TYHEE GOLD CORP

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Message: Some answers from the CEO
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I am reformatting and reposting this so that it's easier to read:

1)  Firstly, is it correct you may at some point buy a mill and move it to the Yellowknife/Big Sky area for processing the ore?  How would you transport the Nicholas ore to Ormsby or wherever?

As part of our Preliminary Assessment, we are looking at a 3000 to 5000 tonne per day mill on site.  This would act as the processing centre for any deposits within 15 to 20 km.  We have walked a road right of way and submitted this as part of our permit application, to get ore from Nicholas Lake to the Ormsby site.  It is a 10 km all-weather route.

2) Secondly, what would be the status of the prefeasibility report?

We are working on a Preliminary Assessment which typically precedes a Prefeasibility or Feasibility report.  We have completed a number of model pits on the Ormsby Zone, and are examining both an open pit and an underground option for Nicholas Lake.  I could guess a date, but it is best to say it will be ready when it is delivered to us.  Look for a month or so after we publish the NL OP resource.

3) Thirdly, how long would it take to construct a mine?

A mine and mill complex can be constructed in 12 months although most engineers request 18 months.  We’d need all permits, which typically take 12 to 24 months after final application documents are submitted.  Some construction can be done in advance of final permits, but that can be fairly risky.

4) Fourth, are there any issues with community support?

We have letters of support from the Yellowknife Chamber of Commerce, and the NWT and Nunavut Chamber of Mines.  We have positive feedback from the principal native groups in the area.  We’ll have to wait for our final plans to be published before we go any further, however we do meet the nearby communities on an ongoing basis.  We have hired Hugh Wilson as our VP Environment and Community Affairs to spearhead this.  His previous employment was with Miramar obtaining their permits for Hope Bay.

5) Fifth, any plans to raise further equity?

We have no plans to raise further equity at this time.  We have enough cash in the bank to accomplish all of our goals for 2008, plus some in the money warrants coming due in March and April.  If we have exceptional results at BigSky, Clan Lake, or Goodwin Lake we may increase our budgets, but that would more or less be self-financing.  We also anticipate a capital budget of between $175 and $200 million for a 3000 to 5000 tpd mine and mill operation which, should it be required, will most likely be financed through a typical debt and equity package, so ultimately, there would be additional equity issued.

6) Six,  any ideas of what Keith Barron meant when he said that the Yellowknife area had 7 of the 9 attributes he looks for?  Which 2 would be missing?

I talk to Keith from time to time, and we all have our little secrets, so I’m not sure what his 9 attributes might be.  One can guess, based on Keith’s background that these attributes could include, in no particular order:

 
  • Evidence of large gold deposits (past producing mines)
  • Large structures
  • Large alteration zones
  • Large and reactive host rocks
  • Extensive source rock
  • Large heat engines
  • Multiple tectonic and/or thermal events
  • Some way to obscure prior discovery (cover rocks)
  • Good logistics (transportation power water)
  • Good social/political/fiscal structure

Yellowknife has all of these to some degree, except for the last item.  That is what you can make of it and is not afforded to all who operate in the district. 

Dave 
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