Yellowhead announces commencement of 11,000 m drill program

Monday, Dec 10, 2012

VANCOUVER, Dec. 7, 2012 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX:YMI, OTCQX:YHMGF) is pleased to announce that it has commenced a 11,000m in-fill drill program aimed at upgrading the category of resources within the pit area and allowing for more detailed mine planning and potential exploration benefits.  The program has mobilized three drill rigs and is expected to be completed in March 2013.  Lab results for the drilling are expected to be available throughout the program.

Mr. T. Greg Hawkins, Chairman of the Board and Interim Chief Executive Officer, reports:  "This advanced exploration drill program is an important step in the development of a detailed design and operating plan as we move through the permitting phase to prepare for construction and operation."

About Yellowhead Mining Inc.

Yellowhead's Harper Creek Project is a copper-gold-silver volcanogenic sulphide deposit located in south-central British Columbia, approximately 150 kilometers by highway north of Kamloops.  The Feasibility Study, dated and filed on SEDAR on March 29, 2012 (and available for review on Yellowhead's website) shows a pre-tax NPV8of $749.7 million with an IRR of 20.2% based on long-term metal price projections of US$2.50/lb Cu, US$1,250/oz Au and US$20/oz Ag, and a US$:Cdn$ exchange rate of 0.86:1.  The Feasibility Study demonstrated a 28 year project life at a milling rate of 70,000 tpd (25.55Mt/y). The project as designed is expected to produce a total of 3.63 billion pounds of copper, 372,000 ounces of gold and 14 million ounces of silver contained in concentrate.

At a 0.14% Cu cutoff,  Proven Reserves are estimated at 401.18Mt @ 0.272% Cu, 0.031g/t Au and 1.15g/t Ag; Probable Reserves 303.22Mt @ 0.248% Cu, 0.027g/t Au and 1.13g/t for a total Proven and Probable Reserve of 704.4Mt @ 0.262% Cu, 0.029g/t Au and 1.14g/t Ag.

The Feasibility Study is based on an updated resource (refer to news release dated February 16, 2012).  At a 0.20% Cu cutoff Measured Resources are estimated at 348.5Mt at 0.31 % Cu, 0.034g/t Au, 1.3g/t Ag; Indicated Resources at 466.5Mt at 0.28% Cu, 0.03g/t Au, 1.3g/t Ag for a total Measured and Indicated Resource of 815Mt at 0.29% Cu, 0.032g/t Au and 1.3g/t Ag (5.26 billion pounds of copper contained).  A further 80.17Mt at 0.30% Cu, 0.033g/t Au, and 1.4g/t Ag are estimated in the Inferred Resource category (0.53 billion pounds of copper contained) and are reported as waste in the mine production schedule until they can be upgraded by additional infill drilling.

Source: Yellowhead Mining Inc.