First Tellurium Corp. (FTEL:CSE) is conducting geophysics work at its flagship Deer Horn project in British Columbia this summer to help develop targets for a drilling campaign.
The project is known to have the only positive preliminary economic assessment (PEA) for a tellurium (Te) project in North America.
The company said it had engaged Dias Geophysical of Saskatoon, Saskatchewan, to conduct the induced polarization (IP) geophysical testing, which is following up on rock sampling, channel sampling, and prospecting done in 2022.
That work identified a possible 1.1-kilometer extension of a 2.4-kilometer gold-silver-tellurium vein system, First Tellurium said.
"There is obvious porphyry and abundant associated sulfide mineralization on surface at Deer Horn," said First Tellurium consultant and Qualified Person Dr. Lee Groat. "The geophysical data from IP is needed to obtain subsurface information, such as the location of bodies of sulfide mineralization. This will help us direct the summer drill campaign and determine locations, directions, angles, and depths of drill holes."
FTEL could "have a huge 2023" if the United States supported tellurium mining this year, wrote Chen Lin, author of the What's Chen Buying? What's Chen Selling?
Tellurium is one of the least common elements on the planet, according to the U.S. Geological Survey. Most rocks contain an average of about three parts per billion, making it eight times less abundant than gold.
Its use as a semiconductor in solar photovoltaic (solar PV) panels has increased. It's also used in thermoelectric applications, lithium batteries, vulcanizing rubber, tinting glass, and manufacturing rewritable CDs and DVDs.
Both the U.S. and Canada are trying to reduce dependence on China for such critical metals. U.S. President Joe Biden has banned solar panels coming from a Chinese company that uses forced labor.
First Tellurium Chairman Tony Fogarassy attended OECD's 2023 Forum on Responsible Mineral Supply Chains in Paris as part of First Tellurium's outreach on critical minerals.
"We know there's a looming, massive shortage of critical minerals needed for batteries, electric vehicles, solar power — any technology related to climate change and carbon reduction," Fogarassy said. "Canada is seen as a prime future supplier of critical minerals due to its stable political and economic structure, and also its world-leading knowledge about exploration and mining."
Geophysics, Soil Samples to Add Drill Targets
At the same time as the IP survey, Groat and a team of University of British Columbia graduate students will also be conducting a property-wide soil sampling program at Deer Horn as a significant amount of ground is now open that was once covered in glaciers, the company noted.
Drill targets from the IP survey will augment additional drill targets identified in the PEA as "infill and tightly spaced step-out diamond drilling focused both on upgrading and expanding the existing resource," First Tellurium said.
"We will hit the jackpot as FTEL is the only pure play in tellurium," Chen wrote.
The company is also sending a team to meet with First Nations groups on the property to discuss the work program. The team will include Groat, Fogarassy, and Phil McLean, owner of Canadian Remote Drilling, which will conduct the drilling campaign.
Deer Horn's PEA was calculated on 450 meters of the original 2.4-kilometer gold-silver-tellurium vein system.
"Our Deer Horn project also contains significant showings of silver and copper, both essential green metals, along with the critical metals bismuth and tungsten," President and Chief Executive Officer Tyrone Docherty said.
In addition, the company's Klondike Tellurium Project in Colorado is considered America's top Te exploration project and was previously owned by First Solar as a potential source of raw Te for its solar panels, Docherty said.
The Catalyst: A 'Huge 2023' for the Company?
FTEL could "have a huge 2023" if the United States supported tellurium mining this year, wrote asset manager Chen Lin, author of the What's Chen Buying? What's Chen Selling? newsletter.
Technical analyst Clive Maund rated First Tellurium as an immediate Buy in March.
The stock has been a quarterly pick of his several times in the past year.
The U.S. military is providing US$250 million for critical metals projects, including tellurium, and Canada's federal 2023 budget earmarked CA$1.5 billion for a critical minerals infrastructure fund.
"We will hit the jackpot as FTEL is the only pure play in tellurium," Chen wrote.
First Tellurium has registered as a federal lobbyist to make sure they don't lose out on any opportunities.
Deer Horn was named by First Solar Inc. (FSLR:NYSE) as a world-class Te project.
Streetwise Ownership Overview*"There's a very decent chance tellurium will breakout this year because First Solar is using 60% to 70% of worldwide production to make a solar panel," Chen wrote. "Their production has grown rapidly."
First Solar plans to double its solar panel manufacturing capacity and spend US$1.36 billion to lessen China's dominance of the market, according to S&P Global.
Technical analyst Clive Maund rated First Tellurium as an immediate Buy in March.
Ownership and Share Structure
According to the company, 11% of First Tellurium is owned by management and insiders.
Docherty owns 10.6% or 7.7 million shares, Director Josef Anthony Steve Fogarassy has 1.38% or 1 million shares, and Director Lyle Allen Schwabe has 0.73% or 0.53 million shares. There are no institutional investors, and the rest is retail.
The company has a market cap of CA$9.4 million, with about 73 million shares outstanding and 63.4 million free-floating. It trades in a 52-week range of CA$0.25 and CA$0.085.
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- First Tellurium Corp. has a consulting relationship with Streetwise Reports and has paid a consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of First Tellurium Corp.
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