”) stage of study and evaluation. The significantly higher investment returns, resulting in part from project enhancements developed over the past 2 years, and remaining resources in the deposit on completion of the first 21 years of mining, provides a compelling view of the Schaft Creek Project’s financial potential. The smaller project “footprint” and ability to access hydroelectric power from the existing provincial power grid is expected to reduce capital costs, as well as lower CO2 emissions and the impact on the environment when compared to other large copper development opportunities. The Schaft Creek Project is a copper-molybdenum-gold-silver conventional truck-and-shovel development opportunity with scale, optionality and is in a Tier 1 mining jurisdiction. In the first 5 years of full operation, the Schaft Creek Project has the potential to produce, on average, 398 million copper equivalent pounds (181Kt) per year.”

Key Changes from Previous Technical Study in 2013

  • Updated mine plan that reduced the strip ratio from 2.16:1 to 1:1 

  • LOM average operating cost per tonne processed reduced from US$13.25/t to US$8.66/t

  • Initial capital costs reduced from US$3.26 billion to US$2.65 billion

  • Sustaining Capital Costs reduced from US$1.20 billion to US$848.7 million

  • Re-location of the milling facility closer to the pit
  • Re-location of the Tailing Management Facility (TMF) closer to the milling facility

  • Embankments in TMF reduced from three to two

  • Waste rock storage facilities reduced from three to two

Summary of PEA Economic Model

The PEA, Pre-Tax and After-Tax project economic analysis (reflecting constant 2021 US dollars) of the Schaft Creek Project is based on payable metal and was prepared on a 100% basis using revenues and costs projected into the future on an annual basis and then discounted using mid year discounting at a rate of 8% per annum to yield the NPV and IRR. Net Smelter Return, Capital, Operating and Sustaining Costs, Closure Costs, Net Proceeds Interests payments, BC Mineral Tax, and Federal and Provincial income taxes are included in the financial analysis. Metal prices are based on Long Term consensus metal prices (Energy and Metals Consensus Forecast, inflation adjusted pricing dated June 2021). Notes to accompany the tables are included at the end of this news release.

The Operational Summary for the PEA, is set out below:



Total (1)

Annual Average (2)


2 to 6

First 10 years



2 to 6

First 10 years



Total Material Moved









Total Material Processed








Head grade - copper








Head grade - gold








Head grade - silver








Head grade - molybdenum









































Copper equivalent (3)








Financial Summary

Revenue (net of TCRC)








Site Operating costs








Concentrate transportation costs








NPI & Other Offisite Costs
















Free Cash Flow (including Initial Capex)








Free Cash Flow (excluding Initial Capex) (1)








Cash Costs (4)

Before by-product credits








After by-product credits








All-in sustaining costs








Capital Costs

Initial Capital (direct, indirect, contingency)



Sustaining Costs








Closure costs


included in sustaining capex

Economic Summary


Net Present Value (8%)



Internal Rate of Return



Payback Pre-Tax (5)




Net Present Value (8%)



Internal Rate of Return



Payback Post-Tax (5)



Revenue split by commodity is copper (66.6%), gold (22.7%), molybdenum (9.3%) and silver (1.3%).

The PEA After-Tax Annual and Cumulative FCFs, EBITDA and Capital Cost Expenditure are shown below:

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Schaft Creek Financial Summary Chart

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The sensitivity and incremental percentage change (8% discount rate) of the EBITDA, Free Cash Flow (FCF) and NPV based on incremental changes in metal prices, FOREX (CADUSD), Operating costs (Opex), and Initial Capital costs on after-tax basis are shown below:

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Schaft Creek Sensitivities

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Note: Green represents an increase in the input variable; grey represents a decrease. Base Case=The economic analysis in this news release.
Note: Images in this news release can be seen on the PDF version of the news release located on SEDAR and our website

After-Tax Schaft Creek Project Economics

The After-tax NPV and IRR, after applicable Federal and Provincial tax are deducted, are US$842.1 million and 12.9%. Payback of initial capital is achieved in 4.8 years from commencement of operations. The BC Mineral Tax (Provincial Resource Tax) is deductible from Federal and Provincial taxes payable. Federal, Provincial and BC Mineral Tax payable based on the PEA financial model are outlined below:

Estimated Taxes Payable
Tax Component LOM Amount (C$M)
Corporate Tax (Federal)1,432
Corporate Tax (Provincial) 1,145
BC Mineral Tax1,198
Total Taxes3,775


