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Posts tagged ‘Deer Horn Metals Inc (DHM)’

Deer Horn Metals chairman Tony Fogarassy on his company’s plan for a gold-silver-tellurium mine in B.C.

March 19th, 2013

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Economy of size

March 13th, 2013

Deer Horn Metals reaches PEA with B.C. gold, silver and tellurium

by Greg Klein

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It would be a small mine but a nano-cap company has big hopes for a gold-silver-tellurium project in west-central British Columbia. On March 13 Deer Horn Metals TSXV:DHM released a preliminary economic assessment for a 74,000-tonne-per-annum operation that would run six months a year. The modest size offers a number of advantages in permitting, financing and garnering community support, the company believes.

Deer Horn Metals hits PEA with B.C. gold, silver and tellurium

Deer Horn Metals based its PEA on about 450 metres of a
2.4-kilometre vein system 36 klicks south of the Huckleberry mine.

The Deer Horn project’s base case, using three-year metal price trailing averages and a 5% discount rate, estimates a net present value of $39.5 million and a 32% internal rate of return. Initial capital costs are projected at $27.8 million with payback in 2.4 years. Over a 14-year lifespan the open pit would produce an estimated total of 67,000 ounces gold, 2.11 million ounces silver and 63,000 kilograms tellurium.

The project would include a conventional flotation mill producing a combined gold-silver-tellurium concentrate.

Apart from the base case, the PEA offers separate numbers projected on recent metal prices, resulting in a $49.3-million NPV, 38% IRR and a 2.2-year payback.

The rugged region makes infrastructure an obvious challenge. The capex includes the cost of upgrading an eight-kilometre road from the mine site to a lake. From there, barge traffic would connect with other roads, including a route to Imperial Metals’ TSX:III Huckleberry mine.

The report is based on an April 2012 resource update that used a cutoff of 1 gram per tonne gold, showing:

  • an indicated category of 414,000 tonnes averaging 5.12 g/t gold, 157.5 g/t silver and 160 g/t tellurium for 68,000 ounces gold, 2.1 million ounces silver and 66,000 kilograms tellurium
  • an inferred category of 197,000 tonnes averaging 5.04 g/t gold, 146.5 g/t silver and 137 g/t tellurium for 32,000 ounces gold, 930,000 ounces silver and 27,000 kilograms tellurium.

The update marked the first such 43-101 resource “as far as we know,” Deer Horn chairman Tony Fogarassy tells ResourceClips. “If there’s a company out there with a tellurium resource estimate, we haven’t seen it.”

Eastmain Resources TSX:ER, for example, has been reporting tellurium drill results from its Clearwater (Eau Claire) property in Quebec’s James Bay region. But that project’s October 2012 resource update limited itself to gold.

As for the tellurium market, “an oversupply has existed from late 2011 but it’s expected to get more balanced by the end of this year,” Fogarassy says. “That projection was made about a year ago by First Solar [FSLR ], a multi-billion-dollar manufacturer of solar panels, which are an important use for tellurium…. By the time we could build a mine we’d anticipate the tellurium market to improve.”

He adds, “It’s a very specific element that’s used in phase change technology [for CDs and DVDs], computer chips and appliances, as well as the solar panel sector.”

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Deer Horn reports BC Assays of 5.65 g/t Gold, 182 g/t Silver over 7.1m

January 13th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningDeer Horn Metals Inc TSXV:DHM announced assays from its Deer Horn property in west-central BC. Results include

5.65 g/t gold and 182 g/t silver over 7.1 metres
(including 12.03 g/t gold and 346 g/t silver over 2.6 metres)
9.75 g/t gold and 430 g/t silver over 2.1 metres
2.45 g/t gold and 88.6 g/t silver over 3.2 metres
3.43 g/t gold and 56 g/t silver over 4 metres
3.15 g/t gold over 128 g/t silver over 2.6 metres
(including 14.8 g/t gold and 588 g/t silver over 0.5 metres)
26.34 g/t gold and 827 g/t silver over 1.6 metres
6.17 g/t gold and 108 g/t silver over 3.3 metres
11.51 g/t gold and 156 g/t silver over 3.4 metres
(including 51.8 g/t gold and 655 g/t silver over 0.7 metres)
1.16 g/t gold and 34.2 g/t silver over 17.8 metres
88.7 g/t gold and 1,092 g/t silver over 0.6 metres
2.57 g/t gold and 106 g/t silver over 5.5 metres
3.3 g/t gold and 75.5 g/t silver over 3 metres

The Deer Horn property has NI 43-101 indicated resources of 129,000 tonnes grading 5.71 g/t gold and 182.3 g/t silver. It has inferred resources of 202,000 tonnes grading 6.1 g/t gold and 186.4 g/t silver.

