International Tower Hill Mines Ltd. ("ITH" or "the Company") -
(TSX: ITH)(NYSE Amex: THM)(FRANKFURT: IW9) is pleased to announce
receipt of new, positive, metallurgical test results from the
Sunshine Zone on its Livengood Gold project in Alaska. The average
recovery from this new large zone of outcropping mineralization in
simple cyanide bottle roll tests was 80%. In addition, on average,
72% of the gold will report to a simple gravity concentrate with
carbon-in-leach (CIL) on the gravity tails recovering an additional
15% of the gold (Table 1). The exceptionally high gravity gold
recovery in the Sunshine Zone has now increased the overall gravity
recovery in the deposit to approximately 60%.
Positive metallurgical results continue to confirm the
amenability of Livengood mineralization to processing by either
heap leaching or milling. The Company is expecting additional
gravity-CIL and column leach data, as well as its first flotation
results, next month - all of which will be used in its Stage II
(mill + heap leach) Preliminary Economic Assessment (PEA) study
scheduled for completion early in the second quarter of 2010.
New abrasion test data from all mineralization types indicate
that the mineralized material is less abrasive than the values used
in the November, 2009 Stage I PEA, which will have a positive
impact on operating costs for both milling and heap leaching.
Table 1
Initial Sunshine Zone Metallurgical Results
(Averages of 4 composites each of sediment and intrusive material
representing variations in grade and oxidation)
Composite Gold Gain
Sample Reporting from
% of Assay Head Simple to CIL on
In-Pit Grade Cyanide Gravity Gravity
Ore Type Resource (g/t gold) Recovery Con. Tails
----------------------------------------------------------------------------
Sediment 96% 1.23 80% 73% 16%
Intrusive 4% 1.20 75% 64% 11%
----------------------------------------------------------------------------
Weighted Average 1.23 80% 72% 15%
The Company has selected SRK Consulting to complete its Stage II
PEA, which will incorporate both milling and heap leaching. SRK is
a premier global engineering firm with significant depth in the
analysis of large scale mining projects such as Livengood. The
study will focus on optimizing the economic performance of the
expanding Money Knob deposit through improved recovery provided by
milling higher grade sections of the deposit. The Company will be
updating its October 2009 resource base in February, 2010 with an
additional 70 drill holes completed late in 2009.
Metallurgical Test Methodology
Metallurgical testing was conducted by Kappes, Cassiday and
Associates in Reno, Nevada. Eight composite samples, each weighing
200 kilograms, were constructed from drill intersections in the
Sunshine Zone. The composites were built from nine drillholes and,
on average, each represents a combined length of approximately 43
metres. The composites were selected to represent partially
oxidized and trace oxidized material from higher and lower grade
intervals in both sediments and intrusive rocks. There was
insufficient unoxidized material in the Sunshine Zone to make
unoxidized composites. 72 hour cyanide bottle rolls were run on a
variety of grain sizes ranging from 1.5mm to 0.075mm. The results
for 0.075mm are reported in Tables 1 and 2 but, on average, the
recovery only improved 5% by increasing the amount of grinding. The
bottle roll tests show good recovery for both high and low grade
materials (Table 2). Gravity recoverable gold was determined using
the Knelson Gravity Recoverable Gold test which involves staged
grinding and concentration using the Knelson Concentrator. The
tails from the gravity concentration were subsequently treated
using carbon-in-leach with cyanide to determine the total
recoverable gold in the samples.
At present, additional work is underway on composite samples
from both the Core Zone and the Sunshine Zone to evaluate the
effectiveness of flotation and the extraction of gold from the
gravity and flotation concentrates.
Table 2
72 Hour Bottle Roll Results on 0.075mm Composite Sample Material
Calculated Tail Gold
Head Extracted Assay Extracted
Composite Type Gold (g/t) Gold (g/t) Gold (g/t) (%)
----------------------------------------------------------------------------
Kint_Ox_High 1.45 1.15 0.31 79%
Kint_Ox_Low 0.80 0.54 0.26 68%
Kint_TraceOx_High 1.42 1.17 0.25 83%
Kint_TraceOx_Low 0.82 0.59 0.23 71%
US_Ox_High 1.34 1.17 0.18 87%
US_Ox_Low 0.67 0.51 0.16 76%
US_Trace_High 1.33 1.07 0.27 80%
US_Trace_Low 0.55 0.43 0.12 79%
Livengood Project Highlights
-- Ongoing drilling at the project continues to expand the deposit at a
rapid rate, with the current estimated resource open for expansion. The
latest resource estimate (October 2009) of 296.8 Mt indicated at an
average grade of 0.85 g/t gold (8.09 Moz) and 164.2 Mt inferred at an
average grade of 0.84 g/t gold (4.4 Moz), both at a 0.5g/t gold cutoff,
makes it one of the largest new gold discoveries in North America.
