Tyhee receives preliminary assessment demonstrating positive economics for its wholly-owned Yellowknife Gold project Yellowknife, NWT, Canada

http://www.newswire.ca/en/releases/a...

    TSX Venture: TDC

    VANCOUVER, July 17 /CNW/ - Tyhee Development Corp. (TSX Venture, TDC)
(the "Company") today announced that it has received its Preliminary
Assessment for its wholly-owned Yellowknife Gold Project in Yellowknife, NWT.
A combined open pit and underground operation at 3,000 tpd will recover an
average of 163,500 troy ounces of gold per annum for the first 7 years (total
1,115,000 ounces) at an average operating cost of $384 per ounce of gold with
potential to expand the resource at depth and through further exploration.
Initial capital costs are estimated to be $150 million (including 30%
contingency) with an additional $26 million required throughout the life of
mine as sustaining capital. At a base case of $750 per ounce of gold, and a 5%
discount rate the project has a pre-tax IRR of 21.3% and a pre-tax NPV of
$145 million.
    EBA Engineering Consultants Ltd. (EBA) and several Independent Qualified
Persons (N. E. Fier, C.P.G., P.Eng, M. Pinollos, A.Winkers, P.Eng., J. Kaehne,
P.Eng., P. Melling, M.Sc., P.Eng., V. Pratico, P.Geo.) conducted the
Preliminary Assessment and recommend Tyhee initiate a Preliminary Feasibility
Study to refine the estimates and optimize the operations.
    "The Preliminary Assessment validates management's belief in the project
from the beginning", said Dr. Dave Webb, President and CEO of Tyhee. "We are
pleased to have received a favourable economic evaluation of our wholly-owned
Yellowknife Gold Project. On an undiscounted basis the project has a pre-tax
NPV of $236 million and if we were to consider using a more current price for
gold, $900 per ounce, this would boost the figure substantially, to $416
million. The assessment assumes a combined open pit and underground operation
at both the Ormsby and Nicholas Lake deposits with a central processing
facility at Ormsby. We are particularly encouraged as the Preliminary
Assessment did not take into consideration the 80,000 ounces of Inferred gold
resource at Bruce Lake. Also, the Bruce Lake, Ormsby, and Nicholas Lake Zones
remain open at depth. The Company has also been successful in its initial
diamond drilling at Goodwin Lake, 13 km southwest of the Ormsby Zone and at
Clan Lake 33 km southwest of the Ormsby Zone.
    The Preliminary Assessment utilized the current Measured and Indicated
Resource of 11.2 million tonnes grading 3.52 gpt gold containing 1.27 million
ounces of gold plus 3.6 million tonnes of Inferred Resources grading 3.21 gpt
gold containing 374,000 ounces of gold. This assessment complies with NI
43-101 standards, is preliminary in nature and the economic analysis includes
inferred resources that are considered too speculative geologically to have
economic considerations applied to them to be categorized as mineral reserves.
There is no certainty that the results of this Preliminary Assessment will be
realized.

    Preliminary Assessment Details

    The base case considers a 3,000 tonne per day, initially as an open pit
with underground operations commencing in year two at Nicholas Lake and year 3
at Ormsby, recovering an average of 165,000 ounces of gold per year for 7
years (total 1,155,000 ounces) at an average operating cost of $384 per ounce
of gold. Initial capital costs are projected to be $150 million. At a base
case of $750 per ounce of gold, and a 5% discount rate the project has an IRR
of 21.3% and a NPV of $145 million. All cost estimates are at + 30% for
accuracy. The $US/$CAN rate is assumed to be at par.

    <<
                 Pre-Tax Net Present  Pre-Tax Internal   Pre-Tax Net Present
    Gold Price  Value at 0% Discount   Rate of Return   Value at 5% Discount
    -------------------------------------------------------------------------
       $650           $135,884,000          14.8%              $73,149,000
    -------------------------------------------------------------------------
       $750           $235,845,000          21.3%             $144,905,000
    -------------------------------------------------------------------------
       $900           $415,702,000          30.9%             $268,993,000
    -------------------------------------------------------------------------
      $1,000          $504,668,000          31.2%             $320,675,000
    -------------------------------------------------------------------------
    >>

    The Ormsby open pit mine would extract 2 million tonnes of ore grading
3.08 gpt with an overall strip ratio of 5.9, while the Nicholas Lake open pit
mine would extract 470,000 tonnes grading 4.11 gpt with an overall strip ratio
of 6.26. The underground operations using a 2.5 gpt cut-off would extract 3.8
million tonnes grading 5.55 gpt from the Ormsby Zone and 1.4 million tonnes
grading 6.16 gpt from Nicholas Lake.