Capital Cost Estimates

The major items of the initial capital cost estimate (accuracy of +/- 30%), as of Q4 2020 which covers direct field costs, indirect costs associated with design, construction, and commissioning with no allowances for inflation or escalation, are outlined below. The estimates are consistent with a Class 5 estimate. Capital intensity (excluding contingency) is estimated to be approximately C$20,200 (US$15,500) per operating tonne and C$17,200 (US$13,200) per operating tonne of payable CuEq(3) production. (Note: CuEq is estimated using accepted metallurgical recovery for each metal and the metal price assumptions used in this PEA).

Initial Capital Costs
Direct Costs
Overall site178.3137.3
Primary Crushing65.350.3
Stockpile & Reclaim54.341.8
Grinding, Flotation and Regrind649.4500.0
Tailing Management Facility (TMF)178.2137.2
Site Services and Site Utilities38.329.5
Ancillary Buildings153.0117.8
Plant Mobile Fleet8.86.8
Temporary Services5.64.3
Off-site Infrastructure and Facilities106.882.2
Total Direct Costs$1,683.2 $1,296.1
Indirect Costs1,001.3771.0
Total Indirect Costs$1,001.3$771.0
Total Direct and Indirect Costs$2,684.5 $2,067.1
Contingency (@25.0%) + provisions761.2586.1
Total Initial Capital$3,447.3 $2,653.2


Sustaining Costs

The main components of the LOM sustaining capital are set out below:

LOM Sustaining Capital
Mining 335.15 
Tailings 239.96
Environmental Monitoring40.39
BC Hydro 30.77 
Total Sustaining Capital848.73 


Operating Costs

The LOM site unit operating cash costs per tonne processed are set out below:

LOM Processing Costs
AreaUS$/t processed
Surface Services0.25
Tailings Management0.11
Concentrate Transportation0.32
Total 8.66


Note: Mining includes the cost of mining waste and processed material. The LOM average strip ratio is estimated to be 1:1.

PEA Project Description Update

Social and Environment

Copper Fox completed environmental baseline work on the Schaft Creek project between 2006 and 2013. Since 2013 additional environmental baseline work has been carried out by the Schaft Creek JV. Copper Fox is committed to working with its JV partner to develop and operate the Schaft Creek Project in a safe, ethically and socially responsible manner while maximizing benefits and economic opportunities for local First Nations and other communities, including employment, training, and using local service providers.

A review of the current Provincial and Federal environmental regulations indicates that the PEA project design should not present any issues pursuant to Provincial and Federal requirements in the Environmental Assessment process.

Reclamation plans for the TMF, open pit and waste rock are set out in the PEA. These plans will be considered and updated throughout design, construction, and operation of the Schaft Creek Project to help ensure that these objectives can be achieved.

Updated Mineral Resource Estimate

The Updated Mineral Resource Estimate for the Schaft Creek Project was announced on March 22, 2021. Approximately 80% of the mineral resources in the Schaft Creek deposit are classified as Measured and Indicated.

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Mining of the Schaft Creek deposit is planned as a conventional truck-shovel open-pit mining operation. Total mine production is estimated to be 1.03 Bt of mill feed and 1.03 Bt of waste rock resulting in a LOM 1:1 strip ratio. Annual mined tonnes range from 46.9 to 165.0 Mt, averaging 98.7 Mt LOM. The 21-year mine plan utilizes approximately 60% of the mineral resource base and provides options to extend mine life and/or increases in throughput.

Mining operation will commence in an area of higher-grade material for processing in years 1-5 of milling operations before transitioning to the south end of the Liard zone. The push back to the north results in increased annual tonnes of waste mined to provide access to mineralization mined in the next phase of the mine plan. The final phase extends to the ultimate pit bottom which based on the resource block model would end in mineralization. The mine plan includes a stockpiling strategy to ensure optimal LOM mill feed grade. Run-of-mine ore would be delivered to a gyratory crusher at the edge of the pit and transported via conveyor to a coarse ore stockpile near the mill site.

Waste material will be used for road, TMF and infrastructure construction with the balance stored in two separate areas located at varying distances from the proposed open pit.

Process Plant

The processing plant is designed with a planned nominal throughput of 133,000 tpd (at 92% capacity). The annual throughput varies from 48.5 Mt to 51.5 Mt per year averaging 49.1 Mt per year, primarily due to the comminution characteristics of the mineralization.

