TYHEE GOLD CORP
(PRESS PROFILE TAB FOR FACT SHEET & UPDATES)
Message: Webb Responds to LC's comments: Tyhee's Finding Costs, Hans Black is a "fool".
To answer your question regarding whether "their deposit is too small?" and whether they have fully drilled all their zones I refer you to Tyhee's own information published in the July 22, 2010 Prefeasibility Study:
A TOTAL OF
958 DIAMOND DRILL HOLES ON THE PROPERTY!!
TOTAL DRILLED LENGTH = 208,640 METERS
Yes folks, after you include drilling in 2009, 2010 & this year we are way beyond
210 KILOMETERS
Incidentally, using TDC's own reported reserves of 811,200 oz (recovered) that works out to roughly 3.8 oz gold reserves (recovered) per meter drilled.
So you can go one of two ways:
1. The deposits are essentially fully drilled after well over 10 years of exploration and recent/further drilling really is on a diminishing returns basis
2. To develop a MINIMUM ONE MILLION OZ GOLD RESERVE according to TDC's ACTUAL SUCCESS CRITERIA then TDC MUST DRILL ANOTHER 50,000 METRES. Of course, to get into a REAL deposit class of say 3 MILLION OZ then
TDC MUST DRILL A FURTHER 520 KILOMETERS !!!!
YIKES!!! This Project has potential to GO ON FOREVER!!
To answer part two of your initial questions re Hans Black investing in TDC: well "Isn't there a SUCKER born every day?" "A fool and his money are soon parted" etc etc. Note that Mr Hans Black has really no mining industry credentials so perhaps he simply "believes" in an opportunity. That's his choice.
Myself, I tend to rely on FACTS.
To each his own though.
DYODD
LC
A TOTAL OF
958 DIAMOND DRILL HOLES ON THE PROPERTY!!
TOTAL DRILLED LENGTH = 208,640 METERS
Yes folks, after you include drilling in 2009, 2010 & this year we are way beyond
210 KILOMETERS
Incidentally, using TDC's own reported reserves of 811,200 oz (recovered) that works out to roughly 3.8 oz gold reserves (recovered) per meter drilled.
So you can go one of two ways:
1. The deposits are essentially fully drilled after well over 10 years of exploration and recent/further drilling really is on a diminishing returns basis
2. To develop a MINIMUM ONE MILLION OZ GOLD RESERVE according to TDC's ACTUAL SUCCESS CRITERIA then TDC MUST DRILL ANOTHER 50,000 METRES. Of course, to get into a REAL deposit class of say 3 MILLION OZ then
TDC MUST DRILL A FURTHER 520 KILOMETERS !!!!
YIKES!!! This Project has potential to GO ON FOREVER!!
To answer part two of your initial questions re Hans Black investing in TDC: well "Isn't there a SUCKER born every day?" "A fool and his money are soon parted" etc etc. Note that Mr Hans Black has really no mining industry credentials so perhaps he simply "believes" in an opportunity. That's his choice.
Myself, I tend to rely on FACTS.
To each his own though.
DYODD
LC
.................................................................................................................
Dave Webb's response;
I asked Dave Webb to take a look at LC's numbers and comments. Dave didn't say anything about LC's suggestion that Dr. Hans Black is a fool, but he did say that LC's numbers seemed correct and added some further comments which I've paraphrased:
Using numbers LC compiled:
|
Item
|
Number
|
|
Total holes drilled
|
958
|
|
Total metres drilled
|
208,640
|
|
Total Resource
|
2,216,000
|
|
Total Reserves (recovered)
|
811,200
|
From this it is possible to calculate:
|
Item
|
Ounces Gold
|
|
Resource/metre drilled
|
10.6
|
|
Reserve/metre drilled
|
3.9
|
Knowing that diamond drill direct costs are a bit below $ 100 per meter in this environment,
with assaying, geology and support costs almost double the direct costs, it can be determined that:
|
Item
|
Direct Cost
|
Loaded Cost
|
|
Cost/Resource ounce
|
$9.43
|
$18.87
|
|
Cost/reserve ounce
|
$25.64
|
$51.28
|
Dave said these figures are fantastic and he hoped that Tyhee keeps finding gold like this.
When I asked Dave how Tyhee's numbers compared with other's he came up with this comparison compiled from the annual reports out over the past 4 months
|
Company |
Year |
Expenditures |
Resource |
Reserve |
Cost per |
Cost per |
|
|
AR |
$million |
Moz |
Moz |
Resource |
Reserve |
|
Barrick |
1990-2010 |
2200 |
|
139 |
|
$ 15.83 |
|
Barrick |
2010 |
152 |
20.1 |
7.8 |
$ 7.56 |
$ 19.49 |
|
Newmont |
2010 |
249 |
|
8.2 |
|
$ 30.37 |
|
Kinross |
2010 |
142.7 |
reduced |
6.3 |
na |
$ 22.55 |
|
Agnico Eagle |
2010 |
105 |
0.3 |
2.9 |
$ 350.00 |
$ 36.21 |
|
Iamgold |
2010 |
86 |
2.4 |
2.8 |
$ 35.83 |
$ 30.71 |
Dave said that some of the figures are difficult to come up with. For example, IAMgold reports their reserves within their resources (double counting, but not unusual), and we added the ounces they produced back into their reserves
Others, like Barrick report resource and reserve growth net of production (they already add it back in), so it is not a very simple exercise.
His take on it would be that given all of these companies have road access to their operating mines, and their drill costs must be cheaper than Tyhee’s, he is very pleased to see that Tyhee's finding costs are in line with these producers on a reserve basis, and similar or better on a resource basis.
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