    Ongoing Exploration

    Tyhee completed 25,000 metres of diamond drilling on the Ormsby Zone in
2007. The results of which have been incorporated into a new resource study
which is currently underway. All resources remain open to depth.
    Additional drilling has been completed at Nicholas Lake to extend or
terminate mineralization to the east. Initial results indicate the intrusion
appears to extend to the east at shallow depths. Assays are pending.
    Diamond drilling is continuing at Goodwin Lake, 13 km southwest of the
Ormsby Zone, following up on the initial drillholes completed on the property
which returned gold values in all four drillholes. Results such as 24.8 metres
of 0.755 gpt gold in GL001, and 6.6 m of 6.42 gpt gold in GL003 indicate the
existence of both large low-grade domains as well as moderate width high-grade
zones that warrant follow-up work.
    Diamond drilling is continuing at Clan Lake, 33 km southwest of the
Ormsby Zone, following up on the initial drillholes completed on the property
which returned gold values in all drillholes. Results such as 78.8 m of 1.94
gpt gold including 33.0 m of 4.29 gpt gold in CL100 and 21.5m of 10.39 gpt
gold in CL103 at shallow depths indicate substantial potential.
    Geophysical surveying has been completed on the BigSky and Clan Lake
properties and follow-up will commence this summer. Two targets are being
assessed on the BigSky Property; high-grade shear zone hosted gold deposits
and large tonnage low-grade granitic-hosted gold deposits. The large tonnage
deposits have a geochemical signature that suggests the airborne survey may
assist in targeting a zone of high gold potential.
    N. E. Fier, C.P.G., P.Eng, M. Pinollos, A.Winkers, P.Eng., J. Kaehne,
P.Eng., P. Melling, M.Sc., P.Eng., V. Pratico, P.Geo.and Dr. D.R. Webb,
P.Geol., the designated QP's within the meaning of NI 43-101, have reviewed
this release and approves of its content. The Preliminary Assessment Technical
Report will be published on SEDAR and the Company's website within 45 days.

    Tyhee Development Corp. is a gold exploration and development company
currently focused on the historic Yellowknife Gold Camp, NWT, Canada. It is
the largest property holder in the historic camp, and has the largest
exploration and development program underway in the region. Its principal
asset is the advanced-stage Yellowknife Gold Project, which consists of 6,625
hectares (15,481 acres) of mining leases located 90 km (56 miles) north of
Yellowknife, NWT, Canada. Three additional gold properties have been acquired
within the Yellowknife Gold Belt and further acquisitions are being
considered. Exploration on these properties is focused on three different
deposit types, including large-tonnage breccia-hosted (Ormsby-style), large
tonnage granite-hosted, and high-grade shear zone-hosted (Con/Giant-style)
gold deposits. Results from all properties have been positive with the
Company's current exploration focus directed to the Clan Lake and Goodwin Lake
properties.

    This news release contains forward-looking statements, which address
future events and conditions, which are subject to various risks and
uncertainties. The Company's actual results, programs and financial position
could differ materially from those anticipated in such forward-looking
statements as a result of numerous factors, some of which may be beyond the
Company's control. These factors include: the availability of funds; the
timing and content of work programs; results of exploration activities and
development of mineral properties, the interpretation of drilling results and
other geological data, the uncertainties of resource and reserve estimations,
receipt and security of mineral property titles; project cost overruns or
unanticipated costs and expenses, fluctuations in metal prices; currency
fluctuations; and general market and industry conditions.
    Forward-looking statements are based on the expectations and opinions of
the Company's management on the date the statements are made. The assumptions
used in the preparation of such statements, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such, undue
reliance should not be placed on forward-looking statements.

    NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS
    RELEASE. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE
    ADEQUACY OR ACCURACY OF THIS RELEASE.

    Tyhee's shares trade on the TSX Venture Exchange under the symbol "TDC".
For additional information, please visit the Company's website, www.tyhee.com.