BRITISH COLUMBIA – Deer Horn Capital
of Vancouver has received a positive preliminary economic assessment for its Deer Horn gold-silver-tellurium project in the north-central part of the province. The study assess a nine-year open pit operation with a 1.6-year payback.
[caption id="attachment_1003723511" align="alignleft" width="300"] Tellurium is used in the manufacture of solar panels, batteries and memory chips. (Image: Deer Horn Capital)
The project has a pre-tax net present value (5% discount) of $56.6 million and an internal rate of return of 56%. After taxes, the NPV is $36.5 million and the IRR is 42%. Annual production would be 73,000 oz. of gold, 2.1 million oz. of silver 67,000 kg of tellurium, 1.7 million lb. of copper and 3.6 million lb. of zinc. The initial capex need is $28.3 million.
The Deer Horn property has 414,00 tonnes of indicated resources grading 5.12 g/t gold, 157.5 g/t silver and 160 ppm tellurium. There is also an inferred resource of 197,000 tonnes averaging 5.04 g/t gold, 146.5 g/t silver and 137 ppm tellurium.
Deer Horn anticipates operating the project as a high grade “small mine” as defined by the B.C. Mines Act. Deer Horn Capital owns 50% of the project with an option to increase its share to 75%.
Additional information is posted at www.DeerHornCapital.ca.