Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Tyhee Gold Corp. (TSXV: TDC) (the “Company”), a late stage development company, is pleased to announce that the board of directors has approved management’s recommendation for a Feasibility Study on the Yellowknife Gold Project. In addition to the recent hiring of Mr. Brian Briggs as Vice President Engineering and Project Manager, the company is in final contract negotiations with several reputable international consulting firms and agreements are expected to be signed within the next few weeks.
The Feasibility Study will start upon final contract signing and is expected to incorporate all current measured and indicated resource targets contained on the Yellowknife Gold Project. It will be managed by Mr. Brian Briggs P.E., and will build on the results and recommendations of the Preliminary Feasibility Study completed in July 2010.
“The Preliminary Feasibility Study only considered approximately 1.4 million ounces of gold from the Measured and Indicated Resources, whereas the Feasibility Study will consider the entire 1.9 million ounce Measured and Indicated Resource (17.45 million tonnes grading 3.47 grams per tonne gold), plus any additional resources resulting from our recently completed winter diamond drilling program” reports Dave R. Webb, President & CEO. “Our Preliminary Feasibility Study gave us a positive discounted net present value (NPV) using a portion of our gold resource, which, using today’s two year trailing monthly average gold price of US$1,206 is greater than US$250 million.
Dr. Webb also noted that, “Additional improvements to the NPV of the project could be made by incorporating all of our Measured and Indicated Resource and a more aggressive mine plan in addition to other optimizations highlighted by Tyhee’s management and engineering consultants.”
Tyhee Gold Corp. is actively moving its wholly-owned Yellowknife Gold Project towards production. A full environmental assessment report was submitted to the regulatory authorities on May 11, 2011 as part of the process to permit the construction and operation of a 3,000 tonne per day mine and mill complex. The review process of the environmental assessment report is expected to take an additional ten months and conclude concurrently with the Feasibility Study.
