Tyhee lands wide Yellowknife gold intersection

Vancouver – This year’s initial drill hole at Tyhee Development’s (TDC-V) wholly owned Yellowknife Gold project in the Northwest Territories intersected almost 500 metres of gold mineralization.

A 10,000 metre drill program on the Discovery Mine property, just north of Yellowknife, is testing the extent and limits of mineralization at the Ormsby zone and is also aimed at upgrading the inferred resource.

The company’s Yellowknife Gold project consists of two advanced stage deposits, the Discovery Mine and the Nicholas Lake Mine. Historical production from the Discovery mine was over one million oz. of gold from high-grade ore.

Hole NDM246, testing the eastern extent of southern Ormsby, intersected 496.5 metres (essentially from surface) grading 1.3 grams gold per tonne. Included in this broad intersection were numerous higher grade sections including: 34.5 metres (from 112 metres) grading 2.88 grams gold, 18 metres (from 154 metres) grading 3.36 grams, 12.5 metres (from 350 metres) grading 6.53 grams, and 4.5 metres (from 494.5 metres to the end of the hole) grading 17.53 grams.

Gold mineralization at Ormsby occurs within quartz and quartz-carbonate veins and associated alteration in sheared volcanic-sedimentary rocks.

An indicated and inferred resource at Ormsby has been calculated at 1.34 million tonnes grading 11.82 grams gold, a contained 509,000 oz. gold.

Tyhee has started an underground development program on Ormsby through upgrading of the existing, Discovery Mine workings. Tunneling is planned across and along mineralized zones.

A prefeasibility program including baseline environmental programs, geotechnical studies and community meetings is ongoing.

The company closed a financing for $4.2 million (7.75 million flow-through shares and 2.75 million non-flow-through units both at 40 per) in late-June.

Tyhee reports 31.3 million shares outstanding. Investors pushed the issue up 9 pennies on the news, closing at 50 on very light volume.