Deer Horn Project Overview

Location West-central BC, 36 km south of the prolific Huckleberry Cu-Mo mine
Size 5,133 ha (51.33 sq km)
Metals Ag/Au/Te with W, Cu, Bi, Pb, Zn, Mo
Ownership DHC 50% with option to acquire up to 75%
Status Advanced exploration, positive PEA completed
Avge Grades* Indicated: 157.5g Ag/tonne, 5.12g Au/tonne, 160 pm Te*

A Unique Project. A Rare Opportunity.

As North America’s only silver-gold-tellurium property with an NI 43-101 compliant tellurium resource, Deer Horn represents a unique mineral asset. Exploration to date has outlined several key mineral zones across a 2.4 kilometer strike length that remain open for expansion in three directions.

Key Project Attributes

  • Silver & gold with high tellurium grades
  • Recognized by First Solar Inc. as one of the world's top tellurium properties
  • Updated positive Preliminary Economic Assessment (PEA) completed June 2018
  • Significant upside tungsten and copper porphyry potential
  • Phased development
  • First Nations support

Resource Estimate*

Category Au Cutoff (g/t) Tonnes> Cutoff (tonnes) Au Grade (g/t) Ag Grade (g/t) Te
Grade
(ppm)
Au Contained Ounces Ag Contained Ounces Te Contained Kg
Indicated 1.00 414,000 5.12 157.50 160 68,000 2,100,000 66,000
Inferred 1.00 197,000 5.04 146.50 137 32,000 930,000 27,000

*The above resource estimate was completed by G.H. Giroux, P.Eng., of Giroux Consultants Ltd., using industry standard methods that conform with Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves referred to in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

On June 6, 2018, Deer Horn reported positive results from an independent Preliminary Economic Assessment (“PEA”) at the Deer Horn Property. The full PEA, which was prepared in accordance with National Instrument 43-101 regulations, is available for viewing here and in its disclosure record can be found at www.SEDAR.com.

PEA Highlights (values shown in $CDN unless indicated otherwise)

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;
  • Life of Mine (LOM) production of:
    • 73,000 Ounces Gold
    • 2,100,000 Ounces Silver
    • 67,000 kilograms Tellurium
    • 1,700,000 pounds Copper
    • 3,600,000 pounds Zinc

The PEA figures were calculated using metals prices of US$1,300 per ounce for gold, US$17 per ounce for silver, US$100 per kilogram for tellurium, US$3.00 per pound for copper and US$1.00 per pound for zinc. The Preliminary Economic Assessment is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Preliminary Economic Assessment will be realized.

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

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