-- The recently completed Stage I PEA shows that, with an USD 850/oz gold
price, mining the oxide portion of the deposit using a heap leach only
operation could yield 5.8M recoverable ounces of gold at with an NPV(5%)
of USD 440M and an IRR of 14.6% over a 13 year mine life.
-- Ongoing metallurgical studies focusing on the mill potential are
underway and the next (Stage II) PEA will consider a combined Mill and
Heap Leach operation. Preliminary results indicate that, on average, 56%
of the gold reports to a gravity concentrate and that carbon-in-leach
processing of tails will provide significant additional recovery. Final
results of these studies are expected in Q1 2010.
-- The geometry of the currently defined shallowly dipping, outcropping
deposit is such that the Stage I PEA indicates an overall strip ratio of
0.78:1 (waste to ore) in the USD 700 pit.
-- No major permitting hurdles have been identified to date.
The Company wishes to emphasize that the Livengood project has a
very favourable logistical location, situated 110 road kilometres
north of Fairbanks, Alaska along the paved, all weather Elliott
Highway, the Trans Alaska Pipeline Corridor, and the proposed
Alaska natural gas pipeline route. The terminus of the Alaska State
power grid lies approximately 55 kilometres to the south.
Project Background
ITH controls 100% of its 44 square kilometre Livengood land
package, which is primarily made up of fee land leased from the
Alaska Mental Health Trust and a number of smaller private mineral
leases. The Company and its predecessor, AngloGold Ashanti (U.S.A.)
Exploration Inc., have been exploring the Livengood area since
2003, with the project's first indicated resource estimate being
announced in early 2008. The Winter 2010 drilling program is part
of a series of drill initiatives which mark the first grid drilling
resource definition campaign for the project and is only the
initial step in what the Company envisions as a major exploration
program to define one of the world's larger new gold deposits.
Geological Overview
The Livengood Deposit is hosted in a thrust-interleaved sequence
of Proterozoic to Palaeozoic sedimentary and volcanic rocks.
Mineralization is related to a 90 million year old (Fort Knox age)
dike swarm that cuts through the thrust stack. Primary ore controls
are a combination of favourable lithologies and crosscutting
structural zones. In areas distal to the main structural zones the
selective development of disseminated mineralization in favourable
host rocks is the main ore control. Within the primary structural
corridors all lithologies can be pervasively altered and
mineralized. Devonian volcanic rocks and Cretaceous dikes represent
the most favourable host lithologies and are pervasively altered
and mineralized throughout the deposit. Two dominant structural
controls are present: 1) the major shallow south-dipping faults
which host dikes and mineralization which are related to dilatant
movement on structures of the original fold-thrust architecture
during post-thrusting relaxation, and 2) steep NNW trending linear
zones which focus the higher-grade mineralization which cuts across
all lithologic boundaries. The net result is broad flat-lying zones
of stratabound mineralization around more vertically continuous,
higher grade core zones with a resulting lower strip ratio for the
overall deposit and higher grade areas that could be amenable for
starter pit production.
The surface gold geochemical anomaly at Livengood covers an area
6 kilometres long by 2 kilometres wide of which an area
approximately 3 kilometres by 1.5 kilometres has been explored by
drilling to date. Surface exploration is ongoing as new targets are
developed to the northeast of the known mineralization.
Qualified Person and Quality Control/Quality Assurance
Jeffrey A. Pontius (CPG 11044), a qualified person as defined by
National Instrument 43-101, has supervised the preparation of the
scientific and technical information that forms the basis for this
news release and has approved the disclosure herein. Mr. Pontius is
not independent of ITH, as he is the President and CEO and holds
common shares and incentive stock options.
The work program at Livengood was designed and is supervised by
Dr. Russell Myers, Vice President, Exploration, and Chris Puchner,
Chief Geologist (CPG 07048), of the Company, who are responsible
for all aspects of the work, including the quality control/quality
assurance program. On-site personnel at the project photograph the
core from each individual borehole prior to preparing the split
core. Duplicate reverse circulation drill samples are collected
with one split sent for analysis. Representative chips are retained
for geological logging. On-site personnel at the project log and
track all samples prior to sealing and shipping. All sample
shipments are sealed and shipped to ALS Chemex in Fairbanks, Alaska
for preparation and then on to ALS Chemex in Vancouver, B.C. for
assay. ALS Chemex's quality system complies with the requirements
for the International Standards ISO 9001:2000 and ISO 17025: 1999.
Analytical accuracy and precision are monitored by the analysis of
reagent blanks, reference material and replicate samples. Quality
control is further assured by the use of international and in-house
standards. Finally, representative blind duplicate samples are
forwarded to ALS Chemex and an ISO compliant third party laboratory
for additional quality control.
About International Tower Hill Mines Ltd.
International Tower Hill Mines Ltd. is a resource exploration
company, focused in Alaska and Nevada, which controls a number of
exploration projects representing a spectrum of early stage to the
advanced multimillion ounce gold discovery at Livengood. ITH is
committed to building shareholder value through new discoveries
while maintaining a majority interest in its key holdings, thereby
giving its shareholders the maximum value for their investment.
