Copper Fox Announces a Positive PEA on the Van Dyke Copper Deposit

Copper Fox Metals Inc. (TSXV:CUU) announced the results of a positive Preliminary Economic Assessment on the Van Dyke copper project located in Miami, Arizona.
As quoted in the press release:

 The PEA was prepared under the direction of Moose Mountain Technical Services (“MMTS”) and has an effective date of November 18, 2015. The PEA is the first National Instrument 43-101 engineering technical study undertaken on the Van Dyke copper project and builds upon the previous resource estimate and metallurgical testwork prepared by MMTS and SGS E&S Engineering Solutions Inc. as published January 30, 2015.
The PEA suggests that Van Dyke is a technically sound in-situ leach (“ISL”) copper project, utilizing underground access and conventional solvent extraction and electrowinning (“SX-EW”) recovery methods with low cash costs, strong cash flows and an after-tax Internal Rate of Return (“IRR”) of 27.9%.
PEA Highlights: (Based on $3.00/lb copper)

• Gross Revenue of $1.37 billion over 11 year life of mine (“LOM”),
• Cumulative Net Free Cash Flow after recovery of initial capital costs of $453.1 million before tax and $342.2 million after tax,
• Net Free Cash Flow in years 1-6 is approximately $85 million per year before tax, declining thereafter,
• LOM direct operating cost of $0.60 pound (“lb”) copper,
• Production plan of 60 million lbs of copper in years 1-6, declining thereafter,
• Initial Capital Cost (including pre-production costs) totals $204.4 million, which includes contingencies of $42.4 million,
• LOM soluble copper recovery estimated at 68% with acid consumption of 1.5 lb acid/lb copper produced, and
• After tax payback of initial capital in 3.9 years.

Copper Fox Metals President and CEO, Elmer Stewart, stated:

The PEA has fulfilled its purpose and indicates that the project warrants more detailed testing and engineering. We are pleased with the positive results of the PEA given the conservative approach used to design the project. The PEA has identified several aspects that, with positive results from additional testing and engineering, could extend the mine life and significantly increase project economics, indicating that Van Dyke could become a strong project in the mid-size copper development space.

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