West-central BC, 36 km south of the prolific Huckleberry Cu-Mo mine
5,133 ha (51.33 sq/km)
Ag/Au/Te with W, Cu, Bi, Pb, Zn, Mo
DHC 50% with option to acquire up to 75%
Advanced exploration, positive PEA completed, permitting for bulk sample
Indicated: 157.5g Ag/tonne, 5.12g
Au/tonne, 160 pm Te
*The resource estimate was completed by G.H. Giroux, P.Eng., of Giroux Consultants Ltd., using industry standard methods that conform with Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources and Mineral Reserves referred to in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
The PEA figures were calculated using metals prices of US$1,300 per ounce for gold, US$17 per ounce for silver, US$100 per kilogram for tellurium, US$3.00 per pound for copper and US$1.00 per pound for zinc. The Preliminary Economic Assessment is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Preliminary Economic Assessment will be realized.
Deer Horn plans to operate the project as a high-grade “small mine” under the British Columbia Mines Act. This designation simplifies and expedites the permitting process with considerably lower up-front costs.
Pre-tax NPV (5%) of $56.6 million and internal rate of return of 56%
Initial Capital of $28.3 million
After-tax NPV (5%) of $36.5 million and internal rate of return of 42%
After-tax payback of initial capital in 1.6 years
Across its 51 square-kilometer area, the Deer Horn Property hosts a number of other mineralized targets and zones containing copper, tungsten, bismuth, lead, zinc and molybdenum. Besides the gold, silver and tellurium identified in the PEA, the most abundant metals identified to date are tungsten and copper.
Prospecting at Deer Horn in 2012 identified new showings indicative of a buried copper porphyry system. Samples collected from this zone produced results as high as 4240 ppm Cu and 6.6 g/t Ag. This new copper porphyry potential adds further exploration value to the property.
The Deer Horn Property’s main tungsten showing is separate, lying 800 to 1,000 feet west of the main Te-Ag-Au vein system.
Past exploration at Deer Horn has encountered significant amounts of bismuth, lead, zinc and molybdenum, associated with other mineralized zones or in separate areas of the property. These occurrences warrant further exploration.
Exceptional Tellurium Prospect Held Previously by First Solar