International Tower Hill Mines Ltd. ("ITH" or the "Company") (TSX:
ITH)(NYSE Amex: THM)(FRANKFURT: IW9) is pleased to announce the
results of the updated independently prepared resource estimate for
the Livengood gold project, Alaska. Data used in this resource
update includes the final 64 drill holes completed in late 2009.
Successful infill drilling targeted several previously un-estimated
mineralized areas of the Northeast and Sunshine Zones of the
deposit. Results are anticipated to have a positive impact on the
strip ratio and mining economics (current low strip ratio of 0.8-1,
waste-ore). The Money Knob deposit is still open in several
directions (including at depth).
New Money Knob Resource Estimate
Using a 0.5 g/t gold cut-off grade, the new estimate yielded an
Indicated Resource of 9.3M ounces of gold and an Inferred Resource
of 3M ounces of gold (Table 1). Using a 0.7 g/t gold cut-off, which
the Company envisions as a possible milling cut-off grade, the
Indicated Resource is 5.8M ounces of gold and the Inferred Resource
is 1.8M ounces of gold (Table 2). Using a 0.3 g/t gold cut-off
grade, which is approximately the average grade for the heap leach
described in the Company's November, 30, 2009 heap leach PEA study,
the Indicated Resource is 13.5M ounces of gold, and the Inferred
Resource is 5M ounces of gold (Table 3).
Resource ounces across all grade ranges have uniformly increased
to indicated from inferred. This larger indicated resource will be
utilized in the ongoing mill-heap leach economic analysis being
done by SRK Consulting. The new expanded resource and the recently
announced positive mill metallurgical data will form key elements
in the ongoing PEA study scheduled for completion in the second
quarter of this year.
The winter 2010 drilling program commenced in early-February and
is utilizing 4 drill rigs on a 24 hour per day, 7 day a week
schedule. 21 drill holes were completed in February and the program
is on schedule to complete over 20,000 metres in this phase of the
program.
Jeff Pontius, President and CEO of ITH, stated, "The continued
expansion of the Money Knob deposit and its improving resource
confidence is highly encouraging for our plan to advance Livengood
towards production. The expansion of the indicated resource, in
conjunction with our recently announced milling-flotation-gravity
results, has more clearly focused our strategy for moving the
project up the value curve. The Livengood project, with its
existing World Class Money Knob gold discovery and emerging
property wide exploration potential, represents a tremendous
opportunity for ITH to build a major, new, North American gold
company and to maximize shareholder value."
Table 1: February 2010 Livengood Resources (at 0.50 g/t gold cutoff)
---------------------------------------------------------------------------
Gold
Cutoff Tonnes Gold Million
Classification (g/t) (millions) (g/t) Ounces Gold
---------------------------------------------------------------------------
Indicated 0.50 369 0.78 9.3
---------------------------------------------------------------------------
Inferred 0.50 122 0.77 3.0
---------------------------------------------------------------------------
Table 2: February 2010 Livengood Resources (at 0.70 g/t gold cutoff)
---------------------------------------------------------------------------
Gold
Cutoff Tonnes Gold Million
Classification (g/t) (millions) (g/t) Ounces Gold
---------------------------------------------------------------------------
Indicated 0.70 184 0.98 5.8
---------------------------------------------------------------------------
Inferred 0.70 56 0.99 1.8
---------------------------------------------------------------------------
Table 3: February 2010 Livengood Resources (at 0.30 g/t gold cutoff)
---------------------------------------------------------------------------
Gold
Cutoff Tonnes Gold Million
Classification (g/t) (millions) (g/t) Ounces Gold
---------------------------------------------------------------------------
Indicated 0.30 702 0.60 13.5
---------------------------------------------------------------------------
Inferred 0.30 278 0.56 5.0
---------------------------------------------------------------------------
The current Indicated and Inferred Gold Resource estimate for
the Money Knob deposit covers an area of approximately 3.5 square
kilometres and is based on 383 drill holes, with an average length
of 274 metres, and 11 trenches, with an average length of 38
metres. The geology has been modeled to represent the volumes of
the different stratigraphic units on the property and these have
been used to constrain the resource model.
The resource model for the deposit was developed using Multiple
Indicator Kriging techniques. Indicator variogram modeling was done
on 10 metre composites. Statistical analysis indicated that
lithological controls on mineralization are very significant and
consequently the resource model was heavily constrained by the
lithological model developed by the Company. Unlike in previous
Livengood resource estimates, for the current resource estimate a
probability indicator shell at 0.1 g/t gold was constructed around
the mineralized zone to constrain the interpolation. Interpolation
was further constrained by requiring a minimum of 2 holes in 4
octants for block estimation. The increased rigor of the estimation
was considered necessary in preparation for the Preliminary
Economic Assessment which will now be undertaken by SRK. Spatial
statistics indicate that the mineralization shows very reasonable
continuity within the range of anticipated operational cut-off
grades. Bulk density was estimated on the basis of individual
density measurements made on core samples and reverse circulation
drill chips from each stratigraphic unit. In total, 98 density
measurements were used. Block density was assigned on the basis of
the lithological model. The resource model, with blocks 15 x 15 by
10 metres, was estimated using nine indicator thresholds. A
change-of-support correction was imposed on the model assuming 5 x
5 x 10 metre selectable mining units. Classification of indicated
and inferred was based on estimation variance.
