Our Small Mine Approach
Small Footprint. Big Impression.
An Explanation of First Tellurium's Small Mine and Phased Approach Strategy
With a positive Preliminary Economic Assessment completed at the Deer Horn Property, First Tellurium's strategy is to start with a small mine and expand it over time.
This phased approach offers significant advantages* over larger mines, including:
- Much lower exploration and development costs
- Much lower CapEx (only $28.3M)*
- Much faster time to production and cash flow
- Exceptional post-tax payback – 1.6 years*
- Faster delivery of tellurium to buyers (who need metal now)
- Potential dilution-free funding for resource development
- Less onerous permitting with a small mine application
- Support from Indigenous governments
- Smaller environmental footprint
- May provide dilution-free funds to explore other areas of the property
A key driver of this strategy is Indigenous support, including potential investment and employment.
Environmental and related studies are estimated to take less than one year to complete if the permit application proceeds through the regulatory process as a "small mine" application under the British Columbia Mines Act.
Our next step is to conduct further surface mapping and drilling in preparation for a Pre-Feasibility Study.
* All figures from NI-43-101 Technical Report on the Preliminary Economic Assessment for the Deer Horn Gold-Silver-Tellurium Property. Completed May 31, 2018. The Company cautions that the PEA is preliminary in nature in that it includes Inferred Mineral Resources which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves. There is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.