Plans To Commence Phase I Activities At Van Dyke Copper Project


CALGARY - Copper Fox Metals Inc. through its wholly owned subsidiary Desert Fox Copper Inc., reported on the early-stage Biological Evaluation (BE) of certain parts of the Van Dyke project prepared by WestLand Engineering & Environmental Services, Tucson, Arizona. The Project is an in-situ copper recovery ('ISCR') project, located in the Tier 1 mining jurisdiction of Arizona, USA. In early 2021, a Preliminary Economic Assessment, prepared in accordance with National Instrument 43-101,  indicated an after tax Net Present Value of US$644.7 million and Internal Rate of Return of 43.4%. The PEA recommended that the project should be advanced to the Preliminary Feasibility Stage and concluded that the project has the potential to become a mid-tier copper mine producing in the order of 85 million pounds (approximately 39kt) of copper per year. The objective of the BE was to determine if special-status species or critical habitat occur within, or will be impacted by, Project construction activities.

Elmer B. Stewart, President and CEO, said, "The preservation of wildlife and wildlife habitat are fundamental aspects of Copper Fox's operating strategy and ESG policy. Based on the findings of the Biological Evaluation, Copper Fox plans to commence Phase I activities to investigate the potential of rehabilitating and completing a comprehensive testing program on existing drill holes to establish hydrogeological monitoring sites. Results of the Phase I activities would be used to establish a base on which to advance the project to Phase II which includes additional drilling to expand the hydrogeological monitoring system and collection of data to advance the project to the Preliminary Feasibility stage."

The BE provides a screening and effects analysis to determine the potential to occur of special-status species or their critical habitat to occur within the project area and to evaluate Project effects related to planned future activities. The area covered in the BE occurs in and near the town of Miami, Arizona.

For the purposes of the BE, Special-status species are defined as species designated by the U.S. Fish and Wildlife Service (USFWS) as Endangered or Threatened under the Endangered Species Act (ESA and species protected under the Bald and Golden Eagle Protection Act (BGEPA). Based on the special-status species list generated from the IpaC tool, a screening analysis was performed to evaluate the potential for these species to occur and to determine the presence or absence of designated or proposed critical habitat within the Project Area.

Of the six ESA-listed special-status species evaluated, four species have no potential to occur, and two species are unlikely to occur. Of the two BGEPA species evaluated, one has no potential to occur, and one has an unlikely potential to occur. All special-status species evaluated had an effects determination of no effect. There is no designated critical habitat within the Project Area.

The six species listed or proposed for listing under the ESA identified for the Project Area in the IpaC query are ocelot, southwestern willow flycatcher, yellow-billed cuckoo, Mexican gray wolf, northern Mexican garter snake, and monarch butterfly. Of these six species, no species were determined to have the potential to occur of Possible, two were determined to have the potential to occur of Unlikely (yellow-billed cuckoo and monarch butterfly), and four were determined to have the potential to occur of None. Of the two BGEPA listed species, golden eagle has the potential to occur in the Project Area of Unlikely and bald eagle has the potential to occur of None.

An effects analysis for direct and indirect impacts to special-status species from Project activities was conducted for the Project Area. Effects to species afforded protection under the ESA were analyzed per the Region 2 guidance for ESA (USFWS and NMFS 1998) consultation which includes four potential effects determinations: a) No effect, b) May affect, not likely to adversely affect, c) May affect, likely to adversely affect, or d) May affect, beneficial effect.

Dust may be generated because of the Project. Dust can affect the growth processes of vegetation and alter the structure of plant communities in an area thus potentially affecting wildlife habitat. However, considering that the Project will minimize fugitive dust through dust suppression efforts, and the Project will occur in an area that already has dust disturbance from roadways and nearby mining activities, the potential effects of dust on wildlife and vegetation are not expected to be substantially different from current conditions within the Project Area.

Noise and vibration noise levels from surface disturbance and construction are anticipated to increase in areas surrounding these activities. The Project Area is adjacent to existing roadways, mines, with substantial increases in noise levels expected to be limited to areas within approximately 1,000 ft of the Project Area (USDOT 2006). Increases in noise and vibration levels from construction would be temporary and are not expected to result from construction activities over the long term.

Surface disturbance will impact urban properties within the Project Area. The clearing for site infrastructure will remove any actual or potential wildlife habitat within the Project Area. Disturbance would result in the loss of some vegetation that may provide suitable wildlife habitat.

Possible: There are no known records of the species within the Project Area, but the known, current distribution of the species includes the Project Area and the required habitat characteristics of the species appear to be present in the Project Area. Observations associated with citizen science databases are evidence that a species is possible within the Project Area.

Unlikely: The known, current distribution of the species does not include the Project Area, but the distribution of the species is close enough such that the Project Area may be within the dispersal or foraging distance of the species, and they may show up as transients. The habitat characteristics required by the species may be present in the Project Area.

None: The Project Area is outside of the known distribution of the species and or the habitat characteristics required by the species are not present.