The milling process is a conventional grinding and flotation circuit, consisting of two process trains to produce a high-quality copper concentrate with significant gold and silver by-product credits and a separate molybdenum concentrate. Each of the process trains consists of SAG mill - ball mills - pebble crushers (‘SABC’) primary grinding, bulk rougher/scavenger flotation, bulk concentrate regrinding and cleaner flotation circuits. The bulk concentrate produced will be separated to produce market grade copper-gold-silver concentrate and molybdenum concentrate. LOM metal recoveries to copper concentrate containing 28% copper are expected to be 83.1% for copper, 71.0% for gold and 40.3% for silver. The molybdenum recovery to the molybdenum concentrate (containing >50% Molybdenum) is estimated to be 60.1%. Tailings would be transported to the TMF through pipelines.

Forecasted Metal Production

The Schaft Creek copper deposit contains low, but significant gold, molybdenum and silver concentrations. By-product metal credits account for approximately 33% of the CuEq production attributable to the Schaft Creek Project. Metal production is highest in the first five years of full production primarily due to mining of higher-grade mineralization. In the first five years of full production, the average recoverable CuEq production is estimated to be approximately 398.1 million lbs. (180.6 Kt).

LOM, the copper concentrate is expected to contain on average 28% copper, 14.1 grams per tonne (“g/t”) gold and 63.0 g/t silver with a moisture content of 9% and the molybdenum concentrate is expected to average 50% molybdenum with a moisture content of 5%. The Schaft Creek copper concentrate as modeled is considered a premium copper concentrate in terms of copper grade, gold-silver by-products and low deleterious element content. The estimated LOM metal and “dry” copper and molybdenum concentrate production is summarized below.

Concentrate Metal Production
DescriptionUnitYears 2-6(1)

Annual Average

Year 1-10
Annual Average

Annual Average


Copper Concentratetonnes (000’s)418 393 385 8,091 
Copper in ConcentrateMlbs258 243 238 4,995 
Copper in Concentrate tonnes (000’s)117 110 108 2,266 
Gold in Concentrateoz. (000’s)233 205 176 3,695 
Silver in Concentrate oz. (000’s)770 721 782 16,413 
Molybdenum concentratetonnes8,248 8,150 9,783 205,439 
Molybdenum in Concentratelbs. (000’s) 9,092 8,984 10,784 226,457 


Note: (1) Based on first five years of full production. Year 1 is partial year of production and not included. Numbers are rounded.

The most cost and time-efficient way to ship copper concentrate from Schaft Creek to the Asian markets would be trucking the concentrate via Highway 37 to the deep-water port in Stewart, BC, then transported via ocean-going vessels. Molybdenum concentrate will be bagged, sealed, placed in standard cargo containers, and trucked to the port facility in Prince Rupert, BC, for shipment.

Tailings Management Facility (“TMF”)

The TMF has been designed based on the most recent guidance on construction and operation of tailing impoundment facilities. The initial design capacity of the TMF is approximately 1.0 Bt, sufficient for the 21-year mine life. The capacity of the TMF can be expanded significantly with minimal modification to the overall TMF footprint to accommodate up to approximately 2.0 Bt of tailings. The south end of the TMF is located approximately 1.8km northeast of the milling facilities.


The closest provincial road to the Schaft Creek Project is Highway 37. Power would be provided from the Northwest Transmission Line, located on Highway 37, owned by BC Hydro, the provincial electrical authority. The locations of project facilities and other infrastructure items were selected to take advantage of local topography, accommodate environmental considerations, and for efficient, safe and convenient operation of the mine.

The required Project Infrastructure includes:

  • Construction of the More Creek Canyon bridge
  • An access and road use agreement for use of an existing road alignment that goes 65.2 km from Highway 37 to the Mess Creek Valley. This agreement would have to be acceptable to existing road users, the BC Government and the Tahltan for use of a secure, single-lane access road with select double-lane sections
  • Construction of new road for approximately 40 km up the Mess Creek valley to the project site
  • An 81-km-long, 287 kV power line from BC Hydro’s Bob Quinn station and a site power distribution network
  • TMF with diversion channels including a reclaim water system and process and ancillary facilities
  • Site haul roads
  • Water supply and distribution system, sewage disposal plant, communications infrastructure
  • Upgrade to the Bob Quinn Airport to receive aircraft with a capacity of up to 78 passengers


The Schaft Creek Project is operating under a five-year Multi-Year Area Based (“MYAB”) permit for exploration related activities. The MYAB was granted in 2018 and expires in 2023. To obtain an Environmental Assessment Certificate and Federal approval, a Province of British Columbia Environmental Assessment Application and a Federal Environmental Impact Statement would be required. Access road and other permits would be prioritized based on the development schedule presented in the PEA.

