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SOMBA K'E/YELLOWKNIFE
A joint venture has been struck to explore a Tyhee Gold Corp. property near Yellowknife, as Tyhee narrows its focus on developing the first gold mine on its Yellowknife gold project.

An aerial view of Tyhee Gold Corp.'s Yellowknife Gold Project, located about 75 km northeast of the city. The company just signed an exploration joint venture agreement for its Big Sky property, located just 17 km north of Yellowknife. - photo courtesy of Tyhee Gold Corp.

In exchange for a 50-per-cent interest in Tyhee's Big Sky property, junior resource company Williams Creek Gold Ltd. will spend a minimum of $500,000 over five years on exploration and development of the property, located just 17 km north of Yellowknife.

This exploration activity will allow Tyhee to focus its own resources on developing a mine on its flagship Yellowknife gold project, scheduled to begin construction in 2013, interim CEO Brian Briggs told Yellowknifer.

"It's been an ongoing struggle for Tyhee to make the change from an exploration company to a development company," said Briggs, who recently replaced geologist David Webb as CEO, as the company began shifting its focus from exploration to permitting, the technical process and the key goal of getting construction started at the Yellowknife gold project.

"Now, we will be able to advance Big Sky while continuing to focus on our feasibility study and development of our Yellowknife gold project."

With its focus on the Yellowknife gold project, which consists of the Ormsby, Nicholas Lake and Clan Lake properties, Tyhee "simply does not have the people or the time to go look at Big Sky in some fashion that is useful," Briggs said, as opposed to Williams Creek.

"They do have the time, they do have the people, and ($100,000 per year on exploration) is probably a fraction of what they're really going to spend," he said.

Michael Sonnenreich, chairman and CEO of Williams Creek Gold, stated in a news release that the company is encouraged by previous work done by Tyhee on the Big Sky property, and the property's proximity to Yellowknife.

"We are extremely pleased to joint venture with Tyhee Gold on the Big Sky property," he stated.

Starting with development of the Ormsby deposit, Tyhee's plan is to use cashflow produced out of its deposits to advance other properties, including eventually Big Sky, into individual mines, Briggs said.

According to a 2010 prefeasibility study, capital cost of the Yellowknife gold project is pegged at about $170 million, based on a 3,000- to 4,000-tonne-per-day operation.

The prefeasibility study's resource estimate of 1.95 million ounces of measured and indicated gold and 269,000 ounces of inferred gold, is expected to be changed "dramatically" with the bankable feasibility study, said spokesperson Greg Taylor.

The company expects to have the key bankable feasibility study complete by the end this summer.

"That then, will tell the story of how much it will cost, what are the benefits to the company, to the community, and our funding," Briggs said.

Tyhee's goal is to start production on the Yellowknife gold property in 2015, and the company is not ruling out any funding options to get into operation, Briggs said, including more possible joint ventures, once the data from the feasibility study is on the table.

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