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Discovery gold mine glitters again

Cash from share sales means more exploration

Thorunn Howatt
Northern News Services

Yellowknife (Aug 07/02) - Another NWT gold mine is becoming a clear reality.

Tyhee recently made its final payment to GMD Resource Corp. for Discovery.

Now the old mine is paid for -- in full.

About 18 months ago, Tyhee Development Corp. bought the closed-down Discovery gold mine from GMD Resource Corp. Now it's aiming to "rediscover" the mine site.

Gold prices were low when Tyhee's president, David Webb, bought Discovery. He got the property for a bargain-basement price -- $265,000 plus a net smelter royalty.

But now bullion prices are soaring at more than $300 an ounce.

Webb also owns a nearby property known as Nicholas Lake. The southern boundary of the Nicholas Lake claim runs through the Discovery property's dock.

Nicholas Lake gold is only eight kilometres from Discovery mine.

This summer, Tyhee started a 6,000-metre drilling program on what it's calling the Yellowknife Gold Project -- Discovery and Nicholas.

Land-use permits were received from the Mackenzie Valley Water Board to start work at Discovery and Nicholas Lake.

Discovery produced more than one million ounces between 1949 and 1969.

In 1968, the mill building burned down and operations have been shut since.

Undoubtedly, higher gold prices have made it easier for Webb to raise cash for exploration.

Tyhee raised $1,123,850 by issuing 2,247,700 units at a price of $0.50 each. The warrants were listed on the TSX Venture Exchange under the symbol TDC.WT.

The 1,859-acre Discovery Mine Property is about 88 kilometres north of Yellowknife. In the past, it produced 1,023,575 ounces of gold from 1,018,786 tons of ore.