Deer Horn Capital Inc (CSE:DHC)

Summary

Deer Horn Capital is focused on tellurium exploration in North America. The company is unique amongst
exploration firms, developing the only known tellurium property with an NI 43-101 compliant silver-
gold-tellurium resource at the Deer Horn Property in British Columbia.

The company is also finalizing a purchase option agreement on the Colorado Klondike tellurium property
located in south-central Colorado, USA. 

Deer Horn’s purpose is to provide silver and tellurium key to the development of 1) renewable energy
and 2) next-generation technologies expected to generate exponential improvements in battery storage,
digital storage, computing power, desalination for fresh water and a range of other future sustainable
applications.

Our strategy is to grow the company by partnering with industry leaders in critical metals extraction,
manufacturing, supply and research as well with relevant governmental and educational institutions.

Stock Chart

Share Structure

As of October 31, 2018
Shares Issued 13,970,931
Warrants 241,000
Options 1,037,200
Fully Diluted 15,249,131

Investment Highlights

  • Exceptional management with a history of exploring, developing and selling mineral projects to major mining companies
  • Clean, tight share structure
  • A leader in tellurium exploration for North America
  • Developing the only known tellurium property with an NI 43-101 compliant silver-gold-tellurium resource
  • Completed successful Preliminary Economic Assessment on Deer Horn Property for mining of silver, gold and tellurium
  • Recently acquired the Colorado Klondike tellurium project in Colorado
  • Planning to move into Phase 1 prep for Pre-feasibility at Deer Horn in 2019

Projects

Projects

Deer Horn Project, British Columbia

The company’ 51-square-kilometer Deer Horn Project has been recognized by both the U.S. Geological Survey and First Solar Inc. as one of the world’s important primary tellurium properties. Deer Horn hosts high-grade silver, gold and tellurium as well as copper, tungsten, zinc, lead and molybdenum.

Exploration to date has outlined several key mineral zones across a 2.4-kilometer strike length that remain open for expansion in three directions.

Highlights from a recent positive Preliminary Economic Assessment (PEA) at Deer Horn on just 20% of the current target yielded:

  • Pre-tax NPV (5%) of $56.6 million and internal rate of return of 56%;
  • After-tax NPV (5%) of $36.5 million and internal rate of return of 42%
  • Initial Capital of $28.3 million
  • After-tax payback of initial capital in 1.6 years

Deer Horn plans to operate the project as a high-grade, open pit “small mine” under the British Columbia Mines Act. This designation simplifies and expedites the permitting process with considerably lower up-front costs.

 

Management Profiles

Deer Horn’s management team and advisory board includes industry leaders in mineral property development, finance, geology, mineralogy, metallurgy, solar power, engineering, research and First Nations engagement and economic development.

Tyrone Docherty President & CEO

Former President & 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. From 2012 to 2018, he was Director and Chairman of Mason Graphite Inc. which is developing one of the world’s top graphite deposits. Mr. Docherty has been involved in the financial markets for over 30 years.

Tony Fogarassy M.Sc. LL.M., Chairman

Lawyer and geologist. 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, Asia and North America.

Matt Wayrynen Director

President & CEO of Solar-Flow-Through Limited, one of Canada’s leading solar power developers. Also President & CEO of Berkley Renewables Inc., a company active in solar energy development as well as oil & gas. 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.

Allen Schwabe Director

Mr. Schwabe has been a successful entrepreneur in the Lower Mainland region for nearly 40 years. He has also held President and Director positions for various mining companies for the last 25 years, playing key roles in fundraising and property acquisitions.

Pierre Bertrand, P.Eng Consultant/Advisor

Vice President of SGF Mines and General Manager of SOQUEM. Holds a BSc.A in Geological Engineering from Laval Engineering in Quebec City. Since joining SOQUEM in 1999, Mr. Bertrand has been instrumental in developing mineral properties located in Quebec including the Renard JV diamond discovery.

Gary Giroux, P.Eng, Consultant Advisor

Registered professional engineer with over 30 years’ experience calculating mineral resources. Has completed mineral resource estimates on a wide variety of gold vein deposits in British Columbia and around the world. Mr. Giroux is Deer Horn’s Qualified Person for all matters relating to the Mineral Resource Estimate in the Deer Horn PEA. A graduate of the University of British Columbia, Mr. Giroux has earned a B.Sc. and M.Sc in Geological Engineering.

Dr. Lee Groat, B.Sc., Ph.D Consultant/Advisor

Professor and former Head of the Dept. of Earth and Ocean Sciences at the University of British Columbia. Former NATO Postdoctoral Fellow at Cambridge University. Areas of research include mineralogy, geochemistry and ore deposits.

Bob Lane, M.Sc., P. Geo Consultant/Advisor & Qualified Person

Registered professional geologist with a Master’s degree in geology and more than 20 years of practical field geology as a research geologist with the BC Geological Survey, as the Regional Geologist with the Ministry of Energy & Mines and as a consulting geologist.

Tracey Meintjes, P.Eng Consultant/Advisor & Qualified Person

Registered professional engineer and Deer Horn’s Qualified Person for matters relating to mineral processing, metallurgical testing, mining capital, mine operating costs, environmental, infrastructure, financial evaluation, and overall report preparation. He has been involved with copper, gold, coal, molybdenum project evaluations and is a specialist in pit and schedule optimization.