Main zone resource grows by 39% for Tyhee

Vancouver – The Clan Lake Main zone has grown by about 100,000 oz. gold for Tyhee Development (TDC-V).

An updated resource estimate pegs the Main zone at 3 million indicated tonnes grading 3.64 grams gold for 354,000 oz. contained gold. Tyhee says that represents a 39% increase over its previous resource and a 17% improvement in terms of gold grade.

The increased resource puts the Main zone, in terms of amount of contained oz. gold, behind the Yellowknife gold project’s Ormsby zone, but ahead of the Nicholas zone, which it had previously trailed.

The Ormsby zone’s measured and indicated resources stand at 10.9 million tonnes grading 3.42 grams gold for just shy of 1.2 million. The Nicholas zone weighs in at 2.7 million measured and indicated tonnes grading 3.54 grams gold for 311,000 contained oz. gold.

The Nicholas zone and Ormsby zones are about 30 km north of Clan Lake which in turn is about 50 km north of Yellowknife, in the Northwest Territories.

A scoping study has outlined a 3,000-tonne-per-day mining project for Ormsby and Nicholas with capital costs of $150 million. In the proposal Tyhee estimated cash costs at US$390 per oz. gold and, using a US$750-per-oz. gold price, projected a net present value of $144 million and an internal rate of return of 21.4%.

Now Tyhee is working on a prefeasibility study of the project and permitting for Nicholas and Ormsby, as well as getting set for a winter drill program slated to start in January.

On news of the updated resource estimate Tyhee’s shareprice rose 4¢ to 26¢. Tyhee has 196.7 million shares outstanding.