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QIS Update #15 - 2018 - Deer Horn Capital discusses tellurium and Newlox Gold Ventures continues to pour gold - October 4th 2018

Included in this update:

- Deer Horn Capital Discusses a Number of New Research Reports for Tellurium Applications(DHC:CSE)

- Newlox Gold Adds New Fire Assay Lab and Continues to Pour Gold in Central America (LUX:CSE)



While we have seen a little bit of life in the small-cap energy markets, the general small-cap market continues to hover near recent and historical lows. We have done well with Questor Energy since we mentioned the company in our QIS Weekly Update on our blog and forum on September 14th at $2.00.  The stock reached $3.00 today.  Congratulations to those who completed their due diligence and purchased shares.


We are currently working on a new Feature Company report and hope to have that out to investors next week.


Please feel free to email us anytime at or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.



Deer Horn Capital Inc. (DHC:CSE) 


Current Price: $0.32 (coverage commenced April 10/18 - $0.17)




According to a recent article in the journal Science Advances, Deer Horn Capital Inc. is under the impression that tellurium nanoparticles could triple the rate of evaporation for solar desalination. If effective on a commercial scale, the process could reduce the energy needed for desalination plants by 10 times.


The International Desalination Association reports that there are currently more than 18,400 desalination plants operating worldwide, providing water for more than 300 million people in 150 countries. As the desalination industry makes advances in efficiency, these numbers are expected to grow.


Over half the costs of operating desalination plants comes from energy. According to the Science Advances article, published in the August, 2018, edition, a broadband absorber made of tellurium nanoparticles with a wide-size distribution can absorb more than 85 per cent solar radiation in the entire spectrum. The temperature of the absorber irradiated by sunlight can increase from 29 degrees Celsius to 85 degrees Celsius within 100 seconds.


These findings suggest that tellurium nanoparticles can provide an advanced photothermal conversion material for solar-enabled water evaporation.





Deer Horn Capital Inc. has noted that continuing research and development by technological heavyweights such as IBM, Intel, Samsung and Panasonic continue to move phase-change memory toward mainstream use. Phase change memory (PCM) is expected to revolutionize the speed, capacity and economics of data storage.


PCM, under development since the 1970s, is a form of computer random-access memory (RAM) that stores data by altering the state of the matter from which the device is fabricated. Most PCM technology currently employs tellurium (typically mixed with other metals such as antimony, germanium or iron) because of the material's stability and unique properties. According to its proponents, PCM technology has the potential to provide inexpensive, high-speed, high-density, high-volume data storage on an unprecedented scale.


PCM is also much more durable than current RAM technology, with the ability to withstand almost unlimited rewrites. PCM is sometimes called perfect RAM, or PRAM, because data can be overwritten without having to erase it first.


According to technology magazine The Next Platform, new memory technologies such as PCM are going to "... radically change the architecture of machines and the software that runs on them." In an article about technology under development by IBM, which uses a mix of antimony, germanium and tellurium, the magazine stated that "... up until now, PCM was able to store one bit per memory cell, but a team of researchers at IBM's lab in Zurich, Switzerland, have demonstrated they can store two bits per cell and a path to three bits per cell."


"Reaching three bits per cell is a significant milestone," said Haris Pozidis, manager of non-volatile memory systems at IBM Research, "because at this density the cost of PCM will be significantly less than DRAM and closer to flash."


In addition to IBM's work, Intel, Samsung, Panasonic and other industry leaders are investing heavily in bringing their own versions of PCM to market as quickly as possible.


"One of the pillars of our vision at Deer Horn is to supply critical metals for technology," said Tyrone Docherty, Deer Horn's president and chief executive officer. "As more technological uses emerge for tellurium, stable, domestic supplies of the metal become more important. We are advancing our Deer Horn gold-silver-tellurium property in British Columbia with this dynamic in mind."


The Deer Horn property may be unique in North America for hosting a National Instrument 43-101 resource for gold/silver/tellurium. Deer Horn recently reported positive results from an independent preliminary economic assessment (PEA) at the property, where the company is planning to conduct further drilling to both expand and upgrade the current resource. First Solar Inc., a world leader in the engineering and development of solar energy, has recognized Deer Horn as one of the world's top tellurium properties while the U.S. Geological Survey identifies Deer Horn as a key epithermal tellurium resource for North America.





Deer Horn Capital Inc. has noted that researchers working on more efficient batteries for electronic cars are claiming significant results with new lithium-tellurium battery systems. In a January, 2016 article, the peer-reviewed Journal of Applied Electrochemistry reports development of a "lithium-tellurium rechargeable cell with exceptionally high specific capacity and cycling stability at high charge/discharge rates."


