Deer Horn Metals – High-grade Tellurium, Gold, Silver with Tungsten in British Columbia
Overview
Vancouver-based Deer Horn Metals Inc. (TSXV:DHM,OTC:GODYF) is exploring and developing the 60 sq-kilometre Deer Horn Property, a rare, high-grade tellurium-gold-silver-tungsten project located near the Huckleberry Mine in west-central British Columbia. Deer Horn hosts what is believed to be the first and only NI 43-101 tellurium resource ever reported: 66,000 kg Indicated grading 160 g/t tellurium and 27,000 kg Inferred grading 137 g/t tellurium. The 1.5 km, near-surface vein system remains open to the east, west and downdip. Recent advances in solar technology have increased tellurium demand and generated new interest in locating deposits capable of supporting a tellurium mine, particularly in North America. The added gold, silver and tungsten at Deer Horn offer further potential value. Deer Horn Metals is led by a management team with previous success in bringing an exploration property to development and buyout by a major resource company.
Investment Highlights
- Management with previous success bringing properties to development and major buyout
- Au-Ag-Te and/or WO3 mineralization encountered in every hole reported from 2011 program—55 holes
- Deposit remains open to expansion along strike to the west, east and downdip
- Near-surface deposit—depths to date 5.5m to 116.7m in drilling
- Less than 10% of property drilled
- Tungsten mineralization expanded in 2011 but remains mostly unexplored.
- Geophysical surveys outlined features extending beyond drilled area.
- Economic mineral deposits in the region include: Huckleberry Cu-Mo mine, Endako Moly mine and Former Equity Silver mine
Deer Horn Property Map
Key Property
Deer Horn Property
The Deer Horn Property is located approximately 36 kms south of the Huckleberry Cu-Mo Mine owned and operated by Imperial Metals Corp. The project is 150 kms southeast of the Endako Mo Mine owned by Thompson Creek Metals and 120 kms north-northwest of the former Equity Silver Mine. As a result, the region supports high value mining and exploration infrastructure with a history of success. Located in an area of both active and historic mining, the Deer Horn Property is fast emerging as a significant target for rare, precious and base metals.
Deer Horn Property Location
Tungsten was first discovered near Deer Horn in 1943 and in 1944, veins of tellurium, gold and silver were also discovered. Historically, the Deer Horn Property has already had extensive surface trenching and more than 500 metres of underground development.
Exploration on the property has identified high grade tellurium, one of the rarest minerals in the world. The property also contains gold, silver, tungsten and molybdenum. Surface diamond drilling and underground exploration have defined veins over a strike length of approximately 875 m. The primary system has been traced for approximately 1.5 km and mineralization remains open in three directions.
Deer Horn Regional Mineral Deposits
Latest NI 43-101 Resource for the Deer Horn Property (April 2012)
| Category | Au Cutoff (g/t) | Tonnes | Au Grade (g/t) | Ag Grade (g/t) | Te Grade (ppm) | Au Contained Ounces | Ag Contined Ounces | Te Contained Kg |
|---|---|---|---|---|---|---|---|---|
| Indicated | 1 | 414,000 | 5.12 | 157.5 | 160 | 68,000 | 21,000,000 | 66,000 |
| Inferred | 1 | 197,000 | 5.04 | 146.5 | 137 | 32,000 | 930,000 | 27,000 |
Six drill holes and limited trenching confirmed the presence of significant tungsten mineralization at Deer Horn in 2011. Tungsten was identified over an area of at least 550 metres and included high-grade samples.
Tungsten was first discovered near Deer Horn in 1943 and in 1944, veins of tellurium, gold and silver were also discovered. Historically, the Deer Horn Property has already had extensive surface trenching and more than 500 metres of underground development.
Detailed results from recent exploration and surveys can be found on the Deer Horn Metals website.