Development Schedule

Permitting, detailed engineering, equipment procurement, construction, and startup to full production, based on the PEA, is estimated to take five-years. The main stages of development include access, site preparation, construction of the TMF, process facilities and infrastructure followed by commissioning. This timeline may be modified due to the significant improvements to infrastructure in the region that has taken place since the completion of the 2013 Feasibility Study, e.g., upgrades to Highway 37 and completion of the Northwest Transmission Line.

PEA Recommendations

Recommended Program

The PEA describes a recommended work program for the Schaft Creek Project that contemplates a C$23.2M budget as part of a potential Pre-Feasibility Study (“PFS”). Activities include geological and geotechnical drilling, metallurgical testwork, and additional environmental and infrastructure studies to complete the PFS. The recommended budget includes contingencies, preparation of the PFS and direct costs related to completion of the recommended program.

Exploration Potential

The exploration potential of the Schaft Creek project is described in detail in the Technical Report entitled “Mineral Resource Estimate Update for the Schaft Creek Property, British Columbia, Canada”, prepared by Tetra Tech Canada Inc. with an effective date of January 15, 2021. The mineralization in the Schaft Creek deposit is open in several directions and additional drilling is required to test the extension of the mineralization in these directions.

The Schaft Creek Project covers a 12km-long mineralized trend that hosts the Discovery and LaCasse zones located between 1.5 to 3.0km north of the Schaft Creek deposit. Limited diamond drilling intersected significant intervals of porphyry style Cu-Mo-Au-Ag mineralization that is open in several directions. Several copper showings have been found north of the Discovery/LaCasse area and south of the Schaft Creek deposit. The exploration potential of the 12km-long trend is considered significant with potential to host additional porphyry style copper mineralization.

Schaft Creek Project Enhancements

The PEA identified opportunities that could enhance the investment opportunity of the Schaft Creek Project including:

  • Additional metallurgical testwork to increase metal recoveries and reduce processing costs
  • Geotechnical drilling to potentially reduce the LOM strip ratio
  • Infill drilling to increase confidence in the resource model, extend the limits of the mineralization and upgrade the Mineral Resources to a higher Mineral Resource category
  • Pursue opportunities to reduce the project development execution timeline from the current 5 years

Schaft Creek Joint Venture

The Schaft Creek JV was formed on July 15, 2013, to manage the exploration and development of the Schaft Creek Project. The Schaft Creek JV is owned 75% by Teck and 25% by Copper Fox. The mineral claims that comprise the Schaft Creek Project are held 100% by the Schaft Creek JV (the “Direct Interest”). The Schaft Creek JV has an obligation to Liard Copper Mines Ltd. (“Liard”) in the form of a 30% Net Proceeds Interest in the Schaft Creek Project (the “Indirect Interest”). Liard, the holder of the Indirect Interest, is owned 85.5% by the Schaft Creek JV, 1.55% by Copper Fox, with the remaining 12.95% held by third parties.

The Schaft Creek JV has the following key terms:

  • Teck will pay a total of C$60 million in three direct cash payments to Copper Fox: C$20 million upon signing the JV agreement (received), C$20 million upon a production decision, and C$20 million upon the completion of the mine facility

  • Teck will fund 100% of costs incurred prior to a production decision, up to C$60 million; Copper Fox’s pro rata share of any pre-production costs in excess of C$60 million will be funded by Teck and the two remaining direct cash payments payable to Copper Fox will be reduced by an amount equal to Copper Fox’s pro rata share of any pre-production costs in excess of the initial C$60 million, to a maximum of total pre-production costs of C$220 million

  • Teck will fund any additional costs (in excess of C$220 million) incurred prior to a production decision, if required, by way of loan (at an interest rate of prime + 2%) to Copper Fox to the extent of its pro rata share, without dilution to Copper Fox’s 25% JV interest

