On July 17, Tyhee released results from a preliminary assessment for its 100%-owned Yellowknife Gold Project in Yellowknife, Northwest Territories.

The proposed project includes production from the Ormsby and Nickolas Lake deposits with a central processing facility at Ormsby. The assessment utilizes the 1.27 million oz Measured and Indicated resource and 374,000 oz Inferred resource on the project.

The assessment contemplates a combined open pit and underground operation mining 3,000 tonnes per day for production of 163,500 oz of gold per year for the first seven years. The strip ratio is expected to be 5.9:1 at Ormsby and 6.26:1 at Nicholas Lake.

Capital costs are estimated at $150 million, including a 30% contingency, with additional $26 million sustaining capital required through the life of the mine. Operating costs are expected to be $384/oz.

Using $750/oz gold and a 5% discount rate, the project is calculated to yield a pre-tax IRR of 21.3% and a pre-tax NPV of $145 million. On an undiscounted basis, the project as a pre-tax NPV of $236 million, rising to $416 million with a $900/oz gold price.