Author: Atrium Research September 02, 2026
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
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What you need to know:
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CUU provided a progress update on the updated PEA for its 100%-owned Van Dyke in-situ copper recovery project in Arizona, with several key study components now substantially defined.
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The refined plan uses a two-phase underground development approach totalling ~4,900m, with mechanical roadheader excavation replacing drill-and-blast to improve safety and preserve ground stability.
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The leach schedule prioritizes higher-grade panels early to accelerate capital payback, with lower-grade panels developed later on.
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A Phase I groundwater flow model has been constructed and calibrated, and CUU has begun discussions to purchase its office/core storage facility.
This morning, Copper Fox Metals Inc. (CUU:TSXV, CPFXF:OTC) announced the completion of several key initiatives and progress updates on the updated PEA on its 100% owned Van Dyke in-situ copper recovery (ISCR) project. Some of the completed items include a project plan for underground development, a leaching schedule, establishing surface infrastructure locations, and a groundwater flow model. A variety of trade-off studies have also been completed for each phase of the project and will be used to optimize the economic models in the PEA. Much of the studies and analysis reported today highlight the deep level of detail and confidence this updated PEA will have which will contribute to the accelerated advancement of the project along the development curve. We are maintaining our BUY rating and C$1.30/share target price on CUU.
Highlights of the key initiatives (more detail on page 2 below):
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Defined mine plan using a two-phased underground development approach (~4,900m of underground development).
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Roadheader excavation anticipated to improve safety and ground stability.
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Underground development and infrastructure plan defined.
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Preliminary surface site infrastructure layout completed.
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Proposed leaching plan and schedule; two-phased approach allowing early access to higher-grade portions of the deposit.
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Groundwater flow model completed, additional modelling in progress.
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Progressing on the acquisition of permanent offices, core storage, and sampling facility.
High-Margin, Low-Impact U.S. Project. We remind readers that the Van Dyke project is CUU’s 100% owned ISCR project in Arizona with 0.5Blbs of soluble copper in M&I resources and 0.7Blbs of soluble copper in the Inferred resource. The 2020 PEA showed the project having an after-tax NPV7.5% of $645M using $3.15/lb Cu and a 42% IRR. To better understand the significant potential of this project at higher copper prices, a $0.25/lb increase in the copper price adds ~$90M to the NPV and $190M in FCF. Based on this, at the current spot price of $6.60/lb, the NPV would grow to just under $2B.
Our Take Today’s results mark another step forward in the development of the Van Dyke ISCR project as it advances toward its updated PEA. The completed initiatives announced today are all key front-end activities which contribute to the finalization of operating and cost components for the PEA. That said, the detail of these reports and entering purchase discussions for offices and ancillary facilities signal to us that many of these initiatives are beyond the PEA stage and should contribute to a quicker development through the PFS and FS stages. We remind readers of how extremely profitable the ISCR style of copper extraction is, with the 2020 PEA showing C1 cash costs and AISC of $0.86/lb Cu and $1.14/lb Cu, respectively.
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Atrium Research Ratings System
BUY: The stock is expected to generate returns of over 20% over the next 24 months.
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