  • Management of the Schaft Creek JV is made up of two representatives from each of Teck and Copper Fox with voting proportional to equity interests

  • Teck agreed to use all reasonable commercial efforts to arrange project debt financing for not less than 60% of project capital costs of constructing a mining operation. If a production decision is made, Teck will fund Copper Fox’s pro rata share of project capital costs by way of loans (at an interest rate of prime + 2%), if requested by Copper Fox, without dilution to Copper Fox’s 25% JV interest

Net Proceeds Interests & Royalties

The Schaft Creek Project is subject to two separate Net Proceeds Interest (“NPI”) payments. Royal Gold holds a 3.5% Net Proceeds Interest on certain mineral claims within the resource area. Based on the PEA, the NPI payments to Royal Gold are estimated to be US$258.5 million LOM.

The Schaft Creek JV has an obligation to Liard in the form of a 30% Net Proceeds Interest in certain mineral claims within the Schaft Creek Project (the “Indirect Interest”). Liard is owned 85.5% by the Schaft Creek JV, 1.55% by Copper Fox, with the remaining 12.95% held by third parties. Based on the PEA, the LOM NPI payments to Copper Fox stemming from this Indirect Interest is US$35.8 million and US$298.9 to the other Liard minority interests.

Certain mineral claims located outside the mineral resource area of the Schaft Creek Project are subject to a 2% Net Smelter Return Royalty, one-half of which can be purchased for between C$1.0 to C$1.5 million.

Areas of Interest

The Teck/Copper Fox Area of Interest is a 2km zone around the original 2002 tenure holding. Any ground acquired by either party within this zone is added to the Schaft Creek JV, unless the ground was previously held and relinquished by either party.

Qualified Persons

Copper Fox commissioned Tetra Tech to complete a PEA on the Schaft Creek Project in accordance with National Instrument 43-101 (NI 43-101) Standards for Disclosure for Mineral Projects. Tetra Tech, Red Pennant Communications (“Red Pennant”), Greenwood Environmental Inc., (“Greenwood”) McElhanney Consulting Services Ltd. (“McElhanney”) and Knight Piésold Ltd. (“KP”) prepared and reviewed this PEA.

The scientific and technical information in this release have been reviewed by Hassan Ghaffari, P.Eng, of Tetra Tech, the overall manager for the PEA.

Other qualified persons involved in the PEA were: Tetra Tech: John Huang, Ph.D., P.Eng., Sabry Abdel Hafez, Ph.D., P.Eng.; Red Pennant: Michael F. O’Brien, P.Geo.; KP: Daniel Friedman, P.Eng.; McElhanney: Brendon Masson, P. Eng.

Elmer B. Stewart, MSc. P. Geol., President and CEO of Copper Fox, is the Company’s non-independent, nominated Qualified Person pursuant to NI 43-101, Standards for Disclosure for Mineral Projects, and has reviewed and approves the scientific and technical information disclosed in this news release.

The Preliminary Economic Assessment Technical Report will be filed in accordance with NI 43-101 on SEDAR ( within the required 45 day statutory period and will be made available on Copper Fox’s website at

About Copper Fox

Copper Fox is a Tier 1 Canadian resource company listed on the TSX Venture Exchange (TSXV: 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 the 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

For additional information contact:
Lynn Ball; 1-844-464-2820; 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.

Notes to tables included in this news release:

Mt=millions of tonnes, Kt=thousands of tonnes, %=percent, g/t=grams per tonne, Mlbs=million of pounds, koz=thousands of ounces, US$M=million US dollars, C$M=million Canadian dollars, Cu=copper, Au=gold, Mo=molybdenum, Ag=silver

  1. Years 2-6 are first five years of full production, excluding the first partial year of operations. The first 10 years includes the first partial year of operations
  2. Annual Average for years 2-6 excludes the first partial year of operations. The first 10 years includes the first partial year of operations
  3. Copper equivalent numbers are calculated by converting gold, molybdenum and silver production into copper equivalent lbs. using base case metal prices
  4. Cash Costs before by-product credits allocate all costs, except for specific gold and silver refining costs and molybdenum concentrate freight costs and roasting charges to the payable copper produced; Cash Costs after by-product credits deduct the revenue received from gold and silver in copper concentrate and molybdenum concentrate sales net of specific gold and silver refining charges and molybdenum concentrate freight; Cash Costs are inclusive of all costs during operations
  5. Payback is the number of years from first production that Initial Capital payback is achieved
  6. EBITDA is a financial term showing earnings before deduction of interest, taxes, depreciation, and amortization Project EBITDA is net of Net Proceeds Interests payments and BC Mineral Tax
  7. C1 Cost and All in Sustaining Costs, (“AISC”) are non-GAAP financial measures which does not have a standardized meaning prescribed by International Financial Reporting Standards (IFRS). These measures are meant to provide further information to investors and should not be considered in isolation or used as a substitute for other measures of performance prepared in accordance with IFRS