The article, titled "A lithium-tellurium rechargeable battery with exceptional cycling stability," by Toshinari Koketsu, Benjamin Paul, Chao Wu and Ralph Kraehnert, reports that "long-term cyclability tests involving 1,000 charge/discharge cycles at 10C rate delivered an unprecedented specific capacity at 100-per-cent efficiency."


This may be good news for the electric vehicle industry. In the United States, new electric car sales surged by 72 per cent in 2017, pushing total ownership to over one million vehicles. A study by the International Energy Agency predicts that "the number of electric vehicles on the road around the world will hit 125 million by 2030."


Among the biggest obstacles to widespread adoption of electric cars are charging problems, lack of power and short travelling distances -- all related to current battery technology. Millions are spent each year on researching and building lighter and more efficient batteries that will bring electric cars closer to the performance of combustion engine vehicles. To date, the standard battery for electric cars has been lithium ion. However, a host of new battery companies is working to either improve upon current lithium technology or build better batteries with new materials.


The Financial Times recently reported how venture capital funds have already poured over $1-billion into car battery development, investigating better lithium-ion construction, new materials and other advancements such as solid-state batteries. The discovery of efficiencies with lithium-tellurium battery systems represents an important discovery from this research and development.


"We're seeing more and more promising research into the application of tellurium for solving major technology and societal problems," said Deer Horn president and chief executive officer Tyrone Docherty. "This latest development for lithium-tellurium batteries is one of many recent intriguing findings that we have reported over the past two years."


Mr. Docherty added that solar power, thermo-electric devices and consumer electronics currently consume nearly three-quarters of the world's tellurium. "Solar power is on an exponential growth curve worldwide, while growing consumer electronics consumption will also contribute to higher tellurium consumption."


Research and Markets' latest tellurium report, Global Tellurium Market 2018-2022, forecasts a compounded annual growth rate (CAGR) of 3 per cent for tellurium consumption from 2018 to 2022.

"Considering potential supply issues and ongoing technology discoveries," said Mr. Docherty, "we believe there will be stresses on tellurium supplies looking ahead."


Deer Horn Capital is advancing its Deer Horn gold-silver-tellurium property in west-central British Columbia. "While there has recently been a flood of juniors jumping into the lithium market due to electric vehicle growth," said Mr. Docherty, "we're probably the only junior miner focused on tellurium exploration and development."


Mr. Docherty added: "When you add in potential supply disruptions due to changes in copper refining, we believe primary sources of tellurium will be in high demand in the future. This is why we continue to look for additional high-grade tellurium projects in North America."





Deer Horn Capital Inc. has commented on a report from Colorado State University. According to researchers at the university, generating electricity from cadmium-telluride photovoltaics (CdTe PV) has now become less expensive than electricity from fossil fuels in many utility-scale applications.


"The levelized cost of energy (LCOE) from CdTe PV is ~$0.04/kWh," says the university in a March, 2018, report, "while the national average LCOE from all sources is $0.11/kWh." The report also states that life cycle emissions of cadmium from CdTe PV are lower than those from traditional electricity generation for the same amount of energy generated. "CdTe uses approximately one one-hundredth the amount of semiconductor materials used for c-silicon PV (the most common PV in use today) and can be processed 24 times faster than c-silicon."


Recent discoveries and improvements in Cd-Te thin film construction continue to raise the technology's solar efficiency, a measurement that quantifies a solar panel's ability to convert sunlight into electricity. As a result, CdTe PV use is growing rapidly and now represents the second-most utilized solar cell material in the world behind silicon. The majority of silicon panels on the market range from 15-per-cent to 17-per-cent efficiency, with the most expensive panels reaching efficiencies of 22 per cent. First Solar Inc., the world's largest manufacturer of CdTe PV, has achieved efficiencies of over 22 per cent with CdTe PV and continues to investigate methods of achieving even higher efficiencies.


According to Colorado State University, recent achievements in CdTe PV "pave a clear path toward even higher cell efficiencies and make 25 percent a realistic near-term (three-year) goal and 30 percent a reachable long-term goal."


As CdTe PV becomes more efficient and demand for the technology grows, manufacturers must secure dependable, long-term sources of tellurium. Currently, 90 per cent of the world's tellurium comes from copper refining. As copper grades decline, however, copper producers are turning to different recovery methods that exclude tellurium. Major CdTe PV manufacturers, as a result, are seeking primary sources of tellurium not dependent on copper mining.


"We are following these advances for cadmium-telluride solar panels closely," said Tyrone Docherty, president and chief executive officer of Deer Horn Capital. "Our Deer Horn gold-silver-tellurium property has been on the solar industry radar for some time, as we may have the only mineral property in North America with an NI 43-101 compliant tellurium resource. We've also completed a positive preliminary economic assessment for mining a portion of the known mineralized system."


