Tyhee Gold Corp.'s (TSXv: TDC) President Dave Webb talks with ResourceClips about their Yellowknife gold project.

1. RESOURCEÊCLIPS
About ResourceClips.com
We provide investors in the Canadian junior mining sector
with up-to-the-minute articles about companies in the news
essentialÊresourceÊnews and a quick source of critical investor information.
Discovery Rediscovered
Tyhee Nears NWT Gold Production
~ By Ted Niles - October 26 2011
It’s at a daunting latitude, yes, but those who fear Tyhee Gold Corp’s TSXV:TDC the mineralization continues for another 500 metres. Now we’re tightening the
Yellowknife gold project is too remote might be surprised to find that the prop- drilling up in that 500-metre stretch to bring it into a resource category.”
erty has already produced over a million ounces of gold. Staked by prospector
AV Giauque in 1944, the Discovery Mine ran from 1950 to 1969 and turned October 20 results of the Clan Lake Main Zone include
out roughly one ounce of gold for every ton of ore mined. Employing what has
proved for so many junior miners to be the impeccable logic that what was 0.43 grams per tonne gold over 39.5 metres
uneconomical then is likely to be economical now, Tyhee bought the property 0.48 g/t over 35 metres
in 2001 (by that point expanded to include six additional claims), and it hasn’t 1.49 g/t over 13 metres
looked back. 1.01 g/t over 1.3 metres
14.06 g/t over 1 metre
1.03 g/t over 0.5 metres
3.05 g/t over 2 metres
Webb comments, “I think that it’s quite good that in shallow holes we’re getting
long intercepts of low to marginal grade but still economically-recoverable gold
values. In the long step-outs—the farthest east that we’ve ever drilled—we’re
still getting one-and-a-half grams of gold per tonne over 13 metres. Some eco-
nomically significant intercepts.” He notes that results from another 15 holes are
pending and should be released over the next four to eight weeks.
Returning to the subject of the property’s location, Webb emphasizes that it is
situated in the southern part of the Northwest Territories and that Yellowknife is
accessible year-round by road. Furthermore, while the project itself is acces-
President and CEO Dave Webb gives a brief timeline: “We acquired the proper- sible by road only three months of the year, it is but a 20-minute flight to Tyhee’s
ty in 2001. In 2005, we commenced baseline studies for permitting. In 2008, we own airstrip there. As for costs, Webb gives a recent example, “In March of 2011
completed a preliminary assessment that showed the project was economic, we purchased 141,000 litres of fuel. We put that in B-train trucks, brought it up
and we filed our first request to the regulators for licenses to operate. In 2010, to our property, paid all the taxes and put that fuel into tanks on our property.
we completed a prefeasibility study. It was quite positive, and we submitted a It cost us $1.11 per litre. Gas prices here in Vancouver are running at about
revised operating license request. In May 2011, we went into the final part of the $1.40 a litre. You talk about remote accessibility—we can operate pretty cheaply
environmental assessment report and started our feasibility study. We expect to there.”
be through everything in another six to eight months.”
Does the company intend to take the Yellowknife project to production itself?
At its southernmost point, the 12,635-hectare Yellowknife gold project is 50 “Oh, absolutely,” Webb exclaims. “That’s been our stated goal from day one. If
kilometres north of the city of Yellowknife in the Northwest Territories and you take a look at the people involved in the project to date—in the executive as
90 kilometres at its northernmost point. The property is located in the South well as in the operations side—we’re all operators. All of us have been involved
Mackenzie Mining District and consists of the Ormsby, Nicholas Lake, Bruce, at a high level: president, vice president or director of companies that have
Clan Lake and Goodwin Vad zones. The property has an NI 43-101 resource started from scratch and built mines.
estimate of 1.95 million ounces gold in the measured and indicated categories
and 269,000 ounces inferred. (The resource includes proven and probable “The Yellowknife project has exactly met my expectations,” Webb concludes.
reserves of 811,200 ounces.) “All of our gold zones are open for expansion, so we may be reporting a seven-,
eight-, 10- or 15-year mine life. All of our zones are open for expansion. The
Tyhee’s July 2010 prefeasibility study shows a base-case net present value for deepest we’ve ever drilled on any of our zones is, for reserves, 410-meters
the project of $71.3 million (before tax) and an internal rate of return of 16.1% deep. Yet the Discovery Mine went down 1,200-metres, and the Con Mine
(at a 5% discount rate). Average operating costs are estimated to be $541 per [located just south of Yellowknife, in operation from 1938 to 2003] went down
ounce, with initial capital costs of $174 million, to be repaid in five years. But 1,800 meters. So there’s lots of potential for this thing to go on for a long, long
note that this calculation was based on $950-per-ounce gold and that it only time.”
takes into account the Yellowknife project’s measured and indicated resources.
“
Inferred resources—plus additional resources from the two drill programs At press time, Tyhee Gold had 293.7 million shares trading at $0.095 for a
conducted since the prefeasibility study—and a considerably higher moving market cap of $27.9 million.
gold price should, Webb believes, improve significantly the feasibility study the
company expects to release in the first half of 2012.
The Yellowknife project has exactly met
Tyhee is currently undertaking a 3,000-metre drill campaign at Clan Lake. “It’s
all development drilling,” Webb reports. “We’re stepping out in 50-metre incre-
my expectations. All of our gold zones
ments on our existing resource, and in some places we have gaps, and we’re are open for expansion.
drilling in between established resources. We have 350,000 ounces of mea-
sured and indicated gold on the Clan Lake Main Zone. It’s open in all directions, – Dave Webb
so we’ve been stepping out to the southeast, and we’ve expanded it or showed
www.resourceclips.com publisher: Andrea Butterworth abutterworth@resourceclips.com - 778.432.0593
editor: Kevin Michael Grace kgrace@resourceclips.com - 250.483.3753
sales: sales@resourceclips.com