On behalf of INTERNATIONAL TOWER HILL MINES LTD.
Jeffrey A. Pontius, President and Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act and Section 27E of
the Exchange Act. All statements, other than statements of
historical fact, included herein including, without limitation,
statements regarding the anticipated content, commencement and cost
of exploration programs, anticipated exploration program results,
the discovery and delineation of mineral
deposits/resources/reserves, the potential for the expansion of the
estimated resources at Livengood, the potential for any production
at the Livengood project, the completion of the Stage II
preliminary economic analysis of the Livengood project, the
potential for higher grade mineralization to form the basis for a
starter pit component in any production scenario, the potential low
strip ratio of the Livengood deposit being amenable for low cost
open pit mining that could support a high production rate and
economies of scale, the potential for cost savings due to the high
gravity concentration component of some of the Livengood
mineralization, the timing of the completion of, and possible
results from, ongoing metallurgical work, business and financing
plans and business trends, are forward-looking statements.
Information concerning mineral resource estimates also may be
deemed to be forward-looking statements in that it reflects a
prediction of the mineralization that would be encountered if a
mineral deposit were developed and mined. Although the Company
believes that such statements are reasonable, it can give no
assurance that such expectations will prove to be correct.
Forward-looking statements are typically identified by words
such as: believe, expect, anticipate, intend, estimate, postulate
and similar expressions, or are those, which, by their nature,
refer to future events. The Company cautions investors that any
forward-looking statements by the Company are not guarantees of
future results or performance, and that actual results may differ
materially from those in forward looking statements as a result of
various factors, including, but not limited to, variations in the
nature, quality and quantity of any mineral deposits that may be
located, variations in the market price of any mineral products the
Company may produce or plan to produce, the Company's inability to
obtain any necessary permits, consents or authorizations required
for its activities, the Company's inability to produce minerals
from its properties successfully or profitably, to continue its
projected growth, to raise the necessary capital or to be fully
able to implement its business strategies, and other risks and
uncertainties disclosed in the Company's Annual Information Form
filed with certain securities commissions in Canada and the
Company's annual report on Form 20-F filed with the United States
Securities and Exchange Commission (the "SEC"), and other
information released by the Company and filed with the appropriate
regulatory agencies. All of the Company's Canadian public
disclosure filings may be accessed via www.sedar.com and its United
States public disclosure filings may be accessed via www.sec.gov,
and readers are urged to review these materials, including the
technical reports filed with respect to the Company's mineral
properties.
Cautionary Note Regarding References to Resources and
Reserves
National Instrument 43 101 - Standards of Disclosure for Mineral
Projects ("NI 43-101") is a rule developed by the Canadian
Securities Administrators which establishes standards for all
public disclosure an issuer makes of scientific and technical
information concerning mineral projects. Unless otherwise
indicated, all resource estimates contained in or incorporated by
reference in this press release have been prepared in accordance
with NI 43-101 and the guidelines set out in the Canadian Institute
of Mining, Metallurgy and Petroleum (the "CIM") Standards on
Mineral Resource and Mineral Reserves, adopted by the CIM Council
on November 14, 2004 (the "CIM Standards") as they may be amended
from time to time by the CIM.
United States shareholders are cautioned that the requirements
and terminology of NI 43-101 and the CIM Standards differ
significantly from the requirements and terminology of the SEC set
forth Industry Guide 7. Accordingly, the Company's disclosures
regarding mineralization may not be comparable to similar
information disclosed by companies subject to the SEC's Industry
Guide 7. Without limiting the foregoing, while the terms "mineral
resources", "inferred mineral resources" and "indicated mineral
resources" are recognized and required by NI 43-101 and the CIM
Standards, they are not recognized by the SEC and are not permitted
to be used in documents filed with the SEC by companies subject to
Industry Guide 7. Mineral resources which are not mineral reserves
do not have demonstrated economic viability, and United States
shareholders are cautioned not to assume that all or any part of a
mineral resource will ever be converted into reserves. Further,
inferred resources have a great amount of uncertainty as to their
existence and as to whether they can be mined legally or
economically. It cannot be assumed that all or any part of the
inferred resources will ever be upgraded to a higher resource
category. In addition, the NI 43-101 and CIM Standards definition
of a "reserve" differs from the definition adopted by the SEC in
Industry Guide 7. In the United States, a mineral reserve is
defined as a part of a mineral deposit which could be economically
and legally extracted or produced at the time the mineral reserve
determination is made.
This press release is not, and is not to be construed in any way
as, an offer to buy or sell securities in the United States.
NR10-02
Contacts: International Tower Hill Mines Ltd. Quentin Mai
Vice-President - Corporate Communications 1-888-770-7488 (toll
free) or (604)683-6332 (604) 408-7499 (FAX)
qmai@internationaltowerhill.com www.internationaltowerhill.com
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