|Release: Series 13 Release 19
||TSX Venture: TDC
TYHEE NOTES FINAL RESULTS FROM 2012 BIG SKY GEOLOGICAL RECONNAISSANCE & SAMPLING PROGRAM CONDUCTED BY WILLIAMS CREEK
VANCOUVER, British Columbia (October 15, 2012) – Tyhee Gold Corp. (TSX Venture, TDC) (“Tyhee” or the “Company”) is pleased to note the latest positive results from the geological reconnaissance and sampling program conducted by Williams Creek Gold Limited (TSX.V:WCX) (“Williams Creek”) on the Big Sky joint venture, Yellowknife, NT, Canada. Williams Creek is earning a 50% interest in the Big Sky Property from its Joint Venture partner, Tyhee Gold Corp. (Tyhee News Releases dated September 19 and March 29, 2012.)
These are the final 2012 results from a helicopter supported geologic mapping and sampling program involving a senior geologist and a two-man prospecting team with long experience in the Yellowknife district. The Big Sky property is located to the north along strike from, and in similar host rocks to, the prolific Yellowknife gold district. The samples were collected from both previously known and newly identified mineralized shear zones (see William’s Creek map below.) This program discovered the highest gold value found on the property to date, returning 220.23 grams per metric tonne (“g/t”), in one of 17 samples taken along the Chan Lake Vein set (details below.) The summary report on the 2012 geological investigation is complete, pending a corporate review, and will be used by William’s Creek to plan follow up programs, particularly targeting highly anomalous gold values.
The following table lists anomalous samples, the ICP-ES parts per billion (ppb) gold and the combined total gold M150 G6.ME assays in g/t. The results reported here are for samples retuning gold values greater than 500ppb.
*I.S. denotes insufficient material to re-run for g/t values
Brian K. Briggs, Tyhee’s President and CEO, noted, “These latest assay results continue to support our shared belief that Big Sky is highly prospective and we are very pleased that the management and technical team of Williams Creek are proceeding aggressively to identify the best target areas. We look forward to seeing the results of Williams Creek’s ongoing detailed technical review and then their plans for an initial drill program in 2013.”
Michael Sonnenreich, Chairman and CEO of William’s Creek concluded, “Williams Creek definitely sees the Big Sky property as an excellent addition to its portfolio of properties and is very pleased with having Tyhee Gold Corp. as a partner.”
These results are located at eight of the 13 recognized mineralized zones within the Big Sky Property. Mineralized vertical shears are commonly north south trending features along northern portions of the property with variable widths and quartz vein/sulfide content. Shears and veining within southern portions of the property are northeast – southwest or northwest – southeast, again with variable vein and shear widths. All assays have now been received for the 2012 program.
Thirty-eight samples occur along the Oro Lake Main Shear Zone, a 10-25m wide 2.8km long shear in mafic volcanics similar to the Giant Mine at Yellowknife, NT (sample numbers 996449-50, 996469-71, 996419, 996521, 996526, 996535, 996544-45 996552, 996555, 996560-62, 996574, 996576-77, 996580-82, 996590, 996592, 996602, 996604, 996608, 996611, 996621-22, 996624, 996654-56, 996658, 996664, 996697 and 996739).
Seventeen samples occur along the Chan Lake Vein set, where two 0.75 to 1.25m wide 60m long sugary-quartz vein in mafic volcanics occur (sample numbers 996474, 996476-77, 996481-85, 996492, 996494-500, and 996503). Sample 996474 returned the season’s highest gold value at 220.23 g/t. Samples 996498 and 996489 had insufficient sample results to perform subsequent G6 analysis but do contain ICP results of 38.9 g/t and 13.1 g/t respectfully, which are not expected to be accurate but do represent approximate values.
Eleven samples occur at random locations throughout the property associated with narrow quartz veins (sample numbers 996516-17, 996631, 996633, 996668, 996719, 996729-30, 996764, 996781 and 996804).
Four samples occur along the Hutter Shear, a 2m to 4m wide, 800m long shear in mafic volcanics (sample numbers 996642-44, and 996762).
