October 1, 2012 Series 13 Release 17 TSX-V: TDC
TYHEE GOLD FILES REPORT ENTITLED “NI 43-101 TECHNICAL REPORT, YELLOWKNIFE GOLD PROJECT FEASIBILITY STUDY, NORTHWEST TERRITORIES, CANADA” ON SEDAR
VANCOUVER, British Columbia (Monday, October 1, 2012) – Tyhee Gold Corp. (TSX Venture, TDC) (“Tyhee” or the “Company”) is pleased to report that, further to its news release of August 15, 2012, it has filed a National Instrument 43-101 compliant report entitled “NI 43-101 Technical Report, Yellowknife Gold Project Feasibility Study, Northwest Territories, Canada” (the “Study”) prepared by SRK Consulting, Knight Piésold and Lyntek Inc. out of their Denver, Colorado offices, on SEDAR (www.sedar.com.)
The Executive Summary of the Study is available elsewhere on the Company’s website. Highlights of the results of this Study are found below. (All dollar ($) figures are in U.S. currency.)
1Approximate 36 month rolling average gold price.
At a base-case gold price of $1,400 per ounce (“/oz.”) and a projected 4,000 tonnes-per-day (“tpd”) processing plant comprised of a conventional gravity-flotation-cyanide process and incorporating open-pit and underground mining methods on the Ormsby, Bruce Lake, Clan Lake and Nicholas Lake deposits, the Yellowknife Gold Project (“YGP”) is estimated to return a pre-tax net present value (“NPV”) at a 5% discount rate of approximately $216 million and an internal rate of return (“IRR”) of 20% based on initial estimated capital cost of $193 million (including a 10% contingency.)
At the current gold price of approximately $1,770 per oz., the YGP would have a pre-tax NPV of $511 million, an IRR of 34% and a payback period of 24 months.
Readers are referred to the full contents of the Study for detailed information on the YGP.
Final Engineering and Procurement are slated to begin 4th quarter, 2012, continuing through 2013. Construction is proposed to begin 1st quarter, 2014 subject to ongoing permitting, with production estimated to commence 3rd quarter 2015.
The technical information contained in this news release was reviewed by Bret C Swanson BE (Min), Principal Consultant, of SRK Consulting (U.S.), Inc., a “Qualified Person” as defined under National Instrument 43-101.
*The Study has been prepared based on technical and economic input by a team of consultants consisting of SRK Consulting (U.S.), Inc., (SRK), Lyntek Incorporated (Lyntek) and Knight Piésold and Co. (KP) and EBA (collectively referred to as the Consultants).
Tyhee Gold Corp. (“Tyhee” or “the Company”) (TSX-Venture: TDC) is focused on developing the first gold mine on its flagship Yellowknife Gold Project ("YPG") in Canada's Northwest Territories. The project is located in the same prolific Archaen Greenstone Belt as the renowned world class "Con-Giant" deposit, which produced a combined 14 million ounces of gold. Tyhee is led by a veteran, project-driven, management team committed to aggressively advancing a permitting and development path targeted to enable mine construction to begin in 2014.
The Company’s shares trade on the TSX Venture Exchange under the symbol “TDC”. For additional information, please visit the Company’s website, www.tyhee.com or www.sedar.com.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, including statements regarding the highlights of the Study, projected commencement of procurement, construction and production are “forward-looking statements”. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. Assumptions made in making the forward looking statements include those set out in the Study, the reasonable assumptions of management with respect to the timing of the receipt of applicable permits, financing, equipment and materials. Factors that may cause actual results to vary from those made in the forward looking statements described in this document include: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; delays in obtaining approvals, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delays in completion of engineering work, delays in the commencement of construction, whether as a result of adverse weather conditions, contract or labour disputes, equipment failure, or response to regulatory inquiries in respect of permit applications; technological and operational difficulties encountered in connection with the activities of the Company; uncertainty of resource and reserve estimates, ore grade and recovery rates; availability of qualified personnel for construction and operations; lack of funding available for construction. This list is not exhaustive of the factors that may affect the forward looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking information. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.