CSE: FTEL

Layer 2

Deer Horn Property

DEER HORN PROPERTY

Location

West-central BC, 36 km south of the prolific Huckleberry Cu-Mo mine

Size

5,133 ha (51.33 sq/km)

METALS

Ag/Au/Te with W, Cu, Bi, Pb, Zn, Mo

OWNERSHIP

DHC 50% with option to acquire up to 75%

Status

Advanced exploration, positive PEA completed, permitting for bulk sample

AVG. Grades

Indicated: 157.5g Ag/tonne, 5.12g
Au/tonne, 160 pm Te

A Unique Project.
A Rare Opportunity.

As North America’s only silver-gold-tellurium property with an NI 43-101 compliant tellurium resource, Deer Horn represents a unique mineral asset. Exploration to date has outlined several key mineral zones across a 2.4 kilometer strike length that remain open for expansion in three directions.
In 2020, Deer Horn is beginning permitting and preparation for a 10,000-tonne bulk sample as part of its next step toward mine feasibility.

Key Project Attributes

Resource Estimate


Category

  • INDICATED
  • INFERRED

Au
Cutoff
(g/t)

  • 1.00
  • 1.00

Tonnes>
Cutoff
(tonnes)

  • 141,000
  • 197,000

Au
Grade
(g/t)

  • 5.12
  • 5.04

AG
Grade
(g/t)

  • 157.50
  • 146.50

TE
Grade
(PPM)

  • 160
  • 137

AU
CONTAINED
Ounces

  • 68,000
  • 32,000

AG
CONTAINED
Ounces

  • 2,100,000
  • 930,000

TE
CONTAINED
KG

  • 66,000
  • 27,000

*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.

Preliminary Economic Assessment

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.

PEA Highlights (values shown in $CDN unless indicated otherwise)

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

Life of Mine (LOM) production

OTHER METALS

Cu, W, Bi, Pb, Zn, Mo

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.

Copper and Copper Porphyry

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.

Tungsten & Molybdenum Porphyry

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.

Bismuth, Lead, Zinc and Molybdenum

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

KLONDIKE TE PROPERTY