QIS Update #4 - 2019 - The latest news from Deer Horn Capital - April 3rd 2019
Included in this update:
- Deer Horn Capital to Explore Copper-Gold Porphyry Targets
- Deer Horn Capital Discusses US Demand for Critical Minerals
Deer Horn Capital (DHC:CSE) has released two press releases which are included below. We are expecting further news in the coming weeks as the company is preparing for its 2019 field work.
As previously reported, Newlox Gold Ventures (LUX:CSE) has completed its production trials and is ready to enter commercial production. The company is currently working on completing a financing to fund the commercial production phase following which we expect to see regular updates on production and cash flow generation.
NTG Clarity Networks (NCI:TSX-V) should be reporting year-end financial results by the end of April. This should be followed closely by Q1 financial results. We have seen continued improvement in the company's restructuring and financial performance over the last couple of years and we expect this to continue modestly throughout 2019. The company has a sufficient backlog of work through this year but we are hoping to see some additional contracts announced in the coming months.
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Deer Horn Capital Inc. (DHC:CSE)
Current Price: $0.23 (coverage commenced April 10/18 - $0.17)
March 28, 2019
DEER HORN CAPITAL TO EXPLORE COPPER-GOLD PORPHYRY TARGETS AT THE DEER HORN PROPERTY
Deer Horn Capital Inc. has provided an update on its considerations for the 2019 exploration season at the company's Deer Horn property in west-central British Columbia. The Deer Horn property is located 36 kilometres south of the Huckleberry copper-molybdenum mine.
In addition to previously reported work toward prefeasibility on Deer Horn's silver-gold-tellurium resource, the company is also examining options for exploring the property's copper porphyry targets.
As part of this process, management is reviewing current and historic information, including the preliminary economic assessment of May, 2018, and an aeromagnetic survey flown by Precision Geosurveys in April, 2012. Both reports concluded that key porphyry targets warranted further exploration.
"We've wanted to revisit our copper porphyry targets for some time," commented Tyrone Docherty, chief executive officer of Deer Horn. "We know the world will need more and more copper, and the industry is hungry for large, porphyry-type deposits in stable political jurisdictions to meet those needs. Copper adheres to our vision of supplying metals for technology and a low-carbon economy, as it remains essential for electric vehicles, wind turbines, solar energy and virtually all electronics, including smart phones and computers. We see no end in sight to the growing demand."
The two key copper targets at the Deer Horn property, as outlined in the May, 2018, preliminary economic assessment, are disclosed herein.
Pond and H-Spot copper porphyry targets
The 2018 preliminary economic assessment reported previously unknown copper and copper-gold porphyry targets at the head of the valley, northwest of the silver-gold-tellurium resource area, noting: "Prospecting and surface sampling identified several porphyry-style showings.... The Pond and H-Spot showings are discoveries of bulk-tonnage, porphyry-style copper-plus-minus-gold-plus-minus-silver mineralization and associated alteration."
Grab and channel samples collected from the two showings graded: from 18.5 parts per million to 4,240 parts per million copper; from 0.06 part per million to 6.6 parts per million silver; and from fewer than five parts per billion to 24 parts per billion gold. The full dimensions of the H-Spot showing are unknown because it has been covered by snow pack and glacial debris. However, due to climate change, more of this zone is becoming accessible each year.
The preliminary economic assessment concluded, "These new showings, and their broad distribution, may be evidence of a largely hidden porphyry copper system."
Kenney Lake copper-gold porphyry target
The other key porphyry target is located near Kenney Lake -- in the northeast area of the Deer Horn property. This target was first discovered through the 2012 aeromagnetic survey. A subsequent interpretation report of the survey by E. Trent Pezzot, PGeo, of Geosci Data Analysis noted, "A strong magnetic anomaly located immediately southwest of Kenney Lake on the lower slopes of Lindquist Peak forms the best new exploration target in the survey area."
The surface footprint of this anomaly stretches approximately 1.5 kilometres long, with a width of at least 750 metres.
The aeromagnetic interpretation report added: "This target likely represents an intrusion and associated alteration zone. This geological environment could host several different types of mineral deposits, including large porphyries and/or more localized skarns, stockworks or vein systems."
The 2018 preliminary economic assessment followed up on the Kenney Lake aeromagnetic data, noting: "This area is underlain by rocks mapped as part of the Telkwa formation (Hazelton group).... Select grab samples graded: from 10 to 4,540 ppm Cu; from 0.07 to 7.72 ppm Ag; and from fewer than five to 262 ppb Au."
Dependent on future financing, Deer Horn management is considering exploration options for the property's porphyry targets in 2019 and beyond.