Exploration to date at Deer Horn has outlined several key mineral zones across a 2.4-kilometre strike length that remains open for expansion in three directions. The property has been recognized by both First Solar Inc. and the United States Geological Survey as an important potential source of tellurium, not only for the solar power industry, but also for a host of emerging technologies.


"We believe properties with primary tellurium resources will become increasingly valuable in both the near and long term," added Mr. Docherty. "As a result, Deer Horn Capital is investigating additional tellurium projects in North America."



Deer Horn Capital has issued a number of press releases over the last month noting the potential uses and applications of tellurium.  While the market has largely dismissed these press releases as they relate specifically to Deer Horn's share price and trading volume, the potential applications are interesting and it is becoming increasingly difficult to ignore the number of new research articles coming out on tellurium and its market potential.


We are encouraged with the ever increasing scope of potential demand for tellurium and the company's prospects.  Deer Horn is working to increase its potential resource at its Deer Horn tellurium project in BC and is also looking at other potential tellurium projects that it can add to its land holdings to build an exciting portfolio of near-term producing properties.




Newlox Gold Ventures Corp. (LUX:CSE) 


Current Price: $0.055 (coverage commenced Mar. 31/14 - $0.05)




Newlox Gold Ventures Corp. has commissioned an in-house fire assay laboratory at the company's environmental reclamation and precious metals recovery project, Central America. This new fire assay capability at the Newlox cutting-edge field laboratory complements the atomic absorption spectroscopy (AAS) technology implemented in August.


The addition of fire assay capability at the company's in-house analytical laboratory allows for real-time analysis of samples from the processing plant and supports the company's engineering team as it continues to optimize operations. Fire assays will allow for real-time analysis of solid samples including feedstock, concentrates and tailings for maximum control over the company's processing operations.

Ryan Jackson, president of Newlox Gold, comments:


"The addition of fire assay technology to the company's already operational atomic absorption spectroscopy laboratory brings all of Newlox's required assay capabilities in house. Newlox's operations team will now benefit from real-time data as they complete the final optimization and commercialization of the company's first environmental reclamation and precious metals recovery project."


Fire assaying is an analytical technique in which a metal or metals are separated from impurities by fusion processes and weighed in order to determine the amount present in the original sample. Metals tested by fire assay are recovered from the fusion of the material in an assay furnace, for gold, usually at temperatures of over 1,000 C. This process is widely regarded as the most reliable method to determine the metal content of ores that contain precious metals such as gold, silver and platinum.





Newlox Gold Ventures Corp. has continued the testing and pouring of gold dore at its remediation and precious metal recovery facility in Central America. Following the first pour on April 23, 2018, this year, steady progress has been made in refining the metal processing operations, as reflected in the overall performance of the plant.


Gold dore pours over the summer and into the fall and resultant increased precious metal sales have been supporting the continued testing of the company's innovative environmental reclamation and precious metal recovery technology.


The company commissioned its fully operational analytical laboratory in Central America last month, with complete fire assay and atomic absorption technology. This laboratory now allows real-time analysis and timely adjustments, forming the cornerstone for continuing testing and optimization. With this capability in-house, Newlox anticipates reaching its processing targets.


Ryan Jackson, president of Newlox Gold, commented: "Our engineering team is maintaining regular gold dore pours as it advances the testing program. Encouragingly, each adjustment delivers progress toward recovery targets. Metals sales are increasingly supplementing the company's financial needs, and we look forward to soon reaching break-even."




Newlox continues to make adjustments to its concentration and production procedures. The company claims that the volume of gold pours continues to improve although still small in scope. Unfortunately Newlox's shares are extremely thinly traded and the company remains cash constrained to increase market exposure.  It is looking like shareholders will have to wait for stable reported cash flow, additional property acquisitions or new tailings operations, or a general increase in micro gold producing companies.  Stay tuned...




The corporate information provided in this report is for informational purposes only. While every effort has been taken to provide accurate information, the completeness or accuracy of such information is not guaranteed. Certain statements in this report may constitute “forward looking” statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. The company profiled assumes no liability for the information presented. The information contained in this report should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. Trading accounts, including personal, family and corporate accounts, under the control of QIS Capital management currently hold 260,500 shares and 15,000 warrants of Deer Horn Capital Inc. and 4,499,398 shares and 833,472 warrants of Newlox Gold Ventures Corp. QIS Capital is engaged in an advertising agreement with Deer Horn Capital Inc. and may trade the company’s common shares. No stock exchange has approved or disapproved of the information contained herein. Copyright ©2018, QIS Capital Corporation.

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