The geology of the holes around the margins of the currently
drilled area indicates that the favourable host stratigraphy and
alteration remain open laterally and at depth, thus indicating that
the system could potentially be much larger than the current
estimate.
Livengood Project Highlights
- Drilling at the project continues to expand the deposit, with
the current estimated resource only representing a snapshot in
time. The latest resource estimate (February 2010) of 369 Mt at an
average grade of 0.78 g/t gold (9.3Moz) (Indicated) and 122 Mt at
an average grade of 0.77 g/t gold (3.0Moz) (Inferred), both at a
0.5 g/t gold cut-off grade, makes it one of the largest new gold
discoveries in North America.
- The Core and Sunshine Zones, together, account for most of the
higher grade mineralization of 184 Mt at an average grade of 0.98
g/t gold (Indicated) and 56 Mt at an average grade of 0.99 g/t gold
(Inferred), based on a cut-off grade of 0.70 g/t gold, and they
form the basis for starter pit design work.
- Ongoing metallurgical studies will focus on the potential use
of milling with a flotation-gravity circuit, which has returned
initial recoveries of 88% with an 80% volume reduction and offers
significant potential for operational and capital cost savings.
Conventional whole ore milling with a gravity-CIL system produced
initial recoveries of 86% (see NR10-06). Optimization work is
ongoing for these recovery alternatives, as they have potential to
make significant positive impacts on project economics.
- The geometry of the currently defined shallowly dipping,
outcropping deposit has a low strip ratio amenable to low cost open
pit mining which could support a high production rate and economies
of scale.
- No major permitting hurdles have been identified to date.
The Company wishes to emphasize that the Livengood project has a
very favourable logistical location, being 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.
ITH controls 100% of its 100 square kilometre Livengood land
package, which is primarily made up of fee land leased from the
Alaska Mental Health Trust, plus a number of smaller private
mineral leases and additional unpatented Alaska State mining claims
owned 100% by the Company. 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 2009 resource
expansion drilling has significantly expanded the Money Knob
deposit which remains open for continued expansion in 2010 and
beyond. Money Knob is emerging as one of the world's largest new
gold deposits and is located in one of the most stable and mining
friendly jurisdictions in the world.
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 approximately half
has been explored by drilling to date. Surface exploration is
ongoing as new targets are being developed to the northeast and
west of the known deposit.
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.
Tim Carew, P.Geo., of Reserva International, LLC., a mining
geo-scientist, is a Professional Geoscientist in the province of
British Columbia (No. 18453) and, as such, is acting as the
Qualified Person, as defined in NI 43-101, for the January 2010
resource modeling for the Livengood deposit. Mr. Carew has a B.Sc.
degree in Geology, an M.Sc in Mineral Production Management and
more than 34 years of relevant geological and mining engineering
experience in the operating, corporate and consulting environments.
Both Mr. Carew and Reserva International, LLC. are independent of
the Company under NI 43-101.
Dr. Paul D. Klipfel, Ph.D., AIPG, a consulting economic
geologist employed by Mineral Resource Services Inc., has acted as
the Qualified Person, as defined in NI 43-101, for the exploration
data and supervised the preparation of the technical exploration
information on which some of this news release is based. Dr.
Klipfel has a PhD in economic geology and more than 28 years of
relevant experience as a mineral exploration geologist. He is a
Certified Professional Geologist (CPG 10821) by the American
Institute of Professional Geologists. Both Dr. Klipfel and Mineral
Resource Services Inc. are independent of the Company under NI
43-101.
Mr. William J. Pennstrom, Jr., of Pennstrom Consulting Inc., a
consulting metallurgical engineer, is acting as the Qualified
Person, as defined in NI 43-101, for the metallurgy and mineral
processing programs for the Livengood deposit. Mr. Pennstrom has a
BS degree in Metallurgical Engineering and a Masters degree in
business management. He has more than 26 years of relevant
experience as a metallurgist, having functioned as an operator,
engineer, and process consultant over this time frame. Mr.
Pennstrom is also a Qualified Professional (QP) member of the
Mining and Metallurgical Society of America. Both Mr. Pennstrom and
Pennstrom Consulting Inc. are independent of the Company under NI
43-101.
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 a preliminary economic
analysis of the Livengood project incorporating a milling scenario,
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, 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 inability of the
Company to obtain any necessary permits, consents or authorizations
required for its activities, the inability of the Company 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 40-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.
NR10-07
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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