Pick it apart.....

Yes folks, Weeb has finally released the mammoth document!
Funny though that no one (even on Agracrap) has picked it up and it was posted Sept 7!!

Here's a few excerpts:

TECHNICAL REPORT ON THE

PRE-FEASIBILITY STUDY OF THE YELLOWKNIFE GOLD PROJECT

NORTHWEST TERRITORIES, CANADA

Prepared for

Tyhee Development Corp.

Authors:

Nathan Eric Fier, C.P.G., P.Eng.

John Fox, M.Sc., P.Eng.

Frank Wright., P.Eng.

Jerry Kaehne, Diploma Electrical Technology

Lara Reggin, P. Geo.

Jay Collins, P. Eng.

July 22, 2010

SUMMARY:

With a production rate of 3,000 tpd over a period of 7.5 years and using a gold price of

US$950 per ounce, the YGP yields a Net Present Value (NPV) of CAD$71.3 M and a pretax

internal rate of return of 16.2 % as shown in Table 2. Payback of the initial capital cost

of $174 million (including contingency) is 5 years. Average cash operating cost per ounce of

gold is US$546.

An exchange rate of US
.93 to C$1 was used.

I do not intend to provide an assessment of the PFS at this time other than to point out a few important points:

PRODUCTION is forecast to START IN 2015!!

AVERAGE ANNUAL PRODUCTION for first 5 years is only 110,000 oz per year

Average cash operating cost is US$546/oz or CD$587/oz, well off the early numbers projected by Weeb.
Note that accuracy is still possibly off by 30%!! (ie. could be over $700/oz!!

PAYBACK is 5 YEARS!!! Much longer than most projects = ADDITIONAL RISK

There still has not been an independent detailed review of Resources and Reserves: still the same folks doing them: Practico et al
EBA have only signed off on the database Section 18.1

Mining Dilution and Recovery are only ASSUMED...and at a low 5% & 95%.
This area is typically much better developed in a professional PFS.
Using key assumptions at this stage could result in disaster later on.

Clan Lake delivers a total 38,000 oz gold! But it is not even included in Permitting process.

Lots of wishy-washy statem,ents regarding asumptions. This is NOT CONSIDERED GOOD at this stage of study.

Overall ranking of PFS = POOR.

Projected impact on Market (read this as educated investors) = LOUSY.

Sorry you folks didn't listen 2 - 3 years ago.
Not much has changed since then.
Project = MARGINAL with lots of RISK.