Tyhee buys Discovery
Northern News Services
Yellowknife (Jan 22/01) - After three decades, a Vancouver company is aiming to "rediscover" the Discovery mine north of Yellowknife.
Tyhee Development Corp., whose president is David Webb, just bought the mine from GMD Resource Corp.
Tyhee is currently reviewing all existing data on the gold resource at Discovery, Webb said. Once a review is completed, there could be more sampling, he adds.
Discovery produced just over one million ounces between 1949 and 1969. In 1968 -- gold was selling for $35 US an ounce -- the mill building burned down and operations have been shut since.
Discovery's resource is currently estimated at 514,000 ounces grading a very respectable .6 grams per tonne.
"We want to expand that resource," he said.
Webb, whose relationship with the Yellowknife Greenstone Belt dates back to 1981, believes Discovery may have the same kind of multi-million ounce potential as has been the case at the Con and Giant mine. "I look at Discovery as the same style of mine.
"I don't see why we can't explore and find more (gold at Discovery)," he said.
Webb may not have to look too far.
He owns the nearby Nicholas Lake gold property. In fact, the southern boundary of the Nicholas Lake claim runs through the Discovery property's dock. The Nicholas Lake gold showing is eight kilometres from the Discovery mine headframe.
"The broad brush is, I see the Discovery mine and Nicholas Lake as being no different in style of mineralization to that of Giant or Con," he said.
"They have the same types of deposits."
Webb adds the price of gold is low but that means "it's the best time to buy."
Tyhee will pay $265,000 plus a net smelter royalty.
Webb is the original owner of the Nicholas Lake gold property. The previous owner was Royal Oak Mines but Webb regained control of Nicholas Lake when Royal Oak failed to meet commitments.
Webb is also a former president and director of Vancouver-based GMD Resources. He no longer has any ties to GMD.
In the NWT, GMD is exploring the Royce Group diamond property 150 kilometres northwest of Yellowknife. De Beers can earn up to 60 per cent in the property.