Baires, I have a problem with Dave's explanation on why the dilution is accretive. The gold they identify by drilling is still on the property before they find it. The dilution is just allowing Tyhee to include it in a resource estimate.

Now, if you have a long term view of Tyhee as an investment, surely it is better to try and get into production on a small scale, with as few shares o/s as possible, and then use the cash flow from that small operation to drill the rest of the property out?

This is particularly the case if you believe, as I do, that this bull market has a long way to go and that there is no rush to get the gold out quickly with a high production rate and no reason to be diluting the stock more than necessary, i.e. for drilling, at this point as it reduces its value as an unexpired option on the rising gold price. I think is what may well be getting JP hot under the collar at the moment...

This is certainly the approach that Jim Sinclair, who I understand knows a thing or two about the gold business :), advocates.

Having said all that, I don't think this is the way we are going with Tyhee and we are now commited to another course.

I think the plan now is the get this financing done, set aside enough for the FS and permitting etc then drill the Clan Lake high grades to try and get up to 3m ounces resource and maybe 1.5m into reserves in the FS. Then they look at how to finance a mine which may be JV or bank loan.

It is just unfortunate that the Board have misjudged their timing with the financings a wee bit over the years which has adversely affected the share structure. This has probably cost us in market perception of the stock reflected in the current share price.