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 includes statements about the results of a positive Preliminary Economic Assessment for the Schaft Creek project; the technical and financial viability of a 133 ktpd copper mining and processing operation at Schaft Creek; economic potential of the Schaft Creek project; the existence and size of the mineral deposit at Schaft Creek; recommended future diamond drilling programs; the mine life of the Schaft Creek project; potential expansion and development of the project; opportunities to lower operating and capital costs and increase capital revenue; the length and scope of work for the pre-production period; additional metallurgical testwork to pursue opportunities to increase metal recoveries and reduce processing costs; timing and amount of estimated future production; a Province of British Columbia Environmental Assessment Application and a Federal Environmental Impact Statement; a British Columbia Environmental Assessment Certificate and Federal environmental approvals; permit applications for road and mine construction; the development schedule for the project; estimated timeframes to obtain permits, complete engineering, road and power line construction, site construction and commercial production phases; planned mining operations and ore processing; the potential to extend the mine life; additional exploration to the east and north of the Paramount zone and north of the Liard zone; construction and location of mining, waste rock, plant, project infrastructure, access roads, power supply and distribution network, TMF; annual mine production of ore and waste and in situ life-of-mine waste/ore stripping ratios; transportation and delivery of concentrates to the port facility in the town of Stewart and Fairview Terminals in Prince Rupert; construction of the More Creek Canyon Bridge and completion of additional kms of existing road; the time estimate for permitting, detailed engineering, equipment procurement, construction, and production; the mining pit design, phases and scope of work for construction, and extraction phases; estimated total waste to be mined and use of such waste; estimated initial and ongoing mill throughput; the process and expectations for metal recovery; estimated metal production over the LOM; estimated LOM average metal content, impurity element levels and, as applicable, moisture content; design, construction and capacity of a TMF; employment and training for local First Nations; reclamation plans for the TMF, open pit and waste rock management; estimated capital costs; LOM copper production total and cash costs per produced pound; projected future metal prices; geological interpretations and potential mineral recovery processes. Information concerning mineral reserves, measured mineral resources, indicated mineral resources, and inferred mineral resources 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 has made numerous assumptions, regarding, among other things, assumptions related to: the economic models for the Schaft Creek project, including the Base Case; the calculation of estimate capital costs of the project; processing costs; success of mining operations; projected future metal prices; engineering, procurement and construction timing and costs; the timing and obtaining of permitting and approvals; the potential mineralization in the Schaft Creek deposit; 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; and the continued financing of Copper Fox’s operations. 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 results of the positive Preliminary Economic Assessment may not lead to the development of a mine at Schaft Creek or commercial mining operations; the project development plans and timing for Schaft Creek as outlined in the Preliminary Economic Assessment may not occur as currently anticipated, or at all; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; uncertainties related to the estimated mine life and potential extension thereof; the possibility of delays and cost overruns in engineering, procurement and construction of the project and uncertainty of meeting anticipated project milestones; the Environmental Assessment Application and Federal Environmental Impact Statement may not be completed timely manner, or at all, or provincial or federal environmental approvals may not be obtained in a timely manner, or at all; further work at Schaft Creek may not occur as currently anticipated, or at all; training and/or employment for local First Nations may not occur as anticipated, or at all; the actual mineralization in the Schaft Creek deposit may not be as favorable as suggested; another deposit may never be discovered on the Schaft Creek property, or contain anticipated mineralization, or mineralization of any significance at all; the possibility that future activities on the Schaft Creek project may not occur on a timely basis, or at all; fluctuations in metal prices and currency exchange rates; conditions in the financial markets and overall economy may continue to deteriorate; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of the metallurgical testwork; the uncertainty of the estimates of capital and operating costs, recovery rates, and estimated economic return; the need to obtain additional financing 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 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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