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Message: Romarco is a dog compared to Tyhee

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I wish I was an Economic Geologist, and a Fly-on-the-wall at Tyhee's Board Room.

posted on Nov 15, 09 11:30AM

Skeleg,

As usual, you astutely pointed out something quite important about the difference between Tyhee and Romarco Minerals, "Take a look at their 28 Oct press release... They have a 0.343 g/t cuttoff, for 4.2 million ounces M&I&I. Tyhee is using 1 g/t, and will come up with over 3 million ounces conservatively, and much more I am sure will be drilled off in the coming years."

After reading what you said, I wished I was an Economic Geologist, and a Fly-on-the-wall at Tyhee's Board Room. Then, I might be able to better understand the possible conflicts and resolutions that probably have gone on.

That being, whether or not to lower the cutoff grades, and if so, by how much. Since, a lower cutoff would increase the bottom line cost of production since there'd be more tonnes to mine, but, at the same time, it would also allow Tyhee to produce more ounces of gold.

Although Romarco has lower grades than Tyhee, it also has lower energy costs as reflected in its economic study this year. But, Tyhee has Blue Fish Hydo nearby. So let's hope a good deal can be struck with them to help lower energy costs. In any event, Tyhee's PA's delivered a (darn good) $384/gold oz production cost even when oil was up around $140/ barrel. That spoiler won't be a problem in Tyhee's Pre-Feasibility Study this coming Winter/Spring.

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