PGM at Copper Asset in AZ Achieves 3 Objectives
Research Report

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Disclosures for Atrium Research, Copper Fox Metals, August 28, 2025

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Copper Fox Metals Inc. (CUU:TSX.V; CPFXF:OTCQX; HPR:FRA) completed a preliminary geometallurgical model (PGM) of its Van Dyke in situ copper recovery project in Arizona's Globe-Miami Mining District, reported Ben Pirie, equity research analyst with Atrium Research, in an Aug. 28 research note.

"The completion of the PGM marks a key step in the company's execution plan, outlining the scope, sequencing and cost framework of the technical work required to advance Van Dyke towards a prefeasibility study (PFS)," Pirie wrote.

75% Upside Implied

Atrium Research maintained its CA$0.50 per share target price on the Canadian explorer-developer, trading at the time of Pirie's report at about CA$0.285 per share, the analyst noted. From this price, the possible return from this target is 75%.

Copper Fox remains a Buy. The company's market cap is CA$164 million (CA$164M).

PGM Supports Updated Model

Copper Fox continues to advance and derisk Van Dyke, most recently completing a PGM that supports an updated geometallurgical model, wrote Pirie, who reported the results. Building on the previous framework, the PGM identified the mineralogical domains within the Van Dyke deposit, and these were shown to be consistent with the characteristics of a typical "supergene" copper system. From this, it was determined that the oxide and transition zones will remain the primary focus for in situ copper recovery due to their favorable metallurgical properties.

The PGM also highlighted metallurgical data gaps. It identified areas for future testing to refine recovery assumptions and build on previous test work. In the past, eight pressure leach tests were done in 2014 and 65 bottle roll leach tests conducted in 2023, which targeted drill holes in the phase one leaching plan outlined in the 2020 preliminary economic assessment (PEA).

Analysis of these previous results revealed data gaps within the metallurgical database, or areas for possible variability in copper extraction and recovery. To rectify this, Copper Fox used data from comparable deposits in Arizona "to benchmark mineral characterization, process route selection and assess processing risks, with results correlated spatially to the 2020 resource block model and the mineralogical domains defined in the PGM," Pirie explained.

The analyst reiterated Van Dyke's "robust economics" shown the 2020 PEA. They are a US$645M after-tax net present value discounted at 7.5%, a 43.4% internal rate of return and a 2.1-year payback, using a US$3.15 per pound copper price. The life of mine is 17 years.

Eaglehead Survey Compelling

In other news, Copper Fox completed a three-dimensional, pole-dipole distributed DCIP (direct current resistivity and induced polarization) survey of its Eaglehead porphyry copper project in British Columbia, and Pirie presented the results of it. The mining junior is advancing this project toward a PFS.

The survey showed a 2.8-kilometer-long (2.8-km-long) chargeability anomaly extending downdip about 2.4 km to the north and beyond the four open-ended deposits defined in the 2023 mineral resource estimate. The anomaly aligns with earlier surveys from 2014 and 2021, indicating continuity across a 6 km by 900 meter (900m) mineralized corridor. These results affirm the potential that a much larger porphyry system exists at Eaglehead and suggest that previous drilling only tested its upper portion.

"The geophysical survey at Eaglehead excites us as the 1,800,000,000 copper equivalent resource is built on what appears to be just the tip of the iceberg, indicating significant growth upside as the company derives new drill targets," Pirie said.

Copper Fox engaged Dias Geophysical to merge the 2014-2025 data sets over a 5 km by 4 km area "to refine the geometry of the biotite granodiorite host and associated alteration zones," noted Pirie. The results should optimize drill targeting for extensions of the East, Bornite, Pass and Camp deposits. Further, the explorer-developer plans additional metallurgical testing to improve recovery confidence and support an updated geometallurgical model. In future drilling, the company will target areas where geometallurgical data gaps remain.

"With mineralization open in multiple directions and geophysical signatures extending well beyond the existing resource envelope, Eaglehead continues to demonstrate district-scale copper-gold-molybdenum-silver potential," Pirie added.

The analyst wrote this about Copper Fox's progress at these projects: "Advancements at both Van Dyke and Eaglehead continue to strengthen our conviction in CUU's pipeline, as the recent string of announcements across its portfolio further derisks the company and positions it for meaningful growth and project advancement."

What to Watch For

Investors should watch for additional updates on an ongoing basis on the work Copper Fox continues to do at Van Dyke, Eaglehead and its other assets, including Schaft Creek, Mineral Mountain and Sombrero Butte.