International Tower Hill Mines Ltd. ("ITH" or the "Company") -
(TSX: ITH)(NYSE Amex: THM)(FRANKFURT: IW9) is pleased to announce
the results of the independently prepared June 2010 in-situ mineral
resource estimate for the Livengood gold project near Fairbanks,
Alaska (Table 1). The independent study incorporates all drill
results received through May 25, 2010, a total of 420 diamond and
reverse circulation holes, totalling 121,212 metres. This resource
update, calculated at a 0.7 g/t cutoff grade which the Company
envisions as a possible milling cut-off grade, expands the size of
the deposit and increases the average grade, thereby highlighting
the growing economic potential of the Livengood gold system.
The June, 2010 in-situ updated resource estimate will form the
basis of the Company's ongoing combined mill - heap leach
Preliminary Economic Assessment (PEA) anticipated for release in Q3
2010. The Summer 2010 drill program at Livengood is currently
underway utilizing five drills (two diamond and three reverse
circulation) for a planned total of 45,000 metres.
Updated Livengood Resource Estimate
Using a 0.7 g/t gold cut-off, the Indicated Resource is 6.9M
ounces of gold (an increase of almost 19% from the January 2010
estimated resource) and the average grade has increased 9% to 1.07
g/t gold from 0.98 g/t gold (Table 1).
In addition, the indicated ounces at a 0.5 g/t gold cut off have
increased by 17 % to 10.9 M ounces gold from 9.3M ounces of gold,
and the average grade has increased 6 % to 0.83 g/t gold from 0.78
g/t 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 15.7M ounces of gold at an average grade of 0.62 g/t
gold, with an additional Inferred Resource of 4M ounces of gold at
an average of 0.55 g/t gold (Table 3).
Jeff Pontius, President and CEO of ITH, stated, "We are highly
encouraged by the latest resource update, which includes results of
the winter drill program at Livengood. The estimated resource now
incorporates our expanding and higher grade SW Zone, while the
deposit remains open in several directions. The latest resource
data, as well as infill results between the Sunshine and Core
Zones, are expected to have a positive impact on our ongoing mine
design work. Our new combined mill-heap leach concept should
benefit from the higher grades in this new resource estimate as we
aggressively work to advance the project down the production
path."
Five drills have been deployed for the Summer 2010 program, with
the objectives of expanding the resource, improving confidence in
the high grade areas of the deposit, and gathering data for
metallurgical, hydrological and geotechnical studies. A major soil
survey is also planned to cover the northeast extension of the
mineralized trend with the objective of delineating drill targets
for exploration in the late fall and winter.
Table 1: June 2010 Livengood Resources (at 0.7 g/t gold cutoff)
--------------------------------------------------------------------------
Gold Cutoff Tonnes Million Ounces
Classification (g/t) (millions) Gold (g/t) Gold
--------------------------------------------------------------------------
Indicated 0.7 201.7 1.07 6.9
--------------------------------------------------------------------------
Inferred 0.7 39.9 1.06 1.4
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Table 2: June 2010 Livengood Resources (at 0.5 g/t gold cutoff)
--------------------------------------------------------------------------
Gold Cutoff Tonnes Million Ounces
Classification (g/t) (millions) Gold (g/t) Gold
--------------------------------------------------------------------------
Indicated 0.5 408.6 0.83 10.9
--------------------------------------------------------------------------
Inferred 0.5 94.4 0.79 2.4
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Table 3: June 2010 Livengood Resources (at 0.3 g/t gold cutoff)
--------------------------------------------------------------------------
Gold Cutoff Tonnes Million Ounces
Classification (g/t) (millions) Gold (g/t) Gold
--------------------------------------------------------------------------
Indicated 0.3 788.9 0.62 15.7
--------------------------------------------------------------------------
Inferred 0.3 229.1 0.55 4.0
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Resource Update
On June 14, 2010, Reserva International, LLC., an independent
contractor, delivered the updated resource estimate, which has been
prepared in accordance with the requirements of N.I. 43-101,
incorporating the data for all drilling through May 25, 2010. The
June 2010 indicated and inferred mineral resource estimate for the
Livengood deposit covers an area of approximately 4 square
kilometres and is based on 420 drill holes, which have an average
length of 289 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 significant and
consequently the resource model was constrained by the lithological
model developed by the Company. Spatial statistics indicate that
the mineralization shows very reasonable continuity within the
range of anticipated operational cutoffs. 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 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 relative to sample distance.
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 larger than the current
estimate.
Livengood Project Highlights
-- The Money Knob deposit represents one of the largest new gold
discoveries in North America. Drilling at the project continues to
expand the deposit and the ongoing 2010 exploration program is focused
on expanding the resource base as well as testing both new targets
within the District and the down dip projection of the existing deposit.
-- The Core, Sunshine and SW Zones account for most of the higher grade
mineralization (indicated resources of 201.7 Mt at an average grade of
1.07 g/t gold and inferred resources of 39.9 Mt at an average grade of
1.06 g/t gold, based on a cut off grade of 0.70 g/t gold) and form the
key mining areas for material going to the mill in the new PEA.
-- Ongoing metallurgical studies focusing on the potential use of milling
indicate that the mineralization has a high gravity concentration
component. In combined flotation-gravity concentration tests, an average
of 89% of the gold reported to a concentrate. The use of a gravity-
flotation pre-concentration system could offer a number of economic and
environmental benefits to the project.
-- The geometry of the currently defined, shallowly dipping and outcropping
deposit has a low strip ratio which is amenable to low cost open pit
mining, and 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 80 kilometres to the
south.
ITH controls 100% of its 151 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, and the project's first indicated resource estimate was
announced in early 2008. Money Knob is emerging as one of the
world's largest new gold deposits in one of the most stable mining
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 in the Core and SW Zones, and the
more vertically continuous, higher grade core in the Sunshine Zone
which result in a relatively low strip ratio for the overall
deposit.
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.
A detailed description of the updated resource estimate and
other pertinent geological information related to the Livengood
project will be included in a NI 43-101 compliant technical report
being prepared for the Company by Mineral Resource Services Inc.
and Reserva International, LLC., which will be filed on SEDAR
within 45 days of this news release.
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 reviewed and 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 June 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 mine engineering
experience in 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.
Development work at the Livengood Project is directed by Carl E.
Brechtel (Colorado PE 23212, Nevada PE 8744), who is a qualified
person as defined by National Instrument 43-101. He is a member of
SME, AusIMM and SAIMM. Mr. Brechtel is not independent of ITH, as
he is the COO and holds incentive stock options.
The work program at Livengood was designed and is supervised by
Chris Puchner, Chief Geologist (CPG 07048), of the Company, who is
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 Reno, Nevada or 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 from 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 and the preliminary economic analysis thereof
also may be deemed to be forward-looking statements in that it
reflects a prediction of the mineralization that would be
encountered, and the results of mining it, 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.
NR10-21
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.ithmines.com
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