GOLD STUDY: Yellowknife feasibility positive, says Tyhee

NORTHWEST TERRITORIES – Tyhee Gold Corp. of Vancouver has released the results of the feasibility study for its Yellowknife gold project, and the company says the results are positive. The project is located 90 km north of Yellowknife and hosts about 1.3 million oz of gold.

The study, using a US$1,400/oz gold price, puts the net present value of the Yellowknife project at $216 million and an internal rate of return of 20%. The pre-production costs of US$193 million would be recovered in the first 42 months of a 15-year-long mine life. Cash costs per ounce over the life of the mine will be US$854 per ounce.

Both an open pit and underground operation will be developed, based on pit reserves of 17.6 million tonnes grading 1.84 g/t Au and underground reserves of 2.8 million tonnes grading 3.24 g/t Au. The mill will have a nominal throughput of 4,000 t/d, and annual gold production in each of the first eight years will be 104,000 oz.

Tyhee plans to begin final engineering and procurement for the project by the end of 2012. Construction could being in Q1 2014 with production beginning in Q3 2015.

Additional details about the Yellowknife project are available at Tyhee.com.