Canadian explorer First Tellurium [CSE:FTEL] [FRA:G1J] met with The Armchair Trader recently to discuss the prospects for its Colorado project, Klondike. Tellurium the metal is generating new interest following a series of reported fires in the US relating to lithium-ion batteries. This has led the city of New York to bring in new safety requirements for lithium-ion batteries.
Work being carried out by the likes of Fenix Advanced Materials and the University of British Columbia (Okanagan), is focusing on solid state lithium-tellurium batteries as a safer, more stable option. This is leading to mining community to look more closely at potential tellurium deposits.
First Tellurium has historically been working on Deer Horn, a Canadian project which has tellurium and where the company has been exploring a gold-silver-tellurium vein system. Its 2023 drilling plans are for confirming and enlarging its current zone extension.
First Tellurium has the option to acquire 100% of the Te-Au-Ag Klondike project, rated by First Solar as one of the top tellurium prospects worldwide. First Solar NASDAQ:FSLR originally planned to use Klondike as a potential primary source of tellurium for the manufacture of cadmium-telluride solar panels. When First Solar decided to cancel its mining initiative in 2013, the project was acquired by the geological team that had been leading First Solar’s acquisitions programme.
High tellurium grades
First Solar exited the project before drilling discovered the identified Klondike targets. First Tellurium has moved to acquire the option to purchase the property and the former First Solar team of geologists, who are most familiar with Klondike, will be managing exploration activity on the site.
According to the Colorado Geological Survey, working alongside the Colorado School of Mines, both of them authorities on the region and independent of First Tellurium, the First Solar exploration in 2006 found very high tellurium grades of up to 3.3% along with locally high gold granules. Significantly, the CGS in its 2015 report said that tellurium grades at Klondike were the highest encountered in First Solar’s nationwide exploration program.
Klondike is located 10 miles from the small town of Saguache and it is easily accessible via paved and gravel roads.
First Tellurium purchases dedicated drill
First Tellurium is currently focusing most of its exploration activity at the Deer Horn property in Canada and has purchased a dedicated drill for the project. It is also considering acquisition of a second drill for its 2024 campaign.
At Klondike a soil sampling program was carried out at the end of last year: using this new soil geochemical data in concert with First Solar’s previous rock-chip sampling, geology, and geophysics will help the team make better drillhole-targeting decisions before submitting the needed permitting application documents.
The tellurium bet obviously hinges on the widespread adoption of tellurium for industrial use. Because it occurs in areas of gold and silver mineralisation, mines have the added benefit of precious metals revenue if deposits have high enough purity standards.
According to research out of Fenix Advanced Materials, tellurium offers next generation lithium-ion batteries higher levels of safety and the scope to charge more quickly. It has a high theoretical energy density and very good electrical conductivity. It is also less volatile than current options.