View Company Profile

Contact:
Tyrone Docherty
President
604.952.7221

by Ted Niles

Deer Horn reports BC Assays of 9.57 g/t Gold, 368 g/t Silver over 5.7m

December 7th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningDeer Horn Metals Inc TSXV:DHM announced drill results from the Contact zone and Main Vein of its Deer Horn property in west-central BC. Highlights include

4.3 g/t gold and 109 g/t silver over 1.5 metres
4.61 g/t gold and 75.6 g/t silver over 2.8 metres
2.93 g/t gold and 148 g/t silver over 6.4 metres
5.3 g/t gold and 164 g/t silver over 4.5 metres
9.57 g/t gold and 368 g/t silver over 5.7 metres
(including 39.6 g/t gold and 1,211 g/t silver over 1 metre)
2.34 g/t gold and 130 g/t silver over 23.9 metres
5.93 g/t gold and 272 g/t silver over 8 metres
1.36 g/t gold and 102 g/t silver over 12.2 metres
1.57 g/t gold and 113 g/t silver over 21 metres
(including 11.79 g/t gold and 769 g/t silver over 1.6 metres)
13.8 g/t gold and 422 g/t silver over 1.2 metres

President Tyrone Docherty commented, “These latest positive drill results continue to provide management with increased optimism towards the potential of our Deer Horn property. Our goal is to have a near surface, multi element high-grade deposit. We have now extended the strike length of the Deer Horn mineral system to 875 metres. We are excited that the potential size of the zone still remains open in multiple directions.”

View Company Profile

Contact:
Tyrone Docherty
President
604.952.7221

by Ted Niles

Deer Horn reports BC Results of 8.69 g/t Gold, 316.8 g/t Silver, 225 g/t Tellurium over 12.8m

November 4th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningDeer Horn Metals Inc TSXV:DHM announced results from its Deer Horn Property in west-central BC. Highlights include

8.69 g/t gold, 316.8 g/t silver and 225 g/t tellurium over 12.8 metres
(including 30.16 g/t gold, 1,098 g/t silver and 669 g/t tellurium over 2.8 metres)
2.45 g/t gold, 127.7 g/t silver and 132 g/t tellurium over 15 metres
(including 5.95 g/t gold, 300 g/t silver and 290 g/t tellurium over 4.08 metres)
2.04 g/t gold, 71.3 g/t silver and 75 g/t tellurium over 7.6 metres
(including 2.82 g/t gold, 105.3 g/t silver and 98 g/t tellurium over 3.2 metres)

The project has a June 2010 resource estimate of 129,000 tonnes grading 5.71 g/t gold and 182.3 g/t silver indicated and 202,000 tonnes grading 6.1 g/t gold and 186.4 g/t silver inferred.

View Company Profile

Contact:
Tyrone Docherty
President
604.952.7221

by Greg Klein

Deer Horn reports BC assays up to 4.12 g/t Gold, 94.4 g/t Silver over 35.4m

October 11th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningDeer Horn Metals Inc TSXV:DHM announced drill results from its Deer Horn project in BC. Assays include

4.12 g/t gold and 94.4 g/t silver over 35.4 metres
(including 25.5 g/t gold and 749 g/t silver over 1.1 metres)
5.37 g/t gold and 55.7 g/t silver over 4 metres
(including 8.4 g/t gold and 84 g/t silver over 2.1 metres)

Deer Horn also announced that it has granted incentive stock options for the purchase of up one million common shares at $0.18 per share, exercisable on or before October 6, 2016.

View Company Profile

Contact:
Tyrone Docherty
President
604.952.7221

by Ted Niles