Three samples occur along the newly recognized Slippery Slope Shear, a set of narrow quartz veined shears over an undetermined length in mafic volcanics (sample numbers 996619-20, and 996727).
Three samples occur at the Greyling Lake Gossan, a 1m wide folded semi-massive to massive sulfide shear less than 10m long in mafic volcanics (sample numbers 996645, and 996681-82).
Two samples occur at the southern extent of the Dwyer Main Shear, a 1m to 12m wide, 4.1 km long shear cutting both mafic volcanics and gneiss volcanics (sample numbers 996648-49).
Two samples occur at the newly identified Kendrick Zone just north of the Chan Lake quartz veins within a zone approximately 5m wide by at least 100m long where quartz veins are associated with felsic dikes within mafic volcanics (sample numbers 996673 and 996717).
One sample was associated with the Havoc Zone which hosts multiple 2-8m wide and 500m long mafic shear zones with Arsenopyrite in quartz veining all within mafic volcanics (sample number 996634).
The additional rock sample results reported here are from reconnaissance grab samples that were initially assayed for gold by Acme Labs in Vancouver using fire assay method 3B01, ICP-ES and 1EX ICP-MS for other elements. Samples returning gold values greater than 10,000 parts per billion (ppb) were re-assayed using two M150 G6.ME assays, one for the fine fraction and one for the coarse fraction of the samples, to offset the ‘nugget effect’. The coarse and fine values were then combined by Acme Labs to arrive at the total grams per tonne (g/t) reported for the samples.
The technical information contained in this news release was prepared by Michael B. Regular, P.Geo., a “Qualified Person” as defined under National Instrument 43-101. Mr. Regular conducted the 2012 Big Sky program. Mr. Regular is an independent consultant to Williams Creek.
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.
An independent Feasibility Study ("FS")* has been completed (August 2012), which estimated that, at a base-case gold price of US$1,400 per ounce and a projected 4,000 tonnes-per-day 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 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 of 20% based on initial estimated capital cost of $193 million (including a 10% contingency.) At current gold prices of approximately US$1,600 per oz., the YGP would have an NPV of $375 million, an IRR of 28% and a payback period of 30 months.
The study also estimated Proven and Probable mineral reserves(1) for the YGP at 20,433,000 tonnes at an average grade of 2.03 grams per tonne (“g/t”) gold, containing 1,334,000 ounces of gold, resulting in a mine-life of approximately 15 years. Tyhee’s technical team has identified six separate gold deposits in the YGP, including Ormsby, Bruce Lake, Clan Lake, Nicholas Lake and Goodwin Lake. These areas have a combined Measured and Indicated resource(2) estimated to total 1,715,000 ounces of gold contained in 27,115,000 tonnes at an average grade of 1.97 g/t, and Inferred resources of 487,000 ounces of gold contained in 5,774,000 tonnes at 2.62 g/t.
*The FS 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). National Instrument 43-101 compliant.
(1) The mineral reserve estimate for the YGP is shown below and was calculated by Bret C Swanson BE (Min), Principal Consultant, of SRK Consulting (U.S.), Inc. Effective Date of July 1, 2012. Reserves are inclusive of mineral resources.
(2) The mineral resource for the YGP shown above was estimated by Jeff Volk, P. Geo. of SRK Consulting (U.S.), Inc. Effective Date of July 1, 2012.
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.
About Williams Creek Gold Limited (WCX):
Williams Creek Gold Limited is a Canadian company with the primary purpose of participating broadly in the natural resource sector, with an emphasis on the gold subsector, through exploration, joint ventures or other equity investments, royalty and finance agreements.(Website: http://www.WilliamsCreek.ca.)
For further information please contact:
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 closing of the non-brokered financing, the proposed use of funds and expectation of additional closings of the private placement 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. 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 work necessary to complete the feasibility study, whether as a result of adverse weather conditions, contract or labour disputes, equipment failure, or response to regulatory enquiries in respect of permit applications; technological and operational difficulties encountered in connection with the activities of the company. 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 companies’ 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.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.