Bob Lane, PGeo, a consultant to Deer Horn Capital and a qualified person within the context of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has reviewed and approved the technical data in this document.
April 2, 2019
DEER HORN CAPITAL INC.: A DEMAND FOR CRITICAL MINERALS ON THE RISE WITH INCREASING APPLICATIONS FOR CLEANTECH AND CARBON REDUCTION, SAYS US GEOLOGICAL SURVEY
Deer Horn Capital Inc. has noted that the U.S. Department of the Interior/U.S. Geological Survey (USGS), in its latest report on characterization and identification of critical mineral resources, has reported, "Global demand for critical mineral commodities is on the rise with increasing applications in consumer products, computers, automobiles, aircraft and other advanced technology products." Much of this demand growth, said the agency, "... is driven by new technologies that increase energy efficiency and decrease reliance on fossil fuels."
"We have been following this trend for several years," said Deer Horn president and chief executive officer Tyrone Docherty. "We know that the global effort to reduce carbon emissions will require enormous amounts of critical minerals, which is why we have made it our mission to explore for and develop economic sources of these metals. Not only is the demand increasing, Deer Horn can be part of the solution for climate change in supplying them."
Dependable supplies of critical minerals are considered essential to the U.S. economy and security. Last year, the Department of the Interior, through the USGS, published its latest list of 35 critical minerals. These are minerals the U.S. government identifies as having a supply chain vulnerable to disruption and that serve an essential function in the manufacturing of a product, "... the absence of which would have significant consequences for the economy or national security."
Mr. Docherty noted that, "According to our recently updated NI [National Instrument] 43-101 preliminary economic assessment (PEA), the Deer Horn property in west-central British Columbia contains at least three of the minerals designated by the USGS as critical -- tellurium, tungsten and bismuth. The property also contains silver and copper -- both essential for solar power."
Tellurium (Te) is key to this mix at Deer Horn. The Critical Metals blog reports that: "With solar energy growing exponentially, the supply of Te is becoming an issue of concern. The U.S. (and indeed the world) gets most of its Te as a byproduct of copper refining."
The USGS reports that approximately 85 per cent of global tellurium is derived through a copper recovery process called electrolytic refining. To increase copper recovery from low-grade deposits, there is currently a shift in the copper production mode from electrolytic refining to solvent extraction/electrowinning (SX-EW) and copper recycling, neither of which produces tellurium as a byproduct.
In a supporting study , the U.S. Department of the Interior noted that tellurium is currently recovered as a primary resource from only two locations in the world. Critical Metals identifies these sources as the Kankberg mine in Vasterbotten county, Sweden, which produces about 10 per cent of the world's tellurium, and the Dashuigou and Majiagou mines in China, which together produce from 2 per cent to 7 per cent of the world's tellurium.
Noting this domestic threat to tellurium supplies, the USGS has emphasized, "It is imperative that we understand the enrichment processes of potential alternative sources of tellurium, such as epithermal gold deposits."
In assessing known epithermal gold deposits with meaningful amounts of recoverable tellurium, the USGS has identified the Deer Horn property as one of North America's key tellurium properties. In its 40-page report on tellurium from the comprehensive "Critical Mineral Resources of the United States -- Economic and Environmental Geology and Prospects for Future Supply," the USGS states, "The Deer Horn intermediate-sulphidation epithermal deposit in west-central British Columbia, Canada, contains high gold and silver grades with abundant base metal sulphides and telluride minerals."
The report also notes the high grades of tellurium achieved in Deer Horn drill results, with some "in the thousands of parts per million."
According to Critical Metals, the USGS also included the Deer Horn property in its latest Professional Paper 1802-R on tellurium. "Most of these (epithermal deposits) contain gold," stated Critical Metals, "and would likely be mined for the gold first and Te second (or even third, if the deposit contains silver)."
Tellurium end-users have expressed interest in the Deer Horn property, noting that the gold and silver could greatly offset the cost of extracting the tellurium. The Deer Horn preliminary economic assessment notes that the indicated resource grades (using a one-gram-per-tonne cut-off) average 5.12 grams per tonne gold, 157.5 grams per tonne silver and 160 parts per million tellurium.
QIS CAPITAL: We are starting to see more and more articles and press releases on the importance of tellurium and other critical metals. There is an interesting blog at www.criticalmetals.ca. We are also starting to see an increase in the number of junior companies which are reporting tellurium mineralization and targets. As this continues we should see an increase in market awareness for Deer Horn Capital, the only company with a known tellurium property with a 43-101 compliant tellurium-silver-gold resource.