Exploration potential and more for 2010
posted on
Dec 23, 2009 01:05PM
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You all know I am deeply committed to long term, Tyhee becoming a producer. But I'm also excited about the near term.
The addition of 100,000 ounces for a cost of $500,000 (actually old news) is not repeatable. Part of it was the re-assay of old cores and data that had not been incorporated in the past. OK, so even if we get back to tyhee's norm of finding costs less than $25 per ounce, say at $20, and they spend at least $2 million in the upcoming drilling program at Clan Lake,that would be to add another 100,000 ounces, and to upgrade some of the Indicated into Measured. Even so, I expect that by this time next year, Tyhee will have added at least another 150,000 ounces, to 200,000 ounces, as I believe they will hit on some very good grades and have a finding cost well below $20.
They have an excellent winning strategy and have broken the DNA code of the Yellowknife gold camp.
So 2010 will be yet another year of greatly expanding the resource. But for me, that's just the tip of the iceberg, as whatever is found/drilled off in the top 200 to 300 metres, is, in my view, to be trippled in the life of the depost at depth over the life of the mine.
So, in 2011, when tyhee is moving forward to finance a mine, and with production rates of 200,000 oz/year (vice the previous 160,000), tyhee will also have grown the resrouce to nearly 3 million ounces M&I&I. In my view, that's 10 million ounces for tyhees stellar constellation with the YGP camp.
Also in 2010 will be the next upleg in gold, perhaps late in the year, after re-attacking 1220 a few times just to prove stubborn resistance will become the next strong support.
With the economics of this mine becoming well demonstrated in say June 2010, and exploration adding ounces faster than future mine production will consume, we have a big big winner here.
So where are the investors?
I think the recent flurry of news releases is a good sign. Someone has convinced Tyhee that telling the story more often, and every small progressive step shoudl be announced widely, so that the story gets out and becomes not onlyl known, but also FOLLOWED.
I hope to see DW interviewed by BNN, and not in those nice little segments, but I mean prime time at the in BNN anchor desk. ALternatively, getting Sprot to highlight Tyhee at the next time he is invited to appear.
That time will come. As will others, which will see volume in the millions.
One goofy thought I had today was this: after drilling off another 200,000 ounces at Clan Lake, would it be advantageous for Tyhee to spin off one of the deposits for cash, future Net Smelter royalties, and a stake in some junior's future? Suppose a junior is looking for a property, and has a few 10's of millions cash, would it be advantageous for Tyhee to spin off a resource in favor of developing the mine? I think not, as they'll be able to raise the money without having to sell a crown jewel. - so that's why I tink my tought was goofy!
As for joint ventures, if Tyhee snaps up some more claims in the area, such as those I've discussed relating to Viking, or any others that are a good strategic fit, it will further show Tyhee's utter dominance in this as yet un-heralded gold camp.
Trumpets in 2010!
SKELEG