Van Dyke PEA: $645M NPV, 43.4% IRR
Copper Fox Metals Inc.'s Van Dyke in Miami-Globe Mining District, Arizona, USA has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $645M, an after-tax IRR of 43.4%, and initial capital of $290M. The mine plan runs 17 years at about 85 Mlb Cu cathode per year.
Copper Fox Metals Inc.'s Van Dyke has reported Preliminary Economic Assessment (PEA) results for the copper project in Miami-Globe Mining District, Arizona, USA. The study headlines an after-tax net present value of $645M at a 7.5% discount rate. It reflects Copper Fox Metals Inc.'s (CUU.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $645M using a 7.5% discount rate. After-tax IRR is 43.4%. Initial capital expenditure is estimated at $290M. The study models a payback period of 2.1 years. All-in sustaining costs are pegged at 1.14 USD/lb. Economics are based on Cu US$3.15/lb.
Production and mine plan. The project envisions an in-situ copper recovery (iscr) - underground wellfield operation. Life of mine is 17 years. Average annual production is approximately 85 Mlb Cu cathode. Average head grade is 0.24% Rec Cu (Indicated), 0.19% Rec Cu (Inferred). Metallurgical recovery averages 90%.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: subject to NSR.
These figures are extracted from Copper Fox Metals Inc.'s technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 97,637 KTonnes | 0.24% Rec Cu, 0.33% TCu, 0.23% ASCu, 0.04% CNCu | 517 Mlb Soluble Cu, 717 Mlb Total Cu |
| Inferred | 168,026 KTonnes | 0.19% Rec Cu, 0.27% TCu, 0.17% ASCu, 0.04% CNCu | 699 Mlb Soluble Cu, 1,007 Mlb Total Cu |
Our Analysis
The 43.4% after-tax IRR places this project in the top decile of the 27 copper peers we track, well above the practical financing hurdle for even a risky single-asset junior. The 7.5% discount rate is standard convention but leans optimistic—a lower rate flatters the NPV, so the $645M figure should be read with that in mind. The NPV sits at roughly 2.4x the company’s market cap, which cuts both ways: the market may not be pricing in the asset’s full value, or it may be discounting financing, permitting, or execution risk in a jurisdiction that is generally mining-friendly but not without scrutiny.
Capital intensity is low at $290M (45% of NPV), reducing funding risk, though the absolute capex still requires financing for a developer of this size. The study’s $3.15/lb copper price is dramatically below the current $6.13/lb spot, implying significant upside to the returns if realized. The single biggest watch-item is whether the market’s skepticism on the NPV-to-cap gap reflects real permitting or dilution hurdles in Arizona, not the commodity price.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.