Tyhee Awards Final Engineering Contract and Initiates Peer Review of
Feasibility Study CAPEX
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/25/13 -- Tyhee Gold
Corp. (TSX VENTURE:TDC) ("Tyhee" or the "Company") is pleased to
announce that it has awarded the contract for Final Engineering and
Procurement for the Yellowknife Gold Project (YGP) to Lyntek, Inc.
("Lyntek") of Denver, Colorado. The Company has also contracted Merit
Consultants International Inc. ("Merit") of Vancouver, British
Columbia to perform a peer review of the CAPEX of the independent YGP
Feasibility Study, released in August 2012, and prepared by SRK
Consulting, Knight Piesold and Lyntek out of their Denver, Colorado
Tyhee's President and CEO, Brian Briggs, said, "These engagements
with these two well respected and experienced firms represent the
latest important milestones in our advancement of the YGP towards
production, targeted in 2015. Lyntek will provide a detailed plan for
all of the project's real engineering and logistical requirements,
while Merit will be supplementing the estimates provided in the
Feasibility Study with an even more detailed break-down of the best
and most cost effective way to manage and deploy the capital that
will be going into this project."
About these Companies:
Lyntek is located in Lakewood, Colorado and has been providing
engineering and construction management services to the natural
resources and environmental remediation industries since 1982. Lyntek
provides services from process engineering and feasibility studies
through detailed engineering, procurement, construction management,
plant start-up, and pilot plants. Lyntek has developed projects on
every continent, including the following recent projects:
-- El Aguila Project, Gold Resources Corp., Oxide Plant and Sulfide Plant.
Sulfide Concentrator Expansion EPCM.
-- Cerro Jumil, Esperanza Resources, EPCM for the Merrill-Crowe recovery
plant for the Cerro Jumil heap leach project.
-- Climax HDS Project, (FMI) Phelps Dodge, Inc. Pilot plant design,
Construction & operation of the Water Treatment facility.
-- Balkan Mineral and Mining EAD Krumovgrad Project, Dundee Precious
Metals, Inc., Definitive Feasibility Study for a gold / silver
-- San Vicente, Pan American Silver, Feasibility Study, EPCM for a Silver,
Zinc, Lead and Copper concentrator.
In addition to these recent projects, Lyntek has extensive experience
working on precious metals projects in cold weather regions
throughout the world, notably two projects in Northern Alaska (Nixon
Fork and Illinois Creek), as well as gold projects for the government
of Magadan, and Geometal in Siberia.
Merit has provided Project and Construction Management services to
numerous companies in the mining sector, including many projects with
both study and construction levels similar to the Yellowknife Gold
Project, several of which were gold projects located in northern
Some of Merit's recent projects in these areas include:
-- Fort Knox Mine Capital Project, Alaska - providing Construction
-- Diavik Diamond Mine, NWT - continuing to provide Construction Management
-- Rainy River Gold, Ontario - providing Feasibility Study support services
for a 20,000 tonne-per-day plant;
-- Kitsault Molybdenum Project, BC - review of the capital costs and
constructability of the
Project during the previous study stage;
-- Faro Mine Reclamation, Yukon - provided Construction Management
Merit also continues to work with Aboriginal Affairs and Northern
Development Canada (AANDC) for the planning stage for the reclamation
work at the Giant Mine in the Northwest Territories.
About Tyhee Gold: Tyhee 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 prepared by SRK Consulting, Knight Piesold and
Lyntek, Inc. out of their Denver, Colorado offices, 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.
(1) The mineral reserve estimate for the YGP is shown above 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.
FORWARD-LOOKING STATEMENTS: Certain of the statements and information
in this press release constitute "forward-looking statements" or
"forward-looking information" Any statements or information that
express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or
future events or performance (often, but not always, using words or
phrases such as "expects", "anticipates", "believes", "plans",
"estimates", "intends", "targets", "goals", "forecasts",
"objectives", "potential" or variations thereof or stating that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of historical
fact and may be forward-looking statements or information.
Forward-looking statements or information relate to, among other
things: resource estimate, grades on the Yellowknife Gold Project;
scope of mineralization within the Yellowknife Gold Project;
geological interpretations and potential mineral recovery processes.
Forward-looking statements or information are subject to a variety of
known and unknown risks, uncertainties and other factors that could
cause actual events or results to differ from those reflected in the
forward-looking statements or
information, including, without
limitation, risks relating to: fluctuations in the spot and forward
price of gold or certain other commodities; changes in national and
local government legislation, taxation, controls, regulations and
political or economic developments in Canada or other countries in
which the Company may carry on business in the future; the
uncertainties involved in interpreting geological data; business
opportunities that may be presented to, or pursued by, the Company;
operating or technical difficulties in connection with mining
activities; the speculative nature of gold exploration and
development, including the risks of obtaining necessary licenses and
permits; diminishing quantities or grades of reserves; and contests
over title to properties, particularly title to undeveloped
properties. In addition, there are risks and hazards associated with
the business of gold exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion losses
(and the risk of inadequate insurance, or the inability to obtain
insurance, to cover these risks).
This list is not exhaustive of the factors that may affect any of the
Company's forward-looking statements or information. Forward-looking
statements or information are statements about the future and are
inherently uncertain, and actual achievements of the Company or other
future events or conditions may differ materially from those
reflected in the forward-looking statements or information due to a
variety of risks, uncertainties and other factors. Although the
Company has attempted to identify important factors that could cause
actual results to differ materially, there may be other factors that
cause results not to be as anticipated, estimated, described or
intended. Accordingly, readers should not place undue reliance on
forward-looking statements or information.
The Company's forward-looking statements and information are based on
the assumptions, beliefs, expectations and opinions of management as
of the date of this press release, and other than as required by
applicable securities laws, the Company does not assume any
obligation to update forward-looking statements and information if
circumstances or management's assumptions, beliefs, expectations or
opinions should change, or changes in any other events affecting such
statements or information. For the reasons set forth above, investors
should not place undue reliance on forward-looking statements and
Neither 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.
GT Investor Relations Inc.
O: 905 337-7673 or C: 416 605-5120
Tyhee Gold Corp.
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