Deer Horn Property
Deer Horn’s 2012 Plans:
- Step-out and infill drilling to upgrade and expand Ag- Au-Te resource estimates with further updated 43-101 technical report in late 2012 or 2013
- Comprehensive exploration program for WO3 with objective of a 43-101 technical report in early 2013
- Prepare for bulk sampling
- Extension of 3D, IP and magnetometer surveys to cover west and east extensions of Au-Ag-Te system
- Exploration of systems of mineralization including Mo, Zn, Pb and Cu
About Tellurium
Tellurium is one of earth’s rarest elements. The mineral is far more uncommon than silver, cadmium and indium, and rarer even than the “rare earth” elements scandium and yttrium. While more plentiful than gold and platinum, Tellurium is produced in far smaller quantities. Tellurium has been used primarily as an alloy in steel and copper to improve machinability and in other applications including optical disks, memory chips and thermoelectric devices.
More recently, Tellurium has taken on new lustre as a key element in thin-film, cadmium-telluride solar panels. Cadmium-telluride panels are more efficient and have a 10-15 percent cost advantage over the more widely used silicon panels. As a result of this recent application, the demand for tellurium has increased significantly in recent years. In 2004, tellurium traded for around US$10/kg. By 2009, the price had climbed to nearly $200/kg. Prices spiked to $440/kg in the spring of 2011, but have since slipped back to around $150/kg.
Summary
Deer Horn Metals’ recent exploration programs encountered mineralization in every drill hole, including many high-grade intercepts of tellurium, gold and silver. In addition, historic showings of lead, zinc and molybdenum also add to the potential of a diverse mineral system on the Deer Horn property.
The 2011 exploration continued to support the property holding a rich polymetallic deposit. Deer Horn extended the drill-defined strike length of the precious metals/tellurium system to 875 meters, while the overall strike length now stands at more than 1.5 kilometers. The tellurium, gold and silver zones remain open to the west, east and, in some areas, down-dip. A new NI 43-101 report produced Canada’s first-ever 43-101 qualified tellurium resource, and exploration in 2012 is aimed at expanding that resource as well as the property’s tungsten mineralization.
Management
Tyrone Docherty – President and CEO
Mr. Docherty was the former President and CEO of Quinto Mining Inc., where with limited resources in a difficult market he raised more than $30 million and advanced a Quebec iron ore property to a viable project. Sold Quinto to Consolidated Thompson Iron Mines in June 2008 for a share value equal to $175M (starting from $4M). Consolidated Thompson eventually sold to Cliffs Resources for $4.9B. Mr. Docherty has been involved in the financial markets for over 20 years and attributes his success to relationship building, trust and honesty.
Tony Fogarassy – Chairman of the Board
Mr. Fogarassy is a lawyer and geologist. He graduated as gold medalist in geological sciences from the University of British Columbia and in law from the London School of Economics. Extensive legal and technical expertise in minerals, oil & gas, coal and renewable energy projects and environmental and aboriginal/indigenous law in Africa, Middle East, Central Asia and North America.
Lindsay Gorrill – Director
Ms. Gorrill is President and CEO of Canada Fluorspar, a public company developing a fluorspar project in Newfoundland. She is also CEO of Jayhawk Energy, an oil and gas company with projects in North Dakota and Kansas. An accountant by profession with 19 years’ experience in resource company management. Ms. Gorrill was previously a Director and CFO for Quinto Mining, which was acquired in June 2008 by Consolidated Thompson Iron Mines.
Matt Wayrynen – Director
Mr. Wayrynen is President and CEO of Berkley Renewables Inc., a company active in solar energy development as well as oil & gas. He was the former CEO of Bralorne Gold Mines Ltd. Extensive venture capital experience and has successfully raised tens of millions of dollars for public and private ventures in Canada, the USA and Mexico.
Peter K. Jensen, LL.B., BCL, B.Sc. – Director
Mr. Jensen has a Bachelor of Science and two law degrees from McGill University. He began his law practice in 1981, focusing on the corporate and securities sectors in British Columbia. Mr. Jensen has garnered a wide range of international legal counseling experience with special expertise in trans-border transactions. He is the former and current Director of many private and publicly traded companies and has assisted with financing in Canada, the United States, Europe, and Asia.
