SOMBA K'E/YELLOWKNIFE - Tyhee Gold Corp, developers of the Yellowknife Gold Project, announced earlier this month that drilling results continue to expand its main zone at Clan Lake.

Tyhee Gold Corp. spent nearly $3 million on exploration activities associated with the Yellowknife Gold Project in 2011. - photo courtesy of Tyhee Gold Corp

President and CEO of Tyhee Gold, Dave Webb, said he is pleased with the findings.

"It's encouraging," he said.

"Gold mineralization continues being developed east of the established resource area. We aren't sure if we are in the middle of the line or on the side of it. We are still establishing its width. What we've found there expands our zone by 200 metres or about 30 per cent."

The drill results for the main zone include 13 metres of 0.72 grams of gold per tonne, eight metres of 0.79 grams per tonne and two metres of 2.34 grams per tonne.

Exploration around the Ormsby Zone has also yielded promising results, according to Webb.

The Ormsby drilling is targeting an area 270 metres north of the open pit defined in the preliminary feasibility study.

"The results were rather good, very good, actually. Results from exploration north of the site show 12.46 grams per tonne in 8.2 metres," said Webb.

"We normally see mineralization on the eastern side of volcanic rocks, but here we are also finding it on the western sides.

These finds are in addition to the two million ounces of gold in its measured and indicated categories, including more than 800,000 ounces of proven and provable reserves.

The company completed a preliminary study in July 2010 and applications to construct and operate a 3,000 tonne per day mine have been submitted to regulatory authorities.

The company plans on submitting its environmental assessment report (developer's assessment report) to the Mackenzie Valley Environmental Review Board in late April or early May.

Webb couldn't say when he expects construction to begin on the mine, but said he wants all employees to be from the North.

"We want every single person to be from the NWT if we can manage it," said Webb.

"During the construction phase we expect to employ 200 Northerners. Once mining operations are underway we will have 400 people employed on a two-weeks-in, two-weeks-out basis."

Tyhee has spent roughly $3 million on exploration activities over the last year and $55 million on related activities since work began on the Yellowknife Gold Project.

The Yellowknife Gold Project is located 50 km north